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Hi folks,
IDM ... alert for a healthy and positive move from now,
until the equinox, around 22032010 ...
..... be warned, this stock can be thinly traded ... !~!
have a great day
paul
=====
IDM - IDM International
- Thread starter Trader Paul
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Hi folks,
IDM ... alert for a healthy and positive move from now,
until the equinox, around 22032010 ...
..... be warned, this stock can be thinly traded ... !~!
have a great day
paul
=====
springhill
Make the drill work for YOU
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I have recently taken a position in IDM, taking advantage (IMO) of the share price weakness due to plant modifications.
Today IDM announced loading of the first Chinese order of 11,000 tons of SpheriChrome will begin 20th June.
http://www.asx.com.au/asxpdf/20120613/pdf/426t3fd94lywk3.pdf
SpheriChrome is marketed as a Zircon replacement, and also a superior product.
I believe further orders and the completion of plant modifications, will see share price rebound occuring.
Anyone else have an eye on this?
Today IDM announced loading of the first Chinese order of 11,000 tons of SpheriChrome will begin 20th June.
http://www.asx.com.au/asxpdf/20120613/pdf/426t3fd94lywk3.pdf
SpheriChrome is marketed as a Zircon replacement, and also a superior product.
I believe further orders and the completion of plant modifications, will see share price rebound occuring.
Anyone else have an eye on this?
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I do now!
skc
Goldmember
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I have bought and sold these in 2010 on the back of some imminent sales and cashflow. But two years later they finally managed their first sale be the looks.
This is a mining business with a twist - in most mining companies the risk from exploration to production was high, but not the eventual sale of the commodity. In IDM's case, I think they made a strategic error (or perhaps there wasn't a choice due to mineralogy reasons) in creating / marketing a new/different product that required fundaries to shut down for testing (i.e. very disruptive) and resulted in very slow take up of their products.
Back in 2010 minernal sands was hot and ILU was making new highs every week. Now it seems the downtrend is set. I wonder if IDM has already missed the boat.
springhill
Make the drill work for YOU
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The key with SpheriChrome, IMO, is that is marketed as being a cheaper and higher quality for foundaries that Zircon. With Zircon at around $2500/t, a price anywhere under $2000/t would make it an appealing product. Even at a bare minimum of 500/t, that still makes the shipment to China worth $5.5m, a nice boost for the next quarterly.. They already have the Colombus Castings in the US as a customer, and they did not have to change their processes to switch to SpheriChrome.
This first shipment to China, could be the tip of the iceberg, and if there is product acceptance, it bodes well for IDM.
I would rather IDM was able to sell their product in a more regular market, ie. not 'white hot'. As i would rather see sustainable sales, not a flash in the pan.
A link to an article
http://content.yudu.com/A1x23p/ModernCastingJun2012/resources/46.htm
Yeah this looks like it is finally coming good in terms of production. Its a bit disturbing that they have 11000 tonnes of spherichrome as inventory as that is 45-60 days worth of production given they have been having problems with the plant. I think price is around 700 USD a tonne they were selling at a premium to chromite price which was 500USD previously it has come down and previously stated the companies were able to buy it at a bit less than a 1/3 of zircon prices which were around 2200 at the time and have since gone up.
They are selling all their zircon at a discount to illukas prices because its lower grade apparently but from my calculations that covered the opex for the plant with spherichrome providing pure EBITDA and not expecting much from the garnet.
The sale would make the cashflow much better which was tenous before the cap raise and the fact they had so much inventroy to sell is probably why they had a problem because they didn't want to sell the chromite into the generic chromite market.
They are selling all their zircon at a discount to illukas prices because its lower grade apparently but from my calculations that covered the opex for the plant with spherichrome providing pure EBITDA and not expecting much from the garnet.
The sale would make the cashflow much better which was tenous before the cap raise and the fact they had so much inventroy to sell is probably why they had a problem because they didn't want to sell the chromite into the generic chromite market.
springhill
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Have increased holdings in IDM today based on my speculation that SpheriChrome will prove to be a cheaper and siperior product than that it is substituting and that the Chinese recipients of the product will value this.
springhill
Make the drill work for YOU
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OREGON HEAVY MINERALS PROJECT
During the quarter ended 30 June 2012, IDM International completed installing and implementing the various plant modifications to fix plant deficiencies as identified by the Company and resolved with Outotec. With the majority of the cost being borne by Outotec, these modifications have been successfully completed and when combined with previously completed modifications done by the Company allow for run rates which will achieve “name plate” production levels of 70,000 tons of SpheriChrome™ production per annum.
In June the Company’s first large bulk shipment loaded and shipped destined for foundries in China. The 11,000 tons of SpheriChrome™ was purchased by a leading marketing company in the mineral sands industry. It is the Company’s intention to market SpheriChrome™ as zircon replacement material in Chinese foundries similar to what has occurred in North America
EXPLORATION
ORC continued its efforts to secure mineral leases with several landowners adjacent to the existing ore reserves or within the geologic model, which extends to Port Orford, Oregon. ORC plans to commence drilling as soon as leases are in place this summer.
During the quarter the Company continued discussions for the addition of mineral leases and resources with lessors on 465 acres adjacent to current ore reserves. Completion of the necessary preliminary analysis is a precursor to the acquisition and finalisation of terms for additional mineral leases covering 2,546 acres (1,030 Hectares). This work was completed at the latter stage of the quarter and the Company expects the lease including an exploration and outline of the potential subsequent development schedule (assuming economic viability) being finalised by midyear (December). The
Company’s exploration objective is to maintain in excess of a twenty year mine life from the leases under our control and continue to add potential mineralized properties or leases that fall within our area of interest.
MARKETING
SPHERICHROME™
Several key milestones were achieved in the recent quarter. Feedback in the zircon replacement sector continues to be positive, and one U.S. customer testimony was published in Modern Casting (The first bulk shipment was sent to China carrying 11,000 MT of SpheriChrome). The shipment signified the increasing momentum in the SpheriChrome product.
The overall chromite market remains soft in Europe and China and many chromite producers have scaled back output in response. .
The zircon replacement strategy remains the primary target market for SpheriChrome.
ZIRCON
The Company continues to benefit from increasing prices and is currently in a sold out position with the zircon through 2012. Zircon concentrate pricing remains strong despite softness in the premium zircon market.
LITIGATION
As previously reported the Company’s subsidiary (ORC) had sought to be included as an intervener in the litigation brought against two of the regulatory agencies responsible for issuing several permits enabling the commercial operation of the project. The attorneys' for the Federal government will be asking Ninth Circuit Court of Appeals for an extension to file their brief. Oral argument will be scheduled after the briefing is complete. A final decision is not expected until late 2012. The appeal process should not have any affect on ORC’s ongoing operations.
As at 30 June 2012 the Company had 893 shareholders and 644,539,318 ordinary fully paid shares on issue with the top 20 shareholders holding 79.24% of the total issued capital. Subsequent to 30 June 2012, a further 6,210,939 fully paid shares were issued, as a result of the exercise of listed $0.06 options that expired on 30 June 2012. The issued capital after the issue is 650,750,257.
During the quarter ended 30 June 2012, IDM International completed installing and implementing the various plant modifications to fix plant deficiencies as identified by the Company and resolved with Outotec. With the majority of the cost being borne by Outotec, these modifications have been successfully completed and when combined with previously completed modifications done by the Company allow for run rates which will achieve “name plate” production levels of 70,000 tons of SpheriChrome™ production per annum.
In June the Company’s first large bulk shipment loaded and shipped destined for foundries in China. The 11,000 tons of SpheriChrome™ was purchased by a leading marketing company in the mineral sands industry. It is the Company’s intention to market SpheriChrome™ as zircon replacement material in Chinese foundries similar to what has occurred in North America
EXPLORATION
ORC continued its efforts to secure mineral leases with several landowners adjacent to the existing ore reserves or within the geologic model, which extends to Port Orford, Oregon. ORC plans to commence drilling as soon as leases are in place this summer.
During the quarter the Company continued discussions for the addition of mineral leases and resources with lessors on 465 acres adjacent to current ore reserves. Completion of the necessary preliminary analysis is a precursor to the acquisition and finalisation of terms for additional mineral leases covering 2,546 acres (1,030 Hectares). This work was completed at the latter stage of the quarter and the Company expects the lease including an exploration and outline of the potential subsequent development schedule (assuming economic viability) being finalised by midyear (December). The
Company’s exploration objective is to maintain in excess of a twenty year mine life from the leases under our control and continue to add potential mineralized properties or leases that fall within our area of interest.
MARKETING
SPHERICHROME™
Several key milestones were achieved in the recent quarter. Feedback in the zircon replacement sector continues to be positive, and one U.S. customer testimony was published in Modern Casting (The first bulk shipment was sent to China carrying 11,000 MT of SpheriChrome). The shipment signified the increasing momentum in the SpheriChrome product.
The overall chromite market remains soft in Europe and China and many chromite producers have scaled back output in response. .
The zircon replacement strategy remains the primary target market for SpheriChrome.
ZIRCON
The Company continues to benefit from increasing prices and is currently in a sold out position with the zircon through 2012. Zircon concentrate pricing remains strong despite softness in the premium zircon market.
LITIGATION
As previously reported the Company’s subsidiary (ORC) had sought to be included as an intervener in the litigation brought against two of the regulatory agencies responsible for issuing several permits enabling the commercial operation of the project. The attorneys' for the Federal government will be asking Ninth Circuit Court of Appeals for an extension to file their brief. Oral argument will be scheduled after the briefing is complete. A final decision is not expected until late 2012. The appeal process should not have any affect on ORC’s ongoing operations.
As at 30 June 2012 the Company had 893 shareholders and 644,539,318 ordinary fully paid shares on issue with the top 20 shareholders holding 79.24% of the total issued capital. Subsequent to 30 June 2012, a further 6,210,939 fully paid shares were issued, as a result of the exercise of listed $0.06 options that expired on 30 June 2012. The issued capital after the issue is 650,750,257.
