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Executives

Brian Kynoch - President

Andre Deepwell - CFO and Corporate Secretary

Analysts

Unidentified Analyst - JP Morgan

Brett Levy - Jefferies & Company

Derek Macpherson - M Partners

Adam Low - Raymond James

Unidentified Analyst - Royal Bank of Canada

Steven Aldrich - Private Investor

Imperial Metals Corp. (OTCPK:IPMLF) Q2 2014 Earnings Conference Call August 18, 2014 1:00 PM ET

Operator

Good afternoon ladies and gentlemen and welcome to Imperial Metals Corporation Earnings Call. At this time all lines are in a listen-only mode. (Operator Instructions). I would like to remind everyone that this call is being recorded on August 18, 2014. I would now like to turn the conference over to Mr. Brian Kynoch, please go ahead.

Brian Kynoch

Thank you. I would like to welcome you all to our conference call to review our second quarter results. With me today is Andre Deepwell, our Chief Financial Officer. We would also like to note that comments made on the call today may contain forward-looking statements, which by their nature is subject to risks and uncertainty. And as such actual results may differ materially from those expressed today. For further information on these risks and uncertainties we would like to direct you to the cautionary note regarding forward-looking statements that is attached to the news release.

I will begin the discussion today with the results of our operations and the programs of the Red Chris construction and a description of the tailings for each at Mount Polley. Then I will have Andre go over the second quarter financial results, following that we will take some questions and we will need to end the questions at about 11, both Andre and I have other meetings that we need to go to.

Starting at Huckleberry, it is running well with the damaged bull gear and no significant extra cracking of the teeth has been observed. So we have confidence that we should be able to keep the mill running. We anticipate having about a 10-day shutdown to replace the bull gear when the new ones arrives late this year. The mill has had periods during the last quarter where it has operated at over 18,000 tons a day with softer MZO ore appearing in greater percentages.

We are revising our mining plans to try to maximize the grades that can be delivered but as you know the Greater Huckleberry is fairly evenly distributed and there is not a lot of high grade material there. So, another way to kind of increase and make up for the loss is to try to reduce our costs and so we are trying to come up with a new mine plan that reduces our stripping requirements and also in order to keep the costs down.

At the Sterling mine we received our amended air remissions permit and mine operations restarted on June 17. At Sterling, we continue to work on our permitting an open pit operation that would see about 900,000 tons of materials grading above 0.1 ounce a ton being mined over three to four year timeframe. Our estimated gold production at Sterling should not change as we expect to mine nearly all of the 144 zone material out this year.

At Mount Polley during the second quarter we produced 12 million pounds of copper, 11,800 ounces of gold compared to 8.2 million and 9500 in the first quarter 2014. So we had picked up our production rate significantly during the year -- during the quarter. And part of that was the mill throughput so for the second quarter it was 23,400 ton per day compared to 18,900 in first quarter.

Also Mount Polley underground mining operations, the first stilt (ph) began in the quarter and underground operations were regularly shipping orders to the mill by the end of the quarter. And in the Boundary zone we had done a lot of testing and continued to do a lot of testing and drilling in the vicinity of the Boundary zone was uncovering more mineralization and we expected to mine more than the 250,000 ton we had originally estimated in that area.

The Mount Polley tailings breach that occurred on August 4 has resulted in the suspension of all operations at Mount Polley. Following that failure we began three measures to stabilize the site. One, we began to collect all the logs and floating debris on Quesnel Lake. Two, we began constructing an upstream dyke to contain the tailing spill in the impoundment. And three, we began to pump water out of Polley Lake to reduce the water level.

The Polley Lake water level had increased due to a plug being formed at the end of the lake with probably the material from the tailings dam itself and the level was up about a meter and half. And into those last two items the construction of an upstream dyke and the reduction of the Mount Polley water level it is not safe to work in the Hazeltine Creek area. So we will need to wait to gather more information.

Though it is impossible to quantify the exact cost of remediation there are two key factors that should help us with the remediation. One, the water quality in impoundment was good, virtually drinking water quality. And two, the tailings itself was very non-acid generating and contained very little levels of most metals. And we are confident that we will have the financial resources to remediate this overtime. More information on what we will have to do will be gathered once we have reduced that water level in Polley Lake and completed the construction of that dyke.

At Red Chris gating item for completion is the Iskut extension power lines. The new implodes were the implodes that connect the lines that sails. The new ones were received on July 26 and the streaming is proceeding at pace. We continue to push for the completion of this line by -- in September. The costs have gone up for three reasons. The biggest one being the power line, up about 36 million largely due to the failure of the implodes and some still the work that we conducted during spring break up. So we continue to work during spring break up and that costs extra money.

In all other areas on the site we are up about 11 million and then the third area is the increase in sustaining cost and in direct. We now have about 171 of our total 275 operating staff that are hired and employed at the site so every month with delays of -- we are doing more mining and more other stuff than we normally would have planned to do. So the longer the schedule the longer -- the higher those costs are.

With our announced financing we are confident we have sufficient funds to complete the Red Chris and get it going. So, now I am going to pass the meeting on to Andre and he will go through our financial statements.

Andre Deepwell

Thank you, Brian. In terms of the revenues this quarter they were $51 million in June 2014 quarter compared to $41 million in the comparative 2013 quarter. There was more copper produced and sold in the 2014 quarter as well as there was lower number of negative revenue revaluations. So the top line revenue number was about $10 million higher compared to last year's quarter.

There were two shipments at Mount Polley in both quarters so, no change there, although there was a bit more quantity of copper shipped in this year's period than last years. Income from mine operations increased to $17 million from $13 million as a result of increased contribution -- improved contributions from mine operations. So the net income in the June 2014 quarter was $15 million or $0.20 per share compared to net income of $7.5 million or $0.10 per share in the comparative quarter.

In addition to the variances in revenues and income from mine operations there is also variances as a result of movements from foreign exchange rates and realized and unrealized gains and losses on derivative instruments and taxes. Specifically in terms of the foreign exchange gains and losses there was a $13 million foreign exchange gain in the current quarter compared to a $900,000 loss in the comparative 2013 quarter.

Most of this change is related to the U.S. dollar denominate a long-term debt that the company has in place which we had entered into in March of this year. So the net impact of the $13 million foreign exchange gain in the current quarter is comprised of $12 million on the senior notes, a $1.6 million gain on the long-term equipment loans which were also denominated in U.S. dollars and about a $400,000 loss on operational items.

In terms of derivative instruments, the company recorded a loss of $7.4 million on derivative instruments compared to gains of $1.1 million in the June 2013 quarter. The current quarter included an unrealized loss of $5.2 million on the foreign currency swap that was entered into in March 2014 concurrent with the issuance of the senior unsecured notes. And the balance of the derivative losses was about $2.2 million unrealized for the copper and gold derivative position that the company holds at the end of the quarter. There was a $1.1 million gain in the same period last year.

In addition the company recorded $1.4 million of its equity share of Huckleberry's net income during the June 2014 quarter compared to $2.3 million equity income in the June 2013 quarter. The lower net income from Huckleberry was a result of the temporary shutdown of the Huckleberry milling facility for part of the quarter as a result of the bull gear failure in March 2014.

Our cash flow increased to $21.5 million in the June quarter from $16 million in the previous year's quarter due to improved mine operation. Capital expenditures inclusive of capitalized interests were $142 million in the June quarter that's up from $83 million in last year's quarter. During this year's June quarter $116 million was incurred on the Red Chris project inclusive of $9 million of capitalized interest and $24 million at Mount Polley. Included in the Mount Polley capital was $14 million of deferred stripping and a purchase of an excavator for about $5.5 million.

All these capital expenditures were financed by cash flow from Mount Polley and from long-term debt. At June 30th the company had $7 million in cash compared to $3 million at December 2013. The company had no short-term debt at June 30th compared to $132 million at December 31st. However that December 31st debt was all repaid from the long-term financing arrangements that were made for the Red Chris project in March of this year.

The debt at June 30, 2014 is comprised of U.S. $325 million of senior unsecured notes, so that is Canadian $338 million at June 30th, a $173 million of senior secured revolving credit facility and $50 million of equipment loans. At June 30th no amounts were drawn on the $75 million junior credit facility however, subsequent to June 30th $40 million was drawn on this facility.

Turning our attention to non-IFRS measures, we have a number of IFRS measures; the first is adjusted net income which takes out the effects of items not settling in the current period such as the derivative instruments and the foreign exchange gains and losses on non-recurring debt. So our adjusted net income for the June 2014 quarter was just under $9 million at $0.12 per share compared to $6 million or $0.08 per share in the comparative quarter.

Next is adjusted EBITDA which as per the methodology of calculation the details of which are described in our annual report, annual financial statements. The adjusted EBITDA for the three months ended June 30, 2014 are just a little over $23.5 million compared to last year's June quarter of $18 million. And on a six months basis we are at $43 million -- just bit over $43 million compared to $36.5 million last year.

Our cash flow and cash flow per share, cash flow $21.5 million almost this three months period compared to just over $16 million last year. That is $0.29 per share this quarter compared to $0.22 per share last year's comparative quarter.

As we see cash cost per pound of copper produced again in terms of the methodology is as per described in our annual report of December 31, 2013. For the three months ended June 30, 2014 our cash cost of copper produced in U.S. dollars at Huckleberry was $2.06 per pound, at Mount Polley was $1 per pound, and that's $1.30 on a composite basis compared to last year and three months ended June 30th Huckleberry was $2.09 a pound and Mount Polley was $0.72, for composite of $1.20 a pound.

On a six month basis to June 30th, Huckleberry is $2.29 a pound, Mount Polley $1.17 a pound, and a composite of $1.47, that's up slightly from last year's comp amounts of $2.20 a pound for Huckleberry, $0.99 for Mount Polley, and a $1.42 on a composite basis.

In terms of derivative instruments we have talked about the $4.7 million of derivative instrument loss in the three months period. A $5.3 million of that is a loss related to the company's currency swap and the other $2 million is on the copper and gold derivatives.

Based on the June 30th Canadian dollar, U.S. dollar exchange rate, the company had an unrealized loss of $8 million on the derivative instruments related to the swap. However this loss was offset by an unrealized foreign exchange gain of $12 million on the revaluation of the U.S. $325 million principal amount of a note. So that made the impact of the foreign exchange related to the net positioned on the senior unsecured notes of about $4 million gain in the quarter.

Mount Polley has about 33% of its estimated copper settlements via min/max cost collars and 50% of its estimated gold settlements via min/max zero cost collars through December 2014. That's based on the estimated settlements that reflect production of copper and gold upto August 4th. In addition Mount Polley has hedged 36,000 ounces of gold for 2015 and that can be allocated to a production expected from the Red Chris mine.

Just a word on financing, the company has secured additional financing in the amount of $100 million in the form of convertible debentures. The terms of the convertible debentures are as follows, they have a six year term, 6% interest payable semi-annually commencing June 30, 2015. They are convertible into common shares of Imperial at $12 per common share and the holder must give the company at least 61 days notice before conversion. They are callable, they are not callable, sorry, except if the closing price of the common shares of the company exceeds 125% of the conversion price for at least 30 consecutive days.

At the option of the company and subject to separate approval by the TSX in compliance with all applicable securities laws such interest maybe paid through the issuance of additional convertible debentures for the company's of imperial common shares. Commitments have been received from Edco Capital Corporation and Fairholme Partnership limited partnership for $40 million each and to the extent that the maximum issuance of convertible debentures is not achieved, Edco has committed to purchase six year non-convertible debentures bearing interest at 12% in the event of a short-fall to ensure that the total amount raised will be $100 million. Those are comments Brian back to you.

Brian Kynoch

Okay, so we can start the question period now please.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions) Your first question comes from David Carmen (ph) from JP Morgan. Please go ahead.

Unidentified Analyst

Hi guys this is David Brueller (ph) stepping in for David Carmen. Few questions first one is I understand that Red Chris won't start up until a review is performed on the timeline, can you please run us through the scope and sort of timing of this review?

Brian Kynoch

Well that is still being negotiated, but what I would say is it's not a review of the entire mine, it's a review of the tailing facility.

Unidentified Analyst

Yeah and I also understand there were few permits there while you guys were suggesting there are few permits left to be approved by the provincial and federal governments before Red Chris can start, can you go into little bit more detail for us?

Brian Kynoch

So, there are two that -- there are two kind of major ones, the MA permit to allow us to start putting tailings in the tailing facility. We need that, so that's from the Ministry of Environment British Columbia and we need an MMER scheduled to designation from the federal government. That one we probably -- we don't need that until we build the south tailing embankment which would probably begin in 2015. So we don't need that one for a greater period of time.

Unidentified Analyst

And has there been any indication on the MA permit being delayed?

Brian Kynoch

That's the one where the -- it will probably be subject to the review of the tailing facility by an independent party.

Unidentified Analyst

And as I asked before, you don't know the timing on something like on that review?

Brian Kynoch

We have done third party review for tailing facilities before, I don't think -- it's certainly possible to have that done before the mine will be ready to operate.

Unidentified Analyst

And just last question on, I know you have business interruption and physical damage insurance on Mount Polley, can we get an idea of what the terms -- what sort of insurance that is, whether if I could fix cost component plus a profit component, and when do you expect to receive any insurance proceeds?

Brian Kynoch

Well I think it would be a little while before we would receive some. I think its 60 days after a notice of claim and you are right we have business interruption, physical damage, and a couple of other, third party liability insurance.

Unidentified Analyst

Okay, and do we get a better idea of how that's structured?

Andre Deepwell

That's another one where we are kind of in negotiations. The insurers visited the site last Friday. So, probably in the next week we will have more data on that, so we can share with everyone.

Unidentified Analyst

I guess thanks guys.

Operator

Thank you, your next question comes from Brett Levy from Jefferies, please go ahead.

Brett Levy - Jefferies & Company

Hey guys, with this new assuming with the various wells and vessels you have on it, there is $100 million new financing comes through and you stay on track for your plan to get back from Red Chris what the -- what is the cost liquidity that you see for the company and at what date do you think that occurs?

Brian Kynoch

Andre will answer. We factor in the lowest…

Andre Deepwell

The one -- of the items that effects our cash flow is the timing of the reimbursement of the Hydro line that we are building for Hydro and that is dependent on the completion of that line and then when we get the reimbursement from Hydro which we expect to be in November, December somewhere in that timeframe depending on the completion of data line.

Brett Levy - Jefferies & Company

And that would be period of..

Andre Deepwell

That will be the period of -- yes.

Brian Kynoch

When we get that back then we are plus $55 million.

Andre Deepwell

Right.

Brett Levy - Jefferies & Company

Okay, so $55 million of payment, if you are sort of not on size, in other words you don't get the $55 million and you continue to spend as you are spending on Red Chris, do you need more liquidity than you currently have?

Andre Deepwell

No, we believe we have sufficient liquidity with us. There is a buffer even if we don't get the BC Hydro money in November, December time period.

Brett Levy - Jefferies & Company

And what is the size of that buffer as best as you can estimate. You can put a wide range on it, assuming current copper and gold prices are normally priced?

Brian Kynoch

Well it will depend obviously on the timing of payment of cost for the work at Mount Polley. So it's hard to estimate what that is but it's multiple times of millions of dollar. It's not in the millions it is tens of millions.

Brett Levy - Jefferies & Company

Okay, those are my main -- you know what can you slow things down at all at Red Chris in terms of would you or could you slow things down if there seemed to be some sort of I don't know delay in cash from either the Hydro line or the insurance companies or anything else like that, could you kind of slow things down a bit.

Andre Deepwell

Yeah, we can only slow things down. We have been doing, we have been going as quickly as we can to try to -- I don't think there is any way we would want to slowdown the power line. I think we need to see what happens over the next couple of weeks and then look at that in light of the tailing dam review. So, that’s the cause of the slowdown.

Brett Levy - Jefferies & Company

Thanks very much guys.

Operator

Thank you, your next question comes from Derek Macpherson from M Partners. Please go ahead.

Derek Macpherson - M Partners

Good morning guys, just two quick questions. Can you guys put a -- quantify how much money you spent to-date at Mount Polley on sort of the remediation clean up and the emergency activities?

Brian Kynoch

I can maybe give you round numbers, I think we are thinking it will be $1 million to clean up the wooden debris on the lake. Those are big round numbers and I don't -- do you have an idea of what we spent already.

Andre Deepwell

No. I don’t really have an idea of exactly what we spent but that's the quantum of our estimate of the clean up on the lake. For the upstream dyke that I -- I am not going to give you exact numbers but around 2 million tons of rock that we will need to put on up street side of the bridge to fill in the tailings and 2 million tons of rock out there, cost us about $2 a ton to mine rock. So, I don't know $4 million or $5 million to get that dyke done. And then something around Polley we had most of -- we got some rental pumps in but we had most of the pipeline done mainly with our own cruise. The kind of quantum of -- to get the lake down and we are thinking couple of million dollars I would think we probably owned and spent a small part of that to-date.

Derek Macpherson - M Partners

Okay, and then I guess the key thing for sort of assessing the next -- how much the next starts to clean up, probably series of test and a -- and obviously completing that -- completing the dyke, when do you expect that sort of -- when do you expect to have a better idea of what the full cleanup cost is going to be?

Andre Deepwell

It will be I think probably the first or second week of September till we get that dyke done and then we will have to determine at what level do we have to bring Polley Lake rate back to its original level or is there some level where it's safe to go down and work in Hazeltine Creek earlier.

Anyways there are two thing that will happen after the dyke and the water level become -- and Polley become safe and that's one investigation of the carve. So geotechnical engineers can't go to the spot right where the breach was and they will probably be drilling to assess the mode of failure, look at the foundation and see if we can figure out the mode of failure, why it failed. So that work will begin after it is safe to do so. And then the second component as you said is go collect information on Hazeltine Creek to see what we are going to need to do remediate it. As I said, we have good water almost drinking quality of water and Mount Polley's tailings are relatively benign.

Derek Macpherson - M Partners

Okay and then just finally on Red Chris and just talking about potential delays with the $100 million financing, how long do you expect -- how much for the lake you handled on Red Chris, like we are talking like a couple of months with your current liquidity or are we talking if the delay was the full quarter and you guys were looking at Q1 success in the start?

Brian Kynoch

That’s right. I would say the biggest thing is get the power line done and get reimbursed for the $55 million and then we will have even more time. So that's kind of a critical path for us, get the Iskut extension done, get it approved and that $55 million payment makes it so we would have even more time.

Derek Macpherson - M Partners

All right and then just the last thing, just because I don't have a good frame of reference, the study on the tailing facility obviously what a typical study take -- are we talking like a month, couple of months of that, typically what a firm would take to turnaround that kind of study, assuming once you get all the -- everything agreed and that kind of thing?

Brian Kynoch

The third party review?

Derek Macpherson - M Partners

Yes.

Brian Kynoch

Yes, I would say a month is a reasonable period of time.

Derek Macpherson - M Partners

Okay, plus pending obviously negotiations.

Brian Kynoch

Right, that's right. We are not the only ones doing it, this one rightfully have the province and the Tahltan people to negotiate with.

Derek Macpherson - M Partners

Yes, of course. Okay those are all my questions, thanks guys.

Brian Kynoch

Thanks Derek

Operator

Thank you, your next question comes from Adam Low from Raymond James. Please go ahead.

Brian Kynoch

Hi Adam

Adam Low - Raymond James

First question for me is with regards to the Red Chris CAPEX, it was $631 million number that you quoted, I am assuming that's after the rebate from BC Hydro is that correct?

Brian Kynoch

Correct.

Adam Low - Raymond James

Okay and while you guys don't have yet any sense as to what the full remediation cost is going to be on Mount Polley, do you at least have an assessment of what the lower and upper bounds of that potential cost could be?

Brian Kynoch

I would say it's really difficult till we get in and are able to sample Hazeltine Creek, that portion as until we do that and find out what we have to deal with, it's hard to come to a number.

Adam Low - Raymond James

Okay. And on Ruddock Creek I am just curious there, it looks like perhaps due to harmonize the aid process between the feds and the province, you really don't -- subject to provincial environmental review is that correct or is there still some Department of Fisheries and Oceans review that could trigger federal assessment there as well?

Brian Kynoch

I think they will be involved but we are going to do the provincial assessment and it will -- the federal governments agree that they will substitute for that. They will accept the provincial assessment and they will review it at the end that being federal government

Adam Low - Raymond James

Okay, I mean there has been some media speculation regarding the state of the relationships between yourselves and some of the stake holders in the Ruddock Creek area, just wondered if you guys were able to provide any comments as to what you see the status of that relationship as currently?

Brian Kynoch

I think we have there I think -- there is four or five people that we deal with there and we have kind of very -- it varies by the different groups. So I would say of course this tailing incident has kind of shocked the people we deal with and rightfully so and so we will have to work through that and get ourselves back to kind of more normalized relationships with the various groups.

Adam Low - Raymond James

All right, thank you that's it for me.

Brian Kynoch

Okay, thanks.

Operator

Thank you, your next question comes from Nick (inaudible) from Royal Bank of Canada. Please go ahead.

Unidentified Analyst

Hi thanks for taking the question. Regarding the EIA inaction plan that was submitted last week, could you talk about if it is possible how you guys are thinking about the fish wildlife impact and then also whether there is a remediation proposal or how you guys are thinking about remediation at this point and then what we should be thinking about in terms of long-term monitoring here, is this a five year program, ten year program, how long we can think about some of the costs here?

Brian Kynoch

Right, I think the -- I will hit the monitoring first. The monitoring I think will be long-term, so probably 10 years is a better estimate. Now we were monitoring many of the streams and stuff up there anyways but it will be expanded and I would say the monitoring program will probably be the biggest it's going to be in the next year, maybe year and a half and then overtime should reduce depending on what we find. So, very intensive monitoring for a year or two and then reduction in the future after that I would expect. But I would expect it to go for at least 10 years.

The remediation plan as I have said before we can't get in the creek and gather the data we are going to need. But for example we will need to do tests on the sands to see exactly how it reacts in certain environment and which metals are available to the bio accumulate (ph). As I said, the metals are things like mercury and arsenic are very, very low levels in that stuff and it's not Neg or it is Neg not Peg so won't generate acid to release those metals. So, on the remediation it really will take data collection and time to see exactly what we are going to have to do.

Unidentified Analyst

Do you think that the extent of the remediation is going to be tied to what other metals are leaching into the environment so, they may not have to be taken back into a tailings facility?

Brian Kynoch

Right, that's right. We have to see what the impacts are.

Unidentified Analyst

Okay, and then one additional question on the junior credit facility, $40 million was drawn after the end of the quarter, was that pre or post the Mount Polley event?

Andre Deepwell

That was pre the Mount Polley event.

Unidentified Analyst

Okay, and then could you -- is there any availability left on that today?

Andre Deepwell

Yes, it is with the balance $35 million.

Unidentified Analyst

Okay. That's all I had, thank you.

Brian Kynoch

Okay, thank you.

Operator

Thank you. Your next question comes from Steven Aldrich, private investor. Please go ahead.

Steven Aldrich - Private Investor

Yes. Good morning, everyone.

Brian Kynoch

Hi Steve.

Steven Aldrich - Private Investor

Hi there, it is a question about the Hazeltine Creek, one, is there water running down that creek now?

Brian Kynoch

Yes. Part of the water that we are moving out of Polley Lake goes down that creek. Till that dyke, the internal dyke is built there is some seepage out of the tailings going down there and there is another creek in the vicinity called Buchak Creek and a couple of site jurisdictions. Buchak Creek flows probably -- it is hard to see it right away. There is more work to be done as I said you can't go out in that area but I believe Buchak Creek is going down there and I believe some of our drainage ditches water is still going down there. That is one of the items we are also doing is getting pumps and stuff to collect as much as possible all the water that we normally collect in the perimeter ditches around the site and pump that back up to the Springer pit as well.

Steven Aldrich - Private Investor

Okay, so the longer it goes on you are not getting into the Hazeltine Creek isn’t it likely to start greening up with new growth?

Brian Kynoch

Yes, I think, it probably will but I think it's -- we are in the middle of summer and it is quite warm and it has actually been an advantage for us but it hasn’t rained and getting Polley Lake levels reduced. So, I think that's more kind of next spring when it will green up.

Steven Aldrich - Private Investor

Okay, and the other question is about The Klabona Keepers are they actually blocking the road up to Red Chris or they are just there sort of an information thing?

Brian Kynoch

Yes, no they are blocking the road right now.

Steven Aldrich - Private Investor

So, nobody is going up and down, what about employees, are they staying all on site?

Brian Kynoch

Yes, we are keeping the employees on site. Now there is normal movements in and out and it's kind of on a two or three week depending on the rotation. So we do need to get that resolved and we are busy working on a resolution with the Tahltan people.

Steven Aldrich - Private Investor

Okay, but you got people doing basically going up to study the tailings, they have got to get by, right?

Brian Kynoch

That's at -- Mount Polley, doesn’t have any roadblocks. The roadblocks are at Red Chris.

Steven Aldrich - Private Investor

No, but I was thinking the Red Chris and you got to get the review of that tailings, somebody for Red Chris to stop?

Brian Kynoch

But if we need to put an engineer in there right now we can always --

Steven Aldrich - Private Investor

You get the right…

Brian Kynoch

Yes.

Steven Aldrich - Private Investor

Okay, that's good for me.

Brian Kynoch

Okay, thank you.

Operator

Thank you. (Operator Instructions). There are no further questions.

Brian Kynoch

Great.

Operator

Pardon me, we do have…

Brian Kynoch

I think we will cut it off now.

Operator

Okay, so ladies and gentlemen this concludes your conference call today. We do thank you for participating and ask that you please disconnect your lines.

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Source: Imperial Metal's (IPMLF) Q2 2014 Results - Earnings Call Transcript

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