IMPACT Silver Announces First Quarter 2016 Financial and Production Results

IMPACT Silver (TSXV:IPT) has announced its financial results for the three months ended March 31, 2016.
Fred Davidson, president and CEO, said:

Despite lower average silver prices in Q1 2016 compared to Q1 2015, the Company managed to increase production by 9% and reduce its operating expenses by 6% or $0.2 million over the same period last year. The Company’s strategy of focusing on higher grade mineral on both the exploration and production fronts is proving effective. Our production performance during the first quarter 2016 continues to demonstrate IMPACT Silver’s success and viability as a proven explorer and producer. In combination with stringent cost controls and improving grades, we achieved positive operational cash flow and positive EBITDA of $0.2 million this quarter. Despite lower silver prices persisting in 2016, our focus on profitability and higher grade zones of silver at San Ramon continues to keep IMPACT as a self-sufficient and enviable producer in the Mexican silver space.

As quoted in the press release:

Financial Overview for the Quarter Ended March 31, 2016

• Earnings before interest, taxes, depreciation and amortization (EBITDA¹) were $0.2 million for the first quarter of 2016 unchanged from 2015.
• Mine operating earnings before amortization and depletion² improved to $0.8 million in Q1 2016 from $0.7 million in Q1 2015.
• Revenue for the current quarter was $3.8 million compared to $3.9 million in 2015, a 4% decrease due to the lower silver prices and sales.
• Net loss for Q1 2016 unchanged from 2015 at $0.3 million for the quarter, of which non-cash items included $0.5 million in amortization and depletion in both years. Had the Company not incurred any foreign exchange expenses, IMPACT would have made a profit in Q1 2016.
• Cash flows generated from operations were $0.7 million for the first quarter of 2016 (2015 – $0.4 million). Cash flows generated from operations before changes in non-cash working capital³ were $0.2 million during the first quarter of 2016 (2015 – $0.4 million).
• Capital expenditures during the quarter included mineral property expenditures of $0.7 million. At March 31, 2016, cash was $1.0 million and net working capital was $2.0 million. The Company continues to be free of long term debt.

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