Despite both higher tonnage of ore processed and higher grade at the mill, the Company recorded
'To rectify the financial challenges in the short term, the Company initiated a hiring freeze as well as an initial round of layoffs. Having invested
'The cash position remains strong at
'IMPACT is a primary silver producer and is highly leveraged to silver prices. It is our plan for the remaining months of 2022 to focus on operational efficiency and cost reduction strategies to advance into 2023 with strength. With a strong pipeline of project exploration programs underway, strong working capital, no long-term debt, and an efficient and nimble operation, IMPACT is well positioned to weather the short-term volatilities.'
Q3 2022 FINANCIAL REVIEW
Despite higher grades and silver production, lower silver prices of 15% resulted in a drop in revenue to
The Company invested
Mine operating loss before amortization and depletion for Q3 2022 was
Net loss for Q3 2022 was
Net working capital for the Company at
The Company continues to have no long-term debt.
Q3 2022 PRODUCTION REVIEW
Throughput at the mill was 39,816 tonnes in Q3 2022 compared to 34,587 tonnes in Q3 2021.
Q3 2022 silver sales were 169,835 ounces (Q3 2021 - 147,597 ounces), an increase of 15%.
In spite of higher grades, revenue per tonne sold in the current quarter dropped to
Average mill head grade improved 5% to 165g/t Silver Q3 2022 (156 g/t Q3 2021)
Direct costs per production tonne were
EXPLORATION & DEVELOPMENT PLANS
The 2022 exploration program of over 21,000m of drilling is wrapping up across the Company's extensive land package utilizing four Company owned drills (2 surface rigs, 2 underground rigs).
Exploration targets are defined and prioritized using a very large computer database including over 5,000+ old mine workings, compiled over many years from historical maps, Company exploration results, and other technical data on the project. During the first quarter, IMPACT announced drill results from the
Tailings dams at the Guadalupe production center are engineered to current standards and 100% of (non-acidic) mine water is either recycled or lost to evaporation. In 2021, the Company, as part of a periodic review, engaged independent engineers to conduct a study on the status of the current Guadalupe tailing's impoundment and are following the recommendations for improved operations. Construction of tailings dam number 3 is almost complete and will accommodate approximately 9 years of production tailings from the Guadalupe mill complex.
Subject to prevailing market conditions and current technical studies including ore sorting, expanding the current pilot plant and infrastructure, in 2023 IMPACT is looking to potentially initiate the program to restart production at the Capire open pit mine .
ENVIRONMENAL SOCIAL GOVERNANCE POLICIES (ESG)
IMPACT recognizes the paramount expectations that stakeholders and investors place on ESG and has been proactive in ESG activities well before this became a requirement from financiers globally.
Environmental
IMPACT recognizes that exploration and mining create a physical change within the area of work. The Company believes in its responsibility to ensure that it minimizes the environmental impact of its efforts and carries out reclamation on sites disturbed by its activities. As primarily an underground mining situation, surface disturbance from mining has been minimal in the past.
In 2021, the trees planted as part of preparation for the new tailings facility number 3, were part of a larger program to improve areas of past historical district wide physical disturbance. For each tree removed the Company planted a further 7 trees. In conjunction with the municipality and the Technological Baccalaureate Center, the Company planted approximately 6,000 trees of various indigenous species in 2021. Planting of a further 10,000 trees is planned for 2022/2023.
The exploration drills used and owned by IMPACT are modular diamond drill rigs which minimize the area of disturbance due to their small size and mobility. These drills rig require little in the way of drill pads or access trails, no building of new roads, and the Company engages the local community for logistical support and assistance as part of the drill crew.
On the
Social
The Company keeps community members informed of its activities and works with the communities to address local concerns. The employment of most workers from the local communities' fosters understanding, and direct involvement in the Company's operations. The Company continues to provide tools, materials and supplies to local communities, and contributes to local festivals. During the year it has upgraded roads, and built a new school, as well as a badly needed health clinic. The Company has also built soccer fields, basketball courts and other facilities for local communities.
Governance
Good governance is a priority for the Board of Directors. The Company has a strong, experienced Board where a majority of Directors are independent and oversee governance of the Company through Compensation and Audit Committees. The average years of experience of IMPACT's board members in mining industry is 30 years and good governance is critical to earn the confidence of our stakeholders as the Board continues to guide IMPACT through recent tumultuous times.
For further details and media of our various ESG initiatives please visit website: https://impactsilver.com/corporate/esg/ or MD&A at https://impactsilver.com/investors/financials/.
A recorded conference call reviewing the financial and production results of the quarter ended
The information in this news release should be read in conjunction with the Company's unaudited condensed consolidated interim financial statements and Management's Discussion and Analysis, available on the Company website at https://impactsilver.com and on SEDAR at www.sedar.com. All amounts are stated in Canadian dollars unless otherwise specified.
ABOUT
At the Royal Mines of
Additional information about IMPACT and its operations can be found on the Company website at https://impactsilver.com/. Follow us on Twitter @IMPACT_Silver and LinkedIn at https://www.linkedin.com/company/impactsilver
Qualified Person and NI 43-101 Disclosure
Contact:
Investor
CFO
T: (604) 664-7707
E: inquiries@impactsilver.com
T: (778) 887 6489
Neither
Forward-Looking and Cautionary 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. Forward-looking information is often, but not always, identified by the use of words such as 'seek', 'anticipate', 'plan', 'continue', 'planned', 'expect', 'project', 'predict', 'potential', 'targeting', 'intends', 'believe', 'potential', and similar expressions, or describes a 'goal', or variation of such words and phrases or state that certain actions, events or results 'may', 'should', 'could', 'would', 'might' or 'will' be taken, occur or be achieved. Such statements include, but are not limited to, statements with respect to the expected use of proceeds of the Private Placement.
Such forward-looking information involves known and unknown risks and assumptions, including with respect 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.
The Company's decision to place a mine into production, expand a mine, make other production related decisions or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports based on exploration, development and mining work by the Company's geologists and engineers. The results of this work are evident in the discovery and building of multiple mines for the Company and in the track record of mineral production and financial returns of the Company since 2006. Under NI 43-101 the Company is required to disclose that it has not based its production decisions on NI 43-101 compliant mineral resource or reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk of failure.
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