Fred Davidson, President and CEO, stated, "Our production performance during the third quarter was the strongest at year-to-date. With the new, high-grade Cuchara-Oscar Mine providing 27% of total mill feed to the Guadalupe Production Centre, which is now averaging 171 grams per tonne ("g/t") silver, our objective is to increase the overall silver head grade in the Zacualpan District to our historical average of 200 g/t in 2014. We have been able to increase our silver production and grades substantially from the third quarter of 2012, and we will continue to employ a disciplined and prudent approach to our mining and exploration work to position IMPACT to benefit and grow when the market recovers."
Overview for the Quarter Ended September 30, 2013
Financial Overview
- Revenues for the third quarter of 2013 were $3.1 million, a slight decrease from $3.2 million in the third quarter of 2012, despite a significantly lower silver price.
- Mine operating loss for the third quarter of 2013 was $0.4 million, a decrease from mine operating earnings of $0.7 in the third quarter of 2012.
- Losses before taxes for the third quarter of 2013 were $1.2 million, compared to earnings before taxes of $0.009 million for the same period in 2012.
- Cash flows used in operations before changes in non-cash working capital for the third quarter of 2013 were $0.05 million, compared to cash flows provided in operations of $0.5 million in the third quarter of 2012.
- Net working capital totaled $9.9 million on September 30, 2013, compared to $12.7 million on June 30, 2013. This is primarily due to $2.0 million spent on exploration and development of IMPACT's properties and $0.4 million spent on property, plant and equipment in the quarter.
- Total tonnes milled during the third quarter of 2013 decreased to 38,520 from 44,699 in the third quarter of 2012 and 42,086 tonnes from the second quarter of 2013. This decrease is attributable to two major storms in Mexico that resulted in excessive rainfall in the Zacualpan area during September, 2013, which temporarily slowed the trucking of ore to the Guadalupe Production Centre.
- Silver production increased 16% to 177,366 ounces in the third quarter of 2013 from 153,018 ounces in the same period of 2012.
- Gold production for the third quarter of 2013 increased 102% to 348 ounces, from 172 ounces in the third quarter of 2012.
- Average mill feed grade for silver increased in the third quarter of 2013 to 171 g/t from 129 g/t in the third quarter of 2012.
- IMPACT began shipping concentrate during the start-up and testing phase of the Capire Production Centre during the third quarter. The 200 tonne-per-day Capire pilot plant has not yet entered into commercial production and its sales revenue is not included in reported sales results.
A recorded conference call reviewing the financial and production results of the three months ended September 30, 2013, will be available on the Company website on Tuesday, November 26, 2013, at www.impactsilver.com/s/ConferenceCalls.asp.
IMPACT Silver operates two silver production centres within its 100%-owned 623 km
