IMPACT Silver Corp. Announces Record
Revenues and Net Earnings for the Nine Months Ended September 30, 2011
IMPACT Silver Corp. ("the Company" or "IMPACT") is pleased to announce the results for the third quarter ending September 30, 2011.
Third Quarter 2011 Highlights
- Revenues are up 30% over the third
quarter of 2010 to $4.2 million, and up 97% over the nine months ended 2011 compared to
the nine months ended 2010, in spite of a concentrate
shipment delay during the quarter.
- Net earnings increased 381% to $2.0 million from
$0.4 million in the comparable period for
2010, with net earnings
up 415% over the first nine months of 2010.
- Earnings per share (EPS) grew 200% to $0.03 for the quarter
compared to the third
quarter of 2010, and jumped to a new company record of $0.11 for the first nine months of 2011.
- Silver production increased by
21% to 663,853 over the comparable nine months of 2010.
- Mine throughput for the
quarter was 427 tpd
("tonnes-per-day"), up 10% from 387 tpd in the third quarter of 2010.
- Cash flow from operations
before changes in non-cash working capital was $3.1
million, up 206% from $1.0 million for the third quarter of 2010 with
a significant increase
of 187% to $9.1 million for the first nine months of 2011 compared
to the first nine months
of 2010.
- Cash and cash equivalents
rose to $33.7 million with working capital at $33.1
million, and no long term debt.
Production
Three months ended
|
September 30, 2011
|
September 30, 2010
|
% Change
|
Total tonnes (t) produced
|
39,262
|
35,618
|
+10
|
Tonnes produced per day (tpd)
|
427
|
387
|
+10
|
Revenue per
production tonne sold ($CDN)
|
$231.99
|
$102.96
|
+125
|
Direct costs per production tonne ($CDN)
|
$77.78
|
$55.74
|
+40
|
Silver production (oz)
|
178,522
|
186,233
|
-4
|
Lead production
(t)
|
194
|
180
|
+8
|
Zinc production
(t)
|
314
|
328
|
-4
|
Gold production
(oz)
|
170
|
150
|
+13
|
Silver sales (oz)
|
118,867
|
149,992
|
-21
|
Lead sales (t)
|
123
|
171
|
-28
|
Zinc sales (t)
|
333
|
303
|
+10
|
Gold sales (oz)
|
106
|
130
|
-18
|
IMPACT had a very successful third quarter which contributed to record revenues, earnings
and silver production for the first nine months of 2011. Earnings Per Share
("EPS") for the first nine months increased significantly to a new company
record of $0.11 EPS, compared to $0.03 EPS in 2010.
Quarterly revenues and net earnings
increased to $4.2 million and $2.0 million respectively, in spite of silver
production being marginally
down 4% from the third
quarter of 2010, which is
attributable to lower
grade silver ore mined from a stope at the Chivo mine. Despite the marginal decrease,
the year to date silver
production was 663,853 ounces,
up 21% for the first nine months.
During the quarter, the smelter
receiving the Company's
lead-silver concentrate
experienced a temporary
lack of capacity during which time the Company suspended shipments but continued to produce and stockpile concentrate. In October the smelter resumed receiving shipments and the stockpiled lead-silver concentrate is now being shipped.
In comparison to last year,
higher spot prices for silver have allowed the Company to revise mining cut-off grades, which slightly reduced the average ounces per tonne. However, with the additional higher grade ore from the Noche Buena mine, grades of processed ore for the nine months have actually been higher for silver than in the comparable period
in 2010. Reducing mining grades marginally increased the cost per ounce, but high metal prices resulted in a record profit for the nine months of $6.9 million.
The Company's financial
position remained strong
with $33.7 million in cash and cash equivalents. Working capital
of $33.1 million is expected
to remain very healthy as cash flow from mining operations is planned to sufficiently fund the development at the open pit Capire Project, scheduled for
production in 2012.
Financial Summary
|
(000,000s $CDN, except EPS)
|
September 30 2011
|
September 30 2010
|
% Change
|
Revenue
|
$19.4
|
$9.9
|
+97
|
Net Earnings
|
$6.9
|
$1.3
|
+415
|
Cash Flow from Operations*
|
$9.1
|
$3.2
|
+187
|
EPS
|
0.11
|
0.03
|
+267
|
Production Summary
|
Total tonnes (t) produced
|
114,913
|
97,745
|
+18
|
Revenue per
production tonne sold ($CDN)
|
$207.70
|
$103.97
|
+100
|
Direct costs per production tonne ($CDN)
|
$75.52
|
$54.79
|
+38
|
Silver production (oz)
|
663,853
|
547,000
|
+21
|
* Before changes in non-cash working capital
Exploration
IMPACT continues to execute its
aggressive surface and underground drill program
and has already exceeded
its target of 20,000 meters of drilling in 2011. The Company has also identified a number of additional priority drill targets in the
423-square-kilometer Zacualpan Silver District and the adjacent 200-square-kilometer Mamatla Mineral District, while building its GIS database now with over 2,000 old mine workings catalogued.
The next project in the
production pipeline is the new open pit Capire Project, located in the Mamatla Mineral District 16 kilometers
southwest of Zacualpan.
Subject to permitting, Capire is scheduled
for construction in winter 2011/2012 and for
production in 2012. Capire
is IMPACT's first open pit mine, with measured and indicated mineral resource estimates totaling 7.2
million ounces Silver.
The zone remains open for expansion. Recent drill highlights include 304 g/t silver, 4.51
g/t gold, 1.52% lead, 3.05% zinc and 0.49% copper
across 5.0 meters (see IMPACT News Release dated
May 24, 2011). Upon
receipt of permits,
production plans are to initially construct a 200 tpd pilot plant (already purchased) with plans to later construct a larger processing plant. Capire will represent IMPACT's second
production district and continues IMPACT's growth strategy to become a multi-million ounce Silver producer with multiple production centers.
The next potential
production target at Zacualpan is the Oscar
Project located 2.5 kilometers
east of the Guadalupe Processing
Plant. Recent drill highlights
include very high grade
silver values including
291 g/t silver across
30.65 meter intersection including
6,730 g/t silver across
0.30 meters, and 1,007 g/t silver
across 5.65 meters (see IMPACT News Releases dated
October 20, 2011 and October 26, 2011). Exploration drilling is continuing at Oscar with plans to hand the project
to engineering staff for potential mine planning
in early 2012.
The Huatecosco Gold Project is
located 9.5 kilometers south of IMPACT's Guadalupe processing plant where a potential new gold district is
being drill tested. Huatecosco is a major
structure that strikes
in excess of 16 kilometers
along which five anomalous zones have been identified
to date. Recent drill results
from two of the Huatecosco zones included 5.2
g/t gold across 4.1 meters
and 6.96 g/t gold across 4.24 meters
(see IMPACT News Releases dated
October 12, 2011 and June 2, 2011). Drilling
is continuing on these two of the zones.
During the quarter, IMPACT also
signed an option agreement with
Defiance Silver Corp.
(TSX-V: DEF) for a major shareholder position in Defiance in return for IMPACT's
200 tpd mill and mineral concessions in the Zacatecas District (see IMPACT News Release dated
September 12, 2011).
A recorded conference
call can be accessed at our website: www.IMPACTSilver.com
On behalf of the Directors
of IMPACT Silver Corp.,
"Frederick W.
Davidson"
President & CEO
For further information, please
contact:
Meghan Brush, Investor
Relations
(604) 681 0172 or via email at inquiries@impactsilver.com
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy
of this release.
Forward-Looking Statements
This IMPACT News Release may contain certain "forward-looking" statements
and information relating to IMPACT that are based on the beliefs of IMPACT management, as well
as assumptions made by and information currently available to IMPACT
management. Such statements
reflect the current risks, uncertainties and assumptions related to certain
factors including but
not limited to, without
limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality,
technological change, industry
practices, and one-time events. Should any one or more risks or uncertainties materialize or change, or should
any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially
from those described herein. IMPACT does not assume the obligation to update any forward-looking statement.
Copyright � 2011 Impact Silver Corp. (IPT) All rights
reserved. For more information visit our website
at http://www.impactsilver.com/ or send email to inquiries@impactsilver.com.
|