Imperial Metals losing money as Mount Polley still closed, Red Chris not at full production (Vancouver Sun)
Imperial Metals continues to bleed red ink as its main cash generator, the Mount Polley gold and copper mine, remains closed after a catastrophic failure last summer of its mine-waste dam.
The Vancouver-based mining company reported on Friday a loss in the first three months of 2015 of $33.4 million and revenues of $1.5 million.
Cash flow was negative, and dropped $26.4 million from the same three-month period in 2014.
“The decrease is primarily due to the absence of revenue from Mount Polley due to the suspension of mine operations,” Imperial Metals said in a news release announcing the first-quarter loss.
Imperial Metals is trying to get the go-ahead to restart the Mount Polley mine in the Central Interior, northeast of Williams Lake, and is awaiting a decision by the province, possibly in June.
Imperial Metals also expects to get increased cash flow from its recently-opened Red Chris gold and copper mine, but it had to cut back production in mid-April because of a shortage of clean water in its mine-waste storage facility.
Because of the production slowdowns at the new mine in northwestern B.C., it will take additional time to ramp up to full production, which means the company will not be able to meet a June 1, 2015 completion date for the mine, a requirement of banks holding some of the company’s debt.
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