Impact Silver – Recap Of Q2 Financials, Operations, And Exploration From The Zacualpan Silver-Gold District And The Plomosas Zinc-Lead-Silver Mine
Fred Davidson, President and CEO of Impact Silver (TSX.V:IPT – OTC:ISVLF), joins me to outline the key takeaways from the Q2 financial and operations, and provides an update on the current production and exploration upside at the Zacualpan Silver-Gold District, as well as the recently acquired Plomosas Zinc-Lead-Silver Mine in Chihuahua, Mexico.
We kick things off with deeper dive into the Zacualpan Silver-Gold District where the Company has 4 underground mines and 1 open-pit mine all feeding into the Guadalupe processing plant. Fred outlines the flexibility that their operations team in turning on or off mines based on metals pricing trends, and that they’ve improved on the metallurgy and gold recoveries at their Alacran Mine, so they are now mining from it once again.
Next we look into the ramping up of zinc, lead, and silver production from Plomosas Mine, and that most of substantial development and refurbishment work that was needed to upgrade the mine, and portable mining equipment and vehicles, has been completed. Fred outlines that at 14% zinc and 8% lead grades, Plomosas is one of the higher-grade zinc mines in operation, and in a sense, that carries the operations and they get all the silver for free. The Q2 numbers were a bit of a one-off quarter, in that now that they are producing they had to write down all the prior costs of refurbishment this period, but that there should be steady ramp up in revenues and cashflows in Q3 and Q4 with that now behind them.
Overall revenue in Q2 2024 was $7.7 million, representing a significant 40% increase over Q2 2023 revenue of $5.5 million. Revenue in Q2 2024 includes $1.8 million from the Plomosas high-grade zinc mine up from $1.0 million in Q1 2024. The Plomosas high-grade zinc mine (acquired in April 2023) was brought online in late 2023 and therefore, year-over-year comparisons do not include any revenue or operating costs recorded in Q2 2023. Meanwhile, revenue at the Zacualpan silver-lead-zinc project increased to $5.9 million in Q2 2024 from $5.4 in Q2 2023 despite lower production on a year-over-year basis, owing mostly to stronger silver prices.
After recapping the current production we discussed the 20,000 meters drilled in the first half the year, with about the same amount planned for the next half of the year. Fred discusses the exploration upside and the growth potential at both the Zacualpan Silver-Gold District and Plomosas Zinc-Lead-Silver District. Additionally, Fred recaps some new targets around Carlos Pacheco and some deeper copper – gold district targets that they’ll be exploring further out into next year.
If you have any follow up questions for Fred about Impact Silver then please email me at Shad@kereport.com.
- In full disclosure, Shad is a shareholder of Impact Silver at the time of this recording.
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