IMPACT Silver (IPT) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenue of $48.5 million in 2025, a 52% year-over-year increase, driven by strong commodity prices, improved grades, and disciplined cost controls.

• Gross profit reached $10.4 million, reversing a prior year loss of $2.2 million.

• Ended 2025 with a strong balance sheet: $24 million in cash, $4 million in term deposits, $31.7 million in working capital, and no long-term debt.

• Temporarily suspended mining at Plomosas due to resource and development challenges, recognizing an $8.8 million impairment loss and exploring third-party processing options.

• Continued investment in Zacualpan, focusing on higher-grade silver veins and operational efficiencies, with ongoing shaft and mill repairs.

Financial highlights

• Annual revenue increased 52% to $48.5 million; Q4 revenue from Zacualpan reached nearly $15 million, up 129% year-over-year.

• Gross profit for FY 2025 was $10.4 million; Q4 2025 gross profit was $6.6 million.

• Net loss for 2025 was $10.3 million, including non-cash impairment and share-based compensation.

• Excluding non-cash items, net income was positive $4 million, despite Plomosas losses.

• Working capital at year-end was $31.7 million, with $4 million in guaranteed investment certificates.

Outlook and guidance

• Zacualpan expected to deliver strong results if metal prices remain high, with Q4 run rate seen as representative for 2026.

• Plomosas suspension expected to reduce costs and preserve capital, with plans for a more defined mine plan and ongoing third-party mill feed discussions.

• Capire project under review for restart, pending CapEx and equipment delivery.

• Aggressive exploration and selective acquisition strategy planned, leveraging strong cash position.

• 2026 outlook is positive, with plans to advance shareholder value through improved grades, increased production, and continued exploration.