Imperial Reports Third Quarter 2024 Financial Results

VANCOUVER, British Columbia, Nov. 05, 2024 (GLOBE NEWSWIRE) -- Imperial Metals Corporation (the "Company") (TSX:III) reports financial results for the three and nine months ended September 30, 2024.

QUARTER HIGHLIGHTS

FINANCIAL

Adjusted EBITDA increased by $63.7 million to $74.2 million in Q3 2024 compared to $10.5 million in Q3 2023.

Total revenue was $146.1 million in the September 2024 quarter compared to $78.5 million in the 2023 comparative quarter.

In the September 2024 quarter, the Red Chris mine (100% basis) had 4.0 concentrate shipments (2023-3.4 concentrate shipments). Mount Polley mine had 2.0 concentrate shipments (2023-1.2 concentrate shipments).

Variations in revenue are impacted by the increased quantity of concentrate sold, timing and quantity of concentrate shipments, metal prices and exchange rates, and period end revaluations of revenue attributed to concentrate shipments where copper and gold prices will settle at a future date.

The London Metals Exchange cash settlement copper price per pound averaged US$4.17 in the September 2024 quarter compared to US$3.79 in the 2023 comparative quarter. The LBMA (London Bullion Market Association) gold price per troy ounce averaged US$2,476 in the September 2024 quarter compared to US$1,929 in the 2023 comparative quarter. The average US/CDN Dollar exchange rate was 1.364 in the September 2024 quarter, 1.7% higher than the exchange rate of 1.341 in the September 2023 quarter. In CDN Dollar terms the average copper price in the September 2024 quarter was CDN$5.69 per pound compared to CDN$5.08 per pound in the 2023 comparative quarter, and the average gold price in the September 2024 quarter was CDN$3,377 per ounce compared to CDN$2,587 per ounce in the 2023 comparative quarter.

A revenue revaluation in the September 2024 quarter was $1.1 million as compared to a negative revenue revaluation of $(3.4) million in the 2023 comparative quarter. Revenue revaluations are the result of the metal price on the settlement date and/or the current period balance sheet date being higher or lower than when the revenue was initially recorded or the metal price at the last balance sheet date and finalization of contained metal as a result of final assays and weights.

Net income for the September 2024 quarter was $32.3 million ($0.20 income per share) compared to net loss of $2.9 million ($0.02 loss per share) in the 2023 comparative quarter. The increase in net income of $35.2 million primarily due to the following factors:

Income from mine operations went from $0.5 million in the September 2023 quarter to an income of $60.4 million in September 2024, increasing net income by $59.9 million

Interest expense went from $8.7 million in September 2023 to $9.2 million in September 2024, reducing net income by $0.5 million, and

Income and mining tax went from a recovery of $9.0 million in September 2023 to tax expense of $14.3 million on September 2024, reducing net income by $23.3 million.

Capital expenditures including leases were $64.4 million in the September 2024 quarter, an increase of $24.6 million from $39.8 million in the 2023 comparative quarter. The September 2024 quarter expenditures included $2.9 million in exploration and development, $22.7 million for tailings dam construction, $12.7 million on stripping costs, and $26.1 million of other capital.

At September 30, 2024, the Company had not hedged any copper, gold or US/CDN Dollar exchange. Quarterly revenues will fluctuate depending on copper and gold prices, the US/CDN Dollar exchange rate, and the timing of concentrate sales, which is dependent on concentrate production and the availability and scheduling of transportation.

OPERATIONS

During the quarter ended September 30, 2024, Imperial's consolidated metal production was 15,515,080 pounds copper and 13,551 ounces gold, of which 9,821,882 pounds copper and 9,527 ounces gold were produced at Mount Polley and 5,693,198 pounds copper and 4,024 ounces gold from its 30% share of Red Chris mine production.

Mount Polley Mine

Mount Polley metal production for the third quarter of 2024 was 9,821,882 pounds copper and 9,527 ounces gold, compared to 9,281,498 pounds copper and 10,009 ounces gold produced during the second quarter of 2024.

Mill throughput in the third quarter was down by 2%, with 1.694 million tonnes being treated compared with 1.714 million tonnes treated in the second quarter of 2024. Copper production in the third quarter 2024 was up by 6% largely on higher copper grade, 0.316% copper versus 0.294% copper in the second quarter of 2024.

Compared to the third quarter of 2023, mill throughput was up 8.6%, with 1.694 million tonnes being treated compared with 1.560 million tonnes treated in the third quarter of 2023. Copper production in the third quarter 2024 was up by 21.9%, compared to the same quarter in 2023, with copper grade, recovery and mill throughput all higher. Gold production was lower at 9,527 ounces in the third quarter of 2024 compared to 11,321 ounces produced in the comparative quarter of 2023 on lower grades and recovery which were partially offset by higher throughput.

For the nine months of 2024, copper production was up 21% compared to the same period last year with 16% increase in throughput while gold production was down 6%, with lower gold grades and recovery offsetting the higher throughput.

Stripping for the Phase 5 pushback of the Springer pit continues and approximately 3.97 million tonnes from this pushback was mined to the end of September 2024, with much of this material hauled to the TSF for buttress construction.

 

Three Months EndedSeptember 30

 

Nine Months EndedSeptember 30

 

 

2024

 

2023

 

2024

 

2023

 

Ore milled - tonnes

1,694,355

 

1,560,270

 

5,080,190

 

4,380,748

 

Ore milled per calendar day - tonnes

18,417

 

16,959

 

18,541

 

16,047

 

Grade % - copper

0.316

 

0.295

 

0.287

 

0.282

 

Grade g/t - gold

0.251

 

0.322

 

0.265

 

0.320

 

Recovery % - copper

83.2

 

79.5

 

82.2

 

80.1

 

Recovery % - gold

69.7

 

70.1

 

68.2

 

69.9

 

Copper - 000's pounds

9,822

 

8,057

 

26,459

 

21,798

 

Gold - ounces

9,527

 

11,321

 

29,544

 

31,485

 

 

 

 

 

 

 

 

 

 

Exploration, development, and capital expenditures in the third quarter of 2024 were $27.8 million compared to $13.1 million in the 2023 comparative quarter.

Red Chris Mine

Red Chris production (100%) for the third quarter of 2024 was 18,977,325 pounds copper and 13,414 ounces gold compared to 20,731,379 pounds copper and 12,531ounces gold during the second quarter of 2024.

The reduction in copper production was primarily due to lower throughput, which was partially offset by the higher recovery. The current quarter throughput was 21,690 tonnes per day compared to 27,357 tonnes per day to the second quarter 2024. There was a 21% decrease in throughput and an 8% increase in copper grade (0.504% vs 0.466%). Gold production in the third quarter 2024 was up 7% (13,414 oz vs 12,531 oz) compared to the second quarter 2024 as result of a 21% increase in gold grades (0.37 g/t gold vs 0.30 g/t gold), which was partially offset by lower throughput.

In the 2024 third quarter, Red Chris copper production was up 38% and gold production was up 33.5% compared to the third quarter of 2023. The increase in copper production was a result of a 45.7% increase in copper grade (0.50% vs 0.35%) and an 8.6% increase in recovery (85.6% vs 78.8%). The increase in gold production was a result of a 41.2% increase in gold grade (0.365 g/t vs 0.258 g/t) and an 8.5% increase in recovery (57.3% vs 52.8%).

For the nine months of 2024, copper production was up 44% compared to the same period last year on higher copper grades and gold production was up 4% on higher gold grades.

Imperial's 30% portion of Red Chris mine for the third quarter of 2024 was 5,693,198 pounds copper and 4,024 ounces gold.

100% Red Chris mine production

Three Months EndedSeptember 30

 

Nine Months EndedSeptember 30

 

 

2024

 

2023

 

2024

 

2023

 

Ore milled - tonnes