Imperial Metals (III) AI Stock Analysis

• Market Cap: C$793.79M
• Dividend Yield: N/A
• Average Volume (3M): 107.96K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 0.99
• Revenue Growth: 74.34%
• EPS Growth: N/A
• Country: CA
• Employees: 57
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Copper
• EPS (TTM): 0.26
• Shares Outstanding: 162,996,600
• 10 Day Avg. Volume: 104,205
• 30 Day Avg. Volume: 107,964
• PEG Ratio: -0.02
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.16
• 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

• Rating: 74 Outperform
• Price Target: C$5.00 ▲(2.67%Upside)

Imperial Metals has shown a robust financial performance with strong revenue growth and improved profitability, which is the most significant factor driving the score. The technical analysis indicates stable trading conditions, and the low P/E ratio suggests potential undervaluation. Positive corporate events further enhance the company's outlook.

Imperial Metals Business Overview & Revenue Model

Company Description

Imperial Metals Corporation is a Canadian mining company engaged primarily in the exploration, development, and production of base and precious metals. The company operates several mining properties, primarily focused on copper, gold, and molybdenum. Its core operations include the Red Chris and Mount Polley mines in British Columbia, which are key contributors to its metal production output.

How the Company Makes Money

Imperial Metals makes money through the extraction and sale of metals such as copper, gold, and molybdenum. Revenue is generated by mining these resources from its operational sites and selling them on the global commodities market. The company's earnings are influenced by market prices for these commodities, production volumes, and operational efficiency. Strategic partnerships with other mining firms can also play a role in optimizing production and expanding market access, further impacting revenue.

Imperial Metals Financial Statement Overview

Summary

Imperial Metals has shown impressive revenue and profit growth, significantly improving its financial health. While net income turned positive and operational efficiencies improved, high capital expenditures continue to pressure free cash flow, and leverage has increased.

Income Statement

Imperial Metals showed strong revenue growth, with a significant increase in total revenue from the previous year. The gross profit margin improved substantially, moving from negative to positive territory, indicating improved operational efficiency. Net profit margin also turned positive, a stark improvement from previous losses, although EBIT margin remains low due to higher operational costs. The EBITDA margin has improved, reflecting better earnings before interest, tax, depreciation, and amortization.

Balance Sheet

The debt-to-equity ratio increased slightly, but remains manageable, indicating a balanced approach to leveraging. Return on Equity (ROE) improved significantly as the company turned profitable, suggesting efficient use of equity. The equity ratio remains strong, indicating a solid asset base relative to liabilities, although total debt levels have increased.

Cash Flow

Free cash flow remains negative but has improved compared to previous years, indicating better cash management. The operating cash flow to net income ratio is strong, reflecting good cash conversion from earnings. However, the free cash flow to net income ratio remains a concern, as high capital expenditures weigh on free cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	494.37M	344.45M	172.80M	133.59M	148.10M
Gross Profit	161.22M	-13.72M	-28.72M	10.43M	20.63M
EBITDA	215.11M	22.81M	-35.88M	14.94M	35.54M
Net Income	106.26M	-36.72M	-75.97M	-26.07M	-4.89M
Balance Sheet
Total Assets	1.66B	1.41B	1.30B	1.19B	1.09B
Cash, Cash Equivalents and Short-Term Investments	58.12M	24.94M	27.54M	33.39M	34.15M
Total Debt	372.85M	319.79M	197.79M	34.98M	2.42M
Total Liabilities	834.25M	695.76M	563.97M	423.25M	362.84M
Stockholders Equity	823.63M	716.23M	735.73M	763.10M	728.48M
Cash Flow
Free Cash Flow	-26.84M	-126.28M	-231.26M	-87.18M	-49.76M
Operating Cash Flow	155.41M	-3.81M	-86.76M	15.02M	23.84M
Investing Cash Flow	-161.07M	-125.33M	-127.82M	-102.91M	-77.14M
Financing Cash Flow	37.62M	126.56M	208.27M	87.21M	-1.50M

Imperial Metals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.87
• 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 4.87 is below the 20-day moving average (MA) of 5.06, above the 50-day MA of 4.28, and above the 200-day MA of 2.71, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 53.50 is Neutral, neither overbought nor oversold. The STOCH value of 44.52 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
ARG	79 Outperform	$347.01M	14.01	17.43%	7.99%	32.13%	―
III	74 Outperform	C$793.79M	5.03	19.93%	―	74.34%	―
ASCU	53 Neutral	C$399.85M	―	-7.46%	―	―	1.26%
FDY	48 Neutral	C$180.85M	―	-85.57%	―	―	5.34%
Sector *	44 Neutral	C$953.01M	-6.70	-13.31%	2.79%	17.55%	-32.28%
MARI	43 Neutral	C$745.35M	―	-13.43%	―	―	-83.79%
LA	39 Underperform	C$175.74M	28.73	7.53%	―	―	―

Imperial Metals Corporate Events

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.

Imperial Metals Reports Strong Q1 2025 Financial Results

Imperial Metals Corporation reported strong financial results for the first quarter of 2025, with significant increases in copper and gold production compared to the same period in 2024. The company achieved revenues of $176.6 million and a net income of $41.3 million, driven by higher metal prices and increased concentrate shipments. This performance underscores Imperial’s robust operational capabilities and its positive positioning within the mining sector, benefiting from favorable market conditions and effective management strategies.

Imperial Metals Continues Mount Polley Operations Amid Legal Proceedings

Imperial Metals Corporation clarified that no injunction was granted against the construction and operation of the tailings storage facility at its Mount Polley mine, contrary to some reports. The Supreme Court of British Columbia has postponed the decision on an interim injunction application by the Xatśūll First Nation until June 24, 2025. Imperial continues its operations and construction activities as planned, with the four-metre raise of the tailings storage facility not expected to be needed until July 1, 2025. This announcement ensures the continuation of Imperial’s operations without immediate legal hindrance, maintaining its industry position and operational plans.

Imperial Metals Reports Increased Production Amid Legal Challenge

Imperial Metals Corporation reported a significant increase in copper and gold production for the first quarter of 2025 at its Mount Polley and Red Chris mines, with copper production up by 28% and gold production up by 33% compared to the same period in 2024. The company also faces a legal challenge from the Xatśūll First Nation, which has filed a petition seeking a judicial review of provincial decisions allowing the increase of the dam height at the Mount Polley Tailings Storage Facility, citing concerns over environmental assessments and Indigenous rights.