IMPACT Silver Announces Q1 2018 Results

IMPACT Silver Corp. (TSX:IPT) announced its financial results for the three months ending March 31, 2018.

As quoted in the press release:

Operationally, the company is continuing to improve its mine operating income despite lower silver prices and variably lower grades at the mill. In Q1 2018, IMPACT incurred a net loss of US$0.5 million compared to US$0.4 million in Q1 2017. The company has implemented cost controls which have enabled operations to remain near EBITDA breakeven despite lower silver prices, operational delays and lower grades this quarter. These changes will assist IMPACT with better profitability as silver prices continue to show signs of improvement against a turbulent political and global economics backdrop.

Highlights are as follows:

Financial Overview

• Revenues for the first quarter were US$3.9 million, an improvement from US$3.1 million in Q4 2017. Operating expenses of US$3.5 million increased slightly from Q1 2017’s US$3.6 million, but a strong 10 percent improvement from Q4 2017.
• Mine operating earnings before amortization and depletion was US$0.3 million.
• Net loss for the quarter was US$0.5 million which included US$0.2 million of foreign exchange loss and non-cash expenses of US$0.3 million for amortization, depletion, share based compensation, and deferred income taxes. This compares to a US$0.4 million net loss for the same period in 2017, which included US$0.3 million of foreign exchange loss and non-cash expenses of US$0.8 million for amortization, depletion, share based compensation and deferred income taxes.
• Cash position remains strong at US$3.8 million at end of March 31, 2018, with net working capital of US$4.8 million.
• Capital expenditures during the quarter included exploration & evaluation asset expenditures of US$0.5 million (2017 – US$0.9 million) and US$0.3 million in property, plant & equipment expenditures (2017 – US$0.3 million).

Production Overview

• Silver production was 203,199 ounces for the first quarter of 2018, down 12 percent from 230,299 ounces in the same period of 2017.
• Average mill feed grade for silver was lower at 160 grams per tonne compared to 177 grams per tonne in the first quarters of 2018 and 2017 respectively.
• Total tonnes milled during the first quarter of 2018 decreased 4 percent to 46,602 from 48,743 in the comparable quarter of 2017.

Fred Davidson, president and CEO, commented:

Silver prices reached its recent high in January 2018 at US$17.54 an ounce but fell as the quarter progressed as the US dollar and interest rate started increasing. Nonetheless in Q1 our shares outperformed sector peers largely due to our exploration success at our sizable 357 kilometers land package, 5,000+ underground workings, and high potential exploration targets. The company continues to believe its market capitalization remains undervalued given our production and exploration potential.

Click here to read the full IMPACT Silver Corp. (TSX:IPT) press release.