IMPACT Silver (IPT) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 81% year-over-year to CAD 8.6 million, driven by higher silver and zinc prices, increased Plomosas mine output, and improved mill head grades.

• Plomosas mine reached 70% of rated capacity, contributing CAD 2.5 million in revenue, with expectations for further production increases in Q4.

• Mine operating earnings before amortization and depletion reached $1.03 million, up from $0.01 million in Q3 2023.

• Zacualpan faced operational challenges due to storms and infrastructure upgrades, but gold production from Alacrán began in September.

• Net loss narrowed to CAD 1.2 million in Q3 2024 from CAD 1.5 million in Q3 2023, with positive cash flow expected as Plomosas reaches full production.

Financial highlights

• Zacualpan asset revenue was CAD 6.1 million in Q3 2024, up from CAD 4.8 million in Q3 2023.

• Plomosas mine generated CAD 2.5 million in Q3 2024 revenue; year-to-date revenue was CAD 5.4 million.

• Cash position at quarter-end was CAD 8.9 million, with working capital at approximately CAD 8.5 million and no long-term debt.

• Direct cost per ton at Zacualpan rose 14% year-over-year to $146.27 but declined sequentially from Q2 2024.

• Tonnage milled at Plomosas increased from 3,594 tons in Q1 to 12,686 tons in Q3.

Outlook and guidance

• Plomosas expected to average 175 tons per day in Q4, up from 138 tons per day in Q3, and is expected to reach full design capacity in the coming months.

• Anticipates continued revenue growth as Plomosas ramps up and Zacualpan recovers from recent disruptions.

• Exploration results from both Plomosas and Zacualpan expected soon, with further updates at year-end.

• Focus on grade improvement at Zacualpan and enhanced gold recovery from Alacrán mine.

• No major capital expenditures anticipated for Plomosas; focus remains on development and exploration.