Imperial Metals Corporation (the “Company”)
(TSX:III) reports comparative financial results for the three and
nine months ended September 30, 2017 and 2016, as summarized in
this release and discussed in detail in the Management’s Discussion
& Analysis. The Company’s financial results are prepared in
accordance with International Financial Reporting Standards. The
reporting currency of the Company is the Canadian (“CDN”) Dollar.
Select Quarter Financial
Information
expressed
in thousands, except share and per share amounts |
Three Months EndedSeptember 30 |
|
Nine Months EndedSeptember 30 |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Total
revenues |
$ |
90,157 |
|
$ |
97,108 |
|
$ |
312,647 |
|
$ |
350,093 |
|
Net
income (loss) |
$ |
(2,129 |
) |
$ |
(20,589 |
) |
$ |
43,199 |
|
$ |
(7,020 |
) |
Net
income (loss) per share |
$ |
(0.02 |
) |
$ |
(0.25 |
) |
$ |
0.46 |
|
$ |
(0.09 |
) |
Diluted income (loss) per share |
$ |
(0.02 |
) |
$ |
(0.25 |
) |
$ |
0.46 |
|
$ |
(0.09 |
) |
Adjusted net loss (1) |
$ |
(18,615 |
) |
$ |
(19,710 |
) |
$ |
(63,161 |
) |
$ |
(19,725 |
) |
Adjusted net loss per share (1) |
$ |
(0.20 |
) |
$ |
(0.24 |
) |
$ |
(0.67 |
) |
$ |
(0.24 |
) |
Adjusted EBITDA(1) |
$ |
16,275 |
|
$ |
16,726 |
|
$ |
44,316 |
|
$ |
107,065 |
|
Working capital deficiency |
$ |
(919,038 |
) |
$ |
(48,951 |
) |
$ |
(919,038 |
) |
$ |
(48,951 |
) |
Total
assets |
$ |
1,616,953 |
|
$ |
1,462,756 |
|
$ |
1,616,953 |
|
$ |
1,462,756 |
|
Total
debt (including current portion) |
$ |
858,291 |
|
$ |
854,445 |
|
$ |
858,291 |
|
$ |
854,445 |
|
Cash
flow (1)(2) |
$ |
17,966 |
|
$ |
18,244 |
|
$ |
45,372 |
|
$ |
107,996 |
|
Cash flow per share (1)(2) |
$ |
0.19 |
|
$ |
0.22 |
|
$ |
0.48 |
|
$ |
1.32 |
|
|
(1) Refer to table under heading Non-IFRS
Financial Measures for further details. |
(2) Cash flow 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
flow per share is defined as Cash flow divided by the weighted
average number of common shares outstanding during the year. |
Revenues decreased to $90.2 million in the
September 2017 quarter compared to $97.1 million in the 2016
comparative quarter, a decrease of $6.9 million or 7%.
Revenue from the Red Chris mine in the September
2017 quarter was $66.0 million compared to $67.3 million in the
2016 comparative quarter. This decrease was attributable to lower
quantity of copper concentrate sold compared to the 2016 quarter.
This was slightly mitigated with a positive revenue revaluation of
$3.3 million during the 2017 quarter.
Revenue from the Mount Polley mine in the
September 2017 quarter was $24.1 million compared to $29.8 million
in the 2016 comparative quarter. The decrease was attributable to a
lower quantity of copper concentrate sold; lower foreign exchange
rate and lower realized pricing on gold concentrate. However, this
was slightly offset by a positive revenue revaluation of $2.6
million.
In the September 2017 quarter, there were 3.5
concentrate shipments from Red Chris mine (2016-four concentrate
shipments) and a 0.8 concentrate shipment from Mount Polley mine
(2016-one concentrate shipment). Variations in revenue are
impacted by 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 US$2.88 in the September 2017
quarter compared to US$2.17 in the 2016 comparative quarter. The
London Metals Exchange cash settlement gold price per troy ounce
averaged US$1,278 in the September 2017 quarter compared to
US$1,335 in the September 2016 quarter. The average CDN/US$ Dollar
exchange rate was 1.253 in the September 2017 quarter, 4.0% lower
than the exchange rate of 1.309 in the September 2016 quarter. In
CDN dollar terms the average copper price in the September 2017
quarter was CDN$3.61 per pound compared to CDN$2.83 per pound in
the 2016 comparative quarter and the average gold price in the
September 2017 quarter was CDN$1,601 per ounce compared to
CDN$1,742 per ounce in the 2016 comparative quarter.
Revenue in the September 2017 quarter increased
by $5.9 million positive revenue revaluation compared to $3.1
million negative revenue revaluation in the 2016 comparative
quarter. Revenue revaluations are the result of the copper 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 copper price at the last balance sheet date.
Net loss for the September 2017 quarter was $2.1
million ($0.02 per share) compared to net loss of $20.6 million
($0.25 per share) in the 2016 comparative quarter. The decrease in
net loss of $18.5 million was primarily due to the following
factors:
- Income/loss from mine operations went from a loss of $2.1
million in September 2016 to income of $3.0 million in September
2017, a decrease in net loss of $5.1 million.
- Foreign exchange gains/losses on current and non-current debt
went from a loss of $3.8 million in September 2016 to a gain of
$16.6 million in September 2017, a decrease in net loss of $20.4
million.
- The Company’s equity loss in Huckleberry went from loss of $2.3
million in September 2016 to $nil in September 2017, a decrease in
net loss of $2.3 million.
- Idle mine costs went from $nil in September 2016 to $2.6
million in September 2017, an increase in net loss of $2.6
million.
- Interest expense went from $16.8 million in September 2016 to
$19.4 million in September 2017, an increase in net loss of $2.6
million.
- Tax recovery went from $4.2 million in September 2016 to $1.9
million in September 2017, an increase in net loss of $2.3
million.
The September 2017 quarter net loss included
foreign exchange gain related to changes in CDN/US Dollar exchange
rate of $16.6 million compared to foreign exchange loss of $3.8
million in the 2016 comparative quarter. The $16.6 million foreign
exchange gain is comprised of a $16.1 million gain on the senior
notes, a $0.4 million gain on long term equipment loans, and a $0.1
million gain on short-term debt and operational items. The average
CDN/US Dollar exchange rate in the September 2017 quarter was 1.253
compared to an average of 1.305 in the 2016 comparative
quarter.
Cash flow was $18.0 million in the September
2017 quarter compared to cash flow of $18.2 million in the 2016
comparative quarter. Cash flow is a measure used by the Company to
evaluate its performance, however, it is not a term recognized
under IFRS. The Company believes Cash flow is useful to
investors and it is one of the measures used by management to
assess the financial performance of the Company.
Capital expenditures were $22.2 million in the
September 2017 quarter, down from $27.5 million in the 2016
comparative quarter. The September 2017 expenditures included $8.1
million for tailings dam construction, $8.9 million for component
changes on mobile equipment, $2.2 million relating to environmental
compliance expenditure and $2.5 million for other capital
items.
Non-IFRS Financial Measures
The Company reports four non-IFRS financial
measures: Adjusted net income, adjusted EBITDA, cash flow 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, adjusted EBITDA, and cash
flow are not generally accepted earnings measures and should not be
considered as an alternative to net income (loss) and cash flows as
determined in accordance with IFRS. As there is no
standardized method of calculating these measures, these measures
may not be directly comparable to similarly titled measures used by
other companies.
|
|
|
expressed in thousands, except share and per share amounts |
Three Months Ended September 30 |
|
|
|
2017 |
|
|
2016 |
|
Adjusted
net loss |
$ |
(18,615 |
) |
$ |
(19,710 |
) |
Adjusted
net loss per share |
$ |
(0.20 |
) |
$ |
(0.24 |
) |
Adjusted
EBITDA |
$ |
16,275 |
|
$ |
16,726 |
|
Cash
flow |
$ |
17,966 |
|
$ |
18,244 |
|
Cash flow per share |
$ |
0.19 |
|
$ |
0.22 |
|
|
|
|
|
|
|
|
Adjusted Net Loss and Adjusted Net Loss
per Share
Adjusted net loss in the September 2017 quarter
was $18.6 million ($0.20 per share) compared to an adjusted net
loss of $19.7 million ($0.24 per share) in the 2016 comparative
quarter. Adjusted net loss reflects the financial results
excluding the effect of items not settling in the current period
and non-recurring items. Adjusted net loss is calculated by
removing the gains or losses, resulting from mark to market
revaluation of derivative instruments, net of tax, unrealized
foreign exchange gains or losses on non-current debt, net of
tax.
Adjusted EBITDA
Adjusted EBITDA in the September 2017 quarter
was $16.3 million compared to $16.7 million in the 2016 comparative
quarter. We define Adjusted EBITDA as net income (loss) before
interest expense, taxes, depletion and depreciation, and as
adjusted for certain other items.
Cash Flow and Cash Flow Per
Share
Cash flow in the September 2017 quarter was
$18.0 million compared to $18.2 million in the 2016 comparative
quarter. Cash flow per share was $0.19 in the September 2017
quarter compared to $0.22 in the 2016 comparative
quarter.
Cash flow and cash flow per share are measures
used by the Company to evaluate its performance however they are
not terms recognized under IFRS. Cash flow is defined as cash flow
from operations before the net change in non-cash working capital
balances, income and mining taxes, and interest paid and cash flow
per share is the same measure divided by the weighted average
number of common shares outstanding during the year.
Cash Cost Per Pound of Copper
Produced
The cash cost per pound of copper produced is a
non-IFRS financial measure that does not have a standardized
meaning under IFRS, and as a result may not be comparable to
similar measures presented by other companies. Management uses this
non-IFRS financial measure to monitor operating costs and
profitability. The Company is primarily a copper producer and
therefore calculates this non-IFRS financial measure individually
for its three copper mines, Red Chris, Mount Polley and
Huckleberry, and on a composite basis for these mines.
The cash cost per pound of copper produced is
derived from the sum of cash production costs, transportation and
offsite costs, treatment and refining costs, royalties, net of
by-product and other revenues, divided by the number of pounds of
copper produced during the period.
Variations from period to period in the cash
cost per pound of copper produced are the result of many factors
including: grade, metal recoveries, amount of stripping
charged to operations, mine and mill operating conditions, labour
and other cost inputs, transportation and warehousing costs,
treatment and refining costs, the amount of by-product and other
revenues, the US$ to CDN$ exchange rate and the amount of copper
produced. Idle mine costs during the periods when the Huckleberry
mine was not in operation have been excluded from the cash cost per
pound of copper produced.
Cash Cost Per Pound of Copper
Produced
expressed in thousands, except cash cost per pound of copper
produced |
|
|
|
Three Months Ended September 30, 2017 |
|
|
|
|
|
|
Total per |
|
Huckleberry |
Red |
Mount |
Sterling & |
Financial |
|
|
100 |
% |
|
50 |
% |
Chris |
Polley |
Corporate |
Statements |
Composite |
Cash cost
of copper produced in US$ |
$ |
- |
|
$ |
- |
|
$ |
36,035 |
|
8,735 |
|
|
$ |
44,770 |
Copper
produced – pounds |
|
- |
|
|
- |
|
|
19,651 |
|
3,981 |
|
|
|
23,632 |
Cash cost
per lb copper produced in US$ |
$ |
- |
|
$ |
- |
|
$ |
1.83 |
$ |
2.19 |
|
|
$ |
1.89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2016 |
|
|
|
|
|
|
Total per |
|
Huckleberry |
Red |
Mount |
Sterling & |
Financial |
|
|
100 |
% |
|
50 |
% |
Chris |
Polley |
Corporate |
Statements |
Composite |
Cash cost
of copper produced in US$ |
$ |
12,826 |
|
$ |
6,411 |
|
$ |
32,274 |
$ |
9,332 |
|
|
$ |
48,017 |
Copper
produced – pounds |
|
4,447 |
|
|
2,224 |
|
|
18,713 |
|
6,868 |
|
|
|
27,805 |
Cash cost
per lb copper produced in US$ |
$ |
2.88 |
|
$ |
2.88 |
|
$ |
1.72 |
$ |
1.36 |
|
|
$ |
1.73 |
|
|
|
Nine Months Ended September 30, 2017 |
|
|
|
|
|
|
Total per |
|
Huckleberry |
Red |
Mount |
Sterling & |
Financial |
|
|
100 |
% |
|
50 |
% |
Chris |
Polley |
Corporate |
Statements |
Composite |
Cash cost
of copper produced in US$ |
|
|
|
110.481 |
|
29,297 |
|
|
|
139,777 |
Copper
produced – pounds |
|
- |
|
|
- |
|
|
51,402 |
|
15,048 |
|
|
|
66,450 |
Cash cost
per lb copper produced in US$ |
$ |
- |
|
$ |
- |
|
$ |
2.15 |
$ |
1.95 |
|
|
$ |
2.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2016 |
|
|
|
|
|
|
Total per |
|
Huckleberry |
Red |
Mount |
Sterling & |
Financial |
|
|
100 |
% |
|
50 |
% |
Chris |
Polley |
Corporate |
Statements |
Composite |
Cash cost
of copper produced in US$ |
$ |
41,765 |
|
$ |
20,881 |
|
$ |
78,750 |
$ |
32,412 |
|
|
$ |
132,043 |
Copper
produced – pounds |
|
20,438 |
|
|
10,219 |
|
|
68,955 |
|
20,361 |
|
|
|
99,535 |
Cash cost
per lb copper produced in US$ |
$ |
2.04 |
|
$ |
2.04 |
|
$ |
1.14 |
$ |
1.59 |
|
|
$ |
1.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations
Metal production for 2017 is not expected to
meet the targets set in July, given the delay in delivery of deeper
and higher grade ore to the mill at Red Chris, and the impact of
the forest fires on operations at Mount Polley. The updated
target ranges for 2017 metal production are 96-102 million pounds
copper and 84-92 thousand ounces gold.
At September 30, 2017, the Company has not
hedged any copper, gold or CDN/US Dollar exchange. Quarterly
revenues will fluctuate depending on copper and gold prices, the
CDN/US Dollar exchange rate, and the timing of concentrate sales,
which is dependent on concentrate production and the availability
and scheduling of transportation.
Red Chris Mine
Metal production for the September 2017 quarter
was 19.65 million pounds copper and 8,426 ounces gold, up 27% and
37% respectively from the second quarter. Higher copper and gold
grade ore was mined in September, later than expected, due to lower
than anticipated mining rates. Grades which averaged 0.38% copper
and 0.18 g/t gold in July and August, increased to 0.47% copper and
0.29 g/t gold in September, as deep main zone ore became the main
source of mill feed. Copper recovery also increased to an average
80.88% in September. This deeper main zone ore will provide the
majority of mill feed for the remainder of the year. The plant
achieved the design mill throughput for the third quarter averaging
30,135 tonnes per calendar day.
Grades milled in October 2017 were 0.513% copper
and 0.317 g/t gold, and recoveries were 80.83% copper and 46.58%
gold. As a result, metal production in October 2017 was 7.81
million pounds copper and 4,005 ounces gold. In November deeper
Main zone ores have provided the majority of the mill feed, and
mill recoveries have improved, averaging 84.1% through to November
12.
The Company has begun work on mobilizing five
rock trucks from the idled Huckleberry mine to Red Chris to
increase the mining rate. The increased mining rate will enable Red
Chris to open up the Main zone pit and deliver more ore from deeper
in the Main zone to the mill in 2018.
Red
Chris Production |
Three Months EndedSeptember 30 |
Nine Months EndedSeptember 30 |
|
2017 |
2016 |
2017 |
2016 |
Ore
milled - tonnes |
2,772,416 |
2,580,459 |
7,879,281 |
7,360,588 |
Ore
milled per calendar day - tonnes |
30,135 |
28,048 |
28,862 |
26,863 |
Grade
% - copper |
0.407 |
0.436 |
0.379 |
0.546 |
Grade
g/t - gold |
0.219 |
0.261 |
0.204 |
0.346 |
Recovery
% - copper |
78.94 |
75.50 |
78.13 |
77.86 |
Recovery
% - gold |
43.09 |
44.54 |
39.47 |
51.85 |
Copper –
000’s pounds |
19,651 |
18,713 |
51,402 |
68,955 |
Gold –
ounces |
8,426 |
9,655 |
20,396 |
42,427 |
Silver – ounces |
34,446 |
42,271 |
89,273 |
164,706 |
|
|
|
|
|
Exploration, development and capital
expenditures were $17.4 million in the September 2017 quarter
compared to $22.7 million in the comparative 2016 quarter.
Mount Polley Mine
Mount Polley operations were suspended July 15
to July 31 due to the forest fire situation in the Cariboo
region. Operations were impacted to a lesser degree both
before and after the period of suspension. Mill throughput
for the third quarter was 1.44 million tonnes, down 23% from the
second quarter, and milling of material from low grade stockpiles
was required to augment lower mining rates. As a result of the
unexpected suspension of operations, production from Mount Polley
in the third quarter was 3.98 million pounds copper and 9,989
ounces gold, and the 2017 metal production targets were revised to
20-22 million pounds copper and 51-55 thousand ounces gold, from
the previously set target of 22-24 million pounds copper and 55-60
thousand ounces gold.
Mining operations are nearly caught up with the
stripping lost because of the forest fires in the summer. The mine
will soon begin delivering ore from the bottom of the Cariboo
pit.
|
|
|
Mount Polley Production |
Three Months EndedSeptember 30 |
Nine Months EndedSeptember 30 |
|
2017 |
2016 |
2017 |
2016 |
Ore
milled - tonnes |
1,444,625 |
1,769,779 |
4,916,789 |
5,052,469 |
Ore
milled per calendar day - tonnes |
15,702 |
19,237 |
18,010 |
18,440 |
Grade
% - copper |
0.203 |
0.243 |
0.207 |
0.260 |
Grade
g/t - gold |
0.320 |
0.306 |
0.337 |
0.305 |
Recovery
% - copper |
61.44 |
72.38 |
66.98 |
70.46 |
Recovery
% - gold |
67.23 |
73.41 |
70.92 |
71.08 |
Copper –
000’s pounds |
3,981 |
6,868 |
15,048 |
20,361 |
Gold –
ounces |
9,989 |
12,763 |
37,758 |
35,153 |
Silver – ounces |
7,324 |
26,752 |
28,738 |
78,887 |
|
|
|
|
|
Exploration, development and capital
expenditures were $4.6 million in the September 2017 quarter
compared to $4.5 million in the comparative 2016 quarter.
Huckleberry Mine
On April 28, 2017 the Company became the sole
owner of Huckleberry Mines Ltd. (“Huckleberry”) by virtue of
Huckleberry exercising its right of first refusal to purchase for
cancellation all the shares of Huckleberry held by a syndicate of
Japanese companies in exchange for cash consideration of $2.0
million. Huckleberry became a wholly-owned subsidiary of the
Company on that date. The mine is currently on care and
maintenance.
Prior to April 28, 2017 the Company had a 50%
interest in Huckleberry that was accounted for on the equity basis
of accounting. The Company has accounted for the acquisition of the
remaining 50% interest in Huckleberry as a business combination
whereby the net assets acquired are recorded at fair value. The
fair values disclosed at September 30, 2017 are provisional
estimates due to the complexity of valuing mineral property
interests at various stages of development. The finalization of the
fair values of the assets and liabilities acquired is expected to
be reported no later than the Company’s December 31, 2017 financial
statements. The final fair values may be materially different than
the provisional fair values outlined below.
The Company has provisionally estimated the
acquisition date fair values of the acquired assets and liabilities
of Huckleberry and the fair value of the Company’s previously held
50% interest in Huckleberry by reference to their pre-acquisition
carrying values, a level 3 fair value measurement. These
pre-acquisition carrying values had been subject to normal
impairment assessment pre and post-acquisition with no impairment
charges recorded.
The following table summarizes the consideration
transferred to acquire 100% interest in Huckleberry and the
provisional fair values of identified assets acquired and
liabilities assumed at the acquisition date:
|
|
expressed in thousands of dollars Assets Relinquished |
|
Accrued
receivable due to the Company |
$ |
1,009 |
|
Fair
value of the Company’s initial 50% investment in Huckleberry |
|
77,832 |
|
|
$ |
78,841 |
|
Identifiable Assets Acquired and Liabilities Assumed |
|
Cash |
$ |
18,440 |
|
Reclamation bonds |
|
14,135 |
|
Prepaid
and other receivables |
|
648 |
|
Inventory |
|
7,941 |
|
Mineral
properties |
|
164,265 |
|
Trade
and other payables |
|
(1,668 |
) |
Deferred
trade payables |
|
(4,925 |
) |
Future
site reclamation provisions |
|
(45,171 |
) |
|
$ |
153,665 |
|
Gain on
bargain purchase of Huckleberry |
$ |
74,824 |
|
|
|
|
|
From the date of acquisition on April 28, 2017
to September 30, 2017, Huckleberry incurred idle mine costs
comprised of $2.2 million in operating costs and $2.2 million in
depreciation expense.
Executive Resignation and
Appointments
Steve Robertson, Vice President Corporate
Affairs, tendered his resignation to accept the role of CEO in
another company. The Company wishes to extend its gratitude
to Mr. Robertson for his 24 years of service with Imperial.
Jim Miller-Tait, who joined Imperial as Exploration Manager in
2009, was appointed Vice President Exploration. Sheila
Colwill was appointed Vice President Marketing, rising from
Marketing Manager, a position she has held since 2011.
Refer to Imperial’s 2017 Third Quarter Report on
imperialmetals.com and sedar.com for detailed information.
Earnings Announcement Conference Call :
November 15, 2017 at 10:00am PST | 1:00pm EST
Management will discuss the 2017 Third Quarter Report. Conference
call-in numbers: 778.383.7413 Vancouver 416.764.8688
Toronto 888.390.0546 North America – toll free Conference
call playback is available until 11:59pm on November 22, 2017 by
calling toll free 888.390.0541 or Toronto 416.764.8677 | playback
passcode 767807# |
About ImperialImperial is a
Vancouver based exploration, mine development and operating
company. The Company, through its subsidiaries, owns the Red Chris,
Mount Polley and Huckleberry copper mines in British Columbia.
Imperial also holds a 50% interest in the Ruddock Creek
lead|zinc property in British Columbia.
Company ContactsBrian Kynoch
| President | 604.669.8959 Andre
Deepwell | Chief Financial Officer
| 604.488.2666 Gordon Keevil |
Vice President Corporate Development |
604.488.2677 Sabine Goetz | Shareholder
Communications | 604.488.2657 |
investor@imperialmetals.com
Forward-Looking Information and Risks
Notice
The information in this news release provides a
summary review of the Company’s operations and financial position
as at and for the period ended September 30, 2017, and plans for
the future based on facts and circumstances as of November 14,
2017. Except for statements of historical fact relating to the
Company, including our past 50% interest in Huckleberry, certain
information contained herein constitutes forward-looking
information which are prospective in nature and reflect the current
views and/or expectations of Imperial. Often, but not always,
forward-looking information can be identified by the use of
statements such as "plans", "expects" or "does not expect", "is
expected", "scheduled", "estimates", "forecasts", "projects",
"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", "should", "would",
"might" or "will" be taken, occur or be achieved. Such information
in this news release includes, without limitation, statements
regarding: revised lower 2017 metal production targets due to the
delay in delivery of deeper and higher grade ore to the mill at Red
Chris and the impact of the forest fires on operations at Mount
Polley; expectations that the deeper main zone ore will provide the
majority of mill feed for the remainder of the year; expectations
that the final fair values for the Huckleberry assets and
liabilities acquired will be reported no later that the Company’s
December 31, 2017 financial statements; expectations for receipt of
contingent sales proceeds in the form of marketable securities from
the sale of Sterling because of a financing announced by the
purchaser of Sterling; plans to commence a rights offering and to
close same before year-end; use of proceeds from financings and
credit; production and marketing; capital expenditures; adequacy of
funds for projects and liabilities; the receipt of necessary
regulatory approvals or other consents; outcome and impact of
litigation; cash flow; working capital requirements; the
requirement for additional capital; results of operations,
production, revenue, margins and earnings; future prices of copper
and gold; future foreign currency exchange rates and impact; future
accounting changes; and future prices for marketable
securities.
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 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 Mount Polley mine and
implementation of Mount Polley’s long term water management plan;
the Company’s initial rehabilitation activities at Mount Polley
will be successful in the long term; all required, project-related
permits and approvals will be obtained in a timely manner; there
will be no material operational delays at the Company’s mines;
equipment will operate as expected; there will not be significant
power outages; there will be no material adverse change in the
market price of commodities and exchange rates; the Company’s mines
will achieve expected production outcomes (including with respect
to mined grades and mill recoveries); and the Company will have
access to capital as required and satisfy and/or obtain amendments
of financial covenants and/or terms contained in its credit
facilities and other loan documents. Such statements are qualified
in their entirety by the inherent risks and uncertainties
surrounding future expectations. We can give no assurance that the
forward-looking information will prove to be accurate.
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: that additional financing that may be required may not be
available to Imperial on terms acceptable to Imperial or at all;
that Imperial may be unable to satisfy and/or obtain amendments of
financial covenants or terms contained in its credit facilities and
other loan documents; risks relating to the timely receipt of
necessary, project-related approvals and consents; risks relating
to the remaining costs and liabilities and any unforeseen
longer-term environmental consequences arising from the Mount
Polley Breach; uncertainty as to actual timing of completion of
rehabilitation activities; risks relating to the impact of the
Mount Polley Breach on Imperial’s reputation; 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 or lockout, power outages or shortages,
and natural phenomena negatively impacting the operation or
maintenance of the Company’s mines; changes in commodity and power
prices; changes in market demand for the Company’s concentrate;
inaccurate geological and metallurgical assumptions (including with
respect to the size, grade and recoverability of mineral reserves
and resources); and other hazards and risks disclosed within the
Management’s Discussion and Analysis for the three and nine months
ended September 30, 2017 and other public filings which are
available on Imperial’s profile at sedar.com. For the reasons set
forth above, investors should not place undue reliance on
forward-looking information. Imperial does not undertake to update
any forward-looking information, except in accordance with
applicable securities laws.
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