Imperial Metals Corporation  (TSX:III) reports financial results for its fiscal year ended December 31, 2024.

“Operationally, the 2024 year was aligned with guidance. Copper production was higher at Mount Polley driven largely by higher through-put and copper grades, and both copper and gold production were higher at Red Chris due to higher copper and gold grades,“ said Brian Kynoch, President. “Consolidated production totalled 61,296,423 pounds copper and 57,051 ounces gold. The solid operational results along with higher metal prices helped drive strong financial results. The Company achieved record revenue of $494.4 million. In addition, adjusted EBITDA totalled $209.9 million and cash earnings totalled $211.2 million.”

“Looking forward, we expect to produce 25.0 to 27.0 million pounds copper and 35,000 – 40,000 ounces gold at Mount Polley and 88.0 million pounds copper and 86,000 ounces gold at Red Chris (100%).”

Select Items Affecting Net Loss

Total revenue increased to $494.4 million in 2024 compared to $344.5 million in 2023, an increase of $149.9 million or 44%.

Revenue from copper concentrate from the Mount Polley mine in 2024 was $301.5 million compared to $233.3 million in 2023, an increase of $68.2 million. In 2024, the Mount Polley mine had 7.0 concentrate shipments (2023-5.7 concentrate shipments).

Imperial’s 30% share of revenue from the Red Chris mine in 2024 was $190.0 million compared to $109.8 million in 2023, an increase of $80.2 million. In 2024, the Red Chris mine (100% basis) had 19 concentrate shipments (2023-12.4 concentrate shipments).

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 US$4.15 in 2024 compared to US$3.85 in 2023. London Bullion Market Association, London gold price per troy ounce averaged US$2,387 in 2024 compared to US$1,943 in 2023. The average US/CDN dollar exchange rate in 2024 was 1.370 compared to an average of 1.350 in 2023. In CDN dollar terms, the average copper price in 2024 was CDN$5.68 per pound compared to CDN$5.19 per pound in 2023, and the average gold price in 2024 was CDN$3,271 per ounce compared to CDN$2,622 per ounce in 2023.

The total revenue includes a negative revenue revaluation in 2024 was $11.1 million compared to a negative revenue revaluation of $7.6 million in 2023. Revenue revaluations are the result of the metal 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 metal price at the last balance sheet date and finalization of contained metal as a result of final assays and weights.

Net income in 2024 was $106.3 million (income of $0.66 per share) compared to a net loss of $36.7 million ($0.23 loss per share) in 2023. The majority of the increase in net income of $143.0 million was primarily due to the following factors:

• Income from mine operations increased to $161.2 million in 2024 from loss of $13.7 million in 2023, an increase of $174.7 million;
• interest expense of $36.9 million in 2024 up from $31.3 million in 2023, an increase of $5.6 million as a result of additional financing required to support working capital and capital expenditures in 2024 at the Company’s operating mines; and
• tax expense of $5.3 million in 2024 increased from a tax recovery of $25.4 in 2023.

Capital expenditures including finance leases were $202.2 million in 2024, up from $137.3 million in 2023. Expenditures in 2024 included:

• $67.5 million in exploration and development, an increase of $22.6 million in comparison to $44.9 million in 2023;
• $53.0 million for tailings dam construction, an increase of $16.4 million in comparison to $36.6 million in 2023;
• $41.0 million on stripping costs, an increase of $28.4 million in comparison to $12.6 million in 2023; and
• Investment in sustaining capital of $40.7 million, a decrease of $2.5 million in comparison $43.2 million in 2023.

At December 31, 2024, the Company had $58.1 million in cash compared to $24.9 million at December 31, 2023.

At December 31, 2024, the Company had not hedged any copper, gold or US/CDN Dollar exchange. Revenues will fluctuate depending on copper and gold prices, the US/CDN Dollar exchange rate, and the timing of concentrate sales, which is dependent on concentrate production and the availability and scheduling of transportation.

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 income (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 Income (Loss) and Adjusted Net Income (Loss) Per Share

Adjusted net income (loss) is derived from operating net income (loss) by removing the gains or loss, resulting from acquisition and disposal of property, net of tax, unrealized foreign exchange gains or losses on long term debt, net of tax and other non-recurring items. Adjusted net income in 2024 was $102.8 million ($0.64 per share) compared to an adjusted net loss of $36.1 million ($0.23 per share) in 2023. We believe that the presentation of Adjusted Net Income (Loss) helps investors better understand the results of our normal operating activities and the ongoing cash generating potential of our business.

Adjusted EBITDA

Adjusted EBITDA in 2024 was $209.9 million compared to $24.9 million in 2023. We define Adjusted EBITDA as net income (loss) before interest expense, taxes, depletion, and depreciation, and as adjusted for certain other items.

Cash Earnings and Cash Earnings Per Share

Cash earnings in 2024 was $211.2 million compared to $23.6 million in 2023. Cash earnings per share were $1.30 in 2024 compared to $0.15 in 2023.

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 Mount Polley, and on a composite basis for these mines.

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 mine is not in operation have been excluded from the cash cost per pound of copper produced.

OPERATIONS

Mount Polley Mine

During the year ended December 31, 2024, a total of 6,741,127 tonnes of ore was treated. Metal production was 35,700,238 pounds of copper and 39,108 ounces of gold. Copper recovery averaged 82.3% and gold recovery was 68.6% from grades averaging 0.292% copper and 0.263 g/t gold.

During the fourth quarter 1,660,937 tonnes of ore were treated, an increase of 6% in comparison to the fourth quarter of 2023. The production during the fourth quarter of 2024 was 9,241,667 pounds copper, an increase of 11% from the comparative quarter of 2023 and 9,564 ounces gold, a decrease of 7.6% from the comparative quarter of 2023.

Exploration, development, and capital expenditures in 2024 were $96.5 million compared to $35.5 million in the 2023 comparative year.

The 2025 production target for Mount Polley is 25.0 – 27.0 million pounds copper and 35,000 – 40,000 ounces gold.

The production target for gold is the same as in 2024, while the copper production target is lower. Phase 4 Springer Pit ore, which has a higher recoverable copper grade is targeted to be fully mined by the third quarter of 2025, with the lower copper grade from the Phase 5 pushback in the Springer pit delivering process ore in the fourth quarter of 2025.

A diamond drilling program is scheduled for 2025 to follow up on the successful drilling in the C2 zone during 2024. The C2 zone has a high gold to copper ratio.

Red Chris Mine

Red Chris metal production (100% basis) for 2024 was 85,320,618 pounds copper and 59,811 ounces gold, an increase of 49.6% and 29.9% respectively from 57,051,467 pounds copper and 46,046 ounces gold produced in 2023. The increase of metal production in 2024 was due to higher grades and higher copper and gold recovery partially offset by lower tonnes of ore milled.

Imperial’s 30% share of Red Chris mine production for 2024 was 25,595,185 pounds of copper up from 17,115,440 pounds copper in 2023 and 17,943 ounces of gold up from 13,814 ounces gold in 2023.

Newmont Mining Corporation guidance for Red Chris mine production (100%) is 88.0 million pounds of copper and 86,000 ounces of gold for the calendar year 2025.

Both copper and gold production are expected to be higher in 2025 at Red Chris as the mining sequence provides for mining higher grade ore during the year, including a 50 percent increase in targeted 2025 gold production over 2024 levels.

Imperial’s 30% share of exploration, development, and capital expenditures was $104.0 million in 2024 compared to $100.3 million in the 2023 comparative year.

Exploration plans for Red Chris during 2025 include multiple diamond drill programs, predominantly within close proximity to the Red Chris mine. A drill program of approximately 2,400m will be drilled from underground development to better define the extents of mineralization at East Ridge. An additional 3,500m of drilling will target the Far East Ridge prospect. Planned surface drilling programs include approximately 3,500m of diamond drilling to investigate potential extensions of higher-grade mineralization. Approximately 4,300m of drilling is also planned at the western end of the porphyry corridor at the Gully Zone and Far West, to follow up on potential for mineralization. A further 2,500m of diamond drilling is also planned within an untested part of the Red Chris porphyry corridor.

Block Cave Feasibility Study

The Red Chris Block Cave Feasibility Study is advancing as are permitting activities and some underground development work and other to support the underground block cave project. The total development completed up to February 28, 2025 was 11,319 metres, of which 7,586 metres were completed on the Nagha declines and conveyor galleries.

Huckleberry Mine

Huckleberry operations ceased in August 2016 and the mine remains on care and maintenance status.

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 2025 to investigate and update the tailings facility design for Huckleberry.

In 2024, Huckleberry incurred idle mine costs comprised of $8.1 million in operating costs and $1.2 million in depreciation expense, which is an increase from $7.5 million in operating costs and $1.0 million in depreciation in 2023.

Exploration, development, and capital expenditures in 2024 were $0.8 million compared to $0.7 million in 2023.

TECHINICAL INFORMATION

The technical and scientific information related to the Company’s mineral projects has been reviewed and approved by Brian Kynoch, P.Eng., President of Imperial Metals, and is a designated Qualified Person as defined by NI 43-101.

Jim Miller-Tait, P.Geo. Vice President Exploration with Imperial Metals, is the designated Qualified Person as defined by National Instrument 43-101 for Red Chris, Mount Polley and Huckleberry mines exploration programs.

FOURTH QUARTER RESULTS FROM OPERATIONS

Revenue in the fourth quarter of 2024 was $132.0 million compared to $87.6 million in 2023. Sales revenue is recorded when title for concentrate is transferred on ship loading. 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 along with finalization of contained metals as a result of final assays.

The income from mine operations in the fourth quarter of 2024 was $63.4 million compared to the loss of $1.8 million in the comparative quarter of 2023.

The Company recorded a net income of $62.8 million ($0.39 income per share) in the fourth quarter of 2024 compared to net loss of $10.5 million ($0.06 loss per share) in the prior year quarter.

Expenditures for exploration and ongoing capital projects at Mount Polley, Red Chris and Huckleberry totalled $45.7 million during the three months ended December 31, 2024, compared to $30.7 million in the 2023 comparative quarter.

OUTLOOK

Corporate and Operations

At December 31, 2024, the Company had not hedged any copper, gold, or US$/CDN$ exchange. Quarterly revenues will fluctuate depending on copper and gold prices, the US$/CDN$ exchange rate, and the timing of concentrate sales, which is dependent on concentrate production and the availability and scheduling of transportation.

The 2025 production target for Mount Polley is 25.0 – 27.0 million pounds of copper and 35,000 – 40,000 ounces gold.

Newmont guidance for Red Chris mine production (100%) is 88.0 million pounds of copper and 86,000 ounces of gold for the calendar year 2025.

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 British Columbia. These properties have defined areas of mineralization and exploration potential. Management continues to evaluate various opportunities to advance many of these properties.

A diamond drilling program is scheduled in 2025 for Mount Polley to follow up on the successful drilling in the C2 zone during 2024. The C2 zone has a high gold to copper ratio.

For detailed information, refer to Imperial’s 2024 Management Discussion and Analysis available on imperialmetals.com and sedarplus.ca.

About Imperial

Imperial is a Vancouver-based exploration, mine development and operating company with holdings that include the Mount Polley mine (100%), the Huckleberry mine (100%), and the Red Chris mine (30%). Imperial also holds a portfolio of 23 greenfield exploration properties in British Columbia.