Quarterly Activities Report
Perth, Jan 30, 2025 AEST (ABN Newswire) - Image Resources NL (
ASX:IMA) (I5R:FRA) is pleased to provide an update on its activities during the December 2024 quarter.
Atlas Project
- Self-funded construction at Atlas substantially advanced following finalisation of Groundwater Operating Strategy and receipt of water licences in October.
- Despite the loss of a week of construction time due to site evacuation for bushfires that burned through Dandaragan Shire and Atlas project area in November, project development remains on schedule.
- Plant and equipment from Boonanarring relocated to Atlas and largely erected and fitted with piping and electrical by the end of December.
- Atlas project commissioning and first HMC production remains on track for Q1 2025.
Corporate Activity
- Secured binding US$20 million HMC Offtake Prepayment Facility agreement with key Chinese HMC offtake partner Shantou Natfort Zirconium and Titanium Co., Ltd.
- Drawdown initiated on Prepayment Facility, with US$5 million received in December 2024 and balance received subsequent to quarter's end.
- Conversion of Prepayment Facility funds from USD to AUD completed at favourable FX of 0.62.
- Atlas fully funded to first revenue, which is anticipated in Q2 2025
- Closing cash position A$19.95 million at 31 December 2024 plus A$24 million received in early January 2025 from drawdown of the Prepayment Facility.
- Annual Sustainability Report for CY2023 published.
CEO Patrick Mutz commented: "Despite the frustration of Atlas approval delays and the very anxious moments during the November bushfires, we now stand on the cusp of commissioning and first HMC production at Atlas and, more importantly, a return to positive cashflows.
"Our Atlas project development team made tremendous progress during Q4 despite a late start and losing a week of progress from bushfire evacuations. The team's extra efforts, combined with the execution of a US$20M prepayment facility for working capital, means we are increasingly confident we can deliver our second mineral sands project on time and on budget.
"CY2025 is shaping up to be a milestone year with the impending return to mining and HMC production as well as positive cash flow in the first half of the year and repayment of newly executed Prepayment Facility with HMC deliveries at the end of the calendar year."
*To view the full Quarterly Report, please visit:
https://abnnewswire.net/lnk/9ZY9D817
About Image Resources NL
Image Resources NL (ASX:IMA) is a mineral sands focused miner and supplier of critical minerals titanium dioxide, zircon and monazite containing rare earth elements for sale into global markets. The Company has a demonstrated track record of successful project development and operations at its Boonanarring project located 80km north of Perth in the infrastructure rich North Perth Basin.
Boonanarring was a high-grade, high-zircon, low capital cost mine development that was constructed on-time and on-budget in CY2018 and then ramped up to name plate capacity in the second month of operation and went on to operate profitably through Q3 2023. Debt for the project was paid off early in February 2021 and the Company paid dividends to shareholders in April 2021 and April 2022.
Image completed critical construction of the Atlas project in January 2025 and started commissioning and achieved first HMC production in February 2025 and will be ramping up production and revenue from Atlas in Q2 CY2025.
Chapter 1 operating strategy for Image involved the transition from advanced explorer to active miner in CY2018, operating a single mine and producing a single product (HMC) sold into a single jurisdiction (China). Chapter 2 strategy (post Atlas) will focus on the Company's growth and sustainability ambitions which includes the operation of multiple mines in parallel, producing multiple products (separating HMC), and selling into a global market.
The Company is also investigating a significant value adding step of upgrading its ilmenite to synthetic rutile using a lower GHG emissions, innovative process which Image has provisionally patented, and aims to demonstrate the technical and economic feasibility of this novel process in CY2025-26.
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