Welcome!

News Feed Item

IMPACT Silver Reports Results for the Year Ended Decembers 31, 2013

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/03/14 -- IMPACT Silver Corp. (TSX VENTURE:IPT) ("IMPACT" or the "Company") announces its audited financial and production results for the three months and year ended December 31, 2013. Overall, silver production and grade increased, but revenues decreased in 2013 relative to 2012 mainly due to the dramatic drop in silver prices. The Company had a net loss of $8.5 million for the year, most of which was due to non-cash items totaling $9.0 million, resulting in a positive cash contribution of approximately $0.5 million.

The information in this news release should be read in conjunction with the Company's audited Consolidated Financial Statements and Management's Discussion and Analysis, available on the Company website and on SEDAR.

Financial Overview


--  Revenues of $14.1 million for the year 2013, compared to $15.9 million
    in 2012, despite a 37% drop in silver prices. 
--  Net loss of $8.5 million for the year, of which non-cash items total
    $9.0 million resulting in a positive cash contribution of approximately
    $0.5 million. Non-cash items comprise $2.3 million in depreciation and
    amortization; $1.5 million in share based payments; $3.7 million in
    write-downs required under IFRS; and, an adjustment to deferred taxes of
    $1.6 million ($1.5 million of this reflects the impact of the new
    Mexican mining taxes). 
--  Mine operating earnings before amortization and depreciation were $2.7
    million, compared to $5.6 million in the prior year. The last half of
    2013 reflected the dramatic downturn in silver prices, generating only
    $0.6 million of cash flow from mine operations. 
--  Capital expenditures during the year primarily related to the Capire
    milling facility of $3.6 million and mineral property expenditures of
    $8.4 million, part of which included the 2013 drill program of 34,000
    meters, drew down cash to $3.5 million. However, the programs were
    completed without incurring any debt financing. 

Production Overview


--  Silver production increased 3% to 153,512 ounces for the fourth quarter
    of 2013 from 148,333 ounces in the same period of 2012. For the year,
    silver production increased 10% to 682,526 ounces in 2013 from 620,515
    ounces in 2012. 
--  Average mill feed grade for silver increased in the fourth quarter of
    2013 to 151 grams per tonne (g/t) from 131 g/t in the fourth quarter of
    2012, which was reflected in the higher production for the comparative
    periods. Average mill feed grade for the year was up 14% to 158 g/t in
    2013 from 138 g/t in 2012. 
--  Total tonnes milled during the fourth quarter of 2013 decreased to
    36,655 from 42,870 in the fourth quarter of 2012 and 38,520 tonnes from
    the third quarter of 2013. 
--  Testing of the Capire pilot plant using mill feed from the Capire open
    pit was completed and the plant entered into commercial production in
    December 2013. The plant is now being reconfigured to test higher value
    gold and copper mineralization from the Carlos Pacheco/San Juan area. 
--  The Cuchara-Oscar mine was put into production in February 2013 and
    contributed 32% of mill feed for Q4 2013 and 23% of total mill feed for
    the year. 

As the Company reported in March 2013, mine production in 2012 was impacted by lower silver grades, particularly from the Chivo Mine, where silver grades decreasing with depth resulted in lower overall production. Further, Chivo also supplied higher grades of lead and zinc and therefore, the phasing down of Chivo also contributed to reduced overall lead and zinc production. To offset these production losses, the Company fast tracked the higher grade Cuchara-Oscar Mine into production. Commencement of production at Cuchara-Oscar was announced in late February of 2013.

Within the fourth quarter of 2013, Cuchara-Oscar provided 32% of all mill feed. As the Company developed Cuchara-Oscar to make it Guadalupe's principal producer, lower grade development muck was being processed through the mill. This resulted in lower grade ore in the fourth quarter with average head grade at 151 g/t compared to the third quarter at 171 g/t. Grades are still much higher than 2012, with year-to-date grade at 158 g/t for the current year compared with 138 g/t for the same period in 2012. With production materials being drawn from several mines with different feed grades, mine production can vary from quarter to quarter.

The Capire plant commenced commercial production in December 2013. As a result, there was a small contribution of production from this mill with 4,096 tonnes produced and silver sales of 3,275 ounces. As the Capire plant is reconfigured to process other sources of material including gold-copper mineralization, the Company anticipates a higher contribution to sales and production in 2014.

Average silver metal prices based upon the LME PM fix have decreased by 31% from the first quarter to the fourth quarter of 2013. Additionally, average silver prices have decreased 36% in the fourth quarter of 2013 from the same period in 2012. Silver sales were 165,139 ounces in the fourth quarter of 2013, an increase over the 130,857 ounces sold in the same period of 2012. Silver sales also increased year-to-date for 2013 to 717,334 ounces compared with 563,258 ounces sold year-to-date in 2012. The decrease in silver price contributed to the decrease in revenue from the fourth quarter of 2013 compared to the same period in 2012 even though the Company had increased silver sales in the fourth quarter.

The Company's lower revenues in the fourth quarter of 2013 of $80.81 per tonne, a decrease from $86.41 per tonne from the same period in 2012, are a result of lower realized metal prices and slightly higher smelting and refining charges. The lower silver price also affected the year-to-date revenue per tonne as it decreased to $87.92 per tonne for the year compared with $94.32 per tonne for same period in 2012.

The Company's financial position at December 31, 2013 remained sound with $3.5 million in cash and net working capital of $6.9 million. The Company had cash flows from operations before changes in non-cash working capital of $0.6 million for the year ended December 31, 2013. This compares to cash flow generated from operations before changes in non-cash working capital of $3.3 million in the same period of 2012.

IMPACT Silver Corp. operates two processing plants within its 100% owned 623-square-kilometer land package in south-central Mexico: the Guadalupe Production Centre and the Capire Production Centre. At Guadalupe, three underground silver mines feed the central 500 tonnes per day processing plant located within the historic Royal Mines of Zacualpan Silver District. At Capire, the processing plant is potentially available to supplement the processing of gold and copper mineralization from the Carlos Pacheco/San Juan Project. Additional information can be found on the Company website at www.IMPACTSilver.com.

A recorded conference call reviewing the financial and production results of the year ended December 31, 2013, will be available on the Company's website on Friday, April 4, 2014.

On behalf of the Directors of IMPACT Silver Corp.,

Frederick W. Davidson, President & CEO

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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
With over 720 million Internet users and 40–50% CAGR, the Chinese Cloud Computing market has been booming. When talking about cloud computing, what are the Chinese users of cloud thinking about? What is the most powerful force that can push them to make the buying decision? How to tap into them? In his session at 18th Cloud Expo, Yu Hao, CEO and co-founder of SpeedyCloud, answered these questions and discussed the results of SpeedyCloud’s survey.
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
Actian Corporation has announced the latest version of the Actian Vector in Hadoop (VectorH) database, generally available at the end of July. VectorH is based on the same query engine that powers Actian Vector, which recently doubled the TPC-H benchmark record for non-clustered systems at the 3000GB scale factor (see tpc.org/3323). The ability to easily ingest information from different data sources and rapidly develop queries to make better business decisions is becoming increasingly importan...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Kubernetes, Docker and containers are changing the world, and how companies are deploying their software and running their infrastructure. With the shift in how applications are built and deployed, new challenges must be solved. In his session at @DevOpsSummit at19th Cloud Expo, Sebastian Scheele, co-founder of Loodse, will discuss the implications of containerized applications/infrastructures and their impact on the enterprise. In a real world example based on Kubernetes, he will show how to ...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...