VANCOUVER, BRITISH COLUMBIA--(Marketwire -04/02/12)- IMPACT Silver Corp. (TSX-V: IPT.V - News) ("IMPACT or "the Company") is pleased to announce record financial and production results for the year ended December 31, 2011.
-- Record revenues of $24.3 million, up 46% from $16.7 million in 2010.
-- Record net earnings of $7.6 million, up 121% from $3.4 million in 2010,
and basic earnings per share up 71% to $0.12, compared to $0.07 in 2010.
-- Record mine operating earnings of $12.9 million, up 73% from $7.4
million in 2010.
-- Record cash flow from operations before changes in non-cash working
capital of $10.2 million, up 89% from $5.4 million in 2010.
-- Cash balance of $30.8 million, up 65% from $18.7 million in 2010.
-- Record silver production of 833,607 ounces, up 11% from 750,259 ounces
-- Throughput for the mill averaged 424 tonnes per day ("tpd"), up 18% from
360 tpd in 2010.
2011 Production Highlights
2011 2010 % Change
Total tonnes (t) produced 154,289 131,348 +17%
Tonnes produced per day 424 360 +18%
Silver production (oz) 833,607 750,259 +11%
Lead production (t) 731 734 -0.4%
Zinc production (t) 1,248 1,212 +3%
Gold production (oz) 676 600 +13%
Revenue per production tonne sold $171.00 123.25 +39%
Direct costs per production tonne $69.71 63.29 +10%
Fourth Quarter 2011 Consolidated Highlights
The Company generated revenues in the fourth quarter of $4.8 million, compared to $6.8 million in the fourth quarter of 2010. Net earnings for the fourth quarter totaled $0.6 million with earnings per share of $0.01. Mine operating earnings were $1.3 million, compared to $3.5 million in the fourth quarter in 2010.
Fourth quarter silver production was 169,755 ounces compared to 203,259 ounces in the fourth quarter of 2010, as a result of revised cut-off grades which slightly reduced the average ounce per tonne. Additionally, in the third quarter of 2011, the smelter receiving IMPACT's concentrate would not accept shipments for upwards of 30 days due to a lack of capacity. IMPACT continued to produce and stockpile the lead-silver concentrate and in mid-October recommenced shipments to the smelter. The net realizable value of the unshipped inventories at December 31, 2011, was $1.0 million. IMPACT continues to ship and sell the stockpiled concentrate in 2012.
IMPACT will focus its efforts on developing the Capire silver-lead-zinc deposit in the Mamatla District, anticipating the open-pit Capire Project to move into pilot plant production in the fourth quarter of 2012. Exploration activities have the IMPACT team aggressively drilling at Huatecosco-Carlos Pacheco, a potential new gold district, to determine the significance of recent drill results from multiple targets indicating high-grade gold mineralization in the deeper zones. Expansion drilling is currently underway at the Huatecosco zone to also identify the economic feasibility of a future processing plant in the area. The Oscar Project, a corridor of multiple high-grade epithermal silver veins, saw extensive drilling in 2011. Drill results are presently being studied by the IMPACT team to determine the potential to fast-track the Oscar into production in early 2013.
IMPACT Silver Corp. is a silver focused mining and exploration company operating in Mexico with a producing silver operation at the 423-square-kilometer Royal Mines of Zacualpan Silver District, and the 200-square-kilometer advanced Mamatla Silver District and a 16.6% share holding in Defiance Silver Corp. The complete version of the audited Financial Statements and the MD&A is available on SEDAR at www.sedar.com or the Company's website, www.impactsilver.com. A recorded conference call will be available on the Company's website on Tuesday, April 3, 2012.
On behalf of the Directors of IMPACT Silver Corp.,
Frederick W. Davidson, President & CEO
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.
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.