IMA - Image Resources

[Erlang]

Thanks for that, @finicky.

These shares have done very little in the last year, and then in the last week they shot up 20 odd percent. Them's the breaks. But I do wonder what's going on?

 

[finicky]

Anticipating Qtrly report in less than 2 weeks. it came on Feb 28 last year.

Weekly IMA chart (shown)
Share price @0.23 had an excellent week achieving the highest weekly close in 2 years on firmer volume.

Back in the second week of November the price had a so called 'false break' above its trading range (which roughly spans 0.16 - 0.21). This break followed a strong rally over October. Following the false break the price 'retraced' around 62% of the rally. That's pretty common behaviour.

With this current rally seemingly confirming the breakout from the trading range, maybe IMA will kick on a bit. I like the simple sounding and clearly expressed plans this company has for the future.

IMA 3 Yr Weekly

 

[Erlang]

There was movement at the station.

One of the board members helped himself to some more shares a couple of weeks ago.

I was recently looking at a presentation (uploaded 16.11.21) from their competitor Iluka (ASX: ILU) to get an idea of price movements of mineral sands. I'll paste the two relevant plots here.

 

[Erlang]

Some other information -- again, I point out these are from an Iluka presentation, not one from IMA.

Zircon.

Rutile/titanium dioxide.

 

[Erlang]

A couple of somebodies respectively bought about 90 k, 380 k, 440k of IMA today, if I am reading the course of sales correctly. I get the feeling somebody knows something I don't.

 

[finicky]

Cognitive lapse from me in my last post - Qtrly reporting is around January 28, not Feb.
Might be just a few people/entities chasing momentum as the stock makes new highs.

 

[Tommy Shelby]

Bit of a tussle going on at the board level

 

[Tommy Shelby]

Great quarterly update though.

• HMC price up 43%
• Record margins and cash up 59%
• recovery in volume results in ASISC costs return to mean
• Secure large tenement for future expansion

 

[finicky]

Your patience is vindicated @Erlang, another chunky 2c dividend and this time it is franked which is what the CFO in his past email response allowed us to infer. I don't fancy the chances if the upstarts who are trying to topple this excellent and transparent management via an egm vote.

The dividend update also reaffirms their growth plans including a second heavy minerals mine and plant (Bidaminna) and mentions their Gold interests SE of Kalgoorlie - my fave metal in my fave district.

ANNUAL DIVIDEND
10 Feb

" .... Results are expected to be announced in the first half of March with the dividend expected to
be paid as soon as practicable thereafter, but likely towards the end of April 2022.

Dividend:
Strong provisional financial results and continuing strong demand for the Company’s HMC
product with resulting increases in average prices, margins and cashflow being generated, are
the catalysts that have allowed the Board to consider and confirm the Company’s intention to
pay a fully franked dividend of $0.02 per share (Prior Year: unfranked $0.02 per share)"

 

[finicky]

A sobering thought though is how reliant Image are on Communist China for offtake. It was in China's interest to relieve IMA of an oversized inventory in 2020 but equally count on them to screw us if it suits. Patrick Mutz is quoted however as saying that IMA is looking to broaden its customer base 'geographically'.

From 7 July 2020 article:

Image offloads growing pile of heavy mineral concentrate

Mineral sands miner Image Resources has relieved itself of a previously unloved heavy mineral concentrate inventory with a big offtake agreement.

thewest.com.au

"ASX-listed mineral sands miner, Image Resources, has managed to relieve itself of a previously unloved heavy mineral concentrate, or “HMC” inventory that was mounting in the wake of uncertain economic conditions brought on by coronavirus restrictions. The company’s key Chinese offtake customers, Shantou Natfort Zirconium and Titanium Co and Guangdong Orient Zirconic Ind Sci & Tech Co have now purchased 100,000 tonnes of HMC from the Boonanarring mineral sands operation 80km north of Perth.
The Chinese firms will start taking delivery of the stockpile over a three to five-month period starting this month.
Shantou Natfort has been the primary buyer of Boonanarring HMC since Image’s initial sale of product from the new mine in January last year.

However, the WA minerals sands producer hit a snag, as did millions of businesses globally, when demand for HMC, zircon and ilmenite took a tumble as a result of the economic fallout and market uncertainties that flowed from the shutdowns imposed across the world in a bid to contain the spread of COVID-19.

Production at Boonanarring, on the other hand, was almost unaffected by the coronavirus restrictions and continued pretty much unabated, leading to Image building a pile of HMC that was growing at record levels, eventually reaching 100,000 tonnes by May this year.
The 100,000 tonne sales agreement with Shantou Natfort and Guangdong Orient Zirconic will help ease the inventory overload burden for Image and offset the pandemic-induced slide in sales in the first half of 2020."

 

[Erlang]

@finicky. Indeed, but my patience was strengthen by the response of that email you sent. Good work there.

And yes, the eternal "China-risk", which decidedly weakens my resolve to hold onto GRR. But we'll see.

 

[Erlang]

*IMA, even.

 

[Erlang]

Bit of a tussle going on at the board level

I don't quite follow what's going on here with the board. There's an attempt by Murray Zircon (IMA's largest shareholder) to take over or seize control of IMA (or its board)? And then they want 100 % access to IMA's ore?

Some relevant links:

Image Resources’ major shareholder, Chinese backed Murray Zircon is looking to show the existing board and management at Image the door despite three solid and profitable years at the mineral sands miner. Murray Zircon has lobbed a section 249D notice over the wall seeking to remove the directors and Murray Zircon’s largest beneficial shareholder, Chinese titanium dioxide pigment manufacturer, LB Group, is working the phones looking for support for the 249D – the key question however is why?

Murray Zircon Pty Ltd is using its 23 per cent shareholding in Image to seek the removal of Chairman Robert Besley, Managing Director Patrick Mutz and Non-executive director Chaodian Chen, all of whom are to be replaced by three of its own nominees under the Murray Zircon plan.

The warring parties are due to slug it out at West Perth’s Celtic Club on March 24th and if maths is any guide, Murray Zircon has a head start given its existing 23 per cent holding in Image.

Image board makes case to reject Chinese takeover bid

Image Resources’ major shareholder, Chinese backed Murray Zircon is looking to show the existing board and management the door despite three solid and profitable years at the mineral sands miner.

thewest.com.au

Not only could the proposed Image Board spill ultimately result in more than half of the Image directors being appointed by one shareholder whose controlling shareholder wants access to 100% of Image's HMC, but the allegations raise real concerns about whether the interests of Image shareholders will be appropriately protected in ensuring that Image receives a fair price for its HMC.

Image Resources NL (ASX:IMA) Update regarding Section 249D Notice

Image Resources NL (ASX:IMA) refers to notices given by Murray Zircon Pty Ltd to the Company under sections 203D and 249D of the Corporations Act 2001 seeking to spill the Board of Image.

www.abnnewswire.net

This last one only mentions the tussle in passing:

Image Resources (ASX: IMA), which has a number of minerals sands projects in WA and is fighting a Chinese attempt to snatch control, is up 8% to $0.26.

Russia’s war on the Ukraine puts more pressure on global titanium mineral supplies

The world is not running short of paint, but it might soon face a squeeze on titanium dioxide supplies as Russia continues waging war on the Ukraine –

smallcaps.com.au

All this sounds a bit worrying.

 

[Erlang]

The issues were, apparently, resolved in today's meeting.

 

[Erlang]

Thanks for that, @finicky.

These shares have done very little in the last year, and then in the last week they shot up 20 odd percent. Them's the breaks. But I do wonder what's going on?

Perhaps this is the answer:

Murray Zircon went into the meeting with around 23 per cent of the stock but some apparent last minute on-market buying and the 11th hour defection of Image director Huang Cheng Li to the Murray Zircon bid pushed the tally to around 48 per cent, taking the spill motion down to the wire.

Image board sees off Chinese backed spill motion in close win

In a win for minor shareholders of successful mineral sands producer Image Resources, board members have seen off an attempt by large Chinese backed activist shareholder Murray Zircon Pty Ltd to dispense with directors who delivered almost $20m profit for the company last year. Ninety-six per...

www.businessnews.com.au

 

[Erlang]

An update posted on Friday

http://www.imageres.com.au/images/joomd/165301753920220520MINERALRESOURCESUPDATEMcCALLSMINERALSANDSPROJECT.pdf

A ten-fold increase in IMA's mineral resources. That seems substantial.

 

[finicky]

Don't forget to vote in the AGM resolutions. Have to stop the Chinese agents getting a board majority and controlling our company for the benefit of outside interests. They have no ethics and their avarice is insatiable. It'll be a close vote. No to the first four resolutions.

 

[Erlang]

Didn't we already vote on that? Is this another vote?

 

[finicky]

@Erlang
Yes another vote. The scammer Chinese large shareholders failed to get a majority for their motions at the extraordinary general meeting. Now they are having a second go at hijacking the company by self nominating 4 new directors at the Annual General Meeting. One of the nominees is the son of a current 'trojan horse' board member. So that would give them 5 if successful. They only lost by a small margin at the earlier vote so every vote of small shareholders is needed and you're running out of time to do a proxy vote online as the meeting is on May 30. Vote NO to first 4 nominations, vote YES to all other motions.
Surely you have received mail or email concerning this?

 

[finicky]

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