IMPACT Silver Announces Record Revenues, Earnings
and Production for the Year Ended
2011
IMPACT Silver Corp. ("IMPACT or "the Company") is pleased to announce record financial and production results
for the year ended December 31, 2011.
2011 Highlights
- Record revenues of $24.3 million, up 46% from $16.7 million in
2010.
- Record net earnings of
$7.6 million, up 121% from $3.4 million in 2010, and basic earnings
per share up 71% to $0.12, compared to $0.07 in
2010.
- Record mine operating earnings
of $12.9 million, up 73% from $7.4 million in 2010.
- Record cash flow from operations before changes in non-cash working
capital of $10.2 million, up 89% from $5.4
million in 2010.
- Cash balance of $30.8 million, up 65% from $18.7 million in
2010.
- Record silver production
of 833,607 ounces, up 11% from 750,259 ounces in 2010.
- Throughput for the mill averaged 424 tonnes per day
("tpd"), up 18% from 360 tpd in 2010.
2011
Production Highlights
|
2011
|
2010
|
% Change
|
Total tonnes (t) produced
|
154,289
|
131,348
|
+17%
|
Tonnes produced per day
|
424
|
360
|
+18%
|
Silver production (oz)
|
833,607
|
750,259
|
+11%
|
Lead production (t)
|
731
|
734
|
-0.4%
|
Zinc production (t)
|
1,248
|
1,212
|
+3%
|
Gold production (oz)
|
676
|
600
|
+13%
|
Revenue per production tonne sold
|
$171.00
|
123.25
|
+39%
|
Direct costs per production tonne
|
$69.71
|
63.29
|
+10%
|
Fourth Quarter
2011 Consolidated Highlights
The Company generated
revenues in the fourth quarter of $4.8 million, compared to $6.8 million in the fourth
quarter of 2010. Net earnings for the fourth quarter totaled $0.6 million with earnings per share of $0.01.
Mine operating earnings were
$1.3 million, compared to $3.5 million in the fourth quarter in 2010.
Fourth quarter silver
production was 169,755 ounces
compared to 203,259 ounces
in the fourth quarter of 2010, as a result of revised cut-off grades which slightly reduced the average ounce per tonne. Additionally, in the third
quarter of 2011, the smelter receiving
IMPACT's concentrate would not accept shipments for upwards of 30 days due to a lack of capacity. IMPACT continued to
produce and stockpile
the lead-silver concentrate
and in mid-October recommenced
shipments to the smelter.
The net realizable value of the unshipped inventories at December 31, 2011, was $1.0
million. IMPACT continues to ship and sell the stockpiled concentrate in 2012.
2012 Outlook
IMPACT will focus its
efforts on developing the Capire
silver-lead-zinc deposit
in the Mamatla District, anticipating
the open-pit Capire
Project to move into pilot plant production in
the fourth quarter of 2012. Exploration activities have the IMPACT team aggressively
drilling at Huatecosco-Carlos Pacheco, a potential
new gold district, to determine the significance of recent drill results from multiple targets indicating high-grade
gold mineralization in the deeper
zones. Expansion drilling is
currently underway at the Huatecosco zone to also identify the economic feasibility of a
future processing plant in the area. The Oscar
Project, a corridor of multiple high-grade epithermal
silver veins, saw extensive drilling in 2011. Drill results are presently being studied by the IMPACT team to determine
the potential to fast-track
the Oscar into production in early
2013.
IMPACT Silver Corp. is
a silver focused mining and exploration company
operating in Mexico with a producing
silver operation at the 423-square-kilometer Royal Mines of Zacualpan Silver District,
and the 200-square-kilometer advanced Mamatla Silver District and a
16.6% share holding in Defiance
Silver Corp. The complete
version of the audited Financial Statements and the MD&A is
available on SEDAR at www.sedar.com or the Company's website, www.impactsilver.com. A recorded conference call will be available
on the Company's website
on Tuesday, April 3, 2012.
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 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 is 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.
View
News Release in PDF Format:
http://www.impactsilver.com/i/pdf/2012-04-02_NR.pdf
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