"Higher commodity prices resulted in a strong revenue quarter for Imperial offsetting the lower metal production in the first quarter of 2026 that was forecasted in the mine plans of both Red Chris and Mount Polley," said the President, Brian Kynoch. "From an operational perspective, the mines achieved a composite cash cost of US$0.17 per pound of copper produced during the quarter and both mines continue to work well and remain on track to meet both copper and gold production guidance for 2026."
FINANCIAL
Total revenue was $154.6 million in the March 2026 quarter compared to $176.6 million in the 2025 comparative quarter.
In the March 2026 quarter, Mount Polley mine had 0.6 concentrate shipments (2025-1.9 concentrate shipments). The Red Chris mine (100% basis) had 4.0 concentrate shipments (2025-5.0 concentrate shipments).
Variations in revenue are impacted by the timing and quantity of concentrate shipments, metal prices and exchange rates, and period end revaluations of revenue attributed to concentrate shipments where copper and gold prices will settle at a future date.
At March 31, 2026, the Company had not hedged any copper, gold or US/CDN Dollar exchange.
The London Metals Exchange cash settlement copper price per pound averaged US$5.83 in the March 2026 quarter compared to US$4.24 in the 2025 comparative quarter. The LBMA (London Bullion Market Association) Final and Initial gold price per troy ounce averaged US$4,877 in the March 2026 quarter compared to US$2,862 in the 2025 comparative quarter. The average US/CDN Dollar exchange rate was 1.372 in the March 2026 quarter compared to the exchange rate of 1.435 in the March 2025 quarter. In CDN Dollar terms the average copper price in the March 2026 quarter was CDN$8.00 per pound compared to CDN$6.08 per pound in the 2025 comparative quarter, and the average gold price in the March 2026 quarter was CDN$6,690 per ounce compared to CDN$4,108 per ounce in the 2025 comparative quarter.
A negative revenue revaluation in the March 2026 quarter was $3.8 million compared to a positive revenue revaluation of $10.0 million the 2025 comparative quarter. Revenue revaluations are the result of the metal price on the settlement date and/or the current period balance sheet date being higher or lower than when the revenue was initially recorded or the metal price at the last balance sheet date and finalization of contained metal as a result of final assays.
Net income for the March 2026 quarter was $14.4 million ($0.08 income per share) compared to net income of $41.3 million ($0.26 income per share) in the 2025 comparative quarter. The decrease in net income of $26.9 million was primarily due to the following factors:
Income from mine operations decreased to $47.8 million in the March 2026 quarter from an income of $78.3 million in March 2025, a decrease of $30.5 million;
Net interest expense of $3.5 million in March 2026 down from $8.1 million in March 2025, increasing net income by $4.6 million;
Tax expense went from $23.3 million in March 2025 to tax expense of $22.0 million in March 2026, increasing net income by $1.3 million.
Capital expenditures including leases were $40.2 million in the March 2026 quarter, a decrease of $6.8 million from $47.0 million in the 2025 comparative quarter. The March 2026 quarter expenditures included $20.8 million in exploration and development, $7.8 million for tailings dam construction and $11.6 million of other capital.
OPERATIONS
During the quarter ended March 31, 2026, Imperial's consolidated metal production was 10.1 million pounds copper (Q1 2025-15.8 million pounds copper) and 13,641 ounces gold (Q1 2025-17,120 ounces gold).
Mount Polley Mine
Mount Polley metal production for the first quarter of 2026 was 4.399 million pounds copper and 7,608 ounces gold, compared to 8.904 million pounds copper and 10,621 ounces gold produced during the first quarter of 2025. Copper production was down 51% and gold production was down 28%, on lower grades, recoveries and throughput compared to the first quarter of 2025. Compared to the fourth quarter of 2025, throughput was up 5%, gold production was up 15% and copper production was down 5%.
Guidance for 2026 production target for Mount Polley mine remains 19.0, 21.0 million pounds copper and 40,000 - 44,000 ounces gold.
Three Months EndedMarch 31
Three Months EndedMarch 31
2026
2025
Ore milled -tonnes
1,499,749
1,721,769
Ore milled per calendar day -tonnes
16,664
19,131
Grade % - copper
0.19
0.28
Grade g/t - gold
0.23
0.28
Recovery % - copper
71.5
83.3
Recovery % - gold
67.6
69.8
Copper -000's pounds
4,399
8,904
Gold -ounces
7,608
10,621
Mill feed for the first quarter of 2026 was sourced 28% from the Phase 5 pushback of Springer Pit, supplemented by 32% from Phase 4 Springer and C2 Pits, and 39% from lower grade stockpiles. Stripping activities for the Phase 5 pushback of the Springer Pit continued during the quarter, with approximately 5,246,935 tonnes of rock mined from this pushback. Of this amount, approximately 483,165 tonnes of non-acid generating rock were delivered to the tailings storage embankment for buttress construction.
Exploration program
Diamond drilling started in February 2026 and initially followed up on the successful results from the first drilling campaign at the Mount Polley mine in more than a decade in the Bell Pit area. Since February 2026 there have been 10 diamond drill holes completed totaling 2,834 metres focusing on the historic Bell Pit area.
Exploration, development, and capital expenditures in the first quarter of 2026 were $15.8 million compared to $27.2 million in the 2025 comparative quarter.
Red Chris Mine
Red Chris production (100%) for the first quarter of 2026 was 18.982 million pounds copper and 20,108 ounces gold compared to 23.126 million pounds copper and 21,663 ounces gold during the same quarter of 2025. Both copper and gold production were down compared with the first quarter of 2025, with copper production down 18% and gold production down 7%.
The decrease in copper production was a result of a 16% decrease in copper grade (0.52% vs 0.62%) with higher recovery and lower throughput. The decrease in gold production was a result of lower gold grade in the mill feed (0.49 g/t gold versus 0.54 g/t gold) and lower throughput, offset by better gold recovery (64.9% versus 60.5%) compared to the same quarter last year.
Both copper and gold production were however in line with the budgeted 2026 production, and the guidance for 2026 Red Chris production (100%) remains 60.0, 66.0 million pounds of copper and 47,500, 52,500 ounces of gold.
Imperial's 30% portion of Red Chris mine for the first quarter of 2026 was 5.695 million pounds copper and 6,032 ounces gold.
100% Red Chris mine production
Three Months EndedMarch 31
Three Months EndedMarch 31
2026
2025
Ore milled -tonnes
1,950,343
2,049,475
Ore milled per calendar day -tonnes
21,432
22,772
Grade % - copper
0.52
0.62
Grade g/t - gold
0.49
0.54
Recovery % - copper
85.4
82.6
Recovery % - gold
64.9
60.5
Copper -000's pounds
18,982
23,126
Gold -ounces
20,108
21,663
Imperial's 30% share of exploration, development, and capital expenditures were $22.0 million in the March 2026 quarter compared to $19.5 million in the 2025 comparative quarter.
Block Cave Feasibility Study
The Red Chris feasibility study for a block cave expansion operation is advancing, as are permitting activities to support the underground project. Completion of the feasibility study and, subject to the study outcomes, joint venture approval are expected in the second half of 2026.
Exploration Program
There have been three diamond drill holes totaling 2,081 metres completed in the first quarter at Red Chris. Two were for geotechnical information regarding the block cave and one hole was completed in the Far West zone. Additional drilling is planned in the Far West zone and an interpreted zone of mineralization truncated and offset by the South Boundary fault. There will be surface exploration programs outside the known zones of mineralization and the continuing re-logging and modeling of the GJ property using the historic diamond drill core.
Huckleberry Mine
Huckleberry operations ceased in August 2016 and the mine remains on care and maintenance status.
Following the successful drilling program in 2025 of an underexplored area southwest of the Main Zone Pit, where all nine drillholes intersected copper, molybdenum, silver, and gold mineralization, a program of re-assaying available historic core for gold and silver was completed. Drillhole MZ-25-1 intersected 0.81% copper as well as elevated gold of 0.23 g/t over 22.6 metres, from 73.7 to 96.3 metres. A 2026 drilling program was completed to follow up on these results.
The ...
