Imperial Metals Corporation (TSX:III) reports financial results for its fiscal year ended December 31, 2025.

“2025 was a year of strong operational execution across our portfolio” said Brian Kynoch, President. “Both consolidated gold and copper production was at the higher end of our production guidance, with copper production totalling 58,645,098 pounds and gold production totalling 65,284 ounces. The strong operational results at both Mount Polley and Red Chris, along with higher metal prices helped drive strong financial results. The Company achieved record revenue of $691.8 million. In addition, adjusted EBITDA totalled $381.7 million and cash earnings totalled $374.5 million. The consolidated cash cost per pound of copper produced with by-product credi ts, was negative US$0.28 per pound.”

“The Company was also able to achieve debt reduction of $194.1 million in 2025. Looking forward, at Mount Polley we expect to produce 19.0 – 21.0 million pounds copper and 40,000 – 44,000 ounces of gold and Red Chris mine production guidance (100%) is 60.0 – 66.0 million pounds copper and 47,500 – 52,500 ounces of gold for 2026.”

FINANCIAL

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Total revenue increased to $691.8 million in 2025 compared to $494.4 million in 2024, an increase of $197.4 million or 40%.

Revenue from concentrate from the Mount Polley mine in 2025 was $387.0 million compared to $301.5 million in 2024, an increase of $85.5 million. In 2025, the Mount Polley mine had 6.3 concentrate shipments (2024-7.0 concentrate shipments).

Imperial’s 30% share of revenue from the Red Chris mine in 2025 was $304.2 million compared to $190.0 million in 2024, an increase of $114.2 million. In 2025, the Red Chris mine ( 100% basis) had 20.0 concentrate shipments (2024-19 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$4.51 in 2025 compared to US$4.15 in 2024. London Bullion Market Association, London gold price per troy ounce averaged US$3,435 in 2025 compared to US$2,387 in 2024. The average US/CDN dollar exchange rate in 2025 was 1.398 compared to an average of 1.370 in 2024. In CDN dollar terms, the average copper price in 2025 was CDN$6.30 per pound compared to CDN$5.68 per pound in 2024, and the average gold price in 2025 was CDN$4,802 per ounce compared to CDN$3,271 per ounce in 2024.

The tot al revenue includes a positive revenue revaluation in 2025 of $34.3 million compared to a negative revenue revaluation of $11.1 million in 2024. 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 2025 was $153.8 million ($0.91 per share) compared to a net income of $106.3 million ($0.66 per share) in 2024. The majority of the increase in net income of $47.5 million was primarily due to the following factors:

• Income from mine operations increased to $304.3 million in 2025 from income of $161.2 million in 2024, an increase of $143.1 million;
• interest expense, net of interest income and capitalized i nterest was $25.6 million in 2025 compared to $34.7 million in 2024, a decrease of $9.1 million due to the reduction in debt; and
• tax expense of $95.9 million in 2025 increased from a tax expense of $5.3 million in 2024, an increase of $90.6 million.

Capital expenditures including finance leases were $243.3 million in 2025, up from $202.2 million in 2024. Expenditures in 2025 included:

• $77.4 million in exploration and development, an increase of $9.9 million in comparison to $67.5 million in 2024;
• $60.4 million for tailings dam construction, an increase of $7.4 million in comparison to $53.0 million in 2024;
• $69.0 million on stripping costs, an increase of $28.0 million in comparison to $41.0 million in 2024; and
• Investment in sustaining capital of $36 .5 million, a decrease of $4.2 million in comparison $40.7 million in 2024.

At December 31, 2025, the Company had $36.8 million in cash and cash equivalents, compared to $58.1 million at December 31, 2024.

At December 31, 2025, 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.

OPERATIONS

Mount Polley Mine

During the year ended December 31, 2025, a total of 6.714 million tonnes of ore was treated. Metal production was 30.715 million pounds of copper and 37,555 ounces of gold, a decrease of 14% and 4% respectively from 35.700 million pounds copper and 39,108 ounces gold pr oduced in 2024. Copper recovery averaged 81.4% and gold recovery was 68.5% from grades averaging 0.255% copper and 0.254 g/t gold.

During the fourth quarter of 2025 1.452 million tonnes of ore were treated, down 12.6% in comparison to the fourth quarter of 2024. The production during the fourth quarter of 2025 was 4.660 million pounds copper, down 49.6% from the comparative quarter of 2024 and 6,589 ounces gold, down 31.1% from the comparative quarter of 2024.

The majority of the mill feed during the fourth quarter was from Phase 5 and low grade stockpiles. This led to lower grades and lower copper recovery during the period. The Phase 4 and 5 pushbacks of the Springer Pit generated approximately 50% of the mill feed during the quarter with the remainder coming from lower grade stockpiles. Phase 4 mining will be completed in March 2026.

The 2026 production target for the Mount Polley mine is 19.0 – 21.0 million pounds copper and 40,000-44,000 ounces gold. The majority of the mill feed in 2026 will come from the Phase 5 pushback in the Springer Pit which will be supplemented with low grade stockpiles to supply the mill feed.

Exploration program

Mount Polley 2025 Phase 2 exploration program had three goals: (i) to test a high-grade zone beneath the Wight Pit, (ii) to expand and determine the boundaries for mineralization in a potential C2 open pit expansion and find the boundaries o f the higher gold grade encountered at depth in the C2 zone, and (iii) to test beneath the previously mined Bell Pit for depth extension.

The next phase of diamond drilling started in February 2026 and follows up on the successful results from the first drilling campaign at the Mount Polley mine in more than a decade in the Bell Pit area.

Exploration, development, and capital expenditures in 2025 were $131.8 million compared to $96.5 million in the 2024 comparative year.

Red Chris Mine

Red Chris metal production (100% basis) for 2025 was 93.101 million pounds copper and 92,429 ounces gold, an increase of 9% and 55% respectively from the 85.321 million pounds copper and 59,811 ounces gold produced in 2024. The increase of metal production in 2025 was due to higher grades and higher gold recovery, partially offset by lower tonnes of ore milled.

Imperial’s 30% share of Red Chris mine production for 2025 was 27.930 million pounds of copper up from 25.596 million pounds copper in 2024 and 27,729 ounces of gold up from 17,943 ounces gold in 2024.

Newmont Mining Corporation’s guidance for Red Chris mine production (100%) is 60.0 – 66.0 million pound s of copper and 47,500 – 52,500 ounces of gold for the calendar year 2026. Both copper and gold production are expected to be lower in 2026 at Red Chris as the mining sequence provides for mining lower grade ore and stockpile processing during the year while stripping for the next open pit mining phase.

Imperial’s 30% share of exploration, development, and capital expenditures in 2025 were $107.0 million compared to $104.0 million in the 2024 comparative year.

Block Cave Feasibility Study

The Red Chris feasibility study for a block cave expansion operation is advancing, as are permitting activities to support the underground project. Completion of the feasibility study and, subject to the study outcomes, joint venture approval are expected in the second half of 2026.

Exploration Program

Exploration plans for 2026 include drilling at the Far We st zone and the Main Zone Offset zone, an interpreted zone of mineralization truncated and offset by the South Boundary fault. There will be surface exploration programs outside of the known zones of mineralization and the continuing of re-logging of the GJ property historic diamond drill core.

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 2026 to investigate and update the tailings facility design for Huckleberry.

Diamond drilling at Huckleberry in 2025 consisted of nine drillholes, totalling 1,743 metres, intersecting copper, molybdenum, silver, and gold mineralization. The program tested an underexplored area southwest of the Main Zone pit . Angled diamond drill holes were designed to intersect the southern contact between the Main Zone intrusive stock and the surrounding host volcanic rock. Historically, the bulk of ore mined from the Main Zone occurred near this contact in the volcanic rock east and northeast of the Main Zone stock. The 2025 drilling expands upon and infills the Main Zone mineral resource to the southwest. Additional drilling is planned for 2026 to infill and expand upon the mineralization in this area.

In 2025, Huckleberry incurred idle mine costs comprised of $7.9 million in operating costs and $1.3 million in depreciation expense, which is a decrease from $8.1 million in operating costs and $1.2 million in depreciation in 2024.

Exploration, development, and capital expenditures were $3.4 million in 2025 compared to $0.8 million in 2024.

TECHNICAL INFORMATION

The technical and scientifi c information related to the Company’s mineral projects has been reviewed and approved by Steve Robertson, P.Geo., Imperial’s Vice President Corporate Development, and a designated Qualified Person as defined by NI 43-101.

NON-GAAP FINANCIAL MEASURES

The Company reports on four non-GAAP financial measures: adjusted net income, 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, adjusted EBITDA, cash earnings and cash cost per pound of copper are not standardized financial measures under IFRS Accounting Standards and might not be comparable to similar financial measures disclosed by other issuers.

Adjusted Net Income and Adjusted Net Income Per Share

Adjusted net income is derived from operating net income 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 2025 was $153.9 million ($0.91 per share) compared to an adjusted net income of $102.8 million ($0.64 per share) in 2024. We believe that the presentation of Adjusted Net Income 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 2025 was $381.7 million compared to $207.8 million in 2024. We define Adjusted EBITDA as net income before interest expense, net of interest income and capitalized interest, taxes, depletion, and depreciation, and as adjusted for certain other items.

Cash Earnings and Cash Earnings Per Share

Cash earnings in 2025 was $374.5 million compared to $209.0 million in 2024. Cash earnings per share were $2.23 in 2025 compared to $1.29 in 2024.

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 Accounting Standards. 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 s hares outstanding during the year.

Cash Cost Per Pound of Copper Produced

Management uses this non-GAAP financial measure to monitor operating costs and profitability. The Company is primarily a copper producer and therefore calculates this non-GAAP financial measure individually for its two operating copper mines, Mount Polley and Red Chris (30% share), 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.

FOURTH QUARTER RESULTS FROM OPERATIONS

Revenue in the fourth quarter of 2025 was $170.7 million compared to $132.0 million in 2024. 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 2025 was $72.6 million compared to the income of $63.4 million in the comparative quarter of 2024.

The Company recorded a net income of $33.4 million ($0.19 income per share) in the fourth quarter of 2025 compared to net income of $62.8 million ($0.39 income per share) in the prior year quarter. The difference is mainly due to the current and deferred income and mining tax expense of $25.0 million in the fourth quarter of 2025 compared to the net tax recov ery of $10.2 million in the prior year quarter of 2024.

Expenditures for exploration and ongoing capital projects at Mount Polley, Red Chris and Huckleberry totalled $63.1 million during the fourth quarter of 2025, compared to $45.6 million in the 2024 comparative quarter.

OUTLOOK

Corporate and Operations

The 2026 production target for Mount Polley is 19.0 – 21.0 million pounds copper and 40,000 – 44,000 ounces of gold.

Newmont guidance for Red Chris mine production (100%) is 60.0 – 66.0 million pounds copper and 47,500 – 52,500 ounces of gold for the calendar year 2026.

The Company may 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 2026 for Mount Polley to follow up on the successful drilling completed in 2025.

Diamond drilling will be completed in 2026 at the Huckleberry mine to expand and infill the Main zone.

Acquisitions

Management continues to evaluate potential acquisitions.

For detailed information, refer to Imperial’s 2025 Management’s Discussion and Analysis available on imperialmetals.com and sedarplus.ca.

About Imperial

Imperial is a Vancouver based explorat ion, 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.