2013-08-26 22:45:02 -
Vancouver, British Columbia, August 26, 2013 - PI Financial Corp. issued a new
buy recommendation on Imperial Metals (TSX:III). Following a recent property
visit, analyst Aleem Ladak upgraded Imperial Metals from a neutral to a buy,
increasing his 12 month target to $14.20, a premium of 24% to the $11.49 price
the day the report was issued.
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The well-attended site tour included the Mount Polley open pit copper/gold mine,
the Huckleberry open pit copper/moly mine, and the Red Chris copper/gold
property all located in British Columbia.
The 100% owned Mount Polley is expected to produce 38.5 million pounds copper
and 43,000 ounces gold in 2013.
At the 50% owned Huckleberry, 2013 copper
production is estimated to be 40 million pounds.
Development at the wholly owned Red Chris mine is proceeding with 91% of the
engineering complete as of June 30, 2013. The current mine plan proposes an open
pit which will be 400 metres deep and 1 kilometre wide. The mill will have a
design capacity of 30,000 tonnes per day. Management estimates the tailings dam
is roughly 25% complete and will complete the entire dam raise in 8 weeks. The
cost of constructing the Red Chris mine is estimated to be $500 million, with
commissioning scheduled to start in May 2014.
After attending the site and discussions with management with regards to the
status of financing options available, PI Financial now believes Imperial Metals
will have minimal trouble in raiding the required capital through either debt or
Analyst Aleem Ladak stated, "We recommend investors begin to take positions or
increase their position in Imperial before the debt financing is in place which
we believe will positively impact the share price. Based on existing proven and
probable reserves, we estimate Red Chris has the potential to produce an average
of 74 million pounds of copper per year until 2042."
The company currently trades at $12.40, below the $14.20 target price, and with
74.4 million shares outstanding, the company is capitalized at $923 million.
For more information, please visit the company's website www.imperialmetals.com
or contact Sabine Goetz at 604-488-2657 or email email@example.com
For more information about PI Financial or to obtain a copy of their research
report, contact your nearest PI Financial office. Their branches are listed on
their website at www.pifinancialcorp.com.
InvestmentPitch.com, a multimedia company that provides a combined solution for
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Barry Morgan, CFO
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