Imperial Metals Corporation (TSX:III) reports financial results for the three and six months ended June 30, 2025.

QUARTER HIGHLIGHTS

“Operationally, the second quarter was aligned with guidance, driven largely by higher throughput, and copper and gold grades at Mount Polley and higher copper and gold grades at Red Chris,” said Brian Kynoch, President. “With consolidated production totalling 32,381,617 pounds copper and 34,968 ounces gold through the first half of the year, we remain on track to achieve 2025 guidance”.

“During the quarter, we also achieved strong financial results, including adjusted EBITDA of $99.5 million and cash earnings of $97.7 million which was derived from strong operational results and higher metal prices.”

FINANCIAL

All dollar amounts referenced are in Canadian Dollars, except where noted otherwise.

Total revenue was $175.8 million in the June 2025 quarter compared to $131.7 million in the 2024 comparative quarter.

In the June 2025 quarter, the Red Chris mine (100% basis) had 5.0 concentrate shipments (2024-5.0 concentrate shipments). Mount Polley mine had 1.9 concentrate shipments (2024-2.0 concentrate shipments).

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$4.32 in the June 2025 quarter compared to US$4.42 in the 2024 comparative quarter. The LBMA (London Bullion Market Association) gold price per troy ounce averaged US$3,280 in the June 2024 quarter compared to US$2,338 in the 2024 comparative quarter. The average US/CDN Dollar exchange rate was 1.384 in the June 2025 quarter, 1.2% higher than the exchange rate of 1.368 in the June 2024 quarter. In CDN Dollar terms the average copper price in the June 2025 quarter was CDN$5.98 per pound compared to CDN$6.05 per pound in the 2024 comparative quarter, and the average gold price in the June 2025 quarter was CDN$4,540 per ounce compared to CDN$3,199 per ounce in the 2024 comparative quarter.

A positive revenue revaluation in the June 2025 quarter was $2.2 million as compared to a negative revenue revaluation of $4.3 million the 2024 comparative quarter. 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.

Net income for the June 2024 quarter was $40.6 million ($0.25 income per share) compared to net income of $20.4 million ($0.13 income per share) in the 2024 comparative quarter. The increase in net income of $20.2 million primarily due to the following factors:

• Income from mine operations increased from $39.0 million in the June 2024 quarter to an income of $81.3 million in June 2025, increasing net income by $42.3 million largely due to the increase in gold production and gold prices;
• Income and mining tax expense increased from $7.7 million in June 2024 to $26.5 million in the June 2025 quarter, reducing net income by $18.8 million.

Capital expenditures including leases were $64.1 million in the June 2025 quarter, an increase of $8.2 million from $55.9 million in the 2024 comparative quarter. The June 2025 quarter expenditures included $20.4 million in exploration and development, $17.4 million for tailings dam construction, $14.8 million on stripping costs and $11.5 million of other capital.

At June 30, 2025, the Company had not hedged any copper, gold or US/CDN Dollar exchange.

OPERATIONS

During the quarter ended June 30, 2025, Imperial’s consolidated metal production was 16,539,280 pounds copper and 17,848 ounces gold, of which 9,495,511 pounds copper and 11,061 ounces gold were produced at Mount Polley and 7,043,769 pounds copper and 6,787 ounces gold from its 30% share of Red Chris mine production. Consolidated copper production was up 4% from the 15,842,336 pounds copper produced in the first quarter 2025 and gold production was up 4% from the 17,120 ounces gold produced in the first quarter 2025.

Mount Polley Mine

Mill throughput in the second quarter 2025 was up 2.6%, with 1.759 million tonnes being treated compared with 1.714 million tonnes treated in the second quarter of 2024. Copper production and gold production in the second quarter of 2025 were up versus the second quarter of 2024 on similar grades and recovery, reflecting the increase in throughput.

For the first six months of 2025, an increase in throughput, copper and gold grades and copper and gold recoveries resulted in copper production being up 10.6% and gold production up 8.3% compared to the same period last year.

The majority (approximately 79%) of mill feed for the second quarter of 2025 came from near the bottom of Phase 4 of the Springer Pit and was supplemented by some ore from Phase 5 pushback and stockpiles. Stripping for the Phase 5 pushback of the Springer Pit continued with approximately 3,675,325 tonnes of rock stripped from this pushback in the second quarter of 2025. Approximately 2,527,380 tonnes of non-acid generating rock from Phase 5 were hauled to the tailings facility to buttress the tailings storage embankment.

Exploration, development, and capital expenditures in the second quarter of 2025 were $33.7 million compared to $23.0 million in the 2024 comparative quarter.

Red Chris Mine

Red Chris production (100%) for the second quarter of 2025 was 23,479,231 pounds copper and 22,624 ounces gold compared to 23,126,491 pounds copper and 21,663 ounces gold during the first quarter of 2025. In the second quarter of 2025, copper production is up 2% compared to the first quarter of 2025.

In the second quarter of 2025, Red Chris copper production was up 13% compared to the second quarter of 2024. The increase in copper production was a result of a 17% increase in copper grade (0.547% vs 0.466%), offset by a small decrease in throughput. Gold production in the second quarter of 2025 was up 81% from the second quarter of 2024 as result of the increased gold grades and better recovery, offset by slightly lower throughput.

For the first six months of 2025, copper production was up 25% compared to the same period last year on higher copper grades and gold production was up 101% on higher gold grades and better recovery. Imperial’s 30% portion of Red Chris mine for the second quarter of 2025 was 7,043,769 pounds copper and 6,787 ounces gold.

Imperial’s 30% share of exploration, development, and capital expenditures were $30.2 million in the June 2025 quarter compared to $32.7 million in the 2024 comparative quarter.

Block Cave Feasibility Study

The Red Chris Block Cave Feasibility Study is advancing as are permitting activities and early-stage underground development work and other work to support the underground block cave project. The total development completed to June 30, 2025, was approximately 11,727 metres, completed on both the Nagha and conveyor declines.

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.

Diamond drilling has been completed at the Whiting Creek area, 6.5 kilometres north of the Huckleberry mine and 1,000 metres east of the previously drilled Creek Zone. The target in this area is defined by a strong magnetic anomaly and a compilation of historic copper soil sampling results and is in the center of the host Whiting Creek stock.

For the June 2025 quarter, Huckleberry incurred idle mine costs comprised of $1.7 million in operating costs and $0.3 million in depreciation expense compared to $1.5 million in operating cost and $0.3 million in depreciation expense in the comparable quarter of 2024.

TECHNICAL 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, and a designated Qualified Person as defined by NI 43-101.

EARNINGS AND CASH FLOW

Select Quarter Financial Information

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.