IMPACT Silver Announces Q1 2026 Financial Results with Revenue Nearly Tripling to $31.2 Million and Record Net Income of $11.3 Million

IMPACT Silver announced Q1 2026 financial results on May 20, 2026, reporting: - Revenue nearly tripled to $31.2M from $10.7M in Q1 2025. - Gross profit exploded to $20.3M from $2.2M. - Net income surged to a record $11.3M, or $0.03 per share, versus a net loss of $0.1M a year earlier. - Cash and GICs totaled $49.3M; working capital $48.0M; no long-term debt. - The Zacualpan operation drove the improvement: revenue $29.3M, gross profit $22.3M, mill throughput up 8% to 37,922 tonnes, silver production up 80% to 268,470 oz at an average grade of 251 g/t (up 60%). - Realized silver price was $77.91/oz, more than double the $31.51/oz in Q1 2025. - Plomosas generated only $1.8M revenue, a gross loss of $2.0M, and underground mining was temporarily suspended at end of March to optimize the mine plan; the company is seeking toll‑milling arrangements. - Drilling results from the Noche Buena Mine (Carlos Pacheco Vein) included 9.49m of 9.79 g/t Au, 212 g/t Ag and 0.29% Cu, with a high‑grade sub‑interval of 0.61m at 114.5 g/t Au, 1,295 g/t Ag, 1.10% Cu.

The Q1 2026 quarter represents a genuine transformation in IMPACT’s financial profile: - $11.3M net income in a single quarter against a market capitalization of roughly C$85M creates an extremely low trailing P/E ratio (~1.9x annualized), far below typical junior producer multiples. This is a magnitude that typically forces a significant re‑valuation. - The leap in cash from $23.7M at year‑end 2025 to $45.3M in one quarter underscores the free‑cash‑flow generation at current silver prices. The company now has a fortress balance sheet with no debt. - The results were driven by sustained high silver prices ($77.91/oz realized), a 60% jump in average silver grade at Zacualpan (251 g/t), and increased throughput. The Kena Vein development, highlighted in early 2026 drilling, likely contributed to the grade lift, as management cited the “meaningful contribution” from Kena. - Plomosas remains a sore spot: a $2.0M gross loss and the suspension of underground mining were already flagged in April 2026, so the market had absorbed that negative. The fact that Zacualpan alone generated $22.3M gross profit overwhelms that headwind. - The game‑changer aspect lies in the combination of record earnings, explosive cash build, and validation that the operational improvements (Kena Vein, higher throughput) can deliver even without Plomosas. This news materially exceeds any prior run‑rate and demonstrates that the company is not just a price‑sensitive producer but one that has created substantial leverage through grade and efficiency gains.

While silver price is a large factor, the grade improvement is a structural positive that wasn’t baked into previous expectations. Therefore, this release qualifies as Material – Game Changer.

IMPACT Silver Corp. is a Canadian‑based silver‑lead‑zinc producer with two operating complexes in Mexico: - Zacualpan Silver‑Lead‑Zinc Operation (Royal Mines of Zacualpan district, Mexico): The flagship, featuring the Guadalupe processing plant (500 t/d capacity), multiple underground and open‑pit mines, and the recently developed high‑grade Kena Vein. Silver production has grown with grades improving through brownfield exploration. - Plomosas Zinc‑Lead‑Silver Mine (Chihuahua, Mexico): A high‑grade carbonate replacement deposit (CRD) that has been a turnaround project. After rehabilitation, it was ramping up to 200 t/d, but underground mining was suspended in March 2026 pending a new mine plan and potential toll‑milling. - Additional assets include the Capire open‑pit project (4.5M oz Ag inferred resource, on care and maintenance) and the Zacualpan S.E. area optioned to J2 Metals.