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 September 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 20,948,534 outstanding common shares as of
                                November 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>

Currency

     All dollar amounts set forth in this report are in Canadian dollars, except
where otherwise indicated.  The following table sets forth the rates of exchange
for (i)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>
                                      Nine Months
                                         Ended
                                        Sept 30                      Year ended December 31,
                                         1997         1996           1995          1994          1993           1992
                                         ----         ----           ----          ----          ----           ----
<S>                                   <C>          <C>           <C>           <C>           <C>            <C>     
Rate at end of period                 $0.7234      $0.7301       $ 0.7323      $ 0.7128      $ 0.7544       $ 0.7865
Average rate during period            $0.7253       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 November 7, 1997,  the noon buying rate for $1.00  Canadian was $.7095 United
States

2


<PAGE>

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

<TABLE>
<CAPTION>
                                                                             December 31,        September 30
                                                                                 1996                1997
                                                                           -----------------   ------------------
<S>                                                                            <C>                  <C> 
                                     ASSETS
CURRENT ASSETS

   Cash                                                                         $ 2,644,000            $ 815,000
   Other assets (Note 5)                                                          1,340,000            2,218,000
                                                                           -----------------   ------------------
   Total current assets                                                           3,984,000            3,033,000
                                                                           -----------------   ------------------

OTHER ASSETS

   Acquisition of mineral rights (Note 6a)                                        -                   38,627,000
   Deferred mineral exploration expenditures (Note 6)                            13,050,000           17,116,000
   Capital assets (Note 7)                                                        1,030,000            1,822,000
                                                                           -----------------   ------------------
   Total other assets                                                            14,080,000           57,565,000
                                                                           -----------------   ------------------
   Total assets                                                                $ 18,064,000         $ 60,598,000
                                                                           =================   ==================


                               LIABILITIES
CURRENT LIABILITIES

   Accounts payable and accrued charges                                           $ 553,000          $ 1,514,000
   Accrued interest payable                                                               -              443,000
   Debentures (Note 8)                                                              798,000              251,000
   Vehicle and equipment loans                                                       69,000              216,000
                                                                           -----------------   ------------------
   Total current liabilities                                                      1,420,000            2,424,000
                                                                           -----------------   ------------------

LONG TERM LIABILITIES

   Vehicle and equipment loans                                                      231,000                    -
   Deferred premium on flow-through shares                                          464,000              464,000
                                                                           -----------------   ------------------
   Total long-term liabilities                                                      695,000              464,000
                                                                           -----------------   ------------------
   Total liabilities                                                              2,115,000            2,888,000
                                                                           -----------------   ------------------

CONTINGENCIES AND COMMITMENTS (Note 10)                                                   -           24,068,000

SHAREHOLDERS' EQUITY

   Share capital (Note 10)                                                       47,590,000           68,733,000
   Deficit                                                                      (31,641,000)         (35,091,000)
                                                                           -----------------   ------------------
   Total stockholders' equity                                                    15,949,000           33,642,000
                                                                           -----------------   ------------------
   Total liabilities and stockholders' equity                                  $ 18,064,000         $ 60,598,000
                                                                           =================   ==================

</TABLE>


3




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


<TABLE>
<CAPTION>

                                                   Three months ended                         Nine months ended
                                           September 30,       September 30,          September 30,       September 30,
                                                1996                1997                  1996                 1997
                                          -----------------   -----------------     ------------------   -----------------
<S>                                             <C>                 <C>                    <C>                 <C>      
INCOME

   Interest Income                                $ 39,000            $ 46,000               $ 74,000           $ 146,000
                                          -----------------   -----------------     ------------------   -----------------

   Total Income                                     39,000              46,000                 74,000             146,000
                                          -----------------   -----------------     ------------------   -----------------


EXPENSES

   Debenture interest                                6,000                   -                      -                   -
   Administrative                                  329,000           1,159,000                728,000           3,337,000
   Amortization                                     43,000             105,000                      -             259,000
                                          -----------------   -----------------     ------------------   -----------------

   Total expenses                                  378,000           1,264,000                728,000           3,596,000
                                          -----------------   -----------------     ------------------   -----------------

LOSS FOR THE PERIOD                                339,000           1,218,000                654,000           3,450,000

DEFICIT, BEGINNING OF PERIOD                    29,496,000          33,337,000             29,181,000          31,105,000

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


DEFICIT, END OF PERIOD                          30,191,000          35,091,000             30,191,000          35,091,000

LOSS PER SHARE (Note 11)                            $ 0.03              $ 0.07                 $ 0.06              $ 0.19
                                          =================   =================     ==================   =================


Weighted Average Number of
Common Shares Outstanding                       10,875,705          17,886,423             10,875,705          17,886,423
                                          =================   =================     ==================   =================
</TABLE>


4

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


<TABLE>
<CAPTION>
                                                                                         Nine months ended
                                                                            September 30,                September 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)                      $ (654,000)                 $(3,450,000)
      Debenture and interest converted for common shares                                  -                     (525,000)
      Items not affecting cash                                                   (2,811,000)                     259,000
                                                                           -----------------            -----------------
                                                                                 (3,465,000)                  (3,716,000)
                                                                           -----------------            -----------------
      Changes in non-cash working capital components affecting 
        operations:
      Prepaids, deposits and accounts receivable                                   (217,000)                     113,000
      Accounts payable and accrued charges                                           46,000                    1,159,000
                                                                           -----------------            -----------------
                                                                                   (171,000)                   1,272,000
                                                                           -----------------            -----------------

      Mineral exploration expenditures                                           (2,407,000)                  (4,066,000)
                                                                           -----------------            -----------------
      Cash used in continuing operations                                         (2,578,000)                  (2,794,000)
      Discontinued petroleum operations                                                   -                            -
                                                                           -----------------            -----------------
     Cash used in operating activities                                           (6,043,000)                  (6,510,000)

     INVESTING:
      Investment in related companies                                                     -                   (1,359,000)
      Related party advances                                                        (20,000)                     368,000
      Furniture, fixtures, and capital assets                                    (1,077,000)                  (1,051,000)
      Acquisition of mineral rights to property                                           -                  (38,627,000)
                                                                           -----------------            -----------------
     Cash (used in) provided by investing activities                             (1,097,000)                 (40,669,000)
                                                                           -----------------            -----------------

     FINANCING:
      Debentures                                                                          -                     (547,000)
      Loan for acquisition of mineral rights                                              -                   23,625,000
      Issue of shares for cash (net of security deposit)                          8,872,000                   21,668,000
      Costs of issuing shares                                                      (357,000)                           -
      Vehicle and equipment loans                                                         -                      604,000
                                                                           -----------------            -----------------
     Cash provided by financing activities                                        8,515,000                   45,350,000
                                                                           -----------------            -----------------

INCREASE (DECREASE) IN CASH DURING PERIOD                                         1,375,000                   (1,829,000)
CASH, BEGINNING OF PERIOD                                                           480,000                    2,644,000
                                                                           -----------------            -----------------
CASH, END OF PERIOD                                                             $ 1,855,000                    $ 815,000
                                                                           =================            =================
</TABLE>

5

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



<TABLE>
<CAPTION>
                                                                    Nine months ended
                                                     September 30,                    September 30,
                                                          1996                             1997
                                                  ---------------------            ---------------------
<S>                                                        <C>                             <C>
PROPERTY
--------

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

                 Engineering & Consulting                  $ 2,354,000                      $ 3,115,000

                 Exploration                                         -                          762,000

                 Option Fees                                     4,000                           21,000
                                                  ---------------------            ---------------------

                   Total                                   $ 2,358,000                      $ 3,898,000
                                                  ---------------------            ---------------------


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

                 Engineering & Consulting                            -                                -

                 Exploration                                    49,000                          168,000

                 Option Fees                                         -                                -
                                                  ---------------------            ---------------------

                   Total                                        49,000                          168,000
                                                  ---------------------            ---------------------

                 Grand Total                               $ 2,407,000                      $ 4,066,000


    Cumulative Mineral Property Costs
    Deferred, beginning of period                            5,851,000                       13,050,000
                                                  ---------------------            ---------------------

    Cumulative Mineral Property Costs
    Deferred, end of period                                $ 8,258,000                     $ 17,116,000
                                                  =====================            =====================

</TABLE>


6




<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 ("IPM" or the "Company"),  the accompanying unaudited condensed
     consolidated financial statements include all normal adjustments considered
     necessary to present  fairly the  financial  position as of  September  30,
     1997,  and cash flows and the  results of  operations  for the nine  months
     ended  September  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  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.

7





<PAGE>


                    INTERNATIONAL PRECIOUS METALS CORPORATION
                   Notes to Consolidated Financial Statements



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.



8





<PAGE>

                    INTERNATIONAL PRECIOUS METALS CORPORATION
                   Notes to Consolidated Financial Statements

     (e) Foreign currency translation

     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

                                                             September 30
                                                          ------------------
         Related parties                                  1996          1997

       -  Advances (Note 9)                          $  323,000      $     --

       -  Investment in common shares of
            MG Gold Corporation, at cost                     --       707,000

       -  Investment in common shares of
            Namibian Copper Mines Inc., at cost         409,000     1,061,000

         Prepaids, deposits and sundry receivables      440,000       450,000
                                                        -------       -------

                                                     $1,172,000    $2,218,000
                                                     ==========    ==========
                                            

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




9





<PAGE>


                    INTERNATIONAL PRECIOUS METALS CORPORATION
                   Notes to Consolidated Financial Statements

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 (the "Property  Purchase  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 Property 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
     Company and IPMA will issue and transfer to Omega an  additional  3,000,000
     common shares of the Company as further collateral  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. IPM is
     currently  negotiating  with Omega for an  extension of time for the second
     payment.  Upon receipt of the second payment,  Omega is obligated to return
     3,000,000 common shares of the Company.  (The Extension  Agreement is filed
     as an exhibit to the  Company's  Report on Form 10-Q for the quarter  ended
     June 30, 1997 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


10





<PAGE>


                    INTERNATIONAL PRECIOUS METALS CORPORATION
                   Notes to Consolidated Financial Statements


     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.

     (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


11




<PAGE>


                    INTERNATIONAL PRECIOUS METALS CORPORATION
                   Notes to Consolidated Financial Statements


     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

     Accumulated
                                                Amortization at        Net
                                                 September 30,     September 30,
                                        Cost        1997               1997
                                    --------------------------------------------

    Machinery and equipment           $734,000      $164,000       $570,000
    Vehicles                           734,000       118,000        616,000
    Office Equipment and fixtures      790,000       154,000        636,000
                                    --------------------------------------------

                                    $2,258,000      $436,000     $1,822,000
                                    ============================================

     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.





12





<PAGE>

                    INTERNATIONAL PRECIOUS METALS CORPORATION
                   Notes to Consolidated Financial Statements

8.   Debentures

     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 September 30, 1997, the Company incurred legal
     and  secretarial  fees  provided by  directors  and senior  officers of the
     Company amounting to $34,000 ( 1996 $20,000).  These fees have been charged
     to administrative expense.

     (b) During the quarter  ended  September  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 September  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.

     (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.


13



<PAGE>


                    INTERNATIONAL PRECIOUS METALS CORPORATION
                   Notes to Consolidated Financial Statements


     (c) Shareholders'  Equity includes  3,000,000 common shares issued to Omega
     pursuant to the terms and conditions of the Property Purchase Agreement, as
     amended by the Extension Agreement. These shares are being held by Omega to
     secure the  payment by IPM of the  balance  of the  purchase  price for the
     Black Rock Property and will be released to IPM for  cancellation  upon IPM
     making such payment.

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 nine months ended  September 30, 1996 and 1997. The
     deferred exploration expenditures would have been reduced by $605,000 as at
     September 30, 1996 and 1997, and the Company's  share capital account would
     have been reduced by $676,000 as at September 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, 1995.  This  difference  does not
     affect net loss for the nine months ending September 30, 1996 and 1997.



                 

14




<PAGE>

                    INTERNATIONAL PRECIOUS METALS CORPORATION
                   Notes to Consolidated Financial Statements



     (a) Balance Sheet

<TABLE>
<CAPTION>
                                                                        September 30
                                                                     ------------------
                                                                  1996               1997
                                                                  ----               ----
     <S>                                                      <C>                 <C>                      
      Deferred mineral exploration expenditures
          Under Canadian GAAP                                 $ 7,598,000         $17,116,000
          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         $16,047,000
                                                               ==========         ===========


      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         $68,733,000
          Share issue Costs - (a) above                                --            (536,000)
          Pooling - (c) above                                    (676,000)           (676,000)
                                                                 --------            -------- 

          Under U.S. GAAP                                     $35,166,000         $67,521,000
                                                              ===========         ===========
                               

      Deficit
          Under Canadian GAAP                                 $29,000,000         $35,091,000
          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         $34,484,000
                                                              ===========         ===========


</TABLE>


15

<PAGE>


     (b) Statement of loss and deficit:

<TABLE>
<CAPTION>
                                                                        September 30     
                                                                     ------------------  
                                                                  1996               1997
                                                                  ----               ----
       <S>                                                       <C>               <C>
       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
                                                                     ====                ====


</TABLE>



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

16




<PAGE>



     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.

     In 1996,  proceeds from shares issued totaled  $12,841,000  and exploration
     activities  resulted in expenditures of $3,290,000.  At September 30, 1997,
     the Company has cash resources of approximately $815,000.

     Of the 20,913,534 common shares of the Company outstanding on September 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 September 30, 1997, the Company had working capital surplus of $609,000.
     Current  assets  were  $3,033,000,   compared  to  current  liabilities  of
     $2,424,000,  for a current  ratio of 1.25 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  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 and 1997 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.  At September 30, 1997,
     the amount owed was  converted to an  investment  in Namibian.  The Company
     owns 1,157,990  shares in Namibian.  Namibian  shares office space with the
     Company.  Several of the executive  officers of Namibian also are executive
     officers 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.



17





<PAGE>



     Results of Operations

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

     The loss for the nine months ended  September  30, 1997 of  $3,449,000  was
     larger than the loss for 1996 of $654,000  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
     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 $3,325,000 for the nine months ended September 30,
     1997 have increased  from $728,000 for the nine months ended  September 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 precious metals for which
     it  explores.  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.

18





<PAGE>





                           PART II - OTHER INFORMATION


Item 1. Legal Proceedings

     On April 28, 1997,  IPM  commenced  legal  proceedings  against the Arizona
     Department  of Mines and Mineral  Resources  and Messrs.  Nyal  Niemuth and
     Mason  Coggin  (collectively  the  "Department")  claiming  damages  in the
     approximate  amount  of  $25,000,000.   In  conjunction  with  these  legal
     proceedings,  on August 4, 1997,  IPM filed an additional  action seeking a
     permanent  injunction  preventing  the  Department  from  commenting on the
     Company's  mining  activities or the viability of the Company's  Black Rock
     Property. IPM was granted a permanent injunction on September 2, 1997.

Item 2. Changes in Securities

     The  Company in the third  quarter of 1997,  in a  transaction  pursuant to
     Section 4(2) of the  Securities  Act,  incurred an  obligation  to issue to
     Omega  up to  3,091,500  common  shares  of  the  Company  pursuant  to the
     Extension Agreement.

Item 6: Exhibits and reports on Form 8-K

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

          27    Financial Data Schedule

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





19






<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



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


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



20




<PAGE>


                                  EXHIBIT INDEX


Exhibit      Description                                                    Page
-------      -----------                                                    ----
  27         Financial Data Schedule