Even though revenue increased in 2023, Imperial Metals still reported a loss for the year.
Total revenue increased to $344.5 million in 2023 compared to $172.8 million in 2022, an increase of $171.7 million or 99 per cent, according to the year-end financial statements issued this week by the company..
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 per cent 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.
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.