IMPACT Silver (IPT) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose to $7.7 million from $5.5 million year-over-year, driven by increased Plomosas production and higher silver prices at Zacualpan, with a net loss of $2.6 million impacted by deferred taxes, FX expenses, start-up costs, and cost inflation.

• The quarter marked a transitional phase, with significant progress at both Plomosas and Zacualpan mines, and aggressive exploration underway.

• Plomosas mine ramp-up contributed $1.8 million in revenue, with mill throughput up 157% sequentially from Q1 2024.

• Zacualpan revenue increased despite slightly lower production, benefiting from stronger silver prices and improved grade mix.

Financial highlights

• Revenue increased 40%+ at Plomosas, with total Q2 2024 revenue at $7.7 million and Plomosas contributing $1.8 million.

• Mining loss reduced to $0.22 million (excluding amortization/depletion), a notable improvement from prior periods.

• Net loss: $2.6 million, including $0.6 million in FX expense and deferred taxes.

• Cash position at quarter-end: $9.9 million; working capital: $8.8 million.

• Closed $8.6 million in non-brokered financing during the quarter.

Outlook and guidance

• Plomosas expected to reach 150–170 tpd by end of Q3 2024 and design capacity of 200–225 tpd by late 2024/early 2025, targeting $10 million+ annual revenue at full capacity.

• Zacualpan production anticipated to be maintained or increased in H2, with focus on higher grade mine development and efficiency improvements.

• Aggressive exploration and development to continue at both sites, aiming for higher throughput and resource expansion.

• Capire mine reactivation under consideration, contingent on sustained metal prices and planned CapEx.