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- 28 September 2007
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Do you have any idea what the value of the shipment was? They didn't mention it in the announcement.
total combined resources for the project total 177.5mt @ 3.2% HM. Given
only approximately 15% of AZC tenements have been effectively explored,
further upside is possible.
Look back at all of their drilling. They have HM to surface at very high grades. Broker estimate some time back was 100 - 200 mill tonne at 10%. A considerable amount of drilling has been done since. This is on just one deposit, and they still have lots of drilling to go on this deposit, let alone their other deposits. One other deposit is 9km wide x 28km long. That should be a beauty when they finish there.
Geopeko classified Bidaminna as an Indicated Resource totaling 44Mt @ 3% HM, however as some minor aspects of the original data can no longer be verified, Image is confident that Bidaminna can be classified as a JORC-compliant Inferred Resource.
Prawn,
Regarding your enquiry about the share price, we too are disappointed with it’s current levels. Obviously the market in general, and mineral sands in particular, are fairly “soft” at the moment, but even so, under any measure prices of 13-14 cents per share grossly undervalues the company and our prime asset, the Mindarie Zircon Mine.
As you would have read, construction and commissioning of the Mindarie Zircon Mine is essentially complete, and we have been selling products within specification, including prime zircon, for several months now. We are still ramping up to full production levels and plant availabilities, and optimizing the process plant to ensure maximum product recoveries. We expect to be at full capacity, with maximum recoveries, during the 2nd quarter of this year.
Regarding WIM150, the study team working on that project will be reporting to our Board in early April. At this time we will get a clearer picture of how best to progress this to a Bankable Feasibility Study.
As to marketing, please be assured that there are concerted efforts made to highlight our achievements in the investment community. We expect to soon be in a position to provide financial forecasts to the market, which should translate to a strengthening and increase in our share price.
Regards,
Jim Wilton
Chief Executive Officer
Australian Zircon NL
Some of our Directors are very involved in the marketing of our Company to the investment community. In fact 2 of them are in Toronto as we speak, after having been in London last week.
Ok lets do a comparison between AZC and IMA (here you go Grace)
AZCMarket Cap - $40 mill
Plant already built and operating at 600tph. Shipments have been going out for the last 5 months and money is paid when the product is loaded on the ship.
Projected EBITDA of $21mill so approx profit of $15mill = 5cps
Therefore current PE is approx 2.8
Other tenament is WIM150
IMAMarket Cap - $100mill approx
Still in exploration stage.
Grace stated:
Broker report:
they do however have high grades, and a lot of other tenaments
So as you can see a similar resource, although IMA is likely to get upgraded in the near future.
AZC however is already in production, so it is at least a minimum of 1 yr ahead of IMA and has no worries about dilution or funding or anything of the like.
This to me shows 2 things:
AZC is undervalued on a number of factors
IMA is possibly overvalued (although i have not done in depth research)
As I said, hard to compare. MC of Image is for future growth expectations in my opinion. At the end of the day, I am happy with my holding in Image.
Jim Wilton is a graduate of Geology and Economic Geology from the University of Adelaide, and a graduate in Business from the Queensland University of Technology. He started his professional career as a Geologist in the mining and exploration industry in Queensland, initially in the coal sector in the Bowen Basin, then moving into gold-copper operations in the Hodgkinson Province west of Cairns. He then transferred into business development and resource assessment roles within the coal and energy industry in Brisbane. Jim then spent the next 10 years leading teams assessing merger/acquisition and business development opportunities in the energy, oil and gas sectors, based in Adelaide, South Australia.
Yeh Image certainly does have a lot of prospects with good grades, spread across a lot of tenaments.
I just find it strange how the market can price a producer and an explorer so differently.
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