Click to view brochureWe have focused a great deal on developing our new and exciting exploration targets into near-term potential mine developments all while doing what we do best - generating recurring and profitable long-term growth. Our statement of financial position is strong and clean, and we maintain this now with the intention of moving swiftly to the next level in our Company's vision and strategy.
Exceeding Our Targets
IMPACT has grown substantially in the last six years and has developed into a cash generating silver producer. We achieved record revenues for 2011 of $24.3 million, up 46% from $16.7 million in 2010, and record net earnings in 2011 of $7.6 million, a 121% jump from $3.4 million in 2010.
We increased our annual silver production 11% over 2010 to a record 833,607 ounces, at an average cash cost in 2011 of $7 per ounce after credits, maintaining our vision to be a low-cost silver producer. Our throughput at the Guadalupe Processing Plant in the year increased to 424 tonnes per day ("tpd"), up 18% from 360 tpd in 2010.
In the fourth quarter of 2010, management took the opportunity to raise $15 million through a private placement financing. These funds were used in 2011 to substantially increase exploration and initiate the development of the Capire Project, representing our second production center. Exploration increased significantly in 2011, as the Company drilled a total of 29,481 meters, up 68% from 17,520 meters drilled in 2010. The Capire Mine, a new open-pit mine development project with a 200 tpd pilot plant in the Mamatla District, is currently being constructed and scheduled for production in late 2012. Throughout 2011, we announced significant drilling highlights from our Huatecosco Gold Project, which has us now, in 2012, aggressively increasing our drill program to 35,000 meters to quickly discover if what we have underneath our silver district is, in fact, an emerging gold district.
Looking forward, we have the path firmly in place to look beyond organic growth and consider acquiring and developing new streams of earnings and accretive ways to increase shareholder value. We are anticipating 2012 to prove to be another watershed year with the Capire Project coming on stream and the near-term production, high-grade Oscar Project which, combined, will propel IMPACT to reach important milestones in our development to build a profitable multimillion ounce silver producer.
The Best Is Yet To Come
Until now, we have been working extremely diligently and persistently preparing the foundation of IMPACT. We are now poised for the exciting developments that are on IMPACT's horizon, with strong upside potential for future discoveries. We will continue to bring new life to old mine workings in the prolific Royal Mines of Zacualpan Silver District; we will reach new heights with the impressive open-pit Capire Project; and we will pursue, as we have for the last six memorable years, to build a profitable silver producer that our shareholders can be proud to be a part of.
Sincerely, I Thank You
On behalf of the Board of Directors, we want to thank each and every one of our over 235 employees, as with continued steadfast dedication, each has had a hand in growing IMPACT into the profitable silver producer that we are extremely proud of. It is with the upmost respect that we also thank you, our valued Shareholders, as we are most grateful for your loyalty and your continued support. We are looking forward to an outstanding 2012, as the best is yet to come.
Frederick W. Davidson
President and CEO
