QUARTER HIGHLIGHTS
FINANCIAL
Total revenue was
In the
Variations in revenue are impacted by the re-start of the
The London Metals Exchange cash settlement copper price per pound averaged
A negative revenue revaluation in the
Net loss for the
- mine operations improved from a loss of
$9.2 million in theSeptember 2022 quarter to an income of$0.5 million in theSeptember 2023 quarter, decreasing net loss by$9.7 million , Mount Polley restart costs were$12.3 million in theSeptember 2022 quarter compared to $nil in theSeptember 2023 quarter, decreasing net loss by$12.3 million as theMount Polley mine was in operations,- interest expense increased from
$2.4 million in theSeptember 2022 quarter to$8.7 million in theSeptember 2023 quarter, increasing net loss by$6.3 million , and - tax expense was
$1.9 million in theSeptember 2022 quarter compared to a tax recovery of$9.0 million in theSeptember 2023 quarter, decreasing net loss by$10.9 million .
Capital expenditures including leases were
At
OPERATIONS
During the quarter ended
Q3 2023 vs Q2 2023
Mining of tailings from the
Q3 2023 vs Q3 2022
Three Months Ended | Nine Months Ended | ||||
2023 | 2022 | 2023 | 2022(1) | ||
Ore milled -tonnes | 1,560,270 | 984,814 | 4,380,748 | 984,814 | |
Ore milled per calendar day -tonnes | 16,959 | 10,705 | 16,047 | 10,705 | |
Grade % - copper | 0.295 | 0.197 | 0.282 | 0.197 | |
Grade g/t - gold | 0.322 | 0.285 | 0.320 | 0.285 | |
Recovery % - copper | 79.5 | 56.6 | 80.1 | 56.6 | |
Recovery % - gold | 70.1 | 56.3 | 69.9 | 56.3 | |
Copper -000’s pounds | 8,057 | 2,420 | 21,798 | 2,420 | |
Gold -ounces | 11,321 | 5,083 | 31,485 | 5,083 |
(1)
Exploration, development, and capital expenditures in the third quarter of 2023 were
Q3 2023 vs Q2 2023
Red Chris metal production (100%) for the third quarter of 2023 was 13,753,075 pounds copper and 10,048 ounces gold, compared to 13,729,195 pounds copper and 13,680 ounces gold produced during the second quarter of 2023. Gold production was 27% lower than the previous quarter, primarily driven by lower gold head grade from the Phase 7 ore source, which was in line with expectations.
Q3 2023 vs Q3 2022
100% Red Chris mine production | Three Months Ended | Nine Months Ended | |||
2023 | 2022 | 2023 | 2022 | ||
Ore milled -tonnes | 2,288,860 | 2,465,653 | 6,737,288 | 7,067,219 | |
Ore milled per calendar day -tonnes | 24,879 | 26,801 | 24,679 | 25,887 | |
Grade % - copper | 0.346 | 0.446 | 0.340 | 0.449 | |
Grade g/t - gold | 0.258 | 0.391 | 0.304 | 0.381 | |
Recovery % - copper | 78.8 | 79.1 | 77.3 | 77.9 | |
Recovery % - gold | 52.8 | 56.5 | 51.9 | 56.8 | |
Copper -000’s pounds | 13,753 | 19,181 | 39,072 | 54,497 | |
Gold -ounces | 10,048 | 17,512 | 34,224 | 49,140 |
Imperial’s 30% share of exploration, development, and capital expenditures in the third quarter of 2023 were
Block Cave Feasibility Study
At Red Chris, progress towards block cave mining is advancing with the exploration decline at 3,580 metres and the conveyor decline at 548 metres as of
The exploration program continued at Red Chris during the third quarter of 2023 with drilling completed west of the
Work is underway to update the Red Chris Mineral Resources estimate to include
During the reporting period, there were up to four diamond drill rigs in operation. A further 6,947 metres of drilling was completed during the quarter from 11 drill holes.
Huckleberry operations ceased in
Site personnel continue to focus on maintaining site access, water management including treatment and release of mine contact water into Tahtsa Reach, snow removal during winter time, maintenance of site infrastructure and equipment, mine permit compliance, environmental compliance monitoring and monitoring tailings management facilities.
For the
EARNINGS AND CASH FLOW
Select Quarter Financial Information
expressed in thousands of dollars, except share and per share amounts | Three Months Ended | Nine Months Ended | |||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
Operations: | |||||||||||
Total revenues | |||||||||||
Net loss | $(2,911 | ) | $(27,943 | ) | $(26,213 | ) | $(64,143 | ) | |||
Net loss per share | $(0.02 | ) | $(0.18 | ) | $(0.17 | ) | $(0.44 | ) | |||
Diluted loss per share | $(0.02 | ) | $(0.18 | ) | $(0.17 | ) | $(0.44 | ) | |||
Adjusted net loss | $(2,955 | ) | $(27,990 | ) | $(26,266 | ) | $(76,450 | ) | |||
Adjusted net loss per share | $(0.02 | ) | $(0.18 | ) | $(0.17 | ) | $(0.52 | ) | |||
Adjusted EBITDA | $(13,035 | ) | $(49,365 | ) | |||||||
Cash earnings | $(12,531 | ) | $(48,992 | ) | |||||||
Cash earnings per share | $(0.08 | ) | $(0.33 | ) | |||||||
Working capital deficiency deficiency | $(152,990 | ) | $(70,388 | ) | $(152,990 | ) | $(70,388 | ) | |||
Total assets | |||||||||||
Total debt (including current portion) |
NON-IFRS FINANCIAL MEASURES
The Company reports four non-IFRS financial measures: adjusted net income (loss), adjusted EBITDA, cash earnings and cash cost per pound of copper produced which are described in detail below. The Company believes these measures are useful to investors because they are included in the measures that are used by management in assessing the financial performance of the Company.
Adjusted net income (loss), adjusted EBITDA, cash earnings and cash cost per pound of copper produced are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other issuers.
Adjusted Net Loss and Adjusted Net Loss Per Share
Adjusted net loss is derived from operating net loss by removing the gains or loss, resulting from acquisition and disposal of property, mark to market revaluation of derivative instruments not related to the current period, net of tax, unrealized foreign exchange gains or losses on non-current debt, net of tax and other non-recurring items. Adjusted net loss in the
Adjusted EBITDA
Adjusted EBITDA in the
We believe that the presentation of Adjusted EBITDA is appropriate to provide additional information to investors about certain non-cash items and is useful to investors as an important indicator of our operations and the performance of our core business.
Cash Earnings and Cash Earnings Per Share
Cash earnings in the
Cash earnings and cash earnings per share are measures used by the Company to evaluate its performance; however, they are not terms recognized under IFRS. We believe that the presentation of cash earnings and cash earnings per share is appropriate to provide additional information to investors about how well the Company can earn cash to pay its debts and manage its operating expenses and investment. Cash earnings is defined as cash flow from operations before the net change in non-cash working capital balances, income and mining taxes paid, and interest paid. Cash earnings per share is the same measure divided by the weighted average number of common shares outstanding during the year.
Cash Cost Per Pound of Copper Produced
The Company is primarily a copper producer and therefore calculates this non-IFRS financial measure individually for its three copper mines, Red Chris (30% share),
Idle mine and mine restart costs during the periods when the Huckleberry and
Calculation of Cash Cost Per Pound of Copper Produced expressed in thousands, except cash cost per pound of copper produced | Three Months Ended | ||
Red Chris | Composite | ||
A | B | C=A+B | |
Cash cost of copper produced in US$ | |||
Copper produced – 000’s pounds | 4,126 | 8,057 | 12,183 |
Cash cost per lb copper produced in US$ | |||
expressed in thousands, except cash cost per pound of copper produced | Three Months Ended | ||
Red Chris | Composite | ||
A | B | C=A+B | |
Cash cost of copper produced in US$ | |||
Copper produced – 000’s pounds | 5,754 | 2,420 | 8,174 |
Cash cost per lb copper produced in US$ |
Calculation of Cash Cost Per Pound of Copper Produced expressed in thousands, except cash cost per pound of copper produced | Nine Months Ended | ||
Red Chris | Composite | ||
A | B | C=A+B | |
Cash cost of copper produced in US$ | |||
Copper produced – 000’s pounds | 11,722 | 21,798 | 33,520 |
Cash cost per lb copper produced in US$ | |||
expressed in thousands, except cash cost per pound of copper produced | Nine Months Ended | ||
Red Chris | Composite | ||
A | B | C=A+B | |
Cash cost of copper produced in US$ | |||
Copper produced – 000’s pounds | 16,349 | 2,420 | 18,769 |
Cash cost per lb copper produced in US$ |
(1)
Qualified Person
The technical and scientific information in this news release related to the Company’s mineral projects has been reviewed and approved by
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For detailed information, refer to Imperial’s 2023 Third Quarter Report available on imperialmetals.com and sedarplus.ca.
About Imperial
Imperial is a
Company Contacts
Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this news release are not statements of historical fact and are “forward-looking” statements. Forward-looking statements relate to future events or future performance and reflect Company management’s expectations or beliefs regarding future events and include, but are not limited to, statements regarding the Company’s expectations with respect to its business and operations; metal pricing and demand; fluctuation of revenues; potential development plans and mining methods at Red Chris; expectations and timing regarding current and future exploration and drilling programs; progress and advancement of the exploration decline; expectations regarding completion of the Block Cave Feasibility Study and timing thereof; expectations regarding update of the Red Chris Mineral Resources estimate; expectations regarding recovery, throughput and mined grades for copper and gold; the removal of the
In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "outlook", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.
In making the forward-looking statements in this news release, the Company has applied certain factors and assumptions that are based on information currently available to the Company as well as the Company’s current beliefs and assumptions. These factors and assumptions and beliefs and assumptions include, the risk factors detailed from time to time in the Company’s interim and annual financial statements and management’s discussion and analysis of those statements, all of which are filed and available for review on SEDAR+ at sedarplus.ca. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended, many of which are beyond the Company’s ability to control or predict. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and all forward-looking statements in this news release are qualified by these cautionary statements.
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