Production Overview - Imperial Metals Corporation reported quarterly production from the Mount Polley mine, achieving 9.496 million pounds of copper and 11,061 ounces of gold in Q2 2025, an increase from 9.281 million pounds of copper and 10,009 ounces of gold in Q2 2024 [1][2] - Mill throughput increased by 2.6% in Q2 2025, with 1.759 million tonnes treated compared to 1.714 million tonnes in Q2 2024, contributing to higher copper and gold production [3] Year-to-Date Performance - For the first half of 2025, copper production rose by 10.6% and gold production increased by 8.3% compared to the same period in 2024, driven by improvements in throughput, grades, and recoveries [4] Detailed Production Metrics - In Q2 2025, the ore milled was 1,759,093 tonnes, with a daily milling rate of 19,331 tonnes. The copper grade was 0.295%, and the gold grade was 0.286 g/t. Copper recovery was 83.0%, while gold recovery was 68.4% [5] - For the first six months of 2025, the total ore milled was 3,480,862 tonnes, with a copper grade of 0.288% and a gold grade of 0.280 g/t. The copper recovery was 83.2%, and the gold recovery was 69.1% [5] Mining Operations - Mining activities continued in the lower Springer Pit in Phase 4, with ongoing stripping for Phase 5 pushback on the east wall of the pit during the quarter [5] Company Profile - Imperial Metals Corporation is based in Vancouver and operates the Mount Polley mine (100% ownership), the Huckleberry mine (100% ownership), and holds a 30% interest in the Red Chris mine, along with a portfolio of 23 exploration properties in British Columbia [7]

Financial Data and Key Metrics Changes - The company reported a cash loss per month of approximately $400,000, which is nearly half of what it was a year ago, indicating improved cost management [10][12] - Interest expenses decreased by $165,000 for the quarter due to note conversions as part of balance sheet cleanup efforts [19] - The company has maintained consistent income from operations in the range of $1,800,000 per quarter, with a slight uptick noted [21] Business Line Data and Key Metrics Changes - Oil production remained stable, with an uptick in oil revenue attributed to market price fluctuations, while gas revenues increased by $50,000 for the quarter due to higher gas prices [23] - Lease operating expenses (LOE) decreased to $683,000 per month in Q1, down from $700,000 to $750,000 in the previous year [19][33] - The company has approved 45 workovers, which are expected to significantly increase production once funding is secured [15] Market Data and Key Metrics Changes - The company hedged 70% of its oil production at $70 per barrel, which mitigates the impact of current market price fluctuations [11][23] - Gas prices have performed better than oil prices, leading to increased gas revenue [46] Company Strategy and Development Direction - The company is focused on reducing debt and improving its balance sheet by retiring senior debt and preferred shares [39][78] - There is a strategic emphasis on workovers to increase production in the near term, with plans for drilling in the longer term [39][78] - The company is exploring low-cost acquisitions to enhance its asset base amid low oil prices [40][78] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, stating that the stock is undervalued and that they are positioned for significant growth in the coming quarters [41][78] - The management believes that oil prices will stabilize around $70 per barrel, despite current market forecasts suggesting lower prices [62][66] - The company is actively seeking gas opportunities, including unconventional gas and specialty gas, to enhance revenue streams [46] Other Important Information - The company has made significant progress in reducing general and administrative (G&A) costs, with a target of a million-dollar reduction over the year [25][71] - The company is not planning to purchase its own drilling rig but may consider acquiring workover rigs as market conditions allow [68][69] Q&A Session Summary Question: Can you give us some color on your gas operations and what you think the future in gas will be for the company? - Management noted that gas prices have been more favorable than oil prices, and they are exploring gas opportunities, including specialty gas like helium [46][47] Question: How was your relationship with Chevron? - The company reported an excellent relationship with Chevron, which is interested in increasing oil production from the company [52][53] Question: Will the entire deal with Encore close in June, or can it be done in pieces? - Management indicated that the deal is likely to close all at once, with a target date in late June or early July [56] Question: Can you explain how the hedging program operates and do you make any money off of it? - The hedging program involves swaps that lock in prices for 70% of production, providing a safety net against market fluctuations [58] Question: Can you give your thoughts on the oil and gas business in '25 and how do you feel about what's been going on worldwide? - Management believes the Permian has peaked but expects oil prices to stabilize around $70, with a focus on workovers and better drilling practices [62][66] Question: Do you see an opportunity for you guys on as far as the rig count going down where you'll be able to get rigs at a cheaper price? - Management indicated that while they do not plan to buy a drilling rig, they may consider acquiring workover rigs if market conditions are favorable [68][69] Question: How do you look at 2025, especially with the industry under pressure? - Management is focused on further reducing costs and leveraging acquisitions to maintain a lean operation while expanding growth opportunities [70][73]

4 May 2025 | 7:12PM EDT Oil Comment: Nudging Down Our Price Forecast on Higher OPEC Supply Assumption From July Daan Struyven +1(212)357-4172 | daan.struyven@gs.com Goldman Sachs & Co. LLC Yulia Zhestkova Grigsby +1(646)446-3905 | yulia.grigsby@gs.com Goldman Sachs & Co. LLC Ephraim Sutherland +1(972)368-0395 | ephraim.sutherland@gs.com Goldman Sachs & Co. LLC Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important discl ...