VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 11, 2006) - Imperial Metals Corporation (TSX:III) reports record net income of $26.6 million ($0.89 per share) in the June 2006 quarter compared to net income of $2.3 million ($0.08 per share) in the June 2005 quarter.
Mineral sales revenues were $81.1 million in the June 2006 quarter. There were no mineral sales revenues in the comparative June 2005 quarter. Mineral sales revenues were substantially higher in the June 2006 quarter compared to the March 2006 quarter due to increased copper, gold and silver prices, and increased shipments from Mount Polley, which resumed operations in March 2005 following a three year suspension.
Equity income from the Huckleberry mine was also higher at $16.9 million compared to $3.3 million in the comparative quarter.
Cash flow increased to $13.2 million in the June 2006 quarter compared to $1.1 million applied to operations in the June 2005 quarter.
Subsequent to the end of the quarter, the Company repaid a $14.5 million Line of Credit Facility that was used to cover working capital needs during the restart of operations at Mount Polley.
Imperial's comparative financial results for the three and six months ended June 30, 2006 and June 30, 2005 are summarized below and discussed in detail in the Management's Discussion and Analysis, contained within the Second Quarter Report, which is available on the Company's website www.imperialmetals.com and on SEDAR www.sedar.com.
Three Months Ended Six Months Ended
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(unaudited)
in thousands except June 30, June 30, June 30, June 30,
per share amounts 2006 2005 2006 2005
--------------------------------------------- -------------------
(000's) (000's) (000's) (000's)
Revenues $ 81,318 $ 134 $108,633 $ 180
Operating Income (Loss) $ 41,907 $ (1,537) $ 48,465 $ (2,887)
Net Income (Loss) $ 26,565 $ 2,347 $ 27,225 $ 6,294
Net Income (Loss)
Per Share $ 0.89 $ 0.08 $ 0.93 $ 0.22
Cash Flow (1) $ 13,235 $ (1,092) $ 15,211 $ (2,237)
Cash Flow Per Share (1) $ 0.44 $ (0.04) $ 0.52 $ (0.08)
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(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 generally accepted accounting principles. Cash
Flow is defined as cash flow from operations before net change in
working capital balances and Cash Flow Per Share is the same
measure divided by the weighted average number of common shares
outstanding during the period.
Imperial is a mine development and operating mining company based in Vancouver, British Columbia. The Company's key properties are the Mount Polley open pit copper/gold producing mine (100% interest) in central British Columbia, the Huckleberry open pit copper/molybdenum producing mine (50% interest) in northern British Columbia, and the development stage Sterling gold mine (100% interest) in southwest Nevada.
FOR FURTHER INFORMATION PLEASE CONTACT:
Imperial Metals Corporation
Brian Kynoch
President
(604) 669-8959
(604) 687-4030 (FAX)
Imperial Metals Corporation
Andre Deepwell
Chief Financial Officer
(604) 488-2666
Imperial Metals Corporation
Sabine Goetz
Investor Relations
(604) 488-2657
info@imperialmetals.com
www.imperialmetals.com
