Imperial Metals narrows Q2 loss to $16 million
Imperial Metals Corp. (III-TSX) has reported a second quarter loss of $16 million or 10 cents per share, down from a net loss of $29.3 million or 21 cents in the equivalent 2022 quarter.
Imperial’s principal properties in B.C. include the wholly-owned Mount Polley and Huckleberry copper mines, plus the 30%-owned Red Chris copper-gold mine.
The company attributed the decrease in the net loss in part to Mount Polley restart costs which dropped from $30.2 million in the second quarter of 2022 to zero in the most recent quarter.
During the quarter ended June 30, 2023, Imperial’s consolidated metal production was 11.2 million pounds of copper and 14,289 ounces of gold, with 7.06 million pounds of copper and 10,185 ounces of gold produced from Mount Polley and 4.1 million pounds of copper and 4,104 ounces of gold from the company’s 30% share of Red Chris mine production.
Total production in the second quarter was up from 10.15 million pounds of copper and 13,129 ounces of gold produced in the previous quarter. Of that amount 6.7 million pounds of copper and 9,980 ounces of gold came from Mount Polley and 3.47 million pounds of copper and 3,149 ounces of gold came from the 30% share of Red Chris mine production.
Imperial formed a joint venture with Australian partner Newcrest Mining Ltd. [NCM-ASX] at the Red Chris mine in March 2019, after agreeing to sell a 70% stake in the mine to Newcrest, a company that is set to be acquired by Newmont Corp. [NGT-TSX, NEM-NYSE].
Red Chris copper and gold production (100%) for the second quarter was 13.7 million pounds of copper and 13,680 ounces of gold, an increase of 18% and 30% respectively from the prior quarter. The increase was driven by higher mill throughput and higher head grades.
Imperial has said the Red Chris Block Cave feasibility study is expected to be completed in the second half of 2023. It said several optimization opportunities to unlock further value are being assessed as part of the feasibility study, including options for the initial extraction level of the first block cave and alternative plant expansion options.
Progress towards block caving mining is advancing with the exploration decline at 3,245 metres as of July, 20, 2023, and the ventilation fans have been commissioned in the first ventilation raise.
The exploration program at Red Chris is focused on the discovery of additional zones of higher-grade mineralization within the Red Chris porphyry corridor.
Imperial’s second quarter results were released after the close of trading on August 9, 2023. On Thursday, the shares eased 0.36% or $0.01 to $2.74. The shares are currently trading in a 52-week range of $2.82 and $1.60.