Imperial Metals (III) AI Stock Analysis

• Market Cap: C$1.71B
• Dividend Yield: N/A
• Average Volume (3M): 149.91K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 1.52
• Revenue Growth: 45.15%
• EPS Growth: 449.29%
• Country: CA
• Employees: 57
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Copper
• EPS (TTM): 0.23
• Shares Outstanding: 178,067,210
• 10 Day Avg. Volume: 161,301
• 30 Day Avg. Volume: 149,905
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.60
• P/FCF Ratio: -10.98
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: C$10.00 ▲(10.62% Upside)

Imperial Metals' strong financial performance and attractive valuation are the primary drivers of the stock's score. The company's robust profitability and cash flow improvements, combined with a low P/E ratio, suggest a positive outlook. However, technical indicators signal potential overbought conditions, which could lead to short-term volatility.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a positive trajectory, suggesting the company is effectively expanding its market presence and product demand.

Profitability

High net profit margins reflect strong operational efficiency and cost control, enhancing long-term financial stability and shareholder value.

Balance Sheet Health

A strong balance sheet with moderate leverage provides financial stability, enabling the company to withstand economic fluctuations and invest in growth opportunities.

Negative Factors

Cash Flow Improvement Needed

While cash generation has improved, the relatively low free cash flow to net income ratio indicates a need for better cash flow management to support long-term investments and operations.

Employee Base

A small employee base may limit operational capacity and scalability, potentially impacting the company's ability to manage larger projects or expand operations efficiently.

Revenue Growth Deceleration

Slowing revenue growth could signal challenges in market expansion or increased competition, potentially affecting future profitability and market share.

Imperial Metals Business Overview & Revenue Model

Company Description

Imperial Metals (III) is a Canadian mining company primarily engaged in the exploration, development, and production of mineral resources. The company operates in sectors such as mining and metallurgy, focusing on copper, gold, and silver mining. Imperial Metals is known for its flagship properties, which include the Red Chris and Mount Polley mines, where it extracts and processes valuable minerals to meet growing global demand.

How the Company Makes Money

Imperial Metals generates revenue primarily through the sale of mined metals, including copper and gold, which are sold to various markets, including industrial and investment sectors. The company implements a revenue model based on the extraction and processing of these minerals, with profits derived from the sale of concentrate and bullion. Key revenue streams include direct sales contracts with buyers, spot market sales, and potential partnerships with other mining companies or investors for joint ventures. Factors contributing to its earnings also include fluctuations in global commodity prices, operational efficiency, and the successful exploration of new mining sites.

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	653.10M	494.37M	344.45M	172.80M	133.59M	148.10M
Gross Profit	292.72M	161.22M	-13.46M	-28.72M	10.43M	20.63M
EBITDA	362.11M	215.11M	22.81M	-35.88M	14.94M	35.54M
Net Income	183.21M	106.26M	-36.72M	-75.97M	-26.07M	-4.89M
Balance Sheet
Total Assets	1.80B	1.66B	1.41B	1.30B	1.19B	1.09B
Cash, Cash Equivalents and Short-Term Investments	90.18M	58.12M	24.94M	27.54M	33.39M	34.15M
Total Debt	243.36M	372.85M	319.79M	197.79M	40.42M	2.42M
Total Liabilities	807.30M	834.25M	695.76M	563.97M	423.25M	362.84M
Stockholders Equity	993.05M	823.63M	716.23M	735.73M	763.10M	728.48M
Cash Flow
Free Cash Flow	111.80M	-26.84M	-126.28M	-231.26M	-87.18M	-49.76M
Operating Cash Flow	318.45M	155.41M	-3.81M	-86.76M	15.02M	23.84M
Investing Cash Flow	-176.59M	-161.07M	-125.33M	-127.82M	-102.91M	-77.14M
Financing Cash Flow	-97.41M	37.62M	126.56M	208.27M	87.21M	-1.50M

Imperial Metals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 9.04 is above the 20-day moving average (MA) of 8.24, above the 50-day MA of 7.33, and above the 200-day MA of 5.09, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 81.28 is Negative, neither overbought nor oversold. The STOCH value of 84.34 is Negative, 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	76 Outperform	C$1.71B	8.59	20.90%	―	45.15%	449.29%
ARG	71 Outperform	C$708.95M	25.82	18.67%	4.11%	10.41%	-0.23%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ASCU	53 Neutral	C$1.06B	-75.37	-6.09%	―	―	22.26%
FDY	48 Neutral	C$692.89M	-22.29	-48.15%	―	―	-10.32%
MARI	43 Neutral	C$1.31B	-37.06	-15.90%	―	―	-104.52%
LA	39 Underperform	C$270.25M	78.68	4.21%	―	―	-41.70%

Imperial Metals Corporate Events

Imperial Metals Reports Positive 2025 Drilling Results at Huckleberry Mine

Imperial Metals Corporation has announced the successful results of its 2025 diamond drilling program at the Huckleberry mine in British Columbia, which intersected copper, molybdenum, silver, and gold mineralization. The program focused on an underexplored area southwest of the Main Zone pit, and the results will be integrated into mine planning to enhance resource estimates. The exploration at Whiting Creek, part of the Huckleberry project, also showed promising copper and molybdenum mineralization, with the system remaining open for further exploration. These developments could potentially impact the company’s operational strategies and industry positioning by expanding its resource base and exploration targets.

Imperial Metals Sees Significant Production Increase at Red Chris Mine

Imperial Metals reported a substantial increase in copper and gold production at its Red Chris mine for the third quarter of 2025, with copper production rising by 10% and gold production by 61% compared to the same period in 2024. The company is also advancing its Block Cave mine feasibility study, with potential investment decisions expected next year, indicating a strategic focus on expanding its mining operations.