Imperial Reports 2023 Financial Results
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News Release
Imperial Reports 2023 Financial Results
Vancouver | March 14, 2024 | Imperial Metals Corporation (the “Company”) (TSX:III) reports financial results for its fiscal
year ended December 31, 2023.
Select Annual Financial Information
Year Ended December 31
expressed in thousands, except share and per share amounts 2023 2022 2021
Operations:
Total revenues $344,455 $172,797 $133,591
Net loss $(36,715) $(75,975) $(26,070)
Net loss per share $(0.23)
$
$(0.51) $(0.19)
Diluted loss per share $(0.23) $(0.51) $(0.19)
Adjusted net loss(1) $(36,092) $(95,598) $(23,181)
Adjusted net loss per share(1) $(0.23) $(0.64) $(0.17)
Adjusted EBITDA(1) $24,876 $(63,131) $11,553
Cash earnings(1)(2) $23,557 $(52,873) $11,034
Cash earnings per share(1)(2) $0.15 $(0.36) $0.08
Working capital deficiency
deficiency
$(167,597) $(65,091) $(19,060)
Total assets $1,411,990 $1,299,702 $1,186,341
Total debt (including current portion)(3) $319,787 $197,788 $34,975
(1) Refer to table in section Non-IFRS Financial Measures of the December 31, 2023 Management’s Discussion & Analysis for further details.
(2) Cash earnings 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 earnings per share is defined as cash earnings divided by the weighted average number of common shares
outstanding during the year.
(3) Total debt consists of banker’s acceptances, debentures, advanced development loan, and equipment loans and leases.
Select Items Affecting Net Loss
presented on an after-tax basis Year Ended December 31
2023 2022 2021
(000’s) (000’s) (000’s)
Net loss before undernoted items $(5,429) $(67,063) $(24,337)
Interest expense (31,332) (8,921) (1,497)
Foreign exchange gain (loss) on debt 46 9 (236)
Net Loss $(36,715) $(75,975) $(26,070)
Total revenue increased to $344.5 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. In 2023, the Mount Polley mine had 5.7 concentrate shipments (2022 -1.0 concentrate shipments). 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 in 2022, a decrease of $19.7 million.
In 2023, the Red Chris mine (100% basis) had 12.4 concentrate shipments (2022-14.6 concentrate shipments).
Variations in revenue are impacted by the restart of operations , the timing and quantity of concentrate shipments, metal
prices and exchange rates, and period end revaluations of revenue attributed to concentrate shipments where copper and
gold prices will settle at a future date.
The London Metals Exchange cash settlement copper price per pound averaged US$ 3.85 in 2023 compared to US$4.00 in
2022. London Bullion Market Association, London gold price per troy ounce averaged US$ 1,943 in 2023 compared to
US$1,801 in 2022. The average US/CDN dollar exchange rate in 2023 was 1.350 compared to an average of 1.302 in 2022.
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In CDN dollar terms, the average copper price in 2023 was CDN$5.19 per pound compared to CDN$5.21 per pound in 2022,
and the average gold price in 2023 was CDN$2,622 per ounce compared to CDN$2,345 per ounce in 2022.
Revenue in 2023 decreased by a $ 7.6 million negative revenue revaluation compared to a negative revenue revaluation of
$4.9 million in 2022. 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 loss in 2023 was $ 36.7 million ($0.23 per share) compared to net loss of $75.9 million ($0.51 per share) in 2022. The
majority of the decrease in net loss of $38.8 million was primarily due to the following factors:
• loss from mine operations reduced to $13.7 million in 2023 from loss of $ 28.7 million in 2022, a decrease in net loss of
$15.0 million;
• mine restart costs went from $ 64.9 million in 2022 to $Nil in 2023, a decrease in net loss of $64.9 million, which was
slightly offset by the increase of $2.2 million in idle mine cost from $6.5 million in 2022 to $8.7 million in 2023 ;
• net gain on disposal of mineral properties decreased by $17.8 million from $16.9 million in 2022 to a loss of $0.9 million
in 2023; and
• interest expense of $8.9 million in 2022 increased to $31.3 million in 2023, an increase of $22.4 million as a result of
additional financing required to support working capital and capital expenditures in 2023 at the Company’s operating
mines.
Capital expenditures including finance leases were $ 137.3 million in 2023, down from $150.0 million in 2022. Expenditures
in 2023 included:
• $44.9 million in exploration, an increase of $3.5 million in comparison to 2022 of $41.4 million;
• $36.6 million for tailings dam construction, a decrease of $0.1 million in comparison to 2022 of $36.7 million;
• $12.6 million on stripping costs, a decrease of $11.2 million in comparison to 2022 of $23.8 million ; and
• investment in other plant and equipment of $43.2 million, a decrease of $4.9 million in comparison to 2022 of $48.1
million.
At December 31, 2023, the Company had $24.9 million in cash compared to $27.5 million at December 31, 2022.
At December 31, 2023, 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 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 issuer s.
Adjusted Net Loss and Adjusted Net Loss Per Share
Adjusted net loss is derived from operating net loss by removing the gains or loss, resulting from acquisition and disposal
of property, mark to market revaluation of derivative instruments not related to the current period, net of tax, unrealized
foreign exchange gains or losses on long term debt, net of tax and other non-recurring items. Adjusted net loss in 2023 was
$36.1 million ($0.23 per share) compared to an adjusted net loss of $95.6 million ($0.64 per share) in 2022. We believe that
the presentation of Adjusted Net 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 2023 was $ 24.9 million compared to $ (63.1) million in 2022. We define Adjusted EBITDA as net loss
before interest expense, taxes, depletion, and depreciation, and as adjusted for certain other items .
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Cash Earnings and Cash Earnings Per Share
Cash earnings in 2023 was $23.6 million compared to $(52.9) million in 2022. Cash earnings per share were $0.15 in 2023
compared to $(0.36) in 2022.
Cash earnings and cash earnings per share are measures used by the Company to evaluate its performance ; however, they
are not terms recognized under IFRS . We believe that the presentation of cash earnings and cash earnings per share is
appropriate to provide additional information to investors about how well the Company can earn cash to pay its debts and
manage its operating expenses and investment. Cash earnings is defined as cash flow from operations before the net change
in non-cash working capital balances, income and mining taxes paid, and interest paid. Cash earnings per share is the same
measure divided by the weighted average number of common shares outstanding during the year.
Cash Cost Per Pound of Copper Produced
Management uses this non-IFRS financial measure to monitor operating costs and profitability. The Company is primarily a
copper producer and therefore calculates this non -IFRS financial measure individually for its two operating copper mines,
Red Chris (30% share) and Mount Polley, and on a composite basis for these mines.
Variations from period to period in the cash cost per pound of copper produced are the result of many factors including:
grade, metal recoveries, amount of stripping charged to operations, mine and mill operating conditions, labour and other
cost inputs, transportation and warehousing costs, treatment and refining costs, the amount of by -product and other
revenues, the US$ to CDN$ exchange rate and the amount of copper produced.
Idle mine and mine restart costs during the periods when the Huckleberry and Mount Polley mines are not in operation
have been excluded from the cash cost per pound of copper produced .
Calculation of Cash Cost Per Pound of Copper Produced
expressed in thousands of dollars, except cash cost per pound of copper produced Year Ended December 31, 2023
Red Chris Mount Polley Composite
Cash cost of copper produced in US$ $74,324 $64,144 $138,468
Copper produced – 000’s pounds 17,116 30,146 47,262
Cash cost per lb copper produced in US$ $4.34 $2.13 $2.93
expressed in thousands of dollars, except cash cost per pound of copper produced Year Ended December 31, 2022
Red Chris Mount Polley(1) Composite
Cash cost of copper produced in US$ $52,128 $33,891 $86,019
Copper produced – 000’s pounds 20,281 6,206 26,487
Cash cost per lb copper produced in US$ $2.57 $5.46 $3.25
(1) Mount Polley mine operations were suspended in May 2019 and restarted in late June 2022.
OPERATIONS
Mount Polley Mine
Q4 2023 vs Q3 2023
Mount Polley metal production for the fourth quarter of 2023 was 8,347,900 pounds copper and 10,349 ounces gold,
compared to 8,056,570 pounds copper and 11,321 ounces gold produced during the third quarter of 2023. Metal production
increased by 3.6% for copper due to higher copper grades (0.302% copper, increase of 3.0%) and dropped by 8.6% for gold
due to lower gold grades (0.286 g/t, decrease of 11.0%). During the fourth quarter of 2023, the throughput averaged 17,038
tonnes per day compared to 16,959 tonnes per day, copper recovery was 79.9% compared to 79.5% and gold recovery was
71.8% compared to 70.1% in the third quarter of 2023.
Mining of tailings from the Springer Pit continued with 2.67 million cubic meters removed by December 31, 2023,
representing about 80.0% of the total tailings required to be removed since the removal of tailings began on May 8, 2023.
The tailings being removed are being dry stacked atop the Southeast Rock Dump. The initial stripping of Springer Phase 5
pit began in February 2024.
Year 2023 vs Year 2022
During the year ended December 31, 2023, the total amount of 5,948,239 tonnes of ore were processed. Metal production
was 30,145,400 pounds of copper and 41,834 ounces of gold. Copper recovery averaged 80.0% and gold recovery was 70.4%
from grades averaging 0.287% copper and 0.311 g/t gold.
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Three Months Ended December 31 Year Ended December 31
2023 2022 2023 2022(1)
Ore milled - tonnes 1,567,491 1,084,016 5,948,239 2,068,830
Ore milled per calendar day - tonnes 17,038 11,783 16,297 11,244
Grade % - copper 0.302 0.230 0.287 0.214
Grade g/t - gold 0.286 0.325 0.311 0.306
Recovery % - copper 79.9 68.9 80.0 63.5
Recovery % - gold 71.8 61.8 70.4 59.4
Copper - 000’s pounds 8,348 3,786 30,145 6,206
Gold - ounces 10,349 6,995 41,834 12,078
(1) Mount Polley mine operations were suspended in May 2019 and restarted in late June 2022.
Exploration, development, and capital expenditures in 2023 were $ 35.5 million compared to $28.5 million in the 2022
comparative year.
The 2024 production target for Mount Polley is 30.0-33.0 million pounds copper and 35,000-40,000 ounces gold.
Red Chris Mine
Q4 2023 vs Q3 2023
Red Chris production (100%) for the 2023 fourth quarter was 17,979,508 pounds copper, an increase of 31.0% compared to
13,753,075 pounds copper produced in the third quarter of 2023 and 11,822 ounces gold, an increase of 18.0% compared
to the 10,048 ounces gold in the third quarter of 2023. Metal production increased for both copper and gold due to higher
grades, better recoveries and increased throughput.
Year 2023 vs Year 2022
Red Chris metal production (100% basis) for 2023 was 57,051,467 pounds copper and 46,046 ounces gold, a decrease of
15.6% and 27.7% respectively from 67 ,604,485 pounds copper and 63,658 ounces gold produced in 2022. The decrease of
metal production in 2023 was due to lower grades, lower gold recovery partially offset by higher copper recovery.
Imperial’s 30% portion of Red Chris mine for 2023 was 17,115,440 pounds copper and 13,814 ounces gold.
Newmont Mining Corporation (“Newmont”) guidance for Red Chris mine production (100%) is 85.0 million pounds of copper
and 57,000 ounces of gold for the calendar year 2024.
100% Red Chris mine production Three Months Ended December 31 Year Ended December 31
2023 2022 2023 2022
Ore milled - tonnes 2,529,481 2,390,084 9,266,769 9,457,303
Ore milled per calendar day - tonnes 27,494 25,979 25,388 25,910
Grade % - copper 0.398 0.339 0.356 0.421
Grade g/t - gold 0.269 0.386 0.295 0.382
Recovery % - copper 81.08 73.4 78.5 77.0
Recovery % - gold 54.1 49.0 52.4 54.8
Copper - 000’s pounds 17,980 13,107 57,051 67,604
Gold - ounces 11,822 14,518 46,046 63,658
Imperial’s 30% share of exploration, development, and capital expenditures was $100.3 million in 2023 compared to $118.2
million in the 2022 comparative year.
Block Cave Feasibility Study
At Red Chris, progress towards block cave mining is advancing with the exploration decline at 3,958 metres and the conveyor
decline at 957 metres as of December 31, 2023. Newmont plans to provide a schedule for the completion of the feasibility
study for the East Zone block cave project (th e “Block Cave Feasibility Study”) and an update of the Red Chris Mineral
Resources estimate that includes the drilling in the East Ridge in 2023, which will provide further clarity on the size and
scale of this prospect.
The exploration program continued at Red Chris with a total of 30,910 meters drilled in 2023. The recent focus has been on
infill drilling in the East Zone from underground.
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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 2024 to investigate and update the tailings facility design
for Huckleberry.
In 2023, Huckleberry incurred idle mine costs comprised of $7.7 million in operating costs and $1.0 million in depreciation
expense, which is an increase from $5.6 million in operating costs and $0.8 million in depreciation in comparison to 2022.
Exploration, development, and capital expenditures in 2023 were $0.7 million compared to $2.8 million in 2022.
MINE SITE EXPLORATION
Mount Polley Mine
In early 2023, two phases of diamond drilling were completed at Mount Polley Mine in an underexplored area between the
Springer and Cariboo mineralized zones. The first phase consisted of five drill holes totaling 2,720 metres and the second
phase consisted of 10 drill holes totaling 2,885 metres, for a total of 5,605 metres of diamond drilling in this area. Drilling is
planned for early 2024 to follow up on the successful drill program conducted at Mount Polley in 2023.
The results of the 2023 program included some higher-grade intervals highlighted by the 162.5 metre interval grading 0.5%
copper and 0.52 g/t gold from 30 metres in SD-23-167. The Springer zone contains most of the reserves in the current mine
plan. Historic drilling in the Springer zon e confirms that the mineralization continues 250 metres below the currently
planned Springer Pit and that it is open to the east.
Huckleberry Mine
In early 2023, samples from the 2022 rock sampling program received hyperspectral analysis and interpretation, which
helped generate 2023 drilling targets.
In late summer of 2023, a diamond drilling and rock sampling program was conducted on the Huckleberry Property. Five
drill holes totaling 2,031 metres were completed at Whiting Creek, which is located about 8 kilometres north of Huckleberry
Mine, and 44 rock samples were collected across three zones on the property. This program continued to test geophysical
and geochemical anomalies that were generated from work completed from 2021 -2023.
In the fall of 2023, all five drill collars and an additional 15 historic drill collars were surveyed using a Trimble Base Station
and Rover RTK system to improve the location accuracy.
While historic drill holes in the Creek Zone intersected copper and molybdenum within the Whiting Creek Stock, intercepts
from 2023 drilling confirmed that the surrounding altered volcanics can host significant mineralization. This is an important
discovery as the highest copper concentrations and the majority of production at the Huckleberry mine has come from the
altered contact volcanics. Additionally, intercepts from hole CW -23-01B identified a chalcocite enriched zone in the upper
fractured rock and ha s expanded known copper mineralization 450 metres to the west. The 2023 drill results include an
intercept of 52.6 metres grading 0.45% copper and 1.29 g/t silver starting from the top of bedrock at a depth of 67.4 metres.
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.
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FOURTH QUARTER RESULTS FROM OPERATIONS
Revenue in the fourth quarter of 2023 was $87.6 million compared to $61.6 million in 2022. 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 Company recorded a net loss of $10.5 million ($0.06 per share) in the fourth quarter of 2023 compared to net loss of
$11.8 million ($0.08 per share) in the prior year quarter.
Expenditures for exploration and ongoing capital projects at Mount Polley, Red Chris and Huckleberry totalled $30.7 million
during the three months ended December 31, 2023, compared to $37.5 million in the 2022 comparative quarter .
OUTLOOK
Corporate and Operations
At December 31, 2023, the Company had not hedged any copper, gold, or US$/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.
Newmont guidance for Red Chris mine production (100%) is 85.0 million pounds of copper and 57,000 ounces of gold for
the calendar year 2024.
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.
Exploration at Red Chris for 2024 will be focused on further definition of the East Ridge zone.
Exploration diamond drilling is planned for early 2024 at Mount Polley to continue following the new zones delineated from
2023 diamond drilling.
At Huckleberry, in 2024 the exploration program will focus on additional diamond drilling following up on the success of
the 2023 program.
Acquisitions
Management continues to evaluate potential acquisitions.
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For detailed information, refer to Imperial’s 2023 Management Discussion and Analysis available on imperialmetals.com
and sedarplus.ca.
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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.
Company Contacts
Brian Kynoch | President | 604.669.8959
Darb S. Dhillon | Chief Financial Officer | 604.488.2658
Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this news release are not statements of historical fact and are “forward-looking” statements. Forward-
looking statements relate to future events or future performance and reflect Company management’s expectations or beliefs regarding
future events and include, but are not limited to, future impacts and the ability to continue operations subject to the governmental or
non-governmental restrictions imposed as a result of communicable and infectious diseases and their related outbreaks or pandemics,
like the COVID-19 pandemic (“Outbreaks”); changes to the Company’s busines s and operations in order to minimize the risks to
employees, communities and other stakeholders; the effectiveness of preventative measures put in place by the Company and
Newmont, including the implementation of a communicable disease management plan; potential impact of violations to acts and
regulations with respect to such preventative measures; expectations regarding the care and maintenance activities at the Huckleberry
mine; expectations and timing regarding current and future exploration and drilling programs at the Red Chris, Mount Polley and
Huckleberry mines; expectations regarding completion of the Block Cave Feasibility Study and timing thereof; expectations regarding
update of the Red Chris Mineral Resources estimate; expectations regarding recovery, throughput and mined grades for copper and
gold; the continued increase in metal production due to higher grades and throughput; the removal of the Mount Polley mine tailings
from the Springer Pit; capital expenditures; adequacy of funds for projects and liabilities; expectations regarding the issuances of non-
convertible debentures including with respect to the date of maturity, interest payable and timing thereof; outcome and impact of
litigation; potential claims and probability of material loss or judgment against the Company; cash flow; working capital requirements;
the requirement for additional funding for capital projects; the ability for the Company to continue as a going concern, incl uding
sufficient funding of the Company’s obligations as they come due; results and targets of operations, production, revenue, margins and
earnings; future prices of copper and gold; future foreign currency exchange rates, including its impact on derivative instruments;
volatility of the Company’s income or loss from derivative instruments; liquidation of marketable securities; and the use of non-IFRS
financial measures including adjusted net loss, adjusted EBITDA, cash earnings and cash cost per pound of copper.
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 t o,
assumptions that: the scope and duration of Outbreaks, and their impact on our business will not be significant and the Company’s
operations will be able to return to normal as they subside; the Company will have access to capital as required and will be able to fulfill
its funding obligations as the Red Chris minority joint venture partner; there are risks related to holding non -majority investment
interests in the Red Chris mine Joint Venture; 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 and Huckleberry mines; the Company’s rehabilitation activities at Mount Polley
and Huckleberry will be successful in the long term; all required permits, approvals and arrangements to proceed with planned
rehabilitation at Huckleberry will be obtained in a timely manner; there will be no material operational or exploration delays at the Red
Chris and Mount Polley mines; there will be no material delay in the receipt of the Red Chris Block Cave Feasibility Study an d
subsequent, related expansion plans; 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; and the Red Chris and Mount Polley mines will achieve
expected production outcomes (including with respect to mined grades and mill recoveries and access to water as needed) with no
material delays, shutdowns, property damage and/or loss as a result of climate change impacts, such as (but not limited to) those
arising from wildfires, flooding and mudslides. 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: the risk
that the Company’s beneficial interest of the Red Chris mine may be diluted over time should it not have access to capital as required
and will not be able to meet its funding obligations as the Red Chris minority joint venture partner; the risk that the Red Chris Block
Feasibility Study is not finalized in a timely manner or at all, thereby materially or indefinitely delaying anticipated Red Chris expansion
plans; additional financing that may be required may not be available to Imperial on terms acceptable to Imperial or at all; risks relating
to the timely receipt of necessary approvals and consents to proceed with the rehabilitation plan at Huckleberry; risks relating to mining
operations and mine restart timelines; uncertainty regarding general economic conditions; uncertainty regarding the short-term and
long-term impact of Outbreaks on the Company’s operations and investments and on the global economy and metals prices generally,
risks that Outbreaks may adversely impact copper and gold prices, our ability to transport or market our concentrate, cause disruptions
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in our supply chains and create volatility in commodity prices and demand; risks relating to the potential ineffectiveness of the measures
taken in response to Outbreaks; risks associated with competition within the mining industry; the Company’s dependency on third
party smelters; risks relating to trade barriers; 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, power outages, climate change impacts, such as (but not limited to) those arising fro m
wildfires, flooding and mudslides and other natural phenomena such as weather conditions and water shortages, negatively impacting
the operation of the Red Chris and Mount Polley mines and potentially causing material delays, shutdowns, property damage and/or
loss; changes in commodity and power prices; changes in market demand for our concentrate; inaccurate geological and metallurgical
assumptions (including with respect to the size, grade and recoverability of mineral reserves and resources); uncertainty relating to
mineral resource and mineral reserve estimates; uncertainty relating to production estimates; risks associated with mineral exploration
and project development; fluctuations in exchange rates and interest rates; risks associated with permitting and government
regulations; environmental and health and safety matters; risks relating to joint venture projects; risks relating to foreign operations;
dependence on key management personnel; taxation risk; conflicts of interest; cyber threats and potential adverse impacts from the
global incorporation of artificial intelligence and machine learning into business processes; credit risk related to cash, trade and other
receivables, and future site reclamation deposits; risks relating to the use of derivative contracts and other hazards and risks disclosed
within the Company’s interim and annual financial statements and management’s discussion and analysis of those statements, all of
which are filed and available for review on SEDAR+ at www.sedarplus.ca.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ
materially from those described in forward -looking statements, there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended, many of which are beyond the Company’s ability to control or predict. There can
be no assurance that forward -looking statements will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly, readers should not place undue relia nce on forward -looking
statements and all forward-looking statements in this news release are qualified by these cautionary statements.