IPT current situation??Sharing DD, please shoot ;) plz without B.S.
1) Currently on EBITDA (adding back deprec/amortization) IMPACT is positive, but at $16/oz silver IPT is not generating cash flow. IPT will continue to improve the grades of production feed and that comes down to grade at the ore site which is improving quarter over quarter. With continual efficiency improvements and hopefully some gradual improvement in silver prices IPT is again profitable in 2015.
2) Currently (end of Q3 / Sept 2014) IMPACT has just under $968k CAD in cash, with over $4.2M in receivable of which $2.66M is expected from the Mexican VAT (value added tax) refund. I think IPT will recover 100% of these refundable tax portions.
With the asset position still in a healthy ratio to total company size, IPTstill reviewing potential equity raises and options to monetize non-key portions of production to mitigate operation risk if silver prices stay at these levels.
is that all??
Furthermore, investors would pick IPT over several other silver junior on several basis:
1) Debt free, near break even, proven operation managers. Fred and George is two of the most respected in the junior silver scene.
2) IPT raised $24M in company history and has generated over $45M in cashflow. Grown organically through cashflow and bootstrapped itself from a small mill to the size today.
3) 100% owned, prolific silver belt in a safe mining jurisdiction in Mexico.
An adjacent project G9 - Farallon Mining was acquired by Nyrstar in 2011 for $409 million. https://www.marketwired.com/press-release/nyrstar-announces-binding-agreement-pursue-friendly-offer-acquire-farallon-mining-limited-euronext-nyr-1353906.htm
4) Supportive local workforce trained and loyal to IPT
5) 10% ownership by larger entity, global drilling contractor group Energold provides longterm contracting support and exploration expertise.
I’m sure there are more advantages, but if you look at the meteoric recovery IPT had in 2008 to 2011 (nearly 10X) it summarizes the ability of the group very well.