Imperial Metals (III) AI Stock Analysis

• Market Cap: C$922.22M
• Dividend Yield: N/A
• Average Volume (3M): 74.12K
• Price to Earnings (P/E): 4.7
• Beta (1Y): 1.04
• Revenue Growth: 64.90%
• EPS Growth: N/A
• Country: CA
• Employees: 57
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Copper
• EPS (TTM): 0.25
• Shares Outstanding: 178,034,350
• 10 Day Avg. Volume: 70,332
• 30 Day Avg. Volume: 74,117
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$5.00
• Price Target Upside: -3.47% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: C$5.00 ▼(-3.47% Downside)

Imperial Metals' strong financial performance and attractive valuation are the primary drivers of its overall stock score. The company shows robust revenue growth and profitability, with a stable balance sheet. The technical analysis presents a mixed picture, with neutral indicators and some signs of potential overbought conditions. The absence of earnings call data and corporate events does not impact the score.

Imperial Metals Business Overview & Revenue Model

Company Description

Imperial Metals Corporation, a mining company, engages in the acquisition, exploration, development, mining, and production of base and precious metals in Canada. It holds 100% interests in the Mount Polley copper-gold mine that includes seven mining leases and 50 mineral claims covering an area of 23,369 hectares located in south-central British Columbia; and the Huckleberry copper mine, which comprises two mining leases and 49 mineral claims covering an area of 25,767 hectares situated in west-central British Columbia. The company also holds a 30% interest in the Red Chris copper-gold mine located in northwest British Columbia. In addition, it holds a 100% interest in the Ruddock Creek lead-zinc property in British Columbia, as well as a portfolio of 23 greenfield exploration properties in British Columbia. Imperial Metals Corporation was incorporated in 1959 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Imperial Metals generates revenue through the extraction and sale of minerals, primarily copper and gold, from its mining operations. The company sells these extracted metals to various smelters and metal traders, who then refine and distribute the metals. The revenue model heavily relies on market prices for metals, production volumes, and operational efficiencies. Partnerships and joint ventures, such as the one with Newcrest Mining for the Red Chris mine, also play a significant role in providing capital investment and sharing operational risks, further contributing to the company's earnings.

Imperial Metals Financial Statement Overview

Summary

Imperial Metals has demonstrated strong financial performance with significant improvements in revenue growth, profitability, and cash flow generation. The company has effectively managed its leverage, resulting in a stable balance sheet and strong equity returns. While the cash flow position is improving, there is potential for further enhancement in free cash flow efficiency.

Income Statement

Imperial Metals has shown strong revenue growth with a TTM increase of 7.51%. The company has improved its profitability significantly, with a gross profit margin of 40.56% and a net profit margin of 26.73% in the TTM period. The EBIT and EBITDA margins are also robust at 38.42% and 51.06%, respectively, indicating efficient operations. The consistent improvement in margins and revenue growth highlights a positive trajectory in financial performance.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.38 in the TTM period, reflecting a stable leverage position. Return on equity is strong at 19.74%, indicating effective use of equity to generate profits. The equity ratio stands at 53.11%, suggesting a solid equity base relative to total assets. Overall, the balance sheet reflects a stable financial position with manageable debt levels and strong equity returns.

Cash Flow

Imperial Metals has achieved significant free cash flow growth of 210.75% in the TTM period, demonstrating improved cash generation capabilities. The operating cash flow to net income ratio is 0.65, indicating a healthy conversion of income into cash. However, the free cash flow to net income ratio is relatively low at 0.13, suggesting room for improvement in cash flow efficiency. Overall, the cash flow position is strengthening, but further enhancements in free cash flow conversion are needed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	630.44M	494.37M	344.45M	172.80M	133.59M	148.10M
Gross Profit	281.76M	161.22M	-13.46M	-28.72M	10.43M	20.63M
EBITDA	343.08M	215.11M	22.81M	-35.88M	14.94M	35.54M
Net Income	176.94M	106.26M	-36.72M	-75.97M	-26.07M	-4.89M
Balance Sheet
Total Assets	1.71B	1.66B	1.41B	1.30B	1.19B	1.09B
Cash, Cash Equivalents and Short-Term Investments	47.48M	58.12M	24.94M	27.54M	33.39M	34.15M
Total Debt	277.26M	372.85M	319.79M	197.79M	34.98M	2.42M
Total Liabilities	801.17M	834.25M	695.76M	563.97M	423.25M	362.84M
Stockholders Equity	907.64M	823.63M	716.23M	735.73M	763.10M	728.48M
Cash Flow
Free Cash Flow	89.25M	-26.84M	-126.28M	-231.26M	-87.18M	-49.76M
Operating Cash Flow	286.70M	155.41M	-3.81M	-86.76M	15.02M	23.84M
Investing Cash Flow	-166.61M	-161.07M	-125.33M	-127.82M	-102.91M	-77.14M
Financing Cash Flow	-115.94M	37.62M	126.56M	208.27M	87.21M	-1.50M

Imperial Metals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:III, the sentiment is Positive. The current price of 5.18 is above the 20-day moving average (MA) of 5.01, above the 50-day MA of 4.64, and above the 200-day MA of 3.43, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 60.17 is Neutral, neither overbought nor oversold. The STOCH value of 24.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:III.

Imperial Metals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
III	78 Outperform	C$922.22M	4.74	21.64%	―	64.90%	―
ARG	76 Outperform	389.19M	17.72	18.36%	4.98%	16.16%	35.46%
ASCU	53 Neutral	458.55M	-36.29	0.00%	―	0.00%	12.55%
FDY	48 Neutral	358.29M	-11.82	0.00%	―	0.00%	-15.57%
MARI	43 Neutral	1.10B	-43.73	0.00%	―	0.00%	-104.57%
LA	39 Underperform	230.09M	66.98	0.00%	―	0.00%	-41.70%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Imperial Metals Corporate Events

Imperial Metals Uncovers Significant Copper Mineralization Near Mount Polley

Imperial Metals Corporation announced a significant discovery of copper mineralization in a drill hole located four kilometers north of the Mount Polley mill. The drill hole FP-25-01 intercepted hydrothermal breccia with notable native copper and gold grades, suggesting potential for further exploration in the area. This discovery could impact the company’s operations by expanding its resource base and enhancing its industry positioning. The unique mineralization characteristics and the extensive hydrothermal activity indicated by the findings support further exploration efforts in the surrounding area.

Imperial Metals Reports Robust Q2 2025 Financial Performance

Imperial Metals reported strong financial results for the second quarter of 2025, with significant increases in revenue and net income compared to the previous year. The company achieved higher copper and gold production at its Mount Polley and Red Chris mines, aligning with its 2025 guidance. The improved financial performance was driven by increased throughput, favorable metal prices, and a positive revenue revaluation, highlighting Imperial’s solid operational execution and strategic positioning in the mining sector.

Imperial Metals Cleared to Proceed with Mount Polley TSF Construction

The Supreme Court of British Columbia dismissed a petition by the Xatśūll First Nation against Imperial Metals, allowing the company to proceed with constructing a four-metre lift on the tailings storage facility at the Mount Polley Mine. This decision, supported by the Williams Lake First Nation, underscores the mine’s economic significance in the region, employing over 390 people. However, the mine’s future operations hinge on the timely approval of a pending Mines permit amendment, which, if delayed, could force operational revisions or cessation. The decision is seen as a step towards reducing project risk and uncertainty, emphasizing the importance of regulatory processes and Indigenous engagement.

Imperial Metals Reports Successful Rescue of Workers at Red Chris Mine

Imperial Metals Corporation announced the safe return of three workers who were trapped underground due to a fall of ground incident at the Red Chris mine, which is 30% owned by Imperial. The workers, employed by Hy-Tech Drilling, were safely brought to the surface after being isolated in a refuge chamber with access to food, water, and ventilation. The successful rescue operation was a collaborative effort led by mine operator Newmont, highlighting the importance of safety and technical expertise in mining operations. This incident underscores the company’s commitment to worker safety and operational resilience.

Imperial Metals Reports Incident and Production Increase at Red Chris Mine

Imperial Metals Corporation reported on the fall of ground incidents at the Red Chris mine, where specialized drones and remote-controlled equipment are being used to manage the situation. Production has been paused to focus on rescue efforts and communication restoration. For the second quarter of 2025, Red Chris mine saw a 13% increase in copper production and an 81% increase in gold production compared to the same period in 2024, attributed to higher grades and better recovery rates. The company is also advancing its Block Cave Feasibility Study and related development work.

Imperial Metals Responds to Ground Fall Incidents at Red Chris Mine

Imperial Metals reported two fall of ground incidents at the Red Chris Mine in British Columbia, where it holds a 30% interest. The incidents occurred in an underground access way, prompting the relocation of three contractor employees to a refuge station. Operations at the mine have been paused to focus on rescue efforts, with specialist teams being assembled to ensure the safe recovery of the workers. The company emphasizes the priority of safety for both the trapped individuals and the emergency response teams.

Imperial Metals to Redeem $47 Million in Convertible Debentures Early

Imperial Metals Corporation announced its decision to redeem all outstanding Senior Unsecured Convertible Debentures worth $47 million, which were originally due in August 2027, on August 18, 2025. This strategic move allows debenture holders the option to convert their debentures into common shares at a conversion price of $3.20 per share before the redemption date, potentially impacting the company’s financial structure and shareholder composition.

Imperial Metals Sees Increased Production at Mount Polley Mine in Q2 2025

Imperial Metals Corporation reported an increase in copper and gold production at its Mount Polley mine for the second quarter of 2025, with 9.496 million pounds of copper and 11,061 ounces of gold produced. This represents a slight increase from the same quarter in 2024, attributed to a 2.6% rise in mill throughput. Overall, for the first half of 2025, copper production increased by 10.6% and gold production by 8.3% compared to the previous year, due to improved throughput, grades, and recoveries. The company continues its mining operations in the lower Springer Pit and is preparing for further expansion.

Court Reserves Judgment on Mount Polley Mine Dispute

The Supreme Court of British Columbia has reserved judgment on a judicial review petition and injunction application filed by the Xatśūll First Nation, challenging the authorization of a four-metre raise of the tailings storage facility embankment at the Mount Polley mine. Despite this, construction continues under existing permits, with a voluntary pause on tailings deposition until August 7, 2025. Imperial Metals emphasizes its commitment to environmental responsibility and collaboration with Indigenous communities, aiming to align operations with regulatory and community expectations.

Imperial Metals Announces Successful Election of Directors

Imperial Metals Corporation announced the election results for its board of directors at its recent virtual Annual and Special Meeting of Shareholders. The nominees listed in the management information circular were successfully elected, with a high percentage of votes in favor. Approximately 71.86% of the company’s issued and outstanding common shares were voted at the meeting. This strong shareholder participation and support for the board nominees reflect confidence in the company’s strategic direction and governance.

Imperial Metals Reports Promising Drilling Results at Mount Polley

Imperial Metals has announced promising initial results from its 2025 exploration program at the Mount Polley mine, with significant mineralization found in the C2 Zone. The drilling results indicate high-grade copper and gold intervals, which could influence future pit designs and potentially extend the mine’s life, reflecting positively on the company’s operational outlook and industry positioning.