Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, August 8, 2014

Article Excerpt

IMPERIAL METALS CORP., $10.36, symbol III on Toronto, fell 38% this week after a dam broke at a tailings pond at the company’s Mount Polley gold/copper mine in B.C. The breach spilled an estimated 10 million cubic metres of wastewater and 4.5 million cubic meters of fine sand into nearby waterways. The extent of the damage to local lakes and rivers is unknown at this point, but the company will now submit an environmental impact assessment and cleanup plans to the B.C. Ministry of Environment. Estimates of the total liability for the cleanup are in the range of $225 million, or $3 per Imperial share. Meanwhile, Mount Polley will likely be shut down for at least one to two years, perhaps indefinitely. The mine is the company’s biggest producing asset and the main contributor to its cash flow this year. Imperial will now likely report cash flow of $0.50 a share in 2014, down from the previous estimate of $1.05. However, the company’s new…