Business
IMPACT Silver Announces Record Silver Production
IMPACT Silver Announces Record Silver Production
About this update from Impact Silver Corp.
[{"type":"text","content":"\nIMPACT Silver Announces Record Silver Production\n\n\n May 26, 2009 (TheNewswire.ca) -- May 26 2009 - IMPACT Silver (TSXV:IPT) Corp. (\"IMPACT\" TSX.V - IPT) is pleased to announce record quarterly silver production of 229,710 ounces, up 7% from 213,876 ounces in the prior quarter (ending December 31, 2008). Gross revenues for the quarter were $1,457,000 down 34% from $2,221,000 in the prior quarter. Average mill throughput during the quarter was 329 tpd (tonnes per day), up from 286 tpd in the prior quarter. Higher throughput and higher average silver grades allowed IMPACT's mining operations to be cash flow positive amidst a lower metal price environment.As a result of a sales disruption during the quarter due to a strike at our largest customer, Peñoles, IMPACT only shipped metal concentrates for the first five weeks of the quarter, leaving 59% of first quarter production stockpiled at the end of the quarter. Even with the majority of production not being sold, net income of $68,000 was realized, compared to a net loss of $256,000 in the fourth quarter of 2008. Both reported revenues and net income were significantly reduced in the first quarter.Cash flows from operations in the first quarter were $1.05 million. Cash flows are expected to increase in the second quarter of 2009 due to the sale of the stockpiled metal concentrate inventories from the first quarter.In March, IMPACT took action to protect its ongoing operations by successfully negotiating a more favourable sales contract for its zinc concentrates with an alternative customer. The first quarter stockpiled finished goods zinc concentrate inventory was shipped in early April. The Peñoles strike ended in mid-April and IMPACT has since resumed shipments of concentrates to the Peñoles refinery.\nThree Months Ended Mar 31 2009 Dec 31 2008 Mar 31 2008 \nRevenue $1,457,000 $2,221,000 $2,687,000 \nMine Operating Earnings $750,000 $267,507 $1,274,000 \nNet Income $68,000 ($256,000) $846,000 \nEarnings Per Share $0.00 ($0.01) $0.02 \n \nRevenue per production tonne sold Equivalents $129.69 $86.03 $110.81 \nDirect costs per tonne produced $53.19 $56.82 $50.63 \nIMPACT's financial position remained strong with $5.4 million in cash and cash equivalents and net working capital of $7.0 million.The Company's working capital position is expected to remain strong th...