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Vancouver – November 13, 2013 | Imperial Metals Corporation (III-TSX) – reports comparative financial results for the three and nine months ended September 30, 2013 and 2012 are summarized below and discussed in detail in the Management’s Discussion and Analysis. The Company’s financial results are prepared in accordance with International Financial Reporting Standards (“IFRS”).
The Sterling mine recommenced operations on July 2012 and reached commercial production in March 2013. In accordance with the Company’s accounting policy, all revenue and related operating costs prior to commercial production are applied to the carrying value of the Sterling mineral property. In the nine months ended September 30, 2013 a total of 5,049 ounces gold were sold and the sale proceeds from the 2,743 ounces related to the period prior to commercial production was applied to the carrying value of the mineral property with the sales proceeds of the 2,267 ounces recorded in the Statement of Income and the balance of 39 ounces held in inventory.
Revenues were $51.7 million in the September 2013 quarter compared to $29.7 million in the 2012 quarter primarily due to increased sales volumes in the current quarter. There were two shipments in the 2013 quarter compared to one shipment in the 2012 quarter.
The Company recorded net income of $14.7 million in the September 2013 quarter compared to net income of $4.3 million in the 2012 quarter. Adjusted net income in the quarter was $16.6 million or $0.22 per share, versus $7.4 million or $0.10 per share in the September 2012 quarter. Adjusted net income is calculated by removing the unrealized gains and losses, net of related income taxes, resulting from mark to market revaluation of copper and gold derivative instruments. Adjusted net income is not a measure recognized under IFRS in Canada. It is intended to show the current period financial results excluding the effect of items not settling in the current period.
The Company recorded $1.4 million unrealized losses on copper derivatives in the September 2013 quarter compared to a net realized and unrealized loss of $2.1 million in the comparative quarter. The Company had no realized losses or gains on copper or gold derivatives in the September 2013 quarter compared to realized gains of $0.1 million in the September 2012 quarter.
Cash flow increased to $28.6 million in the three months ended September 30, 2013 from $11.5 million in the comparative quarter. The increase of $17.5 million is primarily due to the increase of concentrate shipments over the comparative quarter.
Capital expenditures increased to $137.9 million from $46.3 million in the comparative 2012 quarter. Expenditures were financed from cash flow from the Mount Polley mine, current and non-current term debt in addition to $9.6 million of non-current debt for equipment financed in the current quarter. At September 30, 2013 the Company had $4.9 million in cash.
During the September 2013 quarter the Company did not purchase any common shares for cancellation.
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