- IMPACT Silver (TSXV:IPT) has reported increased revenue for the year ending December 31, 2019, despite a decrease in mill throughput
- The company cited improved grades and higher silver prices as the reason behind the revenue increase
- IMPACT reported a net loss of C$4.9 million for the year, compared to a loss of $5.1 million in 2018
- Production at the company’s Guadalupe facility has also stopped, following a decree from the Mexican Government
- IMPACT Silver (IPT) is up 11.86 per cent to $0.33 per share, with a market cap of $36.41 million
IMPACT Silver (TSXV:IPT) has reported increased revenue for the year ending December 31, 2019, despite a decrease in mill throughput.
The explorer and producer of silver and gold operates two processing plants within its wholly owned concessions. The concessions cover 211 square kilometres in central Mexico.
Over the last 15 years, IMPACT Silver has produced over 10 million ounces of silver, generating over C$180 million in revenue.
Silver production for 2019 totalled 664,056 ounces, which is slightly less than the 743,950 produced the year before. Throughput at the company’s processing mills was also down to 140,878 tonnes in 2019, compared to 173,217 tonnes in 2018.
Despite the downturn in production, IMPACT Silver was still able to increase its revenue. This came as a result of higher grades and an increase in silver prices.
The average mill feed grade for silver in 2019 was 173 grams per tonne. In 2018, it was 159 grams per tonne.
As a result of the higher silver grades, revenue per tonne also increased to $95.82, compared to $74.88 in 2018.
However, it hasn’t been entirely smooth sailing for the company this year, with COVID-19 wreaking havoc. On March 31, Mexico’s Ministry of Health imposed a nation-wide ban on all non-essential businesses.
Subsequently, IMPACT Silver has had to temporarily suspend operations at its Guadalupe production facility until at least April 30.
Since the Government issued the decree, IMPACT Silver has been working with local and state officials, and other mining companies. They hope to make the case that mining – particularly silver mining – is an essential and critical service.
Their case centres on the fact that silver is frequently used in the medical industry for its antibacterial properties. Specifically, silver has the ability to reduce the spread of viruses.
The company says that various meetings are continuing in Mexico City, but the Ministry of Health has not changed its position.
IMPACT Silver (IPT) is currently up 11.86 per cent to $0.33 per share at 3:50pm EST.