VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 14, 2008) - Imperial Metals Corporation (TSX:III) reports that a portion of its commodity hedges are with Lehman Brothers Commodity Services Inc. ("LBCS"), a subsidiary of Lehman Brothers Holdings Inc. ("Lehman"). Both Lehman and LBCS have filed for bankruptcy protection.
The contracts with LBCS represent approximately 20% of the pounds of copper that Imperial has hedged at October 14, 2008. The put contracts with LBCS, all for settlement in 2009, cover a total of 14,550,000 pounds of copper at a weighted average strike price of US$3.05 per pound of copper.
Excluding contracts with LBCS, the Company has the following option contracts as of October 14, 2008:
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Weighted
Average
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Minimum Maximum
Price Price Put Options Call Options
US$/lb US$/lb Purchased Sold
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Contract Period lbs of copper lbs of copper
October to December 2008 $3.00 $3.83 7,937,000 7,937,000
October to December 2008 $2.00 - 2,067,000 -
January to December 2009 $3.06 $3.91 10,582,000 10,582,000
January to December 2009 $1.82 - 14,964,000 -
January to March 2010 $1.80 - 4,299,000 -
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These put and call option contracts ensure that the Company will receive a price per pound of copper sold that is within the minimum/maximum price range noted above for the net pounds of copper specified in the contract. The put options contracts ensure that the Company will receive a price per pound of copper that is no less than the minimum price for the net pounds of copper specified in the contract.
Forward sales and sales prices fixed with concentrate purchasers outstanding at October 14, 2008 are as follows:
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Price US$/lb Fixed Price Sales
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Contract Period lbs of copper
October to December 2008 $3.40 9,591,000
January to March and October to December 2009 $3.23 5,401,000
January to March 2010 $3.23 2,314,000
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FOR FURTHER INFORMATION PLEASE CONTACT:
Imperial Metals Corporation
Brian Kynoch
President
(604) 669-8959
(604) 687-4030 (FAX)
Imperial Metals Corporation
Andre Deepwell
CFO
(604) 488-2666
Imperial Metals Corporation
Sabine Goetz
Investor Relations
(604) 488-2657
Email: info@imperialmetals.com
Website: www.imperialmetals.com
