IPT, RRI, NTH
Mexican silver/zinc miner Impact Silver aka IPT released its Q4 and year end results. The numbers were generally better, but not as improved as I would have hoped given the current high price of silver.
With the new Plomosas Zn/Pb/Ag mine increasing production, in Q4 IPT set a quarterly record for revenue and managed to generate a net profit of $1.6M, allowing them to end 2024 with an increased cash stash of $7.1M and no debt. Over the year grades at their mill at Zacualpan remained consistent but volume processed was down from 2023, leading to a decrease in Ag production, with the saving grace being increased Au sales in Q4. Notably, costs in 2024 decreased after several years of increase, and management expects them to stay about the same in 2025.
The Plomoasas Zn/Pb/Ag mine reached 75% of planned production by year end, so if they can increase that to 100% while maintaining or increasing Ag and Au production at Zacualpan, this could be a very good year for IPT.
I added to my long term low cost basis and not very large holding of shares in Impact Silver last year based on the concept that with a high leverage to the price of silver, the stock should do well. Alas, not so far, but with more substantial gains expected in the PoS I am going to hang in for now.
Message 35126598
Sometimes a prospect generator like Riverside Resources aka RRI has to be patient, just like an investor in junior mining stocks. A good example is the La Union gold prospect in Mexico, for which RRI just announced a definitive sale agreement.
RRI originally picked up La Union as part of a larger package of properties in 2019, and have spent the time since doing some exploration and building up the property package to over 2500 ha.
Now they have signed a definitive agreement to see La Union to QQQ.CN, in return for staged payments over 5 years which will total $100k, a 19.9% stake in QQQ, and a 2.5% NSR. In addition QQQ has to spend $5M on exploration.
So now RRI can sit back and collect the payments and shares, deciding when or if they want to sell the latter, which assembling more prospective land packages.
I too can wait, collecting shares in the occasional spun out company along the way...
Message 35126769
The always entertaining Nord Precious Metals aka NTH has come up with a new idea which allows them to throw around numbers like '60 Million ounces silver' -- their emphasis, and no word on where the missing 'of' went.... -- when talking about their prospects on the Castle mine property in Ontario. They also get to mention that silver production in the entire Cobalt Camp is estimated at over 'one half Billion ounces of silver' (again their emphasis).
The idea is that almost all of the 60M oz of Ag produced in the area came from three mines, including Caste, that only reached the top level of an intrusive called the Nipissing Diabase. Now, based on geophysics and some drilling at Castle, they say they are going to investigate the bottom of the intrusive.
Unfortunately we are given no details as to how or when this might happen.
Message 35126844 |
