IMA - Image Resources

Eucla Basin Cyclone Extended HM Strands Incr by 80% to 4.5km​

• Significant size on a global scale and similar to the Jacinth-Ambrosia Project also in the Eucla Basin.

Yes good news as always from image.

Half way through yesterday i was sure the report was not gonna be enough to hold image above 80c. Not because of the value of the report, but my recent understanding of image to be a "buy on the rumor" (by a certain individual) kind of stock. Reached a high of 93.5c and settled at 90.

Buy side is thinning out a bit, still twice as many shares are up to be bought than sold. Short term i can't see this stock holding momentum. Long term - image does well historically, don't see any where else it could go.

Image Market Cap - 77 mil
Iluka - 1,507 mil

Image would have to grow 20 times to be reasonably valued as an Iluka type company.

Considering they could now have an Iluka type deposit in their resource inventory, they should be pretty close to a critical mass for sale or plans for production.

George appears to be a very good geophysicist, i would hate to think he would stop what he is doing and move into production, therefore he might very well be considering a sale; as a lot of us here thought would happen ages ago.

I continue to hold

Things are looking good at moment for IMA with a very strong

sp is kicking up nicely this week and buy sell imbalance is at times 15:1 or 20:1 for volume showing sustained buying pressure...

Enjoyu the ride IMA holders

There seems to be a lot of anticipation and excitement about drilling at Atlas....

Disc- i hold, but wish like hell id had more...

Not sure but the bids and sells just went choppy on IMA and an announcment icon showed up on comsec with, no new announcment on either comsec or asx...

It seems to be in a halt....

Comsec announcment says Pre-trading status which seems wrong...

Probably some explanation why it reached 1.28 yesterday....the asx/ ASIC should definitely be looking into yesterdays trade......that was inside knowledge for sure...


Edited:

Its the zirchon upgrade for Cyclone drilling results....25% thickness increase...

Wierd, great news and quickly sold down for most the day....finished well, but the wierdos where back in town on this one today....

Clearly a few of yesterdays traders who belted the news up prior to this mornings news might have got carried away on the rumor mill...

IMO this was a great outcome and theres still plenty of infill holes where both Cyclone and Monsoon could have broken through so further upgrades are still possible for both...more likely for cyclone...

Condog, I am as puzzled buy the latest share price action as you are. The recent news was pretty much routine and in line with expectations. Not the sort of stuff the sends an SP up by 25% so rapidly I had expected a retrace back to the $1 mark after the ann but it is holding well and on good volume.

Looks to my untrained eye like the buying is mostly from one source. The obvious being directors, but given the volume traded over the past week an increase notice would have been mandatory by now.

As a long term holder I am very pleased with the latest action.....but puzzled....

Watching and waiting........

Quarterly out.

Things i found appealing.

• Estimation of a Measured Resource at Atlas has commenced, with an updated estimate expected to be available in June.
• There are currently five synthetic rutile plants situated in the Perth Basin, with an overall significant under-utilization of capacity.
• Serpentine Lakes: The drilling results continued to confirm a zircon-rich assemblage, with zircon comprising up to 45% of the heavy mineral assemblage.
• Cyclone: The strike length of the two deposits extends for some 10km, which is a significant size in a global context and which compares favorably with Iluka’s Jacinth-Ambrosia.
• Cash burn of 700k for the quarter with 4.6M in bank

Technical support of 70c looks shaky, definitely some selling pressure around. I jumped on at 72c looking for a technical rebound. Haven't seen it yet, I might wait it out.

George speaks on ABN about Image's current development.

Poor fella looks like a nervous school boy being singled out in class.

http://www.youtube.com/watch?v=YJcmClBUpY4

Recent News

• New High Grade Discovery within 16km Target at Gingin
• Atlas Measured Resource estimate due in early -mid June 2010.

I have always liked George, he reminds me of that nervous quiet boy in the back of the class that does everything right to avoid being picked on. He is more interested in results in the ground than results on TV. I hope the market realizes his hard work soon.

For any new people visiting this thread:

Mr Sakalidis is an exploration geophysicist with over twenty-five years industry experience, during which time his career has included gold, diamond, base metals and mineral sands exploration.

He has been involved in a number of significant mineral discoveries, including the Three Rivers and Rose gold deposits in Western Australia and the tenement applications over the Silver Swan nickel deposit.

He was also instrumental in the design of the magnetic surveys and exploration drilling program that led to the discovery of the large mineral sands resources at Magnetic Minerals Limited's Dongara Project.

He is managing director of ASX listed Magnetic Resources NL (since that company was incorporated on 23 August 2006), Emu Nickel NL (since that company was incorporated 29 August 2007) and executive director of Meteoric Resources NL (since that company was incorporated on 13 February 2004).

He is also non-executive chairman of unlisted Imperium Resources Limited (appointed 23 June 2008).

Report out on Image by Proactive Investors Research
http://www.imageres.com.au/broker%20research/Proactive%20Investors%20Research%20Report%20Image%20Resources%20April%2020.pdf

"The Scoping Study projected total net cash flow of $280 – $381 million after deduction of
CAPEX to produce an IRR of 47.7% - 58.6%, which matches the high return at Kwale. The
project carries a grade of 6.5% which places it in second place amongst 12 global heavy
mineral sands projects that are planned to commence production over the next 2 years.
Taking all of these factors into account and assuming that initial production gets underway in
2014, it could be reasonable to assume that Image should attract an EV that matches the EV
accorded to Base Resources of $21.30 per tonne, and eventually rises to the average level of
$43.76 per tonne accorded to established and significant producers of heavy minerals."

Click to expand...

MC - $30m
SP - 29.5
Shares - 100m
Options - Nil quoted
Cash - $865

NORTH PERTH BASIN
● Project study team established and significant progress made in preparing for project development.
● Review of the August 2011 Scoping Study completed, confirming strong project economics and refocusing the studies on the high grade Boonanarring deposit as the initial mining target.
● Confidence increased in a high value mineral inventory to support 3.3Mtpa multi-pit operation over more than twelve years mine life, with significant exploration potential.
● Option to purchase freehold covering highly prospective ground providing access to 3.2km of the Boonanarring project which is the proposed main base for future operations.
● Resource drilling completed to the immediate north of the said freehold with deposit and resource estimate work underway.
● Atlas South drilling has extended the main Atlas deposit strike length by 700m.

CORPORATE
● Appointment of Peter Davies as Managing Director.
● George Sakalidis remains Executive Director Exploration.
● $1.89 million raised by placing shares at market.
● Decision to divest non-core assets.

Emerging mineral sands producer Image Resources has been fast-tracking the development of its 100%-owned, high-grade, zircon-rich flagship Boonanarring mineral sands project located north of Perth in Western Australia with first production expected in Q4 2018.

The Bankable Feasibility Study has established a pre-tax NPV of A$197 million with an eight year mine life. The project capital cost is A$52 million with a payback period of 16 months and is fully funded to positive cashflow. Construction on the project has already commenced.

The IMA share price has been creeping up over the last 14 months from 4c to be currently trading at 13c today. Looks like some resistance at 15c and then blue sky after that. Volume has increased significantly in the last month, indicating that there is quite a bit of accumulation going on. Some potential here IMO.

IMA has broken through 15c to reach new 12 month highs, two weeks after it announced that it has completed the loading of the first bulk shipment of 10,000 wet metric tonnes of heavy mineral concentrate from its 100%-owned, high-grade, zircon-rich Boonanarring mineral sands project.

The announcement released on 15 January stated that ore processing rates continue to exceed ramp-up period budgeted rates, with HMC inventory levels beginning to build for a second shipment currently scheduled for mid-February 2019.

With plenty of news flow expected in the short term, it's no surprise that supply is evaporating at these levels and that the IMA share price continues to advance.

After more than a month of consolidation IMA has poked its head above 25c after today's announcement that it has finalised the sale and shipping of 70,000 tonnes of heavy mineral concentrate inventory during the June quarter from its 100%-owned Boonanarring mineral sands project.

The Company is currently completing a drilling program designed to upgrade the Boonanarring Ore Reserve in the September quarter.

I did some research on Image Image Resources NL (ASX:IMA). Post a comment if I have made any mistakes.

Summary
Image Resources NL (ASX:IMA) is a mining company focused on extracting mineral sands, which are special sands rich in certain metal ores, such as those containing titanium and zirconium. Image Resources owns the mining site Boonanarring in the North Perth Basin, which is about an hour's drive north of Perth.

Listed in the early 2000s, the company has been making profits since about 2018, giving return-on-equity (ROE) values above 20 percent, according to public Morningstar data. With a current (21.10.20) share price of about $0.2, the price-to-earnings (p/e) ratio is about 7.4. The market capitalization of Image Resources is about $200 million.

Image Resources competes with the ASX-listed companies Iluka (ASX:ILU) and Strandline (STA). Iluka last recorded a profit in 2018, according to public Morningstar data, while Strandline has not recorded profits in the last decade (possibly, ever), consequently giving negative ROE values and no p/e values. Their respective market capitalizations are about 4 billion and 200 million.




From gold and nickel to mineral sands
Like many Western Australian companies, Image Resources started off as a gold and nickel prospecting company in 2001. Taking a little "Poseidon Nickel Adventure", their share price shot up in the last quarter of 2006 and then went back down in 2007, though the annual reports from around then show no profits being made. Sometime between then and now Image Resources switched focus from gold and nickel to mineral sands. For example, their 2008 annual report (page 4) says:

Image Resources is a diversified mineral explorer with an increasing focus on mineral sands following significant exploration success in the North Perth Basin of Western Australia.

Click to expand...

(I searched the annual reports as PDF files. The terms "mineral sands" is not mentioned in the annual reports until 2006 in the Project Summary section.)

Mineral sands
Mineral sands are ancient sand deposits that contain important minerals such as rutile, ilmenite, zircon and monazite. Image Resources mines the ores rutile and zircon, which are sources of the metals titanium and zirconium (respective chemical symbols Ti and Zr). Titanium is a strong but light metal, so it has enjoyed many applications for decades. The compound titanium dioxide (ZrO_2) is a bright white substance, which finds itself as a paint pigment. Zirconium is resistant to high temperatures, so it also finds many applications. Zirconium compounds have medical and aerospace applications.

The competitors in the mineral sands market include the ASX-listed companies Iluka (ASX:ILU) and Strandline (STA), as well as the American company Tronox.

More information on mineral sands, as well as titanium and zirconium, is located here:




Boonanarring site

Image Resources owns 100 percent of the site Boonanarring. Among many other potential mining sites, the site Boonanarring is first mentioned in an annual report in 2011 (it may have been mentioned in another announcement). Image Resources claims that this is one of richest sites in Australia. About 4/5 (80 percent) is zircon (ZrO_2), while the remaining TiO_2.

It contains rutile and zircon, which are ore sources of the metals titanium and Zirconium .

Making profits

According to Morningstar, Image Resources started making profits in 2018. This seems to be confirmed by the 2019 annual report. The return-on-equity (ROE) values since 2018 have been above 20 percent.


Disclaimer
After learning the above, I bought shares in Image Resources. Apart from that, I am in no way connected to this or any other mining company. This is not a recommendation.

Further reading





A recent (bullish) article:


You can access all their annual reports on their website:

*The compound titanium dioxide (TiO_2) is a bright white substance...

I forgot to mention that Image Resources NL (ASX: IMA) is also searching for more sites. They creatively call this drilling program "Project MORE".

Yesterday Image Resources NL released an announcement about Project MORE (with the file name in all capitals, as many of their announcements tend to be). From this, I understand that their newly purchased land has an ore reserve that connects with their existing site.


Here's an article about it:

A bullish article on IMA's recent sales:

Image Resources has posted a bumper year of sales from its mining operations in WA, with the mineral sands producer delivering over 310,000 tonnes of heavy mineral sands concentrates for the year. The solid production figures represent a 20 per cent jump in overall production from the previous year and an impressive $174 million in annual revenue.

The company also broke its all-time production record during the last quarter of 2020 after completing the sale of 110,000 tonnes of concentrate, as it continues to fine-tune production from its Boonanarring operation north of Perth.

Click to expand...

I had a glance at their half-year report posted back in September:


On page 4 it says IMA's 6 month profits (up until June 30th) has gone from roughly 6.6 million to 14.2 million.

Image Resources (ASX: IMA) just uploaded their annual report. In the report it says they will pay their inaugural dividend. 2 cents per share (unfranked), which at 17 cents per share gives almost 12 percent yield (closer to 11.8%).

So the two-cent dividends are official:

Ex-Dividend Date 19 April 2021
Record Date 20 April
Dividend Payment / Share Issue Date 29 April 2021

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Any idea of what's going on with this stock......there seems to be buyer(s) who are buying 800 shares every 5 minutes. What gives with this?

Looks like they want the price to close today @ $0.195

No idea. Strange.