Image Resources Secures December Quarter Sales

THE BOURSE WHISPERER: Image Resources (ASX: IMA) has secured sales agreements from off-take partners for the December quarter 2019.

Image Resources has organised the sale of a nominal total of 65,000 tonnes heavy mineral concentrate (HMC) for the December quarter 2019 with no reduction in zircon pricing.

The HMC will be produced from the company’s 100 per cent-owned, high-grade, zircon-rich Boonanarring mineral sands project located 80 kilometres north of Perth in the North Perth Basin of Western Australia.

The company recently finalised a regular monthly shipment of HMC of nominally 20,000 tonnes, which was purchased by off-taker partner Natfort and sailed at the end of October.

In addition, a sales agreement was secured from off-taker partner Hainan Wensheng for nominally 45,000 tonnes to be delivered over two shipments, one in the latter half of November and the second in December.

Image Resources declared that demand for its HMC remains strong, including from parties other than the current off-take partners.

While the benchmark price for premium grade zircon decreased 2.5 per cent to US$1,580 to 1,590 per tonne in November, Image’s sale price for standard grade zircon contained in the HMC remained unchanged for its scheduled November and December shipments.

Image’s realized price for titanium dioxide (TiO2) contained in the HMC increased approximately six per cent in August and this higher price has continued in the December quarter.

“We continue to receive robust demand for our zircon-rich HMC product,” Image Resources managing director and CEO Patrick Mutz said in the company’s announcement to the Australian Securities Exchange.

“The committed sales of 65,000 tonnes in the December quarter, at stable zircon pricing, keeps the company firmly on track to deliver on our updated CY2019 guidance.”