IMPACT Silver (IPT) Q4 2022 earnings summary

Executive summary

• 2022 mine operating earnings before amortization and depletion were $1.2 million; lower silver prices and inflation weighed on results despite production gains.

• Growth plans pair Zacualpan grade and efficiency improvements with the planned integration of Plomosas and its high-grade zinc potential.

Financial highlights

• Revenue was $16.3 million in 2022 vs. $17.7 million in 2021, primarily due to lower average silver prices.

• Mine operating earnings before amortization and depletion were $1.2 million vs. $4.7 million; operating cash flow was a loss of $1.8 million vs. $3.0 million generated in 2021.

• At Dec. 31, 2022, cash was $15.3 million, working capital was $16.4 million, total assets were $68.8 million vs. $66.5 million, and long-term debt was nil.

Outlook and guidance

• Management expects margins to improve through 2023 as cost controls take hold and silver prices recover; most cost increases were considered addressed or absorbed.

• Plomosas operations were targeted to begin in Q2 2023, subject to closing the acquisition; planned growth includes high-grade zinc production and exploration.

• 2023 exploration plans include brownfield and greenfield targets across Zacualpan and primarily brownfield work at Plomosas.