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IMPACT Silver (TSE:IPT)
:IPT
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IMPACT Silver (IPT) AI Stock Analysis

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TSE:IPT

IMPACT Silver

(OTC:IPT)

Rating:59Neutral
Price Target:
C$0.50
▲(31.58%Upside)
IMPACT Silver's score reflects a mix of financial struggles and promising corporate developments. While technical indicators show potential, financial performance continues to be a significant drag. Corporate events are a strong positive factor, indicating potential for future growth.

IMPACT Silver (IPT) vs. iShares MSCI Canada ETF (EWC)

IMPACT Silver Business Overview & Revenue Model

Company DescriptionIMPACT Silver Corp. is a mining company operating primarily in the silver mining sector. The company is engaged in the exploration, development, and production of mineral resources, focusing primarily on silver, but also including gold, lead, and zinc. IMPACT Silver's core operations are located in Mexico, where it manages several producing mines and exploration projects.
How the Company Makes MoneyIMPACT Silver generates revenue primarily through the extraction and sale of silver and other metals such as gold, lead, and zinc. The company's earnings are driven by the volume of metal produced from its mining operations, the market prices of these metals, and its ability to efficiently manage production costs. Additionally, IMPACT Silver may engage in joint ventures or partnerships to expand its mining operations and explore new opportunities, further contributing to its revenue.

IMPACT Silver Earnings Call Summary

Earnings Call Date:May 27, 2025
(Q2-2024)
|
% Change Since: 111.11%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed performance with significant revenue growth and exploration successes, but also highlighted challenges in operational efficiency and increased costs. The company is in a transitional phase, focusing on increasing production capacity and improving ore recovery rates despite some operational setbacks.
Q2-2024 Updates
Positive Updates
Significant Revenue Increase
Revenue increased significantly to $7.7 million from $5.5 million in the comparable period last year, marking a notable improvement.
Successful Capital Raising
Raised a net $8.6 million, which was used to refurbish cash on hand and fund aggressive drilling activities.
Increase in Production Capacity
Production at Plomosas increased from 3,600 tonnes in the first quarter to 9,200 tonnes in the second quarter, with expectations to reach 200 tonnes a day by the fourth quarter.
High-Grade Mineral Discoveries
Discovery of high-grade mineralization at 'The Kena' with significant grades of zinc (14%), lead (8.7%), and silver (43.7%).
Exploration and Development Focus
Drilled over 20,000 meters in the first six months, showcasing a strong commitment to exploration and potential future growth.
Negative Updates
Net Loss and Economic Challenges
Reported a net loss of $2.6 million, with deferred income taxes and foreign exchange expenses contributing to the loss.
Operational Setbacks at Plomosas
Plomosas mine running behind schedule, only producing 100 tonnes for the quarter due to development challenges.
Increased Costs and Union Settlements
Direct costs per ton increased to over $153 from $130 due to retroactive union settlements and a strong Mexican peso impacting expenses.
Decline in Gold and Lead Production
Gold production decreased by 70% and lead by 34% due to lower recoveries and strategic shifts in mining operations.
Company Guidance
During the Q2 2024 earnings call, Impact Silver Corp provided guidance reflecting a transitional period with several key metrics. Revenue experienced a significant increase, reaching $7.7 million compared to $5.5 million in the same period last year. However, the company reported a net loss of $2.6 million, influenced by deferred income taxes and foreign exchange expenses amounting to approximately $0.6 million. Production at the Plomosas mine was limited to 100 tonnes for the quarter, with plans to increase to 200 tonnes by year-end. The company raised a net $8.6 million, facilitating aggressive exploration efforts totaling over 20,000 meters of drilling in the first half of the year. Despite an uptick in direct costs per ton to over $153 due to union settlements and a strong Mexican peso, the focus remains on increasing production and efficiency. Impact Silver anticipates adding $10 million annually to its revenue as Plomosas reaches full capacity, with potential for further growth dependent on favorable silver and zinc market conditions.

IMPACT Silver Financial Statement Overview

Summary
IMPACT Silver faces substantial financial challenges with persistent net losses, negative profit margins, and poor cash flow generation. The balance sheet is stable with low leverage, which provides some financial stability.
Income Statement
35
Negative
IMPACT Silver shows a challenging income statement with consistent net losses over the years. The TTM data indicates a negative net profit margin of -18.07% and a gross profit margin of 6.50%. Revenue growth was positive at 16.86% compared to the previous year, suggesting some top-line growth. However, the EBIT and EBITDA margins are deeply negative at -19.47% and -9.28% respectively, reflecting operational struggles.
Balance Sheet
50
Neutral
The balance sheet indicates a relatively stable financial position with low leverage, evidenced by a minimal debt-to-equity ratio of 0.004. The equity ratio is strong at 82.70%, showing a reliance on equity financing. Despite this, the company’s return on equity is negative due to ongoing losses, indicating a need for improved profitability.
Cash Flow
40
Negative
Cash flows are concerning, with the company experiencing negative operating and free cash flows in the TTM period. The free cash flow to net income ratio is negative, highlighting cash flow challenges. The operating cash flow to net income ratio is also negative, indicating that the company is not generating cash from its operations efficiently.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue31.90M20.76M16.34M17.70M15.76M
Gross Profit-2.07M-2.40M-168.98K3.43M3.25M
EBITDA-6.84M-3.66M-1.11M1.67M2.60M
Net Income-9.78M-7.57M-3.16M-545.34K2.30M
Balance Sheet
Total Assets51.15M88.58M68.80M66.54M64.83M
Cash, Cash Equivalents and Short-Term Investments7.24M8.37M15.49M21.17M20.39M
Total Debt251.13K68.92K147.84K243.82K78.67K
Total Liabilities8.82M14.45M6.96M6.58M6.14M
Stockholders Equity42.33M74.13M61.83M59.97M58.69M
Cash Flow
Free Cash Flow-10.84M-15.05M-6.70M-621.90K688.04K
Operating Cash Flow-8.80M-6.59M-1.81M3.03M2.47M
Investing Cash Flow-616.19K-12.28M-4.79M-3.65M-1.78M
Financing Cash Flow8.34M11.90M764.91K1.32M15.92M

IMPACT Silver Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.38
Price Trends
50DMA
0.28
Positive
100DMA
0.23
Positive
200DMA
0.23
Positive
Market Momentum
MACD
0.03
Positive
RSI
65.14
Neutral
STOCH
31.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IPT, the sentiment is Positive. The current price of 0.38 is above the 20-day moving average (MA) of 0.34, above the 50-day MA of 0.28, and above the 200-day MA of 0.23, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 65.14 is Neutral, neither overbought nor oversold. The STOCH value of 31.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:IPT.

IMPACT Silver Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
59
Neutral
C$104.67M-11.62%77.54%43.46%
45
Neutral
$61.90M-28.58%13.44%
45
Neutral
C$106.21M-13.77%21.46%
44
Neutral
C$980.54M-6.82-13.68%1.81%17.37%-32.98%
35
Underperform
$103.53M-7.27%20.00%
34
Underperform
C$142.35M-73.72%78.62%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:IPT
IMPACT Silver
0.37
0.14
57.45%
TSE:SVE
Silver One Resources
0.36
0.13
53.19%
TSE:KUYA
Kuya Silver
0.51
0.15
39.73%
TSE:KTN
Kootenay Silver
1.30
0.26
25.00%
TSE:SVRS
Golden Tag Resources
0.20
0.06
42.86%

IMPACT Silver Corporate Events

Business Operations and Strategy
IMPACT Silver Reports High-Grade Zinc Intersections at Plomosas Mine
Positive
Jul 7, 2025

IMPACT Silver Corp. announced promising results from its ongoing underground drill program at the Juarez Zone of the Plomosas Mine in northern Mexico. The drill intersections revealed significant zinc concentrations, with one notable section showing 10.38% zinc over 3.94 meters, including 20.95% zinc over 1.70 meters. These results are strategically important as they are located near existing underground mining infrastructure, allowing for rapid expansion of mining operations. The findings highlight the potential for increased mineral resources and underscore the company’s commitment to expanding its mining operations in the region.

Private Placements and FinancingBusiness Operations and Strategy
IMPACT Silver Closes $5.2 Million Financing to Boost Exploration and Operations
Positive
Jun 5, 2025

IMPACT Silver Corp. has successfully closed a $5.2 million oversubscribed non-brokered private placement financing. The funds will be used to accelerate exploration at the Plomosas property and further develop silver assets in the Zacualpan district, as well as to enhance operational productivity. This financing positions IMPACT to capitalize on the rising silver prices and expand its mineral resources, potentially benefiting stakeholders through increased production and exploration activities.

Business Operations and StrategyFinancial Disclosures
IMPACT Silver Corp. Reports Strong Q1 2025 Financial Results
Positive
May 27, 2025

IMPACT Silver Corp. reported a significant financial turnaround in Q1 2025, with revenues nearly doubling to $10.7 million and a positive EBITDA of $1.0 million, driven by new production at the Plomosas mine and higher commodity prices. The company’s operational improvements and strategic focus on increasing zinc and gold production position it as a growing intermediate producer, enhancing shareholder value and market presence.

Private Placements and FinancingBusiness Operations and Strategy
IMPACT Silver Secures $3.9 Million for Expansion and Exploration
Positive
May 23, 2025

IMPACT Silver Corp. has successfully closed a $3.9 million non-brokered private placement financing, which will be used to advance exploration and operational improvements at its Plomosas and Zacualpan mining projects in Mexico. This financing is expected to enhance the company’s productivity and exploration capabilities, potentially strengthening its position in the mining industry.

Business Operations and StrategyFinancial Disclosures
IMPACT Silver Achieves Record Revenue and Returns to Profit in 2024
Positive
May 6, 2025

IMPACT Silver Corp. reported record revenue of $31.9 million for the fiscal year 2024, marking a 53% increase from the previous year, and a return to net profit in Q4. The company’s strategic expansion into zinc production at the Plomosas mine contributed significantly to its financial turnaround, with the mine reaching 75% capacity by year-end. The improved financial results were driven by increased production and strong commodity prices, positioning IMPACT as a leading intermediate miner in Mexico.

Delistings and Listing ChangesFinancial DisclosuresRegulatory Filings and Compliance
IMPACT Silver Seeks Temporary Cease Trade Order Amid Audit Delays
Neutral
May 2, 2025

IMPACT Silver Corp. has applied for a temporary Management Cease Trade Order from the British Columbia Securities Commission due to delays in filing its audited annual financial statements and related documents. The delay is attributed to working with a new auditor for the first time. The company expects to finalize these filings by May 7, 2025, and has imposed an insider trading blackout until then. There are no insolvency proceedings or undisclosed material information affecting the company.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 12, 2025