Disclaimer
This material is provided for informational and educational purposes only and should not be considered financial, investment, legal, tax, or other professional advice. The views expressed are based on publicly available information, company filings, technical reports, news releases, company presentations, and personal analysis at the time of writing, and they may change without notice.
Mining and resource investments are highly speculative and involve substantial risks, including commodity price volatility, underground mining risk, grade reconciliation risk, dilution risk, operational risk, processing risk, Mexican jurisdiction risk, labour risk, cost inflation, exploration risk, mine restart risk, and changes in market conditions. Past performance is not indicative of future results.
IMPACT Silver Corp. TSXV: IPT / OTCQB: ISVLF / FSE: IKL
Introduction
IMPACT Silver Corp. is a Mexico-focused silver producer with operating history, real production, existing mills, underground mines, and multiple exploration/restart options. The company’s core asset is the 100 percent owned Zacualpan silver-lead-zinc-gold mining district in central Mexico, where it operates the Guadalupe Production Centre, a 500 tonne-per-day crushing and flotation plant fed by multiple underground mines and one open-pit mine. The company also owns the Plomosas zinc-lead-silver mine in Chihuahua and the Capire silver-zinc-lead project in Guerrero.
The bull case is simple: IMPACT Silver is not a dream-stage explorer. It is already producing silver, has nearly 20 years of operating experience at Zacualpan, has no long-term debt, and ended 2025 with a strong cash position. In 2025, the company delivered record revenue of C$48.5 million, up 52 percent from C$31.9 million in 2024, while gross profit improved to C$10.4 million from a gross loss in 2024. Cash was C$23.7 million plus C$4.0 million in guaranteed investment certificates at year-end, with working capital of C$31.7 million and no long-term debt.
The main attraction is silver leverage from an existing operating platform. Zacualpan produced 635,778 ounces of silver in 2025, compared with 595,264 ounces in 2024. Q4 2025 silver production improved 17 percent year over year to 190,253 ounces, and average mill feed silver grade improved to 179 g/t in Q4 2025 from 164 g/t in Q4 2024.
The main risk is also clear: this is a small producer with modest silver output, operating in Mexico, with Plomosas temporarily suspended after underperformance. IMPACT has real assets, real cash, and real operating history, but it still needs to prove that it can grow production sustainably and avoid the cost problems that hurt Plomosas.
Projects / Location / MRE / Grades
Project 1: Zacualpan Silver-Gold-Lead-Zinc District, Mexico (Flagship Producing Asset)
Zacualpan is IMPACT Silver’s flagship asset. It is located in the States of Mexico and Guerrero, Mexico, and forms part of a large 211 square kilometre regional land package that includes the Capire project. The company owns 100 percent of the asset.
The Guadalupe Production Centre is the heart of the operation. It is a 500 tpd crushing and flotation plant that has been producing for more than 19 years. The plant is fed by multiple underground mines including Guadalupe, San Ramon, Carlos Pacheco and Cuchara, plus the Veta Negra open pit.
This is important because Zacualpan is not a remote greenfield project waiting for infrastructure. The property has connected roads, access to the national electrical grid, water availability in mines, telecommunications, and skilled labour nearby.
Zacualpan is a narrow-vein, underground-style silver system. The grades are not presented like a single large modern resource table because IMPACT has historically made production decisions based on internal mine and exploration data rather than NI 43-101 reserves or feasibility studies. This is important: the company is a real producer, but production decisions carry higher geological and operational uncertainty because they are not backed by a reserve-based mine plan. IMPACT itself highlights this risk in its March 2026 presentation.
The grade trend improved in Q4 2025, with average mill feed silver grade of 179 g/t silver compared with 164 g/t silver in Q4 2024. That is a positive sign because the entire bull case depends on Zacualpan feeding the mill with better grade material and keeping unit costs under control.
The new Kena Vein discovery is one of the most interesting exploration and production-growth points. IMPACT reported drill intersections including 534.8 g/t silver over 8.5 metres, including 2,320 g/t silver over 1.07 metres, and the company says mining has recently begun on the new high-grade Kena Vein South discovery in the Guadalupe Mine.
Zacualpan is the cash-flow engine. If IMPACT can keep pushing higher-grade veins into the mill, the stock has meaningful operating leverage to silver prices.
| Zacualpan Operating Summary | Details |
| Ownership | 100 percent owned |
| Land package | 211 sq. km regional package including Capire |
| Processing plant | 500 tpd Guadalupe crushing and flotation plant |
| Mine feed | Guadalupe, San Ramon, Carlos Pacheco, Cuchara, and Veta Negra |
| Operating history | 19+ years of continuous production |
| 2025 silver production | 635,778 oz silver |
| Q4 2025 production | 190,253 oz silver |
| Q4 2025 mill feed grade | 179 g/t silver |
| 2025 Zacualpan revenue | C$38.5M |
| 2025 operating expenses | C$21.9M before amortization and depletion |
Project 2: Plomosas Zinc-Lead-Silver Mine, Chihuahua (Turnaround / Optionality Asset)
Main asset
Plomosas is located in Chihuahua, Mexico. IMPACT acquired the project in April 2023. It is a high-grade zinc-lead-silver carbonate replacement deposit system with a 30 square kilometre land package, road access, diesel power generation, telecommunications, and skilled labour nearby.
The problem is that Plomosas is currently in care and maintenance. In March 2026, IMPACT announced a temporary suspension of underground mining after reviewing operating performance and cost structure. Management said development intensity, grade variability, and tonnage variability hurt cost efficiency and operational consistency.
This is the key negative in the story. Plomosas was supposed to be a second producing leg, but it has become a restructuring asset. IMPACT recorded an C$8.8 million impairment loss on Plomosas in 2025, and the remaining recoverable amount for Plomosas property, plant and equipment was C$4.5 million.
Grade feel
Plomosas is high grade on paper. The March 2026 corporate presentation describes Plomosas as having grades as high as 13 percent zinc with lead and silver by-product credits, and the project sits on a 6 km prospective CRD trend.
The issue is not whether Plomosas has grade. The issue is whether IMPACT can mine it profitably and consistently. In Q4 2025, Plomosas produced 9,171 tonnes at average grades of 8.3 percent zinc, 4.7 percent lead, and 34.0 g/t silver. Full-year 2025 throughput was 46,875 tonnes, 20 percent higher than 2024, but management concluded the current mine plan was not expected to deliver sustainable economic results without more development capital.
Plomosas operating summary
For investors, Plomosas should be treated as a turnaround option, not the current core valuation driver.
| Plomosas Key Point | Details |
| Ownership | 100 percent owned |
| Location | Chihuahua, Mexico |
| Deposit style | High-grade zinc-lead-silver CRD system |
| Property size | 30 sq. km |
| Prospective structure | 6 km trend |
| Plant capacity | Up to 225 tpd |
| Current status | Underground mining temporarily suspended in Q1 2026 |
| Next work | New geological model, mine plan redesign, third-party mill-feed discussions, exploration |
Project 3: Capire Silver-Zinc-Lead Project, Guerrero (Restart Optionality)
Capire is located 16 kilometres southwest of the Guadalupe Production Centre and is part of the broader Zacualpan regional land package. It is 100 percent owned by IMPACT and is currently on care and maintenance while management evaluates a potential restart.
Capire has a 200 tpd pilot plant, tailings dam, open pit, and existing infrastructure. The project hosts a silver-rich VMS-style deposit with zinc and lead credits. The 2016 NI 43-101 inferred resource contains over 4.5 million ounces of silver, 48 million pounds of zinc, and 21 million pounds of lead in 1.786 million tonnes grading 79 g/t silver, 1.22 percent zinc, and 0.54 percent lead.
This is a good optionality asset. It is not the main driver today, but it gives IMPACT another possible source of production growth if silver prices remain strong. Management is also evaluating XRT ore-sorting technology to separate ore from waste and potentially reduce processing and tailings costs.
Project 4: District-Scale Exploration Upside
IMPACT controls one of the older and more historically mined silver districts in Mexico. The Zacualpan district has nearly 500 years of mining history, and IMPACT says it has catalogued more than 5,000 old mine workings and 42 historical processing plants.
The company’s March 2026 presentation states that it is planning a company-wide C$4.0 million exploration program for 2026, including underground drilling in producing mines, surface drilling on production-vein extensions, mapping, sampling, and new drill target generation.
This is the exploration upside. IMPACT does not need one giant new discovery to matter. It needs a steady pipeline of new high-grade veins that can keep the Guadalupe mill fed and potentially support higher production over time.
Share Structure / Ownership / Insiders
Capital Structure
The company’s March 2026 presentation listed the following capital structure data:
More recent market data from TMX/Google Finance showed approximately 345.5 million issued shares and a market cap of approximately C$101.9 million, with the stock around C$0.295.
Fully diluted share estimate
As of December 31, 2025, IMPACT reported 133.3 million warrants outstanding and 8.53 million options outstanding. Of the options, 1.77 million expired on January 18, 2026.
Using the current listed share count of 345,506,524 and the December 31, 2025 warrant/options figures, adjusted only for the expired January 2026 options, a rough fully diluted share count is:
Important note: this number may be overstated or understated because some warrants may have expired or been exercised after December 31, 2025. The May 17, 2026 warrant expiry is especially important and should be checked again when the next financial statements or company update is released.
Fully Diluted Market Cap
Using C$0.295 per share and the rough fully diluted count of 485,528,208 shares:
This is still small for a producing silver company with real mills, real revenue, no long-term debt, and exploration/restart optionality. But the share structure is not tight anymore. The warrant overhang is meaningful.
Share structure feel
The share structure is moderate to heavy for a small producer. IMPACT has raised capital several times, including a C$16 million private placement in September 2025, where it issued 44.4 million units at C$0.36 per unit, with each unit including one common share and one warrant exercisable at C$0.45 for 24 months
The positive is that the company raised into a stronger silver market and ended 2025 with a strong balance sheet. The negative is that fully diluted shares are high, and warrants may cap upside in the short term unless operating results improve enough to absorb the dilution.
Ownership / Insiders
The company presentation shows 35 percent institutional fund ownership and 65 percent retail ownership.
I could not verify a strong insider ownership percentage from the latest official company materials. For now, I would not rate this as a highly insider-owned story. It is more of an institutional/retail silver leverage story with long-tenured management than a founder-owned stock.
| Capital Structure Item | Value |
| Share price, Jan 24 2026 | C$0.23 |
| Shares outstanding, presentation | 329.7M |
| Market capitalization, presentation | C$75.8M |
| Cash, Mar 20 2026 | More than C$35.0M |
| Working capital, Sep 30 2025 | C$27.3M |
| Long-term debt | None |
| Share ownership | 65% retail / 35% institutional funds |
| Recent listed shares | ~345.5M |
| Recent market cap | ~C$101.9M at ~C$0.295 |
| Fully Diluted Share Estimate | Value |
| Basic shares | 345,506,524 |
| Warrants | 133,261,684 |
| Options after Jan 2026 expiry adjustment | 6,760,000 |
| Approximate fully diluted shares | 485,528,208 |
| Approximate FD market cap | C$143.2M / US$104.6M |
People / Management
| Person | Role | Management Feel |
| Frederick W. Davidson | President, CEO & Director | Long-tenured mining executive with 33+ years of mining and exploration experience; has helped finance public and private mining companies and has been involved with operations moving from exploration to production. |
| Fernando Montoya | Chief Financial Officer | 25 years of corporate finance, accounting, law, and operations experience, including Mexico-Canada reporting and compliance. |
| George Gorzynski | VP Exploration & Director | 40+ years in geology and engineering; instrumental in identifying and purchasing Royal Mines of Zacualpan. |
| Armando Alexandri | Chief Operating Officer | Mexican-registered mining engineer with 40 years of mine and metallurgical design experience; has helped build and operate more than 10 mines in Mexico. |
| Jerry Huang | VP Finance | Public-company and capital-markets experience; supports corporate development, investor relations, financings, and transactions. |
| Board of Directors | Mining, geology, finance and capital markets | Includes Victor Tanaka, Richard Mazur, Robert Lishman, Jose Olmedo, and Janet Meiklejohn, adding exploration, finance, governance and Mexico experience. |
Management overall: Strong industry experience, especially in Mexico, exploration, finance, and mine operations. The key question is whether this team can turn IMPACT from a small, long-running producer into a larger, cleaner-margin silver producer.
Risks / Catalysts / Timeline
Key Risks
| Risk Category | Key Risk |
| Plomosas turnaround risk | Plomosas underground mining is suspended, and the asset must be redesigned before a sustainable restart. • Impairment risk: IMPACT recorded an C$8.8 million impairment loss on Plomosas in 2025. • No reserve-based mine plan: IMPACT states its production decisions historically were not based on NI 43-101 mineral reserves, PEAs, or feasibility studies, which increases uncertainty. • Grade risk: Zacualpan depends on finding and mining enough high-grade veins to keep the mill profitable. • Small producer risk: Annual silver production is still modest at about 636,000 ounces in 2025. • Dilution risk: The company has a large warrant overhang from prior financings. • Mexico jurisdiction risk: Permitting, security, labour, taxes, royalties, and political conditions can affect mining operations. • Commodity price risk: IMPACT is exposed to silver, lead, zinc, and gold prices. The company does not actively hedge metal prices. • Cost inflation risk: Labour, energy, explosives, consumables, reagents, transport, and underground development costs can pressure margins. • Single-customer concentration: IMPACT sells 100 percent of its concentrate to one customer in Mexico. • Operational scale risk: The company needs higher throughput, better grades, or more efficient operations to become more than a small silver producer. |
Catalysts
| Timeline | Catalyst |
| 2026 | Continued high-grade Zacualpan drilling • 2026: Further development of Kena Vein South at Guadalupe • 2026: Additional production feed from San Ramon, Carlos Pacheco, Noche Buena, and Guadalupe mines • 2026: C$4.0 million company-wide exploration program • 2026: Plomosas geological model update and redesigned mine plan • 2026: Potential third-party ore processing arrangements at Plomosas mill • 2026: Possible Capire restart study progress • 2026: Additional silver price leverage if silver remains strong • 2026 onward: Potential re-rating if Zacualpan keeps generating stronger gross profit • Medium term: Capire restart decision if silver prices support economics • Medium term: Plomosas restart if higher-quality mineralization and cost structure improve |
Expected Timeline to Full Production / Growth
| Timeline | Expected Progress |
| 2026 | Zacualpan execution, exploration, and Plomosas optimization. Production mix should shift toward higher-grade silver vein systems such as Kena Vein while drilling supports additional mine feed. |
| 2026 to 2027 | Plomosas is the key uncertainty. Management is working on a new geological model, optimized mine plan, redesigned development, and third-party mill-feed opportunities. |
| 2027 onward | Capire could become more important if silver prices stay high and XRT sorting improves economics. Zacualpan could also grow if new high-grade veins are converted into mine feed. |
Valuation Summary
Current Market Setup
| Metric | Value |
| Share price | Approximately C$0.295 |
| Basic shares outstanding | Approximately 345.5M |
| Basic market cap | Approximately C$101.9M |
| Rough USD market cap | Approximately US$74.4M |
| Approximate fully diluted shares | 485.5M |
| Rough fully diluted market cap | Approximately C$143.2M / US$104.6M |
2025 Financial Base
| 2025 Item | Value |
| Revenue | C$48.5M |
| Gross profit | C$10.4M |
| Net loss | C$10.3M after Plomosas impairment and share-based compensation |
| Cash | C$23.7M |
| GIC investments | C$4.0M |
| Working capital | C$31.7M |
| Long-term debt | None |
| Zacualpan revenue | C$38.5M |
| Plomosas revenue | C$10.0M |
| Zacualpan operating expenses before amortization | C$21.9M |
| Plomosas operating expenses before amortization | C$13.7M |
Silver Price Leverage Model
This simplified model uses 2025 Zacualpan silver sales of roughly 636,267 ounces and a base reference silver price of US$35/oz. It excludes taxes, royalties, by-product changes, cost inflation, treatment charges, recovery changes, dilution and production growth.
| Silver Price | Extra Annual Silver Revenue | Rough Incremental Operating Cash Flow at 40% Conversion |
| US$50/oz | US$9.54M | US$3.82M |
| US$75/oz | US$25.45M | US$10.18M |
| US$100/oz | US$41.36M | US$16.54M |
Valuation Feel
At roughly US$74 million basic market cap, IMPACT is valued like a small silver producer with optionality, not like a high-growth silver producer. The company has real positives: cash, no long-term debt, producing assets, high silver exposure, and exploration upside. But the market is also applying a discount for Plomosas suspension, modest production scale, Mexico risk, and dilution overhang.
The re-rating path is clear: Zacualpan must keep improving grade and margin, Kena Vein must contribute meaningful high-grade feed, Plomosas must stop being a drag, Capire restart must become credible, silver price must stay strong, and dilution must be controlled.
Summary & Quick Scorecard
| Category | Points | Overall |
| Company Overview | Stock ticker: TSXV: IPT / OTCQB: ISVLF / FSE: IKL Main metal: Silver, with lead, zinc, gold, and zinc optionality from Plomosas Project phase: Producer Zacualpan is producing; Plomosas is temporarily suspended; Capire is on care and maintenance and being evaluated for restart. | – |
| 1. Management | Previous successful project, discovery, mine build, or company sale: No Exploration to development: Yes Big mining company experience: Yes Strong capital markets track record: No Management has deep Mexico, underground mining, geology, financing, and public-company experience. | ✅ Good |
| 2. Projects | High grades: Yes, especially selected Zacualpan veins and Plomosas zinc zones MRE size: No Optionality: Yes Real assets and multiple shots on goal, but no large clean reserve-backed mine plan. | ✅ Good |
| 3. Cost Structure | Low AISC: Not clearly reported as a clean company-wide AISC figure Low capex / existing infrastructure: Yes Existing processing plants: Yes No long-term debt: Yes Plomosas suspension shows costs and mine planning remain real issues. | ✅ Good |
| 4. Share Structure Discipline | Basic shares outstanding: 345,506,524 Approximate fully diluted shares: 485,528,208 Basic market cap: approximately C$101.9M Approximate fully diluted market cap: approximately C$143.2M / US$104.6M Cash and no long-term debt are positives, but warrants are a main overhang. | ✅ Strong |
| 5. Insider / Ownership | Institutional ownership: 35% according to company presentation Retail ownership: 65% according to company presentation Insider ownership: not clearly verified from latest official materials | ⚠️ Weak |
| 6. Location | Tier 2, Mexico. Zacualpan is in the States of Mexico and Guerrero; Plomosas is in Chihuahua; Capire is in Guerrero. Strong mining culture, but higher jurisdiction, permitting, security, tax, and political risk than Tier 1 jurisdictions. | ✅ Good |
⭐ RT Rating, Commentary
IMPACT Silver is not on our watchlist.
We rate this as 3 out of 5 stars.
IMPACT Silver is a real silver producer with real assets, real mills, real revenue, a strong cash position, and no long-term debt. That already makes it more advanced than many junior silver stories. Zacualpan is the core engine, and the higher-grade Kena Vein discovery could become important if it feeds better-grade material into the Guadalupe plant.
The upside is clear. If silver prices keep rising, IMPACT has direct leverage. If Zacualpan margins continue improving, the market may start treating the company as a cleaner silver producer. If Plomosas is successfully redesigned and restarted, that adds another production leg. If Capire becomes economic again, the story gets even better.
But this is not a clean 5-star setup yet. The management don’t own any skin in the game, we can’t find any info on it. Plus, it is Tier 2 jurisdiction. Plomosas is suspended. Production scale is still small. There is no large reserve-backed mine plan. IMPACT must prove that 2025 was the beginning of a stronger operating trend, not just a good year helped by higher silver prices.
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