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Imperial Metals Corp T.III

Alternate Symbol(s):  IPMLF

Imperial Metals Corporation is a Canada-based exploration, mine development and operating company. The Company’s holdings include the Mount Polley mine (100%), the Huckleberry mine (100%), the Red Chris mine (30%). The Company also holds a portfolio of about 23 greenfield exploration properties in British Columbia. The Mount Polley copper/gold mine in south-central British Columbia is owned 100% by Mount Polley Mining Corporation, a wholly owned subsidiary of the Company. The property encompasses about 24,096 hectares (ha) consisting of seven mining leases and 52 mineral claims. The Huckleberry copper mine in west-central British Columbia is 100% owned by Huckleberry Mines Ltd., a wholly owned subsidiary of the Company. The property encompasses about 25,767 ha, consisting of two mining leases and 49 mineral claims. Red Chris Development Company Ltd., a subsidiary of the Company, owns a 30% beneficial interest in the Red Chris copper/gold mine in northwest British Columbia.


TSX:III - Post by User

Bullboard Posts
Post by miningfundion Nov 15, 2019 5:31pm
131 Views
Post# 30358727

Big picture!

Big picture!Newcrest paid US$804 million for a 70% JV interest in Red Chris which means that Imperial's 30% interest is worth about C$460, or $3.60 a share. Add the option value of the other properties, and other net assets, and we are looking at a potential share price of $4.00 or $5.00.

NC would have preferred to buy 100% of RC (why would it want a weak JV partner) but I believe that ME capped it at 70%, to settle all Imperial's debt and leverage its 30% interest. Recall that NC plans to move rapidly from costly open pit to underground block cave mining - it is currently deep drilling and preparing a feasibilty study. This shift could add significant value to Imperial's 30% interest.

I recall a similar situation: in 2017 Polaris Materials was trading at about $0.96 when it was bought out by US Concrete for $3.40 per share.

The market and analysts are not focusing on this big picture - they are getting bogged down in the detail of the latest quarterly which is pretty meaningless because the cut-off between discontinued and continuing operations was badly blurred. Next quarter's operations should be clearer.


  


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