IMPACT Silver Corp. (“IMPACT” or the “Company”) announces its financial and operating results for the first quarter ended March 30, 2021.
The Company reported $5.4 million in revenue for the first quarter of 2021, a 57% improvement year over year from Q1 2020’s revenue of $3.4 million. Cash provided by operating activities improved to $1.3 million from $0.7 million in Q1 2020. Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, & share-based payments) increased 220% from $0.5 million in Q1 2020 to $1.6 million.
Mine operating earnings before amortization and depletion in Q1 2021 improved to $1.9 million from $0.3 million in 2020. Operating activities in Q1 2021 generated cash flows of $1.3 million compared to $0.7 million in 2020. The net loss for quarter was $0.3 million compared to Q1 2020
of $0.1 million, after a $0.9 million non-cash accounting provision for share-based payments to employees and consultants of IMPACT.
Fred Davidson, President & CEO of IMPACT, stated, “In Q1 2021, we witnessed a rush to silver from retail investors due to online message board rallies and zero commission platforms. The resulting silver squeeze took silver to recent highs which has benefited our bottom-line and also brought in attention to a sector that has been under-allocated by retail investors since 2011.
While we cannot plan our business around online fueled rallies and short-term blips, IMPACT continues to be one of the purest silver miners with a 90%+ revenue leverage to silver prices. It is our plan in 2021 that with ongoing production efficiency improvements and exploration plans, we will continue to shape IMPACT into the premier silver exploration and production play for investors. Now that cash flow is positive and metal prices relatively stabilized, we aim to explore and unlock further value from our land package in 2021.”

Q1 2021 Financial Overview
• Revenue for Q1 2021 was $5.4 million, an increase of 57% from 2020 of $3.4 million.
• Adjusted EBITDA was $1.6 million for quarter, another large increase over $0.5 million for comparable period in 2020.
• Mine operating earnings before amortization and depletion for Q1 2021 were $1.9 million, improving from $0.3 million in 2020.
• Net loss for the quarter was $0.3 million after a $0.9 million non-cash provision for sharebased payments, compared to Q1 2020 net loss of $0.1 million.
• Net working capital for the Company at March 31, 2021 was $21.9 compared to of $3.4 million in 2020, a stark improvement year over year.
• The Company has no long-term debt.

Q1 2021 Production Overview
• Throughput at the mill was 36,413 tonnes milled in Q1 2021 compared to 39,537 tonnes in 2020 as the focus on underground development resulted in fewer tonnes mined, and the capacity at the plant was reduced for improvements to the flotation circuit.
• Average mill feed grade for silver was 162 grams per tonne (g/t) in Q1 2021, a decrease of 5% from 170 g/t in Q1 2020 due to the mining of lower grade but higher margin material.
• Q1 2021 silver production was 156,889 ounces (2020 – 178,994 ounces).
The rise in silver prices largely offset slightly lower tonnage and grade in 2021, and as a result has generated strong cash flow for the Company. Revenue per tonne sold was $124.17 in Q1 2021, an increase of over 46% from same period 2020 at $84.92.
Direct costs per production tonne were $75.45 in Q1 2021, no significant change from 2020’s comparative period of $75.16, affirming that cost controls and efficiency implementation remain strong. During the quarter, a substantial underground development program at the Guadalupe mine continued adding track at the 195 level, which will help improve long-term efficiencies from that mine. The near-term cost per tonne is anticipated to increase in Q2 2021 as exploration and development at Guadalupe picks up.

Exploration And Development Plans
In the first three months of 2021, IMPACT announced the purchase of a surface and an underground drill with plans to drill 10,000 metres on both near mine and other exploration targets (see IMPACT news release dated February 1, 2021).
On further exploration news, fieldwork was highlighted by continued exploration on the north and south extensions of the Veta Negra Mine, trenching on the bulk tonnage gold target at Manto America in the central part of the district and exploration on the northwest (Pachuqueno) extensions of the Guadalupe Mine. The Company also commissioned Condor Consulting, Inc. to review and carry out a modern interpretation of a large geophysical database collected in the 1990’s over the Mamatla-Capire Mine area to identify exploration targets. (see IMPACT news dated May 12, 2021)
A recorded conference call reviewing the financial and production results of the quarter ended March 30, 2021 will be available on the Company website on May 26, 2021 at
www.impactsilver.com/s/ConferenceCalls.asp.

The information in this news release should be read in conjunction with the Company's unaudited condensed consolidated interim financial statements and Mannagement's Discussion and Analysis, available on the Company website at www.impactsilver.com