Zijin Mining to take 9.9% stake in Montage Gold
As part of the deal, the Lundin Family Trust also agreed increase its stake in the company from 17.7% to 19.9%.
Imperial Metals (TSX:III) recorded a $37.3 million net loss in 2014, thanks largely to the cost of dealing with last year’s tailings pond failure at its Mount Polley mine.
The company had revenue of $130.9 million in 2014, down from $187.8 million in 2013, according to the company’s annual financial statements.
The company recorded a net loss of $37.4 million ($0.50 per share) compared with $41 million in profits in 2013. The company reported negative cash flow of $6.8 million in 2014, compared with a positive cash flow of $78.2 million in 2013.
The losses were largely attributed to the loss of copper and gold production at the Mount Polly mine and $67.4 million in remediation costs, offset by $14 million the company received in 2014 in insurance.
The Mount Polley tailings pond failed on August 4, releasing 10 million cubic metres of water and 4.5 million cubic metres of mine waste slurry into Polley Lake.
The company’s earnings were also negatively by a high U.S. dollar. The company estimated a foreign exchange loss of $20.5 million, compared with a $2.5 million in 2013. The bulk of the loss on exchange rates was on $15 million in senior notes. Lower gold and copper prices have also eaten into the company’s earnings.
Imperial Metals has proposed restarting the Mount Polley mine this year as work continues to repair the tailings pond. Approval for the restart has not yet been approved.
In addition to Mount Polley, Imperial Metals owns 50% of the Huckleberry copper mine, and the Red Chris mine, which is now in production. It also owns the Sterling gold mine in Nevada through its subsidiary, Sterling Gold Mining Corp.
