Image Resources NL (IMA.AX) Atlas Project Pre-Quarterly Update
Image Resources NL (ASX:IMA) (FRA:I5R) is pleased to advise it has successfully completed three planned shipments of heavy mineral concentrate ("HMC") in the June quarter from the Company's 100%-owned Atlas mineral sands project ("Atlas"), located 170km north of Perth in the Dandaragan Shire.
HIGHLIGHTS
- Three shipments totalling approximately 35k dry tonnes of Atlas heavy mineral concentrate ("HMC") completed as forecast
- Approximately AU$22 million total revenue booked and with a portion of revenue from each shipment applied to principal repayments under two HMC Offtake Prepayment Facilities
- Net cash from all three shipments received during the quarter
- Nameplate processing capacity achieved at end of quarter, following successful replacement of CT1 spirals with conventional MG12 spirals
- Total HMC production was approximately 45k tonnes, representing roughly 85% of forecast production
- CY2025 market guidance to be maintained
HMC sales for the quarter were as forecast and totalled a nominal 35k dry tonnes and delivered in three bulk shipments through the Geraldton Port. Total booked revenue was approximately AU$22 million.
A portion of the revenue from each shipment (notionally 25%) was applied to the repayment of principal under the two HMC Prepayment Facilities executed in Q4 2024. Net cash (notionally 75% of revenue) for all three shipments was received during the quarter.
Project operation officially commenced on 1 April, making the June quarter the first quarter of production at Atlas, following the rapid and successful project commissioning phase in February and March 2025.
All HMC was sold under a continuing life-of-mine offtake agreement with the Company's longstanding offtake partner, Shantou Natfort Zirconium and Titanium Co., Ltd ("Natfort"). This agreement was also successfully used for HMC sales from the Company's Boonanarring project.
Payments for all HMC shipments were secured through either a letter of credit or cash prepayments.
Image is also pleased to report that at the end of June, Atlas is operating at nameplate capacity, marking another significant milestone for the project and the Company.
Managing Director and CEO Patrick Mutz commented:
"It is gratifying to report that HMC sales for the June quarter remained in line with forecast sales, despite early operational challenges including lower heavy mineral ("HM") recovery and reduced operating availability caused by organic root matter accumulations in the CT1 spirals.
"To combat these challenges, we implemented our contingency plan to replace the CT1 spirals with conventional spirals and successfully completed the changeout across a planned three-day shutdown in May.
"By the end of the quarter, HM recovery was restored to forecast levels and nameplate capacity processing rates were effectively achieved. These results reflect the continuing high level of performance and responsiveness of our development and operations teams, contractors, and consultants.
"While HMC production was slightly lower than forecast for the quarter, we remain confident in achieving our CY2025 market guidance.
"Our focus for the September quarter will be to deliver steady state production and to meet or beat forecast targets for HMC production, sales, and unit cost estimates, while maintaining safe operations and protecting the environment."
Operational Update
Atlas operations officially commenced on 1 April 2025 following a short and successful project commissioning phase in February and March 2025. The June quarter marked the first quarter of operations at Atlas.
While more detailed operating statistics will be provided in the June quarterly report - to be released before the end of July - preliminary production statistics indicate that HMC production was lower than forecast. This was primarily due to the accumulation of organic root matter in the CT1 rougher spirals, which negatively impacted HM recovery and resulted in reduced throughput rates and unplanned downtime to remove the accumulated organic debris from the spirals.
Following the rapid replacement of the CT1 spirals with conventional MG12 spirals during a planned three-day shutdown in May, HM recovery rates were restored to forecast levels and the excessive downtime, previously required to clear debris, was eliminated.
In June, the focus shifted to maintaining higher operating availability and ore processing throughput rates. By the end of June, nameplate capacity processing rates were achieved.
Total HMC production for the June quarter was approximately 45k tonnes, representing roughly 85% of forecast production. Subsequent to the end of the quarter, six additional MG12 rougher spirals were added to the Atlas wet concentration plant to expand throughput capacity, to ensure deficit HMC production during the June quarter can be recouped during the second half of the calendar year.
The company anticipates CY2025 market guidance (refer to ASX announcement 17 April 2025: "First Atlas HMC Production and Market Guidance") will remain unchanged in the June quarterly report.
INVESTORS Patrick Mutz MANAGING DIRECTOR and CEO E. info@imageres.com.au MEDIA Helena Bogle MEDIA CONSULTANT - SPOKE. E. helena@hellospoke.com.au
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