Imperial Metals said revenue jumped 99% in 2023

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Imperial Metals Corp. (III-TSX) reported a net loss of $36.7 million or 23 cents a share in 2023 and said it will need to conclude further financing arrangements to fund its share of the cost of the ongoing development of a block cave mine at Red Chris in British Columbia.

Imperial’s principal properties in B.C. include the wholly-owned Mount Polley and Huckleberry copper mines, plus the 30%-owned Red Chris mine, which is now 70%-owned by Newmont Corp. [NGT-TSX, NEM-NYSE].

Newmont acquired the Red Chris interest via its acquisition of Australian company Newcrest Mining Ltd. The acquisition was completed during the fourth quarter of 2023.

In a press release containing its 2023 financial results, Imperial Metals said the 2023 net loss narrowed from a net loss of $75.9 million or 51 cents a share in 2022.

Total revenue increased to $344.6 million in 2023 compared to $172.8 million in 2022, an increase of $171.7 million or 99%.

Revenue from the Mount Polley mine in 2023 was $233.3 million compared to $42.7 million in 2022, an increase of $190.6 million. Mount Polley restarted its operations in late June of 2022.

Revenue from the Red Chris mine in 2023 was $109.8 million compared to $129.5 million, a decrease of $19.7 million.

“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 settle at a future date,’’ the company said.

Imperial recently said it achieved its 2023 production target by producing 30.1 million pounds of copper and 41,834 ounces of gold at its Mount Polley mine.

Mount Polley is an open pit copper/gold mine located in south-central British Columbia, 56 kilometres northeast of Williams Lake. The mine is 100%-owned by an Imperial subsidiary.

The 2024 production target for Mount Polley is 34 million to 37 million pounds of copper and 37,000 to 41,000 ounces of gold.

Newmont guidance for Red Chris mine production (100%) is 85 million pounds of copper and 57,000 ounces of gold for calendar year 2024.

Meanwhile, the company attributed the decrease in net loss during 2023 to number of factors. For example, mine restart costs went from $64.9 million in 2022 to nil in 2023. The loss from mine operations was reduced to $13.7 million in 2023 from a loss of $28.7 million in 2022, a decrease in net loss of $15 million.

As at December 31, 2023, the company had $24.9 million in cash compared to $27.5 million a year earlier.

Imperial Metals shares were almost unchanged on the news, rising 0.45% or $0.01 to $2.21. The shares trade in a 52-week range of $2.85 and $1.70.

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