IMPACT Silver (IPT) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 40% year-over-year to $7.7 million, driven by increased Plomosas production and higher silver prices at Zacualpan.

• Net loss widened to $2.6 million from $0.9 million in Q2 2023, impacted by start-up costs at Plomosas, cost inflation, and a strong Mexican Peso.

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

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

Financial highlights

• Q2 2024 revenue: $7.7 million (Q2 2023: $5.5 million); Plomosas contributed $1.8 million.

• Mine operating loss before amortization and depletion: $0.22 million (Q2 2023: income of $0.9 million).

• Net loss: $2.6 million, including $0.6 million in FX expense and deferred taxes (Q2 2023: $0.9 million loss).

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

• Closed $8.6 million in non-brokered "LIFE" and private placement financing.

Outlook and guidance

• Plomosas production expected to reach 150-170 tpd by end of Q3 2024 and design capacity of 225 tpd by late 2024/early 2025.

• Zacualpan to focus on higher grade mine development and efficiency improvements, with cost pressures expected to abate into 2025.

• Ongoing exploration at both sites to support future production and revenue growth.