Imperial Reports 2013 Financial Results

Imperial Reports 2013 Financial Results 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 03/31/14 --  
Imperial Metals Corporation (the "Company") (TSX: III) reports
financial results for its fiscal year ended December 31, 2013(1). Net
income for the year ended December 31, 2013 was $41.0 million ($0.55
per share) compared to net income of $32.6 million ($0.44 per share)
in 2012. In addition to variances in revenues and income from mine
operations, variations in net income period over period are
predominately attributable to movements in foreign exchange and
realized and unrealized gains and losses on derivative instruments
and taxes.  
In 2013 net income was negatively impacted by foreign exchange losses
of $2.5 million compared to foreign exchange losses of $0.5 million
in 2012 primarily on foreign exchange movements on the increased US
Dollar debt being carried by the Company. The average CDN/US Dollar
exchange rate in 2013 was 1.03 compared to an average of 1.00 in
2012, and at December 31, 2013 the CDN/US Dollar exchange rate was
1.06. 
In 2013 the Company recorded gains on derivative instruments of $1.6
million compared to losses of $2.8 million in 2012. The decrease in
the copper and gold price compared to the price in the derivative
contracts resulted in a gain in 2013 compared to a loss in 2012. 
Revenues were $187.8 million in 2013 compared to $199.4 million in
2012. Revenues are impacted by the timing and quantity of concentrate
shipments, metal prices and exchange rate, and period end
revaluations of revenue attributed to concentrate shipments where
copper price will settle at a future date. The decrease in revenue in
2013 over 2012 is due to lower copper and gold prices partially
offset by a weaker Canadian dollar and a larger volume of concentrate
shipped for the year. There were eight concentrate shipments in 2013
compared to seven shipments in 2012. The increase in shipment volumes
was more than offset by lower copper and gold prices in 2013 compared
to 2012. 
The London Metals Exchange cash settlement copper price per pound
averaged US$3.32 in 2013 compared to US$3.61 in 2012. The London
Metals Exchange cash settlement gold price per troy ounce averaged
US$1,411 in 2013 compared to US$1,667 in 2012. The CDN Dollar
compared to the US Dollar averaged about 3% lower in 2013 than in
2012. In CDN Dollar terms the average copper price in 2013 was
CDN$3.42 per pound compared to CDN$3.61 per pound in 2012 and the
average gold price in 2013 was CDN$1,451 per ounce compared to
CDN$1,667 per ounce in 2012. 
Revenue in 2013 was decreased by a $7.1 million negative revenue
revaluation compared to a negative revenue revaluation of $2.5
million in 2012. Negative revenue revaluations are the result of the
copper price on the settlement date and/or the current period balance
sheet date being lower than when the revenue was initially recorded
or the copper price at the last balance sheet date. The copper price
started the year at US$3.67 per pound and ended the year at US$3.35
per pound, compared to the prior year where the copper price started
the year at US$3.48 per pound and ended the year US$3.59 per pound.  
Income from mine operations increased to $64.3 million from $56.9
million in 2012 as result improved contribution margins from mine
operations.  
The Company recorded $8.3 million as its equity share of
Huckleberry's net income during 2013 compared to $5.5 million equity
income in 2012.  
Income and mining tax expense increased by $4.3 million from 2012 to
2013 due primarily to higher income before taxes.  
Cash flow increased to $78.2 million in 2013 from $66.6 million in
2012. Cash flow is a measure used by the Company to evaluate its
performance, however, it is not a term recognized under IFRS in
Canada. Cash flow 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. The Company believes cash flow is
useful to investors and it is one of the measures used by management
to assess the financial performance of the Company. 
Capital expenditures of $397.2 million in 2013, inclusive of
equipment financed by long term debt and capitalized interest, were
up from $147.9 million in 2012. The expenditures in 2013 were
financed by cash flow from the Mount Polley mine, short term and
non-current debt and $38.9 million in equipment financing. At
December 31, 2013 the Company had $3.1 million (December, 2012-$2.8
million) in cash. The short term debt balance at December 31, 2013
was $132.4 million (December 31, 2012-$92.4 million). The increase in
the short term debt is primarily due to funding the development of
the Red Chris project with short term debt which subsequent to year
end was fully repaid from the long term financings.  


 
 
Selected Annual Financial Information                Years Ended December 31
(expressed in thousands, except share                                       
 amounts)                                       2013        2012        2011
----------------------------------------------------------------------------
Total Revenues                            $  187,805  $  199,373  $  165,590
Net Income                                $   40,954  $   32,626  $   48,708
Net Income per share                      $     0.55  $     0.44  $     0.66
Diluted Income per share                  $     0.54  $     0.43  $     0.65
Adjusted Net Income(2)                    $   40,051  $   36,807  $   31,333
Adjusted Net Income per share(2)          $     0.54  $     0.50  $     0.42
Adjusted EBITDA(2)                        $   86,600  $   72,585  $   67,465
Working Capital (deficiency)(3)           $ (162,758) $  (74,438) $    8,599
Total Assets                              $  975,451  $  600,348  $  457,755
Total Long Term Debt (including current                                     
 portion)                                 $  244,382  $    8,341  $    1,612
Cash dividends declared per common share  $     0.00  $     0.00  $     0.00
Cash Flow(1)                              $   78,213  $   66,646  $   53,116
Cash Flow per share(1)                    $     1.05  $     0.90  $     0.72
 
(1) Cash flow and cash flow per share are measures used by the Company to   
 evaluate its performance however they are not terms recognized under IFRS. 
 Cash flow is defined as cash flow from operations before the net change in 
 non-cash working capital balances, income and mining taxes, and interest   
 paid and cash flow per share is the same measure divided by the weighted   
 average number of common shares outstanding during the period.             
(2) Refer to table under heading Non-IFRS Measures for details of the       
 calculation of these amounts                                               
(3) Defined as current assets less current liabilities.                     

Non-IFRS Measures 
In March 2014 the Company added two non-IFRS financial measures,
Adjusted EBITDA  
(Earnings Before Interest, Taxes, Depreciation and Amortization) 
and cash cost per pound of copper produced, which are described
further below. The Company expects to include these financial
measures in future quarterly and annual financial reports. 
Adjusted Net Income 
Adjusted net income in 2013 was $40.1 million ($0.54 per share)
compared to $36.8 million ($0.50 per share) in 2012. Adjusted net
income is calculated by removing the gains or losses, net of related
income taxes, resulting from mark to market revaluation of copper
derivative instruments not related to the current period, net of
taxes, as further described in the MD&A(1) under the heading Non-IFRS
Measures Adjusted Net Income.  
Adjusted EBITDA  
Adjusted EBITDA in 2013 was $86.6 million compared to $72.6 million
in 2012. 
We define Adjusted EBITDA as net income (loss) before interest
expense, taxes and depletion and depreciation and as adjusted for the
items described below. 
Adjusted EBITDA is not necessarily comparable to similarly titled
measures used by other companies. We believe that the presentation of
Adjusted EBITDA is appropriate to provide additional information to
investors about certain non-cash or unusual items that we do not
expect to continue at the same level in the future, or other items
that we do not believe to be reflective of our ongoing operating
performance. We further believe that our presentation of this
non-IFRS financial measure provides information that is useful to
investors because it is an important indicator of the strength of our
operations and the performance of our core business. 
Adjusted EBITDA is not a measurement of operating performance or
liquidity under IFRS and should not be considered as a substitute for
earnings from operations, net income or cash generated by operating
activities computed in accordance with IFRS. Adjusted EBITDA, further
described in the MD&A(1) under the heading Non-IFRS Measures Adjusted
EBITDA, has limitations as an analytical tool. Because of these
limitations Adjusted EBITDA should not be considered as a measure of
discretionary cash available to us to invest in the growth of our
business. 
Adjustments to EBIDTA include: interest expense, accretion of future
site reclamation provisions, depletion and depreciation, income and
mining taxes, unrealized losses (gains) on derivative instruments,
foreign exchange losses (gains), share based compensation, bad debt
expense (recovery), revaluation losses (gains) on marketable
securities, losses (gains) on sale of mineral properties, write down
of mineral properties. Refer to the table in the MD&A(1) under the
heading Non-IFRS Measures Adjusted EBITDA for details of the
calculation of Adjusted EBITDA. 


 
 
Cash Cost Per Pound of Copper Produced               Years Ended December 31
                                                            2013        2012
----------------------------------------------------------------------------
                                                          US$/lb      US$/lb
Mount Polley                                         $      0.88 $      1.20
Huckleberry                                          $      2.10 $      2.53
Composite (100% Mount Polley and 50% Huckleberry                            
 based on pounds of copper produced)                 $      1.31 $      1.65
----------------------------------------------------------------------------

The cash cost per pound of copper produced, derived from the sum of
cash production costs, transportation and offsite costs, treatment
and refining costs, net of by-product and other revenues, divided by
the number of pounds of copper produced during the period, is a
non-IFRS financial measure that does not have a standardized meaning
under IFRS, and as a result may not be comparable to similar measures
presented by other companies. 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 copper producing mines,
Mount Polley and Huckleberry, and on a composite basis for these two
mines. Refer to the table in the MD&A(1) under the heading Non-IFRS
Measures Estimated Cash Cost per Pound of Copper Produced for details
of the calculation of cash cost per pound of copper produced for 2013
and 2012. 
Derivative Instruments 
During 2013 the Company recorded gains of $1.6 million on derivative
instruments compared to losses of $2.8 million in 2012. These gains
and losses result from the mark to market valuation of the derivative
instruments based on changes in the price of copper and gold. These
amounts include realized gains of $0.1 million in 2013 and realized
losses of $0.4 million in 2012. The Company does not use hedge
accounting therefore accounting rules require that derivative
instruments be recorded at fair value on each statement of financial
position date, with the adjustment resulting from the revaluation
being charged to the statement of income as a gain or loss. 
The Company utilizes a variety of derivative instruments including
the purchase of puts, forward sales and the use of min/max zero cost
collars. The Company's income or loss from derivative instruments may
be very volatile from period to period as a result of changes in the
copper and gold prices compared to the copper and gold prices at the
time when these contracts were entered into and the type and length
of time to maturity of the contracts.  
Derivative instruments for Mount Polley cover about 71% of the
estimated copper settlements through to December 2014 via min/max
zero cost collars and 61% of the estimated gold settlements via
min/max zero cost collars through December 2015. 
At December 31, 2013 the Company has net unrealized gains on its
derivative instruments. This represents an increase in fair value of
the derivative instruments from the dates of purchase to December 31,
2013.  
Fourth Quarter Results 
Mineral sales revenues in the fourth quarter of 2013 were $44.0
million, $14.6 million lower than in the same quarter of 2012. There
were a total of two shipments in each of the fourth quarters of 2013
and 2012 from Mount Polley. Sales revenue is recorded when title for
concentrate is transferred on ship loading. Variations in quarterly
revenue attributed to the timing of concentrate shipments can be
expected in the normal course of business.  
The decrease in revenue in the 2013 quarter is largely due to lower
copper and gold prices. 
The Company recorded net income of $8.1 million ($0.11 per share) in
the fourth quarter of 2013 compared to net income of $11.7 million
($0.16 per share) in the prior year quarter.  
Expenditures for exploration and ongoing capital projects at Mount
Polley, Red Chris and Sterling totaled $117.4 million during the
three months ended December 31, 2013 compared to $52.2 million in the
2012 comparative quarter. The increase of $65.2 million in 2013 was
primarily due to higher development expenditures at Red Chris.  
Developments During 2013 
Mount Polley Mine  
At Mount Polley, 2013 production totaled 38.5 million pounds copper
and 45,823 ounces gold, compared to the 33.8 million pounds copper
and 52,236 ounces gold produced in 2012. Copper production was up on
higher grades and recovery, while gold production was lower with
lower gold grades being treated. The annual average mill throughput
was 21,799 tonnes per day down slightly from the record of 22,191
tonnes per day set in 2012. Mining at Mount Polley continues to be
focused on the lower benches of the phase 3 Springer pit, which has
lower levels of oxidation and as a result, copper and gold recovery
were both higher in 2013 than in 2012. Forecast production for 2014
from Mount Polley is 44.0 million pounds copper, 47,000 ounces gold
and 120,000 ounces silver.  


 
 
-----------------------------------------------------------------------
-----
Annual Production                             2013         2012         2011
----------------------------------------------------------------------------
Ore milled - tonnes                      7,956,738    8,121,878    7,716,856
Ore milled per calendar day - tonnes        21,799       22,191       21,142
Grade % - copper                             0.295        0.280        0.265
Grade g/t - gold                             0.263        0.304        0.272
Recovery % - copper                          74.46        67.40        58.70
Recovery % - gold                            68.09        65.70        62.90
Copper - lbs                            38,501,165   33,789,600   26,450,426
Gold - oz                                   45,823       52,236       42,514
Silver - oz                                123,999      116,101       95,786
----------------------------------------------------------------------------

Underground activities at the Boundary zone continued with the
excavation of the ramps, and installation of a ventilation system,
and other facilities required to mine a test stope of approximately
250,000 tonnes. Blast hole drilling is underway with 3,900 metres
completed by end of March 2014. This operation is schedule to deliver
approximately 700 tonnes of ore per day to the mill starting in April
2014. This higher grade underground ore is a key reason for the
planned increase in copper production in 2014.   
At January 1, 2014 remaining reserves for Mount Polley were 86.0
million tonnes grading 0.295% copper and 0.303 g/t gold.   
Exploration, development and capital expenditures at Mount Polley
were $74.5 million in 2013 (2012-$29.5 million).  
Huckleberry Mine  
Increase in copper grade and recovery in 2013 resulted in 41.2
million pounds copper produced, up 17% from 35.1 million pounds in
2012. Huckleberry's 2014 forecast production was to be 42.0 million
pounds copper and 200,000 ounces silver, however with the failure of
the SAG mill bull gear on February 26, 2014 this production level
will likely not be met. Crews have been working diligently to fully
assess and repair the damage caused by this failure. In early April,
Huckleberry plans to resume normal operations with the SAG mill
rotating in the opposite direction. The damaged bull gear will be
replaced later this year. 


 
 
-----------------------------------------------------------------------
-----
Annual Production(i)                          2013         2012         2011
----------------------------------------------------------------------------
Ore milled - tonnes                      5,895,193    5,876,900    5,684,300
Ore milled per calendar day - tonnes        16,151       16,057       15,573
Grade % - Copper                             0.346        0.301        0.396
Recovery % - Copper                           91.6         90.0         91.7
Copper - lbs                            41,212,818   35,112,000   45,510,000
Gold - oz                                    2,983        2,578        3,195
Silver - oz                                238,028      191,787      223,557
----------------------------------------------------------------------------
 
(i)production stated 100% - Imperial's allocation is 50%                    

Huckleberry's income from mine operations was $31.2 million in 2013
compared to $24.8 million in 2012. Huckleberry's income from mine
operations increased due to a greater number of shipments in the
period (seven in 2013 versus six in 2012). 
During 2013 Huckleberry completed 18 drill holes for a total of 5,242
metres of diamond drilling in the mine site area. The majority of
this work was directed towards filling in gaps in historic drilling
and expanding resources directly to the west, south, southwest and
northeast of the planned Main Zone Optimization (MZO) pit. Several
holes were also drilled at the limits of the MZ Deep target, an
extensive zone located between the Main and East zone pits, to
determine the extent of the zone and to determine its relationship to
the other ore zones at Huckleberry. This drilling, in conjunction
with drilling data from 2012, appears to indicate the presence of a
geological continuity of dominantly low-grade mineralization at depth
between Huckleberry's major ore bodies. 
A geochemical soil sampling program on the adjacent Huckleberry North
claims was also completed in 2013. Results from this program will be
used to guide additional work on these claims in 2014. 
The new tailings storage facility (TMF-3) construction on the starter
and saddle dams, as well as the piping, pumping, cycloning and power
infrastructure required to operate the TMF3 was completed in August
2013 and is now being operated. The TMF-3 is being used for storage
of tailings and potentially acid generating (PAG) waste, generated by
the operation. 
Huckleberry ore reserves at December 31, 2013 were 42,746,600 tonnes
grading 0.330% copper and 0.009% molybdenum. The strip ratio is
approximately 0.7 to 1.0 including the backfilled waste and tailings
that must be removed from the MZO pit. 
Exploration, development and capital expenditures at Huckleberry were
$77.7 million in 2013 compared to $88.3 million in 2012.  
Imperial holds a 50% interest in Huckleberry Mines Ltd. The remaining
50% interest is held by a consortium consisting of Mitsubishi
Materials Corporation, Dowa Mining Co. Ltd. and Furukawa Co.  
Note 5 to the audited Consolidated Financial Statements of the
Company for the year ended December 31, 2013 discloses information on
the impact of Huckleberry operations on the financial position and
results of operations of Imperial.  
Red Chris Mine Construction Update 
To December 31, 2013 the Company had incurred expenditures of $438.8
million on the construction of Red Chris of which $47.8 million was
in accounts payable and accruals at that date. Until closing of the
long term financing arrangements for the Red Chris project in March
2014, the expenditures on Red Chris were financed from cash flow from
operations, a line of credit facility from the Company's bankers,
equipment loans and a $250.0 million line of credit facility from
Edco Capital Corporation. Concurrent with the closing of the long
term financing arrangements after year end, the existing bank line of
credit and the line of credit facility from Edco Capital Corporation
were repaid in full and cancelled. 
The long term financing arrangements for the Company, to be utilized
primarily for the construction of Red Chris, consist of US$325.0
million 7% five year senior unsecured notes, a senior secured $200.0
million revolving credit facility, and a five year $75.0 million
junior unsecured credit facility with Edco Capital Corporation.  
The 287kv Northwest Transmission Line (NTL) from Skeena substation to
Bob Quinn is under construction by BC Hydro with a targeted
completion date of May 2014. The 93 kilometre Iskut extension of the
NTL from Bob Quinn to Tatogga is under construction by the Company
with a targeted completion date of June 2014.  
Construction of access roads and right of way clearing for the Iskut
extension of the NTL is 100% complete. A 150 person camp and laydown
yards were established along the route to store and assemble lattice
structure components. An experienced power line constructor has
installed to date approximately 57% of the foundations and assembled
82% of the structures; the remaining foundations and structures,
hardware and conductor will be installed in the coming months.  
Red Chris on-site work began in May 2012. The current status of site
work is: 


 
 
--  A construction camp to house 480 employees and contractors is fully
    operational; 
--  truck shop, warehouse and concentrate shed is complete and currently
    being used as dry storage for equipment; 
--  concrete placement and structural steel erection are complete for the
    coarse ore handling facilities, the primary crusher building, the
    mechanically stabilized earth wall, the overland conveyor, the transfer
    towers and the reclaim tunnel; 
--  concrete foundations for the 287kv main substation and the reagent
    building are complete; 
--  pre-engineered process plant building is fully enclosed and internal
    concrete is approximately 97% complete; 
--  mechanical installations site wide are approximately 50% complete; 
--  North Starter Dam has been built to 1097 metre elevation providing
    adequate water storage for mill startup; 
--  tailings and reclaim system of pipelines and booster pump house is
    approximately 25% complete. 

Planned activities in 2014 will include the final installation of the
primary crusher, process water tanks, interior steel, grinding mills,
electrical equipment, reagent building and tailings system.
Construction of the 287kv 17 kilometre power line from Tatogga to the
mine site began in January 2014. Mine pre-development began in
January 2014 with the start of stripping of overburden from the East
zone of the Red Chris mine. The Company is targeting to commence
commissioning of the Red Chris mine in June 2014 and to achieve full
operations in the fourth quarter of 2014. 
The cost of constructing the Red Chris mine is now forecast to be
$540 million, approximately 8.0% over the December 2012 estimate. The
major areas of increase are: 


 
 
--  Certain contractor tenders for 2013 Request for Proposals were above the
    cost estimate. These increases were mitigated in part by Red Chris
    choosing to self-perform the mechanical and piping installations; 
--  Tailings impoundment area earthwork construction costs overran as
    additional borrow materials were excavated to uncover suitable filter
    zone and till core for placement and compaction. The filter zone was
    screened, hauled and placed with small equipment at extra cost. The
    additional sand and gravel overburden exposed during borrow development
    was placed on the future 2015-2016 dam construction footprint, which
    will result in lower tailing dam construction costs in 2015 than
    previously forecast. Both these activities were not budgeted in the
    original estimate. 
 
Sterling Mine                                                               
 
----------------------------------------------------------------------------
Annual Production                                       2013            2012
----------------------------------------------------------------------------
Ore Stacked - tons                                   160,789          77,944
Gold Grade - oz/ton                                    0.083           0.082
Gold ounces - added to heap                           13,348           6,393
Gold ounces - in-process & poured                      7,142           3,613
Gold shipped - ounces                                  7,431           2,852
----------------------------------------------------------------------------

Sterling shipped 7,431 ounces gold in 2013. Forecast production for
2014 from Sterling is 8,000 ounces gold. An engineering design was
submitted and approved by the Nevada Division of Environmental
Protection to increase the permitted height of the leach pad, and to
line the "wedge" area between the old and new heaps. At year's end
the leach pad surface had been leveled to allow for dumping to the
greater height. Installation of the additional liner will depend upon
the need for added capacity. These design changes add 130,000 tons to
the leach pad capacity. 
Underground production will continue from the stoping until the known
reserves are exhausted mid-year. Any positive results from the
underground drill program have the potential to add to the mine's
expected life. 
Permitting and planning for an open pit mine and a new heap leach pad
are underway, for the potential mining of previously uneconomic
mineralization on the property. 
Exploration, development and capital expenditures, net of
preproduction revenues including capitalized depreciation totaled a
$1.7 million recovery in 2013, compared to a total expenditure of
$6.2 million in 2012. 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 were applied
to the carrying value of the Sterling mineral property.  
Ruddock Creek Joint Venture Project  
The Joint Venture completed a field program in 2013 which included
site infrastructure studies, metallurgical testing including dense
media separation, spiral, flotation, mineralogical, acid base
accounting, and humidity cell testing. The work included collecting
and testing mineralized material from each of the Lower E, Creek and
V zones, and collecting and testing representative samples of each
rock type identified on the property. The collection of baseline
environmental and geotechnical information included trenching and
geotechnical core drilling in order to provide data for future
permitting and engineering studies. Surface exploration carried out
during the quarter included detailed geological and structural
mapping in a number of areas, as well as the collection of
mineralized and non-mineralized rock samples for age-dating purposes.
A higher capacity water control structure for the underground
discharge was constructed. Ongoing consultations continued with area
First Nations. 
The Ruddock Creek Joint Venture is owned by Imperial (50%), Mitsui
Mining and Smelting Co. Ltd. (30%) and Itochu Corporation (20%). The
Ruddock Creek zinc/lead property is located 155 kilometres northeast
of Kamloops in the Scrip Range of the Monashee Mountains in southeast
British Columbia. 
Outlook for 2014 
Operations, Earnings and Cash Flow 
Base and precious metals production allocable to Imperial in 2014
from the Mount Polley, Huckleberry and Sterling mines is anticipated
to be 65.0 million pounds copper, 56,700 ounces gold and 220,000
ounces silver. The copper production estimate will be impacted by the
bull gear failure at Huckleberry. Huckleberry production originally
estimated at 42.0 million pounds copper will likely be lower. 
Cash flow protection for the balance of 2014 is supported by
derivative instruments that will see the Company receive certain
minimum prices for copper and gold as disclosed under the heading
Derivative Instruments. However, the quarterly revenues will
fluctuate depending on copper and gold prices, the CDN Dollar/US
Dollar exchange rate, and the timing of concentrate sales which is
dependent on concentrate production and the availability and
scheduling of transportation. 
Exploration  
Exploration in 2014 will be limited in scope, and will be conducted
at our existing mining operations: Mount Polley, Huckleberry and
Sterling. Mount Polley will continue to focus on the excavation of a
test stope in the Boundary zone. A minor exploration program will be
conducted at Huckleberry, and work will focus on interpretation of
information collected over the last two years. Underground drilling
at Sterling will continue in the vicinity of the underground
workings. 
Development 
At Mount Polley the majority of ore delivery is from phase 3 of the
Springer pit. Stripping effort at Mount Polley is being directed at a
pushback of the Cariboo pit. Underground ore is scheduled to be
delivered to the mill this year. 
At Huckleberry, MZO pit stripping and ore release will continue
throughout 2014. The continuation of the TMF-3 construction (Phase 2)
will commence in the 2014 second quarter.  
At Red Chris planned activities in 2014 include the final
installation of the primary crusher, process water tanks, interior
steel, grinding mills, electrical equipment, reagent building and
tailings system. Construction of the 287kv 17 kilometre power line
from Tatogga to the mine site began in January 2014. Mine
pre-development began in January 2014 with the start of stripping of
overburden from the East zone of the Red Chris mine. The Company is
targeting to commence commissioning of the Red Chris mine in June
2014 and to achieve full operations in the fourth quarter of 2014.  
Financing 
Based on current plans, assumptions, and the debt financings
completed in March 2014, the Company expects to have sufficient cash
resources to support its normal operating and capital requirements on
an ongoing basis.  
(1)Information Related to this Press Release 
Detailed financial information is provided in the Company's 2013
Annual Report for the year ended December 31, 2013 available on
www.imperialmetals.com and on www.sedar.com. 


 
 
        ------------------------------------------------------------        
 
          Earnings Announcement Conference Call                             
          Scheduled for April 1, 2014  10:00am PDT / 11:00am MDT /          
          1:00pm EDT                                                        
 
          Management will discuss the 2013 Financial Results                
          provided in this press release.                                   
          Following are call-in numbers to participate in the               
          earnings announcement conference call:                            
 
          778.383.7413  local Vancouver                                     
          416.764.8609  local Toronto                                       
          587.880.2175  local Calgary / Edmonton                            
          888.390.0605  toll free North America                             
 
          The conference call will be available for replay until            
          April 8, 2014 by dialing                                          
          888.390.0541 or 416.764.8677 / replay PIN #642700                 
 
        ------------------------------------------------------------        

About Imperial 
Imperial is an exploration, mine development and operating company
based in Vancouver, British Columbia. The Company operates the Mount
Polley copper/gold mine in British Columbia and the Sterling gold
mine in Nevada. Imperial has 50% interest in the Huckleberry
copper/molybdenum mine and has 50% interest in the Ruddock Creek
lead/zinc property, both in British Columbia. The Company is in
development of its wholly owned Red Chris copper/gold property in
British Columbia.  
Cautionary Note Regarding "Forward-Looking Information" 
This press release contains "forward-looking information" or
"forward-looking statements" within the meaning of Canadian and
United States securities laws, which we will refer to as
"forward-looking information". Except for statements of historical
fact relating to the Company, certain information contained herein
constitutes forward-looking information. When we discuss mine plans;
costs and timing of current and proposed exploration or development;
development; production and marketing; capital expenditures;
construction of transmission lines; construction of the Red Chris
mine; cash flow; working capital requirements and the requirement for
additional capital; operations; revenue; margins and earnings; future
prices of copper and gold; future foreign currency exchange rates;
future accounting changes; future prices for marketable securities;
future resolution of contingent liabilities; receipt of permits; or
other matters that have not yet occurred, we are making statements
considered to be forward-looking information or forward-looking
statements under Canadian and United States securities laws. We refer
to them in this press release as forward-looking information. The
forward-looking information in this press release may include words
and phrases about the future, such as: plan, expect, forecast,
intend, anticipate, estimate, budget, scheduled, targeted, believe,
may, could, would, might or will. Forward-looking information
includes disclosure relating to project development plans, costs and
timing.  
We can give no assurance the forward-looking information will prove
to be accurate. It is based on a number of assumptions management
believes to be reasonable, including but not limited to: the
continued operation of the Company's mining operations, no material
adverse change in the market price of commodities or exchange rates,
that the mining operations will operate and the mining projects will
be completed in accordance with their estimates and achieve stated
production outcomes, volatility in the Company's share price and such
other assumptions and factors as set out herein.  
It is also subject to risks associated with our business, including
but not limited to: the risk that further advances may not be
available under credit facilities; risks associated with maintaining
substantial levels of indebtedness including potential financial
constraints on operations; risks inherent in the mining and metals
business; commodity price fluctuations and hedging; competition for
mining properties; sale of products and future market access; mineral
reserves and recovery estimates; currency fluctuations; interest rate
risks; financing risks; regulatory and permitting risks;
environmental risks; joint venture risks; foreign activity risks;
legal proceedings; and other risks that are set out in the Company's
Management's Discussion & Analysis in its 2013 Annual Report.  
If our assumptions prove to be incorrect or risks materialize, our
actual results and events may vary materially from what we currently
expect as provided in this press release. We recommend you review the
Company's most recent Annual Information Form and Management's
Discussion & Analysis in its 2013 Annual Report, which includes
discussion of material risks that could cause actual results to
differ materially from our current expectations. Forward-looking
information is designed to help you understand management's current
views of our near and longer term prospects, and it may not be
appropriate for other purposes. We will not necessarily update this
information unless we are required to by securities laws. 
Contacts:
Imperial Metals Corporation
Brian Kynoch
President
604.669.8959 
Imperial Metals Corporation
Andre Deepwell
Chief Financial Officer
604.488.2666 
Imperial Metals Corporation
Gordon Keevil
Vice President Corporate Development
604.488.2677 
Imperial Metals Corporation
Sabine Goetz
Shareholder Communications
604.488.2657
investor@imperialmetals.com
 
 
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