Select Annual Financial Information | Year Ended | |||||
expressed in thousands, except share and per share amounts | 2023 | 2022 | 2021 | |||
Operations: | ||||||
Total revenues | ||||||
Net loss | $(36,715 | ) | $(75,975 | ) | $(26,070 | ) |
Net loss per share | $(0.23 | ) | $(0.51 | ) | $(0.19 | ) |
Diluted loss per share | $(0.23 | ) | $(0.51 | ) | $(0.19 | ) |
Adjusted net loss(1) | $(36,092 | ) | $(95,598 | ) | $(23,181 | ) |
Adjusted net loss per share(1) | $(0.23 | ) | $(0.64 | ) | $(0.17 | ) |
Adjusted EBITDA(1) | $(63,131 | ) | ||||
Cash earnings(1)(2) | $(52,873 | ) | ||||
Cash earnings per share(1)(2) | $(0.36 | ) | ||||
Working capital deficiency | $(167,597 | ) | $(65,091 | ) | $(19,060 | ) |
Total assets | ||||||
Total debt (including current portion)(3) | ||||||
(1) Refer to table in section Non-IFRS Financial Measures of the | ||||||
(2) Cash earnings is defined as the cash flow from operations before the net change in non-cash working capital balances, income and mining taxes, and interest paid. Cash earnings per share is defined as cash earnings divided by the weighted average number of common shares outstanding during the year. | ||||||
(3) Total debt consists of banker’s acceptances, debentures, advanced development loan, and equipment loans and leases. |
Select Items Affecting Net Loss | ||||||
presented on an after-tax basis | Year Ended | |||||
2023 | 2022 | 2021 | ||||
(000’s) | (000’s) | (000’s) | ||||
Net loss before undernoted items | $(5,429 | ) | $(67,063 | ) | $(24,337 | ) |
Interest expense | (31,332 | ) | (8,921 | ) | (1,497 | ) |
Foreign exchange gain (loss) on debt | 46 | 9 | (236 | ) | ||
Net Loss | $(36,715 | ) | $(75,975 | ) | $(26,070 | ) |
Total revenue increased to
Revenue from the
Revenue from the Red Chris mine in 2023 was
Variations in revenue are impacted by the restart of operations, the 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
Revenue in 2023 decreased by a
Net loss in 2023 was
- loss from mine operations reduced to
$13.7 million in 2023 from loss of$28.7 million in 2022, a decrease in net loss of$15.0 million ; - mine restart costs went from
$64.9 million in 2022 to $Nil in 2023, a decrease in net loss of$64.9 million , which was slightly offset by the increase of$2.2 million in idle mine cost from$6.5 million in 2022 to$8.7 million in 2023; - net gain on disposal of mineral properties decreased by
$17.8 million from$16.9 million in 2022 to a loss of$0.9 million in 2023; and - interest expense of
$8.9 million in 2022 increased to$31.3 million in 2023, an increase of$22.4 million as a result of additional financing required to support working capital and capital expenditures in 2023 at the Company’s operating mines.
Capital expenditures including finance leases were
$44.9 million in exploration, an increase of$3.5 million in comparison to 2022 of$41.4 million ;$36.6 million for tailings dam construction, a decrease of$0.1 million in comparison to 2022 of$36.7 million ;$12.6 million on stripping costs, a decrease of$11.2 million in comparison to 2022 of$23.8 million ; and- investment in other plant and equipment of
$43.2 million , a decrease of$4.9 million in comparison to 2022 of$48.1 million .
At
At
NON-IFRS FINANCIAL MEASURES
The Company reports on four non-IFRS financial measures: adjusted net 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 loss, adjusted EBITDA, cash earnings and cash cost per pound of copper 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 long term debt, net of tax and other non-recurring items. Adjusted net loss in 2023 was
Adjusted EBITDA
Adjusted EBITDA in 2023 was
Cash Earnings and Cash Earnings Per Share
Cash earnings in 2023 was
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
Management uses this non-IFRS financial measure to monitor operating costs and profitability. The Company is primarily a copper producer and therefore calculates this non-IFRS financial measure individually for its two operating copper mines, Red Chris (30% share) and
Variations from period to period in the cash cost per pound of copper produced are the result of many factors including: grade, metal recoveries, amount of stripping charged to operations, mine and mill operating conditions, labour and other cost inputs, transportation and warehousing costs, treatment and refining costs, the amount of by-product and other revenues, the US$ to CDN$ exchange rate and the amount of copper produced.
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 of dollars, except cash cost per pound of copper produced | Year Ended | ||||
Red Chris | Composite | ||||
Cash cost of copper produced in US$ | |||||
Copper produced – 000’s pounds | 17,116 | 30,146 | 47,262 | ||
Cash cost per lb copper produced in US$ | |||||
expressed in thousands of dollars, except cash cost per pound of copper produced | Year Ended | ||||
Red Chris | Composite | ||||
Cash cost of copper produced in US$ | |||||
Copper produced – 000’s pounds | 20,281 | 6,206 | 26,487 | ||
Cash cost per lb copper produced in US$ | |||||
(1) | |||||
OPERATIONS
Q4 2023 vs Q3 2023
Mining of tailings from the
Year 2023 vs Year 2022
During the year ended
Three Months Ended | Year Ended | ||||
2023 | 2022 | 2023 | 2022(1) | ||
Ore milled - tonnes | 1,567,491 | 1,084,016 | 5,948,239 | 2,068,830 | |
Ore milled per calendar day - tonnes | 17,038 | 11,783 | 16,297 | 11,244 | |
Grade % - copper | 0.302 | 0.230 | 0.287 | 0.214 | |
Grade g/t - gold | 0.286 | 0.325 | 0.311 | 0.306 | |
Recovery % - copper | 79.9 | 68.9 | 80.0 | 63.5 | |
Recovery % - gold | 71.8 | 61.8 | 70.4 | 59.4 | |
Copper - 000’s pounds | 8,348 | 3,786 | 30,145 | 6,206 | |
Gold - ounces | 10,349 | 6,995 | 41,834 | 12,078 | |
(1) | |||||
Exploration, development, and capital expenditures in 2023 were
The 2024 production target for
Q4 2023 vs Q3 2023
Red Chris production (100%) for the 2023 fourth quarter was 17,979,508 pounds copper, an increase of 31.0% compared to 13,753,075 pounds copper produced in the third quarter of 2023 and 11,822 ounces gold, an increase of 18.0% compared to the 10,048 ounces gold in the third quarter of 2023. Metal production increased for both copper and gold due to higher grades, better recoveries and increased throughput.
Year 2023 vs Year 2022
Red Chris metal production (100% basis) for 2023 was 57,051,467 pounds copper and 46,046 ounces gold, a decrease of 15.6% and 27.7% respectively from 67,604,485 pounds copper and 63,658 ounces gold produced in 2022. The decrease of metal production in 2023 was due to lower grades, lower gold recovery partially offset by higher copper recovery.
Imperial’s 30% portion of Red Chris mine for 2023 was 17,115,440 pounds copper and 13,814 ounces gold.
Newmont Mining Corporation (“Newmont”) guidance for Red Chris mine production (100%) is 85.0 million pounds of copper and 57,000 ounces of gold for the calendar year 2024.
100% Red Chris mine production | Three Months Ended | Year Ended | |||
2023 | 2022 | 2023 | 2022 | ||
Ore milled - tonnes | 2,529,481 | 2,390,084 | 9,266,769 | 9,457,303 | |
Ore milled per calendar day - tonnes | 27,494 | 25,979 | 25,388 | 25,910 | |
Grade % - copper | 0.398 | 0.339 | 0.356 | 0.421 | |
Grade g/t - gold | 0.269 | 0.386 | 0.295 | 0.382 | |
Recovery % - copper | 81.08 | 73.4 | 78.5 | 77.0 | |
Recovery % - gold | 54.1 | 49.0 | 52.4 | 54.8 | |
Copper - 000’s pounds | 17,980 | 13,107 | 57,051 | 67,604 | |
Gold - ounces | 11,822 | 14,518 | 46,046 | 63,658 | |
Imperial’s 30% share of exploration, development, and capital expenditures was
Block Cave Feasibility Study
At Red Chris, progress towards block cave mining is advancing with the exploration decline at 3,958 metres and the conveyor decline at 957 metres as of
The exploration program continued at Red Chris with a total of 30,910 meters drilled in 2023. The recent focus has been on infill drilling in the
Huckleberry operations ceased in
Site personnel continue to focus on maintaining site access, water management, maintenance of site infrastructure and equipment, and mine permit compliance. Work is also planned in 2024 to investigate and update the tailings facility design for Huckleberry.
In 2023, Huckleberry incurred idle mine costs comprised of
Exploration, development, and capital expenditures in 2023 were
MINE SITE EXPLORATION
In early 2023, two phases of diamond drilling were completed at
The results of the 2023 program included some higher-grade intervals highlighted by the 162.5 metre interval grading 0.5% copper and 0.52 g/t gold from 30 metres in SD-23-167. The Springer zone contains most of the reserves in the current mine plan. Historic drilling in the Springer zone confirms that the mineralization continues 250 metres below the currently planned
In early 2023, samples from the 2022 rock sampling program received hyperspectral analysis and interpretation, which helped generate 2023 drilling targets.
In late summer of 2023, a diamond drilling and rock sampling program was conducted on the Huckleberry Property. Five drill holes totaling 2,031 metres were completed at
In the fall of 2023, all five drill collars and an additional 15 historic drill collars were surveyed using a
While historic drill holes in the
TECHNICAL INFORMATION
The technical and scientific information related to the Company’s mineral projects has been reviewed and approved by
FOURTH QUARTER RESULTS FROM OPERATIONS
Revenue in the fourth quarter of 2023 was
The Company recorded a net loss of
Expenditures for exploration and ongoing capital projects at
OUTLOOK
Corporate and Operations
At
Newmont guidance for Red Chris mine production (100%) is 85.0 million pounds of copper and 57,000 ounces of gold for the calendar year 2024.
The Company will need to conclude further financing arrangements to fund its share of cost of the ongoing development of a block cave mine at Red Chris.
Exploration
Imperial maintains a large portfolio of greenfield exploration properties in
Exploration at Red Chris for 2024 will be focused on further definition of the
Exploration diamond drilling is planned for early 2024 at
At Huckleberry, in 2024 the exploration program will focus on additional diamond drilling following up on the success of the 2023 program.
Acquisitions
Management continues to evaluate potential acquisitions.
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For detailed information, refer to Imperial’s 2023 Management Discussion and Analysis 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, future impacts and the ability to continue operations subject to the governmental or non-governmental restrictions imposed as a result of communicable and infectious diseases and their related outbreaks or pandemics, like the COVID-19 pandemic (“Outbreaks”); changes to the Company’s business and operations in order to minimize the risks to employees, communities and other stakeholders; the effectiveness of preventative measures put in place by the Company and Newmont, including the implementation of a communicable disease management plan; potential impact of violations to acts and regulations with respect to such preventative measures; expectations regarding the care and maintenance activities at the Huckleberry mine; expectations and timing regarding current and future exploration and drilling programs at the Red Chris,
Forward-looking information is not based on historical facts, but rather on then current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which the Company operates, including, but not limited to, assumptions that: the scope and duration of Outbreaks, and their impact on our business will not be significant and the Company’s operations will be able to return to normal as they subside; the Company will have access to capital as required and will be able to fulfill its funding obligations as the Red Chris minority joint venture partner; there are risks related to holding non-majority investment interests in the Red Chris mine Joint Venture; the Company will be able to advance and complete remaining planned rehabilitation activities within expected timeframes; there will be no significant delay or other material impact on the expected timeframes or costs for completion of rehabilitation of the
Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause Imperial’s actual results, revenues, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements constituting forward-looking information. Important risks that could cause Imperial’s actual results, revenues, performance or achievements to differ materially from Imperial’s expectations include, among other things: the risk that the Company’s beneficial interest of the Red Chris mine may be diluted over time should it not have access to capital as required and will not be able to meet its funding obligations as the Red Chris minority joint venture partner; the risk that the Red Chris Block Feasibility Study is not finalized in a timely manner or at all, thereby materially or indefinitely delaying anticipated Red Chris expansion plans; additional financing that may be required may not be available to Imperial on terms acceptable to Imperial or at all; risks relating to the timely receipt of necessary approvals and consents to proceed with the rehabilitation plan at Huckleberry; risks relating to mining operations and mine restart timelines; uncertainty regarding general economic conditions; uncertainty regarding the short-term and long-term impact of Outbreaks on the Company’s operations and investments and on the global economy and metals prices generally, risks that Outbreaks may adversely impact copper and gold prices, our ability to transport or market our concentrate, cause disruptions in our supply chains and create volatility in commodity prices and demand; risks relating to the potential ineffectiveness of the measures taken in response to Outbreaks; risks associated with competition within the mining industry; the Company’s dependency on third party smelters; risks relating to trade barriers; the quantum of claims, fines and penalties that may become payable by Imperial and the risk that current sources of funds are insufficient to fund liabilities; risks that Imperial will be unsuccessful in defending against any legal claims or potential litigation; risks of protesting activity and other civil disobedience restricting access to the Company’s properties; failure of plant, equipment or processes to operate in accordance with specifications or expectations; cost escalation, unavailability of materials and equipment, labour unrest, power outages, climate change impacts, such as (but not limited to) those arising from wildfires, flooding and mudslides and other natural phenomena such as weather conditions and water shortages, negatively impacting the operation of the Red Chris and
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.
Source:
2024 GlobeNewswire, Inc., source