SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                    FORM 10-Q

               Quarterly Report Pursuant to Section 13 or 15(d) of
                         Securities Exchange Act of 1934

                  For the quarterly period ended June 30, 1997

                         Commission File Number 0-16019

                    INTERNATIONAL PRECIOUS METALS CORPORATION
                    -----------------------------------------
             (Exact name of Registrant as specified in its Charter)

                           Province of Ontario, Canada
                           ---------------------------
                           (Jurisdiction of formation)

                                   86-0766060
                         Employer Identification Number

                  4633 South 36th Place, Phoenix, Arizona 85040
                  ---------------------------------------------
                    (Address of principal executive offices)

                                 (602) 414-1830

                         (Registrant's telephone number)




The registrant had 20,778,263  shares of outstanding  common shares as of August
13, 1997.


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed  by  Section  13 or 15 (d) of the  Securities  Exchange  Act of 1934
during the preceding 12 months (or for such shorter  period that the  registrant
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements for the past 90 days. Yes X No___.







<PAGE>



INTERNATIONAL PRECIOUS METALS CORPORATION



CONTENTS

Part 1. Financial Information                                               Page

Item 1. Condensed Consolidated Financial Statements

          Consolidated Balance Sheets June 30, 1996 and 1997                 4-5

          Consolidated  Statements of Loss and Deficit Six Months 
           Ended June 30, 1996 and 1997                                       6 

          Consolidated Statements of Cash Flow
           Six Months Ended June 30, 1996 and 1997                            7

          Consolidated Statements of Deferred Mineral Exploration 
           Expenditures Six Months Ended June 30, 1996 and 1997               8

          Notes to Consolidated Financial Statements                          9 

Item 2. Management's  Discussion and Analysis of Financial 
        Condition and Results of Operations                                  17 

Part II. Other Information

Item 4. Submission of Matters to a Vote of Security Holders                  20 

Item 6. Exhibits and Reports on Form 8-K                                     20 
          








                                       -2-



<PAGE>

Currency

     All dollar amounts set forth in this report are in Canadian dollars, except
where  otherwise  indicated.  The  following  table  sets forth (i) the rates of
exchange for the Canadian dollar,  expressed in United States dollars, in effect
at the end of each of the periods indicated;  (ii) the average of exchange rates
in effect on the last day of each month during such periods;  and (iii) the high
and low exchange rates during each such periods,  in each case based on the noon
buying  rate in New  York  City for  cable  transfers  in  Canadian  dollars  as
certified for customs purposes by the Federal Reserve Bank of New York:

<TABLE>

<CAPTION>
                                Six Months
                                  Ended
                                 June 30,                            Year ended December 31,
                                  1997               1996          1995           1994          1993           1992
<S>                            <C>               <C>           <C>              <C>          <C>            <C>      
Rate at end of period          $ 0.7241          $  0.7301     $  0.7323        $  0.7128    $  0.7544      $  0.7865
Average rate during period     $ 0.7268             0.7334        0.7305           0.73         0.7729         0.8235
High                           $ 0.7487             0.7515        0.7527           0.7632       0.8046         0.8757
Low                            $ 0.7145             0.7215        0.7023           0.7103       0.7439         0.7761

</TABLE>


On August 11, 1997,  the noon buying rate for $1.00  Canadian was $.7177  United
States



                                       -3-

<PAGE>




                    INTERNATIONAL PRECIOUS METALS CORPORATION
                           CONSOLIDATED BALANCE SHEETS
                              (In Canadian Dollars)
                                   (Unaudited)



<TABLE>

<CAPTION>

                                                                     December 31,        June 30,
                                                                         1996              1997
                                                                  ----------------    --------------
<S>                                                                   <C>               <C>
                       ASSETS

CURRENT ASSETS

   Cash                                                               $  2,644,000      $  2,391,000
   Other assets (Note 5)                                                 1,340,000         2,021,000
                                                                  ----------------    --------------

   Total current assets                                                  3,984,000         4,412,000
                                                                  ----------------    --------------


OTHER ASSETS

   Acquisition of mineral rights                                                 -         1,105,000
   Deferred mineral exploration expenditures (Note 6)                   13,050,000        15,373,000
   Capital assets (Note 7)                                               1,030,000         1,627,000
                                                                  ----------------    --------------

   Total other assets                                                   14,080,000        18,105,000
                                                                  ----------------    --------------

   Total assets                                                       $ 18,064,000      $ 22,517,000
                                                                  ================    ==============


</TABLE>


  The accompanying notes are an integral part of these financial statements.   

                                      -4-
<PAGE>




 
                    INTERNATIONAL PRECIOUS METALS CORPORATION
                           CONSOLIDATED BALANCE SHEETS
                              (In Canadian Dollars)
                                   (Unaudited)
 
<TABLE>

<CAPTION>
                                                                    December 31,          June 30,
                                                                       1996                1997
                                                                   ---------------     -------------
<S>                                                                  <C>                <C>
                       LIABILITIES

CURRENT LIABILITIES

   Accounts payable and accrued charges                              $     553,000      $    959,000
   Debentures (Note 8)                                                     798,000           251,000
   Vehicle and equipment loans                                              69,000            60,000
                                                                    --------------      ------------

   Total current liabilities                                             1,420,000         1,270,000
                                                                    --------------      ------------

LONG TERM LIABILITIES

   Vehicle and equipment loans                                             231,000           310,000
   Deferred premium on flow-through shares                                 464,000           464,000
                                                                     -------------      ------------

   Total long-term liabilities                                             695,000           774,000
                                                                      ------------      ------------

   Total liabilities                                                     2,115,000         2,044,000
                                                                     -------------      ------------

CONTINGENCIES AND COMMITMENTS (Note 10)

SHAREHOLDERS' EQUITY

   Share capital                                                        47,590,000        54,347,000

   Deficit                                                             (31,641,000)      (33,874,000)
                                                                     -------------      ------------

   Total stockholders' equity                                           15,949,000        20,473,000
                                                                     -------------      ------------


   Total liabilities and stockholders' equity                         $ 18,064,000      $ 22,517,000
                                                                     =============      ============

</TABLE>


  The accompanying notes are an integral part of these financial statements.   

                                      -5-

<PAGE>




                    INTERNATIONAL PRECIOUS METALS CORPORATION
                   CONSOLIDATED STATEMENTS OF LOSS AND DEFICIT
                              (In Canadian Dollars)
                                   (Unaudited)


<TABLE>

<CAPTION>
                                                     Three months ended                            Six months ended
                                                June 30,             June 30,                June 30,            June 30,
                                                  1996                 1997                    1996                1997
                                            ----------------     ----------------        ----------------     ---------------
<S>                                             <C>                  <C>                     <C>                 <C>      
INCOME

   Interest Income                              $     31,000         $     61,000            $     35,000        $     99,000
                                            ----------------     ----------------        ----------------     ---------------

   Total Income                                       31,000               61,000                  35,000              99,000
                                            ----------------     ----------------        ----------------     ---------------


EXPENSES

   Debenture interest                                      -                    -                       -                   -
   Administrative                                    201,000            1,395,000                 295,000           2,166,000
   Amortization                                       38,000               94,000                  55,000             165,000
                                            ----------------     ----------------        ----------------     ---------------

   Total expenses                                    239,000            1,489,000                 350,000           2,331,000
                                            ----------------     ----------------        ----------------     ---------------

LOSS FOR THE PERIOD                                  208,000            1,428,000                 315,000           2,232,000

DEFICIT, BEGINNING OF PERIOD                      29,288,000           31,909,000              29,181,000          31,105,000

COSTS OF ISSUING SHARES                              356,000              536,000                 356,000             536,000
                                            ----------------     ----------------        ----------------     ---------------


DEFICIT, END OF PERIOD                            29,852,000           33,873,000              29,852,000          33,873,000

LOSS PER SHARE (Note 11)                        $       0.02         $       0.08            $       0.03        $       0.13
                                            ================     ================        ================     ===============


Weighted Average Number of
Common Shares Outstanding                         10,875,705           17,813,788              10,875,705          17,813,788
                                            ================     ================        ================     ===============

</TABLE>


  The accompanying notes are an integral part of these financial statements.   

                                      -6-

<PAGE>



                    INTERNATIONAL PRECIOUS METALS CORPORATION
                      CONSOLIDATED STATEMENTS OF CASH FLOW
                              (In Canadian Dollars)
                                   (Unaudited)

<TABLE>

<CAPTION>
                                                                                           Six months ended
                                                                                June 30,                      June 30,
                                                                                  1996                          1997
                                                                            -----------------             -----------------
<S>                                                                            <C>                             <C>             
NET INFLOW(OUTFLOW) OF CASH RELATED TO
  THE FOLLOWING ACTIVITIES

     OPERATING:
      Loss for the period from continuing operations
       (less write-off of mineral exploration expenditures)                    $     (315,000)                 $ (2,232,000)
      Items not affecting cash                                                       (638,000)                      154,000
                                                                            -----------------             -----------------
                                                                                     (953,000)                   (2,078,000) 
                                                                            -----------------             -----------------

      Changes in non-cash working capital components affecting operations:
      Prepaids, deposits and accounts receivable                                       98,000                      (598,000)
      Accounts payable and accrued charges                                           (284,000)                      637,000
                                                                            -----------------             -----------------
                                                                                     (186,000)                       39,000
                                                                            -----------------             -----------------

      Mineral exploration expenditures                                             (1,747,000)                   (2,324,000)
                                                                            -----------------             -----------------
      Cash used in continuing operations                                           (2,886,000)                   (4,363,000)
      Discontinued petroleum operations                                                     -                             -
                                                                            -----------------             -----------------
     Cash used in operating activities                                             (2,886,000)                   (4,363,000)

     INVESTING:
      Related party advances                                                         (409,000)                      (83,000)
      Furniture, fixtures, and capital assets                                        (952,000)                     (752,000)
      Acquisition of mineral rights to property                                             -                    (1,105,000)
                                                                            -----------------             -----------------
     Cash (used in) provided by investing activities                               (1,361,000)                   (1,940,000)
                                                                            -----------------             -----------------

     FINANCING:
      Debentures                                                                            -                      (547,000)
      Issue of shares for cash                                                      7,844,000                     6,757,000
      Costs of issuing shares                                                        (357,000)                            -
      Vehicle and equipment loans                                                           -                      (160,000)
                                                                            -----------------             -----------------
     Cash provided by financing activities                                          7,487,000                     6,050,000
                                                                            -----------------             -----------------

INCREASE (DECREASE) IN CASH DURING PERIOD                                           3,240,000                      (253,000)
CASH, BEGINNING OF PERIOD                                                             390,000                     2,644,000
                                                                            -----------------             -----------------
CASH, END OF PERIOD                                                              $  3,630,000                  $  2,391,000
                                                                            =================             =================

</TABLE>

  The accompanying notes are an integral part of these financial statements.   

                                      -7-

<PAGE>



                    INTERNATIONAL PRECIOUS METALS CORPORATION
      CONSOLIDATED STATEMENTS OF DEFERRED MINERAL EXPLORATION EXPENDITURES
                              (In Canadian Dollars)
                                   (Unaudited)

<TABLE>

<CAPTION>
                                                                            Six months ended
                                                                   June 30,               June 30,
                                                                    1996                    1997
                                                                -------------         ---------------
<S>                                                             <C>                     <C>
PROPERTY
--------

       United States of America
       ------------------------

                    Engineering & Consulting                    $  1,698,000            $   1,355,000

                    Exploration                                            -                  821,000

                    Option Fees                                        4,000                        -

                                                                ------------            -------------

                      Total                                     $  1,702,000            $   2,176,000
                                                                ------------            -------------


       Canada
       ------------

                    Engineering & Consulting                               -                        -

                    Exploration                                       45,000                  148,000

                    Option Fees                                            -                        -

                                                                ------------            -------------

                      Total                                           45,000                  148,000
                                                                ------------            -------------

                    Grand Total                                 $  1,747,000            $   2,324,000


       Cumulative Mineral Property Costs
       Deferred, beginning of period                               5,851,000               13,049,000
                                                                ------------            -------------

       Cumulative Mineral Property Costs
       Deferred, end of period                                  $  7,598,000             $  15,373,000
                                                                ============             =============


</TABLE>

  The accompanying notes are an integral part of these financial statements.   

                                      -8-


<PAGE>



                    INTERNATIONAL PRECIOUS METALS CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



1.   Presentation of Interim Information

     In  the  opinion  of  the  management  of  International   Precious  Metals
     Corporation  (the  "Company"),   the   accompanying   unaudited   condensed
     consolidated financial statements include all normal adjustments considered
     necessary to present fairly the financial position as of June 30, 1997, and
     cash flows and the results of operations  for the six months ended June 30,
     1996 and 1997.  Interim results are not  necessarily  indicative of results
     for a full year.

     The condensed  consolidated financial statements and notes are presented as
     permitted by Form 10-Q and do not contain certain  information  included in
     the Company's  audited  financial  statements  and notes for the year ended
     December 31, 1996.


2.   Business Organization

     The  Company is  amalgamated  under the laws of the  Province  of  Ontario,
     Canada.  In 1995 the Company changed its name from  International  Platinum
     Corporation to International  Precious Metals  Corporation.  On October 23,
     1995, The Company  consolidated  (reverse split) its issued and outstanding
     capital by changing  each common share into  one-tenth  of a common  share.
     Information  pertaining to share  capital,  options,  warrants and loss per
     share for 1996 and 1997 have been  stated on a post  consolidated  (reverse
     split) basis.


3.   Continuation of business

     These  consolidated  financial  statements  have been  prepared  on a going
     concern basis which assumes the realization of assets and the  satisfaction
     of liabilities and commitments in the normal course of business.

     The Company is a development  stage corporation and as all of the Company's
     properties are presently in the exploration  stage, the continuation of the
     Company as a going  concern is dependent  upon its ability to obtain equity
     financing  to  permit  the  further  exploration  and  development  of  its
     properties.

     As well,  it is the  intention of the  Company's  management  to seek joint
     venture partners for several of the Company's  properties.  To achieve this
     end, management has prepared detailed reports on each of the properties and
     engaged independent consultants to market the Company's properties.

     The consolidated financial statements do not give effect to adjustments, if
     any,  that may be  necessary  should the Company be unable to continue as a
     going concern and be required to realize its assets and



                                       -9-



<PAGE>



     liquidate its  liabilities in other than the normal course of business.  In
     this  event,  the  amounts  realized  on  disposal  of  its  assets  may be
     substantially less than their recorded amounts.


4.   Significant accounting policies

     (a)  Basis of financial statement presentation

          The  accompanying  consolidated  financial  statements are prepared in
          accordance  with  the  accounting  principals  generally  accepted  in
          Canada. The major difference  between these accounting  principles and
          those generally  accepted in the United States is discussed in Note 11
          of the Notes to the Consolidated Financial Statements. These financial
          statements  include the accounts of its  subsidiary,  1020632  Ontario
          Inc.  (Georgia  Lake).  Additionally,  the accounts of  Hellens-Eplett
          Mining Inc.,  Jamestown Platinum (Pty) Limited and South Africa Mining
          (Pty)  Limited,   corporate  exploration  joint  ventures,  have  been
          included using the proportionate consolidation method. The exploration
          operations of these joint ventures were discontinued in 1995.

     (b)  Deferred mineral exploration expenditures

          All direct expenditures  related to the exploration and development of
          mineral properties in which the Company has a continuing  interest are
          deferred,  pending the determination of the economic  viability of the
          project.  Costs  related  to  projects  terminated  or  abandoned  are
          written-off;  costs related to successful projects will be capitalized
          and amortized  over the estimated life of the projects using a unit of
          production method.

     (c)  Deferred premium on flow through shares

          The premium received on flow-through  shares,  representing the excess
          of the price paid by an  investor  for  flow-through  shares  over the
          market value  stipulated  in the offering  memorandum  with respect to
          such shares,  has been deferred and is written-off or amortized as the
          related  projects on which the  flow-through  funds were  expended are
          written-off or amortized.

     (d)  Amortization

          Capital assets are stated at cost.  Amortization  is recorded at rates
          calculated  to charge the cost of vehicles  and office  equipment  and
          fixtures to operations over their estimated useful lives of five years
          on a straight  line  basis.  Amortization  relating to  machinery  and
          equipment  used  directly  in the  exploration  of  projects  has been
          deferred.  Maintenance  and  repairs  are  charged  to  operations  as
          incurred.  Gains  and  losses  on  disposals  are  calculated  on  the
          remaining  net book  value at the time of  disposal  and  included  in
          income.

     (e)  Foreign currency translation





                                      -10-



<PAGE>


          Monetary  assets  and  liabilities  in  foreign  currencies  have been
          translated into Canadian  dollars at the exchange rates  prevailing at
          the balance  sheet date.  Other  assets and  liabilities,  revenue and
          expenses  arising  from  foreign  currency   transactions   have  been
          translated  at  the  exchange  rate  prevailing  at  the  date  of the
          transaction.  Gains and losses arising from these translation policies
          are included in income.

5.   Other assets                                              June 30
                                                               -------
     Related parties                                     1996          1997
                                                         ----          ----
     -  Advances ( Note 9)                             $257,000     $1,136,000

     -  Investment in common shares, at cost
           Namibian Copper Mines Inc., 1% interest      409,000        409,000

     Prepaids, deposits and sundry receivables          369,000        476,000
                                                        ----------------------

                                                     $1,035,000     $2,021,000
                                                     =========================

The advances to related parties are unsecured,  non-interest bearing and have no
specific terms of repayment.

6.   Deferred mineral exploration expenditures

     Presented  below is a  discussion  of the  status of each of the  Company's
significant mineral properties.

     (a)  Black Rock and Black Rock Extended

          The Company holds rights to  unpatented  mining claims on federal land
          administered   by  the  U.S.   Bureau  of  Land   Management   located
          approximately  92 miles west of  Phoenix,  Arizona  (the  "Black  Rock
          Property"). On May 9, 1997, the Company entered into an agreement with
          Omega Investment  Corporation,  an affiliate of Phoenix  International
          Mining, Inc.("Omega"), pursuant to which International Precious Metals
          of Arizona ("IPMA"), a wholly owned subsidiary of the Company,  agreed
          to  pay  an  aggregate  of  US$27,000,000  to  Omega,   consisting  of
          US$17,000,000  in cash and  1,000,000  common  shares  of the  Company
          valued at  US$10.00  per share,  to  acquire  all of the rights to the
          unpatented  mining claims comprising the Black Rock Property which the
          Company does not  presently  own. As the first two payments  under the
          Purchase Agreement,  IPMA and the Company on May 9, 1997 paid to Omega
          US$500,000  plus 4,000,000  common shares (of which  3,000,000  common
          shares will be held by Omega to secure the  obligation of IPMA and the
          Company to make the second payment).  Pursuant to an agreement made by
          the  Company,  Omega  and IPMA as of July  29,  1997  (the  "Extension
          Agreement"),  (i) the last date for the second  payment  was  extended
          from July 15, 1997 to October 15, 1997, (ii) the Company and IPMA will
          pay to Omega  US$5,000  plus a number  (initially  500 and  increasing
          periodically  to 1,500 as  specified  below) of  common  shares of the
          Company  per day for each day  from  July 15,  1997 to the date of the
          second payment and (iii) the



                                      -11-



<PAGE>


          Company  and IPMA  will  issue  and  transfer  to Omega an  additional
          3,000,000  common  shares of the  Company as  security  for the second
          payment.  The number of common shares payable is 500 for each day from
          July 15 through  August 15,  1,000 for each day from August 16 through
          September 15, and 1,500 for each day from September 16 through October
          15. Upon receipt of the second  payment,  Omega is obligated to return
          6,000,000  common shares of the Company.  (The Extension  Agreement is
          filed as an  exhibit  to this  Report  and is  incorporated  herein by
          reference,  and the descriptions of the Extension Agreement herein are
          qualified by reference to the full text of the  Extension  Agreement.)
          The  Company  expects  to raise cash for the  second  payment  through
          private  placements of its  securities,  but its ability to do so will
          depend on factors  beyond its control,  including  economic and market
          conditions.

          In May 1997,  the Company  acquired  rights to an additional 40 square
          miles north of and  contiguous  to the Black Rock  Property by staking
          and filing lode claims  (each  relating to a 40-acre  area) and placer
          claims (each  relating to a 160-acre  area) with respect to that area.
          Aerial   photography,   regional  and  detailed   geological  mapping,
          sampling,  a geophysical  survey and  compilation  of existing and new
          data is currently under way to generate potential drill targets in the
          area.

          The Company is  continuously  striving  to  optimize  its gold and PGM
          recovery  techniques and advancing to large-scale  testing.  This test
          work is also  invaluable  with regard to  establishing a head grade of
          the Black Rock Property  mineralization.  To that end, the Company has
          under  development  fire assay  procedures  on raw Black Rock Property
          samples,  gravity  concentrates  and  evaporative  residues from leach
          solutions.  The fire assay  development is yielding  positive  results
          with gold and PGM produced as physical  metal prills.  Non-destructive
          elemental  determination has been used to verify elemental composition
          of the metal prills  recovered by fire assay  procedures.  Examples of
          successful  fire assay  procedures for gold,  platinum and rhodium are
          shown in the electron  microphotographs  and  elemental  spectrographs
          (plotted  via  Emission  Dispersion  Spectroscopy).  Fire  assay  will
          eventually  be applied  toward the Black  Rock  Property  as the "yard
          stick" by which all  recovery  procedures  will be measured  regarding
          amenability and efficiency.

          IPM has launched  further  drilling and exploration  work on the Black
          Rock  Property to more fully and  completely  define the extent of the
          precious metal deposit.  The new exploration  drilling began March 17,
          1997. The reverse  circulation  drilling,  on one kilometer  spacings,
          drilling to bedrock, will test material in areas previously unexplored
          by the  Company  on the  property.  This  drilling  will also  provide
          important data on the surrounding eight square kilometers  believed to
          make up the larger portion of the observed geochemical anomaly.

     (b)  Big Trout Lake

          The Company holds an interest in 223 claims,  totaling 8,920 acres, on
          a  property  located  near Big  Trout  Lake in  northwestern  Ontario,
          Canada,  approximately  400 miles north of Thunder Bay. An expenditure
          of  approximately  $200,000 is  necessary to keep the property in good
          standing. Since 1990, the company has limited its work on the property
          because of financial  constraints.  Joint  venture  partners are being
          sought to assist with the exploration funding for this prospect.




                                      -12-



<PAGE>



     (c)  Eagle Lake

          The Company holds 327 claims,  consisting of 10,320 acres,  located 20
          miles west-southwest of Dryden,  Ontario,  Canada. All of these claims
          are in good standing at least until 1999.  Drilling from lake ice, 600
          meters of core drilling was  completed in early 1997.  Each of the two
          drill  holes  intersected  massive  sulfides up to 10 meters in width,
          with no visible  precious  metals.  One  distinct  zone of  sphalerite
          (zinc)  with a true width of 0.9 meters was also  intersected.  Assays
          are yet to be received. The expenditures upon these claims will enable
          them to be held in good standing.

          The Company has done  limited  work on the  property  since 1990,  but
          still holds an interest in the ground and, subject to the availability
          of funds, plans to explore the property when conditions are favorable.

     (d)  Georgia Lake

          The Company holds 14 claims  covering  710.7 acres located at the west
          end of Georgia  Lake,  144  kilometers  northeast  of Thunder  Bay, in
          northwestern  Ontario,  Canada.  The claims  are held  under  fourteen
          10-year  leases  which  are in good  standing  until  June 1, 2001 and
          thirteen additional leases which are in default. This property is held
          by the Company as a strategic  reserve as it expects lithium to become
          of interest  and value with the advent of electric  autos.  Subject to
          the  availability  of funds the Company  intends to undertake  further
          exploration on the property  through  additional  geological and other
          research  and  analysis,  and,  to the  extent  consistent  with  this
          analysis, the design and implementation of a core drilling program.

     (e)  Gold Hill

          In 1995, the Company entered into a four year agreement for the rights
          to explore the Gold Hill property.  Additionally,  within the terms of
          the  agreement the Company may purchase the rights to the property for
          US$1,000,000

7.   Capital assets

<TABLE>

<CAPTION>
                                                        Accumulated
                                                       amortization
                                            Cost      at June 30, 1997   June 30, 1997
                                       -----------------------------------------------
<S>                                     <C>                <C>             <C>        
Machinery and equipment                 $   719,000        $   128,000     $   590,000
Vehicles                                    593,000             84,000         590,000
Office Equipment and fixtures               648,000            119,000         528,000
                                       -----------------------------------------------

                                        $ 1,960,000        $   331,000      $1,627,000
                                       ===============================================
</TABLE>


     At December 31, 1996,  the costs of the Company's  machinery and equipment,
     vehicles  and  office   equipment   and   fixtures,   net  of   accumulated
     amortization, were $337,000, $311,000 and $382,000, respectively.



                                      -13-



<PAGE>



8.   Debentures

     The Company has not paid the amount outstanding on a debenture of $ 250,000
     by its due date and is  negotiating  the  settlement  of this amount.  This
     amount remains outstanding at June 30, 1997.

     Relating  to the  Black  Rock  properties,  the  Company  issued in 1995 to
     Phoenix  International  Mining (Phoenix")  debentures  totaling  $3,274,000
     (US$2,400,000).  These  debentures were  convertible into common shares and
     bear interest  starting in 1996. During 1996, the Company repaid $2,726,000
     (US$2,000,000)of  debentures  using cash of $2,026,000  (US$1,500,000)  and
     issuing 303,000 common shares for $700,000.

     Accounts payable includes $186,000 in unpaid debenture interest,  including
     interest on a debenture discharged in 1994.

9.   Related party transactions

     Other  assets  (Note  5)  relate  to  amounts  from  and   investments   in
     corporations which have senior management in common with the Company.

     In addition to items disclosed separately in the financial statements,  the
     following  transactions  took place in the normal  course of business  with
     related  parties.  These  transactions are measured at the exchange amount,
     which is the  amount  of  consideration  established  and  agreed to by the
     related parties.

     (a)  During the quarter ended June 30, 1997, the Company incurred legal and
          secretarial  fees  provided by  directors  and senior  officers of the
          Company  amounting  to $55,000 ( 1996  $12,300).  These fees have been
          charged to administrative expense.

     (b)  During the quarter ended June 30, 1997,  consulting  fees were charged
          by directors and senior officers of the Company  amounting to $139,000
          (1996  $90,000).  Of the total fees,  $93,000 (1996  $64,000) has been
          charged  to   administrative   expenses  and  $46,000  (1996  $26,000)
          pertaining to time spent  overseeing  the Black Rock  exploration  has
          been  included  in  the   Company's   deferred   mineral   exploration
          expenditures.

10.  Contingencies

     (a)  Interest on debenture

          In 1994, the Company  negotiated a settlement of a $500,000  debenture
          plus a portion of interest  owing.  As of June 30, 1997, the amount of
          the interest  owing is  currently in dispute due to alternate  methods
          used in interest calculation.  The Company is negotiating a settlement
          of this  dispute  and an  additional  amount  of  $75,000  may  become
          payable.




                                      -14-



<PAGE>



     (b)  Recovery of deferred mineral exploration expenditures

          The recoverability of deferred  expenditures is dependent upon various
          factors, including the existence of economically recoverable reserves,
          the ability to obtain the necessary financing to complete  development
          of  future  profitable   operations  or  profitable  disposal  of  the
          properties.   Pending  the  profitable  operation  or  disposal  of  a
          property,  cash requirements must be provided by future debt or equity
          financing.

     (c)  The Company is obligated to make a payment of  US$16,500,000  to Omega
          and  to  pay to  Omega  US$5,000  plus a  number  (initially  500  and
          increasing  periodically to 1,500) of common shares of the Company per
          day for each day from July 15, 1997 until such payment is made.  Omega
          holds  6,000,000  common  shares of the  Company as  security  for the
          performance of the obligations of the Company and IPMA. See Note 6(a).

11.  Differences between accounting  principles generally accepted in Canada and
     those in the United States

     The  financial  statements  are  prepared  in  accordance  with  accounting
     principles generally accepted in Canada. In these financial statements, the
     major  differences  between  accounting  principles  generally  accepted in
     Canada(  "Canadian GAAP") and those in the United States ("US GAAP") are as
     follows:

     (a)  The Company  follows the practice of charging  share issue cost to the
          deficit  account.  Under U.S. GAAP, such costs would be charged to the
          share capital  account.  Although this  difference does not affect net
          shareholders'  equity, under U.S. GAAP the Company's share capital and
          deficit accounts would be reduced as indicated below.

     (b)  The Company  follows the  practice  of  accounting  for the premium on
          flow-through  shares as a  deferred  credit  which is  written-off  or
          amortized  as the  related  project  expenditures,  on which  the flow
          through funds are expended,  are written off or amortized.  Under U.S.
          GAAP, this premium would be treated as a reduction of deferred mineral
          exploration expenditures. Although this difference does not affect net
          loss, the deferred premium on flow-through  shares would be eliminated
          and  deferred  mineral  exploration  expenditures  would be reduced as
          indicated below.

     (c)  A business  combination  in 1986 was  accounted for using the purchase
          method of accounting. Under U.S. GAAP, this business combination would
          have been  accounted  for as a pooling of interests.  This  difference
          does not affect net loss for the six  months  ended June 30,  1996 and
          1997. The deferred exploration expenditures would have been reduced by
          $605,000 as at June 30, 1996 and 1997, and the Company's share capital
          account  would have been  reduced by  $676,000 as at June 30, 1996 and
          1997.

     (d)  U.S.  GAAP does not follow the  practice of  deferral of period  costs
          such as certain  administrative  expenses.  This difference would have
          increased  the  net  loss  and  decreased  the  deferred   exploration
          expenditures  by $290,000 for the year ended  December 31, 1996.  This
          difference does not affect net loss for the six months ending June 30,
          1996 and 1997.



                                       -15-



<PAGE>




<TABLE>

<CAPTION>

                                                                          June 30
                                                                          -------
(a)      Balance Sheet                                               1996             1997
                                                                     ----             ----
         <S>                                                     <C>               <C>         
         Deferred mineral exploration expenditures
             Under Canadian GAAP                                 $ 7,598,000       $16,478,000
             Premium on flow-through shares - (b) above             (464,000)         (464,000)
             Pooling - (c) above                                    (605,000)         (605,000)
             Period costs - (d) above                         ---------------------------------

             Under U.S. GAAP                                     $ 6,529,000       $15,409,000
                                                              =================================


         Deferred premium on flow through shares
             Under Canadian GAAP                                 $   464,000       $   464,000
              Applied to deferred mineral exploration
                expenditure - (b) above                             (464,000)      $  (464,000)
                                                              ---------------------------------

             Under U.S. GAAP                                         $     -            $    -
                                                              =================================


             Share capital
             Under Canadian GAAP                                 $35,842,000       $54,347,000
             Share issue Costs - (a) above                                 -          (536,000)
             Pooling - (c) above                                    (676,000)         (676,000)
                                                              ---------------------------------

             Under U.S. GAAP                                     $35,166,000       $53,135,000

                                                              =================================

         Deficit
             Under Canadian GAAP                                 $29,000,000       $33,874,000
             Share issue costs - (a) above                                 -          (536,000)
             Pooling - (c) above                                     (71,000)         (71,000)
             Period costs - (d) above                         ---------------------------------

             Under U.S. GAAP                                     $28,929,000       $33,267,000
                                                              =================================


</TABLE>





                                      -16-



<PAGE>




(b)  Statement of loss and deficit:
                                                          June 30
                                                          -------
                                                      1996         1997
                                                      ----         ----

   Net loss for the period under Canadian GAAP      $350,000     $2,232,000
   Pooling Adjustment - (c) above                          -              -
   Period cost adjustment - (d) above
                                                   ------------------------
   Net loss for the period under U.S. GAAP          $350,000     $2,232,000
                                                   ========================
   Loss per share (Note 9) - under U.S. GAAP            $.01           $.05
                                                        ====           ====


12.  Subsequent Events

     Pursuant to the Extension Agreement made by the Company,  Omega and IPMA as
     of July 29, 1997,  (i) the last date for payment by the Company and IPMA of
     US$16,500,000 to Omega was extended from July 15, 1997 to October 15, 1997,
     (ii)  the  Company  and  IPMA  will  pay to  Omega  US$5,000  plus a number
     (initially  500 and increasing  periodically  to 1,500) of common shares of
     the Company per day for each day from July 15, 1997 to the date of the such
     payment and (iii) the Company and IPMA will issue and  transfer to Omega an
     additional  3,000,000  common  shares of the Company as  security  for such
     payment. See Note 6 (a).


ITEM 2: MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS

The  following  discussion  should  be read in  conjunction  with the  Company's
Consolidated Financial Statements and Notes thereto, included elsewhere herein.

Liquidity, Capital Resources and Limited Operations

From  inception,  July 22, 1980,  the Company has financed  virtually all of its
exploration  activities through various equity financings,  which continue to be
the Company's major source of capital. Interest income realized from excess cash
balances has been applied to the Company's administrative costs. Exploration for
precious  metals  continues  to be the  Company's  major  activity.  The Company
acquires  its  interests  in various  properties  either by its own grass  roots
exploration  efforts, or by participation in the exploration of properties owned
by others,  in which case the Company may earn an interest in the  properties by
the  expenditure of its funds on the properties or by making payments or issuing
its shares to the property  owner.  Conversely,  the Company may allow others to
earn an  interest in its  properties  by the  expenditure  of their funds on the
exploration of the Company's properties.



                                      -17-



<PAGE>



In 1996,  proceeds  from  shares  issued  totaled  $12,841,000  and  exploration
activities resulted in expenditures of $3,290,000. At June 30, 1997, the Company
has cash resources of approximately $2,391,000.

Of the  20,768,263  common shares of the Company  outstanding  on June 30, 1997,
459,473 were "flow-through"  shares.  "Flow-through" shares are common shares of
the Company issued to investors under the terms of agreements which provide that
the   funds    received    will   be   expended    on   Canadian    Explorations
Expenditures("CEE"),  as  defined  in  the  Income  Tax  Act  Canada,  and  that
unexpended  funds will be held in trust.  The CEE so incurred are deductible for
income tax purposes only by the shareholder and, accordingly,  are not available
to the Company.

At June 30,  1997,  the Company  had a working  capital  surplus of  $3,142,000.
Current assets were $4,412,000,  compared to current  liabilities of $1,270,000,
for a current  ratio of 4 to 1. This compares to current  assets of  $3,984,000,
and current  liabilities  of  $1,420,000  at December 31,  1996,  resulting in a
current ratio of 3 to 1. As discussed in Note 6(a),  the Company is obligated to
make a payment of  US$16,500,000  on or before  October  15, 1997 and expects to
raise cash for such payment  through private  placement of its securities. Other
than such payment,  the Company's  liquidity  needs are generally being met from
its available cash resources.

The Company in 1996 made  non-interest  bearing  loans to Namibian  Copper Mines
Inc.("Namibian")  to cover the  operating  expenses of Namibian,  including  the
salaries of its  executive  officers.  Namibian is  controlled by Alan Doyle and
shares  office  space with the  Company.  Several of the  executive  officers of
Namibian also are executive officers of the Company.  At June 30, 1997, Namibian
owed US$451,000 to the Company an account of such loans.  Failure of Namibian to
repay such  loans  would have a negative  effect on the  liquidity  and  capital
resources of the Company.


The Company is in default on an outstanding  debenture in the amount of $250,000
and is  negotiating  with  the  holder  of the  debenture.  A  failure  of  such
negotiations could have a negative effect on the liquidity and capital resources
of the Company.

Results of Operations

1997 Compared to 1996
---------------------

The loss for the six months  ended June 30, 1997 of  $2,232,000  was larger than
the loss for 1996 of $315,000  due  primarily  to  increases  in  administrative
expenses.

During 1996,  the Company:  (i) issued  2,484,000  common  shares under  private
placements  ranging  from $3.00 to $3.45 per share,  resulting  in  proceeds  of
$8,244,000;  (ii) issued  2,103,000  common  shares  pursuant to the exercise of
warrants at prices ranging from $1.00 to $3.80 per share for cash  consideration
of $3,004,000;  (iii) issued 336,000 common shares under private  placements and
pursuant  to the  exercise at prices  ranging  from $1.20 to $3.00 per share for
consideration of $792,000 to retire debentures and interest; (iv) issued 424,475
common shares  pursuant to the exercise of options at prices  ranging from $1.45
to $3.28 per share for cash consideration of $773,000,  and 15,834 common shares
at prices  ranging  from $1.45 to $2.50 per share  pursuant  to the  exercise of
options for services valued at $27,000;  and issued warrants providing the right
to purchase of



                                      -18-



<PAGE>



2,700,000  common shares at prices  ranging from US$2.82 to US$4.40 per share in
connection with the private placements.

During  1996  the  Company  repaid  US$2,000,000  of  debentures  of a total  of
US$2,400,000 of debentures issued to Phoenix in 1995.

Administration  costs of $2,166,000  for the six months ended June 30, 1997 have
increased  from  $261,000  for the six  months  ended June 30,  1996,  primarily
because of  increased  consulting  fees and  increased  compensation  and office
expenses relating to a major expansion of exploration activities by the Company.

Impact of Inflation on the Company

The  Company has no control  over the prices of the  products in which it deals,
i.e.,  precious metals.  The prices of these commodities are determined by world
markets and are subject to volatile fluctuation over short periods of time.

To date,  the major  impact of inflation on the Company has been with respect to
costs which have increased  moderately in recent years in North  America,  where
most of the Company's activities take place.





                                      -19-



<PAGE>



                           PART II - OTHER INFORMATION


Item 4: Submission of Matters to a Vote of Security Holders

(a)  The Company held its Annual Meeting of Shareholders on June 20, 1997.

(b)  Under the Company's By-Laws as in effect at the Meeting, no ballot of votes
     was required  unless either (i) at least 5% of the proxies  submitted  were
     against a matter proposed at the Meeting or (ii) a shareholder  requested a
     ballot. In accordance with the By-Laws,  all of the matters described below
     were approved at the Meeting by a show of hands, and no ballot was taken.

     1.   To elect the  following  five  Directors of the Company to serve for a
          one-year term.

            John Blaikie
            Alan D. Doyle
            Russell French
            VLR (Lee) Furlong
            David Kornhauser

     2.   To ratify the appointment of Stern Cohen,  Chartered  Accountants,  as
          independent  auditors  of the  Company  for  the  fiscal  year  ending
          December 31, 1997.

     3.   To adopt new By-Laws for the Company.


Item 6: Exhibits and reports on Form 8-K

     (a)  The following exhibits are filed with this report:


          10(bb)    Amended Property  Purchase  Agreement dated as of July 29,
                    1997 among the Company,  International  Precious Metals of
                    Arizona and Omega International Corporation

          27        Financial Data Schedule

     (b)  No reports were filed on Form 8-K this quarter










                                      -20-



<PAGE>



                              SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.


                                     INTERNATIONAL PRECIOUS METALS CORPORATION



August 14, 1997
                                     /s/ Billie J. Allred
                                     ----------------------------------
                                     Billie J. Allred
                                     Chief Financial Officer


August 14, 1997
                                     /s/Tanya Nelson
                                     ----------------------------------
                                     Tanya Nelson
                                     Chief Accounting Officer



                                      -21-



<PAGE>


                    INTERNATIONAL PRECIOUS METALS CORPORATION
                        Quarterly Report on Form 10-Q For
                         The Quarter Ended June 30, 1997


                                  EXHIBIT INDEX


Exhibit      Description                                                   Page
-------      -----------                                                   ----

10(bb)       Amended Property Purchase Agreement dated as of 
             July 29, 1997 among the Company, International 
             Precious Metals of Arizona and Omega International 
             Corporation

27           Financial Data Schedule