Overview for the Quarter Ended
-- Revenues for the second quarter of 2014 were
$2.6 million, an approximately 32% decrease from $3.8 millionin the second quarter of 2013, resulting primarily from a decline in the silver grade and price. -- Net loss of $1.0 millionfor the quarter, an improvement from net loss of $1.3 millionin Q1, of which non-cash items included $0.7 millionin depreciation and amortization and $0.05 millionin share based payments (stock option grants). -- Mine operating loss before amortization and depreciation of $0.4 millioncompared to $0.6 millionin earnings in the comparative period. -- A sale of 3,600,000 Defiance shares at $0.09per share resulted in net proceeds of $321,550and a gain of $213,550. -- Capital expenditures during the quarter included mineral property expenditures of $0.7 millionwhich reduced cash to $1.7 million. The Company continues to be free of long term debt. -- Net working capital decreased to $4.3 millionon June 30, 2014, compared to $6.9 millionon December 31, 2013.
-- Silver production decreased 18% to 152,595 ounces for the second quarter of 2014, down from 185,998 ounces in the same period of 2013 but up 3% from the first quarter of 2014. -- Average mill feed grade for silver in the second quarter of 2014 decreased to 142 grams per tonne (g/t) compared to 163 g/t in the second quarter of 2013, but up slightly from 137 g/t in the first quarter of 2014. -- Total tonnes milled during the second quarter of 2014 decreased to 39,015 from 42,086 in the second quarter of 2013.
The Company increased tonnes produced for the first half of 2014 to 78,790 over the last half of 2013 of 75,175. This increase has been a result of additional feed from the Cuchara-Oscar mine as it becomes the Company's principal producer, as well as strong contributions from the
In light of lower silver prices, recent Mexican mining tax changes, increased hauling costs and low overall silver grade being mined at Capire, the Company recognized that the open pit test mining operation was not economic at its present small scale. Thus open pit operations were suspended in
A recorded conference call reviewing the financial and production results of the three months ended
IMPACT has control of nearly two entire mineral districts in central
On behalf of the directors of
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
IMPACT Silver Corp. Jerry HuangInvestor Relations Manager (604) 681 0172 (604) 681 6813 (FAX) firstname.lastname@example.org.IMPACTSilver.com Source: IMPACT Silver Corp.