Week /GC…insufficient volume to close over 5/1/23 2085 price…Some pullback and chop until one day price closes over…I took profits…Could be confused…But I will depend on technical clues…and day GDX hit its 1:1 AB=CD….https://tos.mx/3LRAaBR

Silver and especially Gold are continuing to rip higher into the close today.

Gold just tagged $2,094 on the February futures contract earlier, which is technically a new all-time high on intraday action. Currently at $2090.20.

Also, in addition to yesterday being an all-time monthly close high in the yellow metal, today will also be an all-time weekly close high.

Very significant pricing action from this week indeed!

There has been a lot of solid technical comments and discussion around Impact Silver here on the site lately, and so it would be great if some folks could weigh in on how they are seeing the technical setup here after today’s close (with IPT being up about 15% on the day).

Cory & I did our best to provide a good fundamental update with Fred on today’s interview.

IPT had what I call a blow off bottom last month especially versus larger silver/gold miners and silver.
It erased 3 weeks of decline this week and is now a strong buy vs SILJ and silver as well as dollars.
IPT:SILJ
https://stockcharts.com/h-sc/ui?s=IPT.V%3ASILJ&p=D&yr=1&mn=5&dy=0&id=p84043334577

Gold put in its best monthly close this week beating the previous high by almost $50 and today it made a new all-time high and beat the previous high daily close by $20 and the previous high weekly close by $61. The picture couldn’t be better…
https://stockcharts.com/h-sc/ui?s=%24GOLD&p=W&yr=3&mn=11&dy=0&id=p00175145696&a=1548157282

Not sure if Sprott is still in it, but anyone own Golden Tag? They’ve recently changed name to Silver Storm Mining. SVRSF. Up 33% today. Been averaging in & getting close to break even.

Re: “The only thing that will save their asses, silver spot going to $30 by Chinese New Year…”
Thanks for the laugh!

Hi Marc – hope all is going well and good to hear from you.

In talking to Fred for a while before we recorded, and even during the interview, he was very candid about the capital they needed to reinvest in the mine safety underground, the portable mining equipment trucks and scoops, and the mill refurbishment of many parts; but he still seemed fairly positive that as they move along with exploration that they’ll be able to take the mill from 200 tpd up to 300-400 tpd, and it will be generating nice revenues and cashflows for some time into the future.

Another key point he made to us off-mic and again in the interview is that the Zinc grades, averaging 15% are very robust (not to mention the additional lead & silver), but they are more than double the average grades of other zinc mines operating with an average of 5%-7%. So a 200 tpd operation is like having a 400 tpd operation due to the higher zinc grades. So if they went to a 400 tpd operation, it would be like having an 800 tpd operation due to having double the average grades. So it is really much more about the Zinc grades being robust, than it is needing $30 silver (although $30 silver would be nice kicker at Plomosas, but more germane for the Zacualpan mines). If Zinc or Lead prices go up just a small amount, it also makes a huge difference to their bottom line. Zinc is around $1.12 per pound right now, but if it got up to $1.20 ‘s or even $1.30’s it would be very meaningful to their operations. Because I’m bullish on the commodity complex in general over the next few years, I could see a scenario in 2025 or 2026 where Zinc prices surge up to $1.50-$2.00 per pound, and that would align with their mill expansion and be a double whammy positive of higher prices and higher throughput.

He mentioned there were about 4-5 other historic mines on their land package at Plomosas that tie into the reasoning for acquiring this land package, as they believe eventually it will be a multi-mine complex all feeding the mill in a hub & spoke methodology. That seems to be the larger vision, and he mentioned if a larger company ever did come in to partner with them, and if they can build up a big enough mineral inventory to support it, that a much larger mill could really be built or expanded to take it to a much larger operation. Their team believes the indication is that the mineralized goods are there in that CRD system, but their limitation is in manpower, drill rigs, and budget to really get after it.

My own view is that the exploration team at Impact Silver does a bang up job, but unfortunately for their public-facing marketing, they can’t report most of the drilling they actually do, because of NI 43-101 standards. Their approach has been and will remain to simply assay the drilling results there on-site themselves, for quicker turnaround times and to keep the costs down. This informs their mine development plans, but doesn’t give as much information to the markets for analysts or retail investors to follow along with. I asked him to address that point, before we started recording, in the hopes it would help more people understand they actually are doing a ton of exploration behind the scenes, but just not reporting all the assays and results each time like many companies do.

Fred did address that point in how they report newsflow briefly in one of the answers, but it is a major point. For example, last year they did all kinds of drilling at Guadalupe/Capire, Alacran, Valley of the Gold, San Ramon Deeps, Veta Negra, Mina Grande/San Antonio, and only reported to the market a fraction of the results, when they felt it was significant structurally. Many investors just don’t realize all the work they are doing, because it is more internal.

It sounded like it will be a similar approach at Plomosas, where they’ll release drilling that provides context on the structural mineralization, but that they won’t necessarily release all 15,000 meters of drilling to the market there. I think he said overall in 2024 they are planning 20,000-25,000 meters of drilling overall, so that would leave another 5k-10k meters over the Zacualpan District at the various mines and targets.

Personally, what animates me about Impact Silver, is the all the exploration upside potential, as most of their mines aren’t really that large, and in general they are a higher cost smaller producer. However, their land packages at both projects are so robust, with so many past producing artisanal mines, and drill targets. So, in a better bull market, with higher metals prices, they’ll be able to generate more revenues from operations and then really expand their exploration focus, number of rigs, and personnel, and thus eventually expand mining operations from new discoveries. Most smaller silver miners have been in survival mode so long, that many investors have forgotten what it will look like in better sentiment and metals prices when these companies go back into expansion mode.

Thanks for listening to the show and checking in, and wishing you good trading.

On the other hand, commodity prices are too low and need to go up based on corruption being worn out.

It would be one thing to conclude that much higher silver is needed for the stock to be worth holding but to say that it’s needed for the company to survive is silly at best.

I’ve addressed management’s unique approach over the years and am for it. There’s been no trouble raising capital on good terms and the company does not wish to kneel before a bank for loans so why spend the money on unnecessary 43-101 reporting and resource estimates? Share performance/leverage during a bull move sure hasn’t suffered.
Those who don’t feel comfortable can always choose from the countless other silver juniors that do things the way you wish.

Hi Marc – Yeah, in the near-term to medium-term, higher silver prices would absolutely be a boon for Impact Silver for the multiple mines they have producing in the Zacualpan District (Guadalupe, San Ramon, Veta Negra, Mina Grande, etc…) which are much more Silver-Lead mines.

Fred alluded to that in that one comment he made about how in Q3 silver prices were in the $21-$24 region which pared with rains, inflation, and a higher peso gave them muted results. He mentioned that now that Silver has been in the $24-$25+ region in Q4, it should really help out. So if silver has a break above $26 resistance and gets up closer to $28-$30 when gold makes a big move, then that will really help the margins for IPT.

As for Zinc, you raise a good point on it possibly taking 12-18 months before we see more demand come into the commodities sector if the US and other nations go into recessions. China will play a factor too as far as demand. I had mentioned we may see the higher prices in 2025-2026, so that is in alignment with your thoughts, and may be around the time they would consider increasing the size of the mill to 300-400 tpd. That would be a good longer-dated kicker for the Plomosas Project and Mine.

You said: “The only thing that will save their asses” is silver spot going to $30 by Chinese New Year (2 months away) which is nonsense or as I put it, silly. Perhaps I should have used “irresponsible” instead.
Then you said they will need much higher silver to survive the next 18-24 months which again is nonsense. IPT can weather poor silver prices better than you think. Had you used “thrive” instead of survive the comment wouldn’t have been so silly. The company has been through terrible times over the last several decades yet it STILL has less than 200 million shares out with zero share consolidations (aka rollbacks or reverse splits). Can you name one other silver junior that can say the same?
The company makes money at the current silver price, has no debt and can always suspend plans and reduce spending in other ways if need be so “much higher silver” is not needed to merely survive.
Most companies of similar market cap with similar exploration potential must dilute shareholders far more than IPT has had to because they have no production/cash flow at all. In addition, IPT’s management has been better than most at timing financings. They typically raise money when the share price is strong and well before the company is out of cash. It seems you don’t realize how much internal funding there’s been.
Yes, the new zinc property changes their spending needs but those needs would simply have to wait if metals prices were to crash. In addition, you greatly underestimate IPT’s technical capabilities as well as the super high grade zinc property itself. Zinc is very likely going higher before you seem to think but the current price is good enough to warrant IPT’s current plans.

You’re promoting the idea that the company could fail and fail soon which is easily more insulting (and potentially harmful) than my calling such an idea silly. It’s a strange opinion precisely because of the way they’ve operated over the years (which is better than most).

You’re flailing with more nonsense because you can’t explain how it is possible that Impact’s survival is at risk in as little as two months as you claimed. As for failing to deliver, I’m sorry to break it to you but the vast majority of exploration stocks do much worse than fail to deliver. You think no one notices that you can’t do as I asked and name one similar company that has been around as long as Impact without completely blowing up their share structure? That’s your chance to prove you’re not full of it yet no response. The fact is, most similar companies print more shares in a few years than IPT has in 30 years. Such companies are the norm and they come and go all the time and rarely can be relied on to repeatedly deliver the leverage that we’re after when a bull market hits. In this respect, IPT has never failed to deliver.
You’re a poser if you think IPT’s 90% drop from its 2011 top is somehow proof of anything other than the extreme cyclicality of the sector especially the silver stocks. Countless miners even of much greater size have performed similarly or much worse. Many are gone altogether. USAS fell 99% and CDE is down 91% based on monthly closes despite rising 40% off of September’s close. DEF fell over 90% three separate times since 2011. Even Pan American Silver fell 86% before starting an uptrend in 2016 which was made possible by the large amount of gold it produces. And that gold didn’t prevent the multibillion dollar company from falling 65% from its 2020 high.
You’ve got a weak disposition if you can’t handle being called out for being so loose with “analysis” that’s blatantly wrong. Sorry but not all opinions deserve polite silence let alone respect. Furthermore, you’re the troll for your baseless characterization of Fred as well as your claim that he was suckered. You clearly shoot from the hip and think you know far more than you actually do. Think before you spout off if you want to avoid being “trolled”.

To my knowledge you can write about most any company although it is mostly mining oriented. The site encourages that remarks or comments not be personally directed towards another poster but be respectful and mature and do not resort to childish or vindictive forms of “false debate”. There is another section for political comments so that posts on the main area can remain more factual and productive. The moderators are very positive individuals who desire to maintain a high degree of professionalism at all times, which makes quality of the site be sustained and therefore productive.
Just my 2 cents, but we all hope standards can be held at the highest level as we all profit from that goal.

Hi Marc. I saw your comment and just went into the back office and released those posts that were held in the moderation cue. It was just the AI bot doing that, because posts with 2 links in them automatically get held in the cue, as due posts with one link that are then edited after posting. Then since you tried reposting them 3-4 times, the system must have thought it was spamming, so it held other posts in the cue after that.

All good now though, and those posts were released. I did scrub a few that looked like mirror duplicate posts upon review just so that 3-4 of the same posts didn’t all show up in sequence.

Hi Marc. I replied back to you up above about what happened where the AI bot held the prior posts in the moderation cue due to multiple links in a single post, and/or posts with links that may have been edited. Then due to the series of repeated attempted posts, the Askimet moderation bot thought you were spamming the site so it held them all in a cue. Those posts have been released now, except for the duplicates.

Keep flailing buddy. Only those who know less than you might fall for your assessment.
Btw, anytime you post more than one link you can expect a delay in the appearance of your comment.

It’s pretty funny that you including that last paragraph about the $9.5M raised as if it supports your agenda when it in fact perfectly supports what I told in an earlier post: IPT management is better than most at timing financings to keep dilution down.
https://stockcharts.com/h-sc/ui?s=IPT.V&p=W&yr=5&mn=0&dy=0&id=p20277697487&a=1548900666

P.s., You really should steer completely clear of the sector. No one who understands it would post some of the things that you have. For example:
“They are not succeeding for the shareholders, they are failing for most of them except for a few investor traders that know how to play the stock trading cycles of a small silver miner, Fred & management are making money & most of the shareholders are losing money, end of the story.

Why will they keep the shop open, ask yourself that question ?”

That’s fair. Good luck with this new bull market that many still doubt.

Looks like everyone wants some physical gold right now with price up over $50. Next thing you know they will be wanting our shares. Lock your doors.

Thanks Marc for posts and range of perspectives, and for listening to the KE Report podcast.

Cheers!

Nobody called me to see if I wanted some shares and warrants for $0.17. Did you get a call?

You still haven’t named another junior miner that has so few shares out and no rollbacks after 30 years. Yes, on it’s face this particular financing is not one that’s easy to get behind so one might wonder if it is at least in part a favor to someone but your characterization of Fred “laughing all the way to the bank” is completely misguided. He is not paid an outrageous salary and he has definitely done his job better than most. Barring a game-changing discovery there’s been little that any CEO could have done better than Fred to improve IPT’s performance over the last decade plus. Too many peers were too aggressive with dilution and debt when the metal’s prices didn’t warrant it while IPT is only now getting more aggressive which makes Fred’s timing perfect in my opinion.
We have a huge bull market at our feet and IPT’s prospects have never been better so I’d be inclined buy more because of this pullback to keep my stake in the company at a pre-financing percentage.
This bull market is going to be much bigger than almost any analysts/observers expect.

You showed a glimmer of decency the other day and poof, it’s gone because you’re a chickenshit dunce.
Best of luck to ya sport, you’ll need it.

🤪🤪🤪

Yes, I’m denying “that this company needs to raise capital to operate their mine.” The company still had $9M as of two months ago and…
From the release:
The Company intends to use the proceeds from the offering to accelerate exploration activity at the recently acquired Plomosas high-grade zinc-lead-silver property located in Chihuahua, Mexico, as well as for working capital requirements and other general corporate purposes including legal and financing fees related to the offering. Exploration activities include sampling, target definition, and drilling with the intention of expanding the existing JORC mineral resource at Plomosas, where only 600m of the 6-kilometre-long structure has been tested. The region is known for hosting some of the largest carbonate replacement deposits in the world.

As for your idiotic comment about Fred laughing all the way to the bank:
Key management includes the Chief Executive Officer, Chief Financial Officer, Vice-President Exploration and Board of Directors and Audit Committee members and they were paid a COMBINED grand total of $166,250 for the 3rd quarter and $624,713 for the 9 months ended Sept. 30. That’s Canadian dollars. So you can kindly go do what Elon Musk told X advertisers to do.

For thinking readers it’s worth pointing out that IPT had 148 million shares out at the beginning of the year. That’s impressively low for the amount of time the company has existed and it should be considered separately from the dilution that took place afterward since that was done to purchase the Plomosas property and is therefore a one-off and not comparable to previous financings. IPT is no serial diluter as portrayed by the flippant new guy. It’s the opposite in fact which is part of the reason Fred and team have a long reputation for being conservative and to some, too conservative. IPT is a real company with plenty going on continuously for many years and especially since going into production about 18 years ago and placing 8 mines into production along the way (not counting Plomosas) as well as cataloguing over 5,000 old mine workings from the last 500 years.

Dilution is a crucial and unavoidable part of the sector and IPT and Fred have been far better than most at using it wisely. That’s just a fact which is why you get triggered when I tell you to show me a similar company with a better or even similar record. Furthermore, you said: “very few make money on this stock, only those that trade within a PM bull cycle will do well, knowing when to get in on the cheap & knowing when to get out on the high.”
That goes for the whole sector buddy. You didn’t know that? You’re wasting your time with this sector if you think there’s a free lunch waiting for you somewhere. The wins can be huge because the risks are huge. That’s how it works.