Business
IMPACT Silver Announces Q2 Financial & Production Results; Adjusted EBITDA of $0.48 Million on $2.84 Million Revenue Despite COVID-19 Related Shutdown
Vancouver, British Columbia--(Newsfile Corp. - August 27, 2020) - IMPACT Silver Corp. (OTC Pin...
About this update from Impact Silver Corp.
[{"type":"text","content":"IMPACT Silver Announces Q2 Financial & Production Results; Adjusted EBITDA of $0.48 Million on $2.84 Million Revenue Despite COVID-19 Related ShutdownVancouver, British Columbia--(Newsfile Corp. - August 27, 2020) - IMPACT Silver Corp. (OTC Pink: ISVLF) (FSE: IKL) (TSXV: IPT) (\"IMPACT\" or the \"Company\") is pleased to announces its financial and operating results for the year ended June 30, 2020. The Company reported $2.84 million in revenue for the first quarter of 2020 compared to Q2 2019 at $2.76 million with improved grades and higher silver prices realized during the quarter. This is impressive considering half the quarter was formally shut down due to the official Mexican decree to suspend operation to limit potential spread of COVID-19 pandemic. Mine operating earnings before amortization and depletion improves significantly year over year by $1.2 million to positive $0.65 million as high silver prices and continued cost monitoring proved effective. Operating activities this quarter generated over $0.17 million positive cashflow, impressive especially in light of operations losing nearly half the quarter due to COVID19 shutdown. Adjusted EBITDA of $0.48 million (Earnings Before Interest, Taxes, Depreciation, and Amortization) comprises of EBITDA of $0.16 million and non-cash loss on foreign exchange loss $0.32 million. EBITDA for six months of 2020 totalled $0.63 million, a 120% improvement compared to a loss of $2.86 million.Fred Davidson, President & CEO of IMPACT, stated, \"At the outset of the COVID19 pandemic we were all faced with an uncertainty and potential prolonged catastrophic shutdown if the virus spread. I would like to commend our operation staff on an effective social distancing practice in limiting COVID19 to zero cases Zacualpan mining district and contributed significantly in being able to recommence operations in a timely manner. Despite losing nearly half the quarter (April to June) due to mandatory shutdown, high grade, a sharp rally in silver prices, and an ability to sell some stockpile allowed IMPACT to mitigate a large drop in revenue. In fact, the Company actually turned operation profit and positive EBITDA for the sixth quarter since January 2019. With silver reaching higher prices in Q3 2020 and beyond, IMPACT's profitability as pure silver producer will only be further magnified. With a...