Image Resources Reports US$4.2M Revenue, Forecasts 175-195k DMT HMC Production in 2025

Atlas Project Milestone Achieved

Image Resources NL (ASX: IMA) has marked a significant operational milestone with the first production of heavy mineral concentrate (HMC) at its Atlas project in February 2025. This achievement followed a successful commissioning phase that progressed ahead of schedule, with throughput rates reaching up to 80% of nameplate capacity and operating availability at 95%. The high-quality HMC produced, containing up to 94% heavy mineral and 21% zircon, was trucked to interim storage in Geraldton during March, culminating in the first bulk shipment of 9,735 dry tonnes in April.

The company reported total revenue of US$4.2 million (~A$6.7 million) for the quarter, with 75% received in cash by mid-April and the remainder credited against repayment of the HMC Offtake Prepayment Facility. This initial revenue inflow supports Image’s forecast to achieve positive operating cash flow in Q2 2025, a key financial inflection point for the company.

Technology Adaptation: Spiral Replacement

A notable development during commissioning was the operational challenge encountered with Mineral Technologies’ novel CT1 spiral technology, the first commercial application of this equipment. While metallurgical performance aligned closely with pilot tests, the spirals showed sensitivity to fine fibrous root matter in the ore, leading to organic debris accumulation and impacting heavy mineral recovery and operational efficiency.

In response, Image Resources has decided to replace the CT1 spirals with conventional MG12 spirals, which have proven reliable at the Boonanarring project and are less susceptible to organic matter buildup. This replacement is expected to take about one week and cost under A$1 million, with minimal disruption to the project timeline due to the early start of commissioning. The move reflects prudent risk management, ensuring Atlas remains on track to meet its market guidance.

Market Guidance and Financial Position

For calendar year 2025, Image Resources projects HMC production between 175,000 and 195,000 dry metric tonnes (DMT), with shipments forecast at 165,000 to 185,000 DMT. Cash costs are expected to range from A$340 to A$400 per tonne produced, with all-in sustaining costs (AISC) between A$410 and A$470 per tonne.

The company’s balance sheet remains robust, closing the quarter with A$13.6 million in cash and having fully drawn down US$20 million under two HMC Offtake Prepayment Facilities with key Chinese partners. These facilities provide working capital to support Atlas operations and underpin the company’s growth ambitions.

Advancing Development and Exploration

Beyond Atlas, Image Resources is advancing the development of its Yandanooka project, supported by a strong pre-feasibility study (PFS) completed in 2024. The project boasts an attractive pre-tax NPV8 of A$151 million and an IRR of 72%, with an anticipated mine life of over eight years. Funding for Yandanooka is expected to be sourced primarily from cash flows generated at Atlas, supplemented by debt and equity as needed.

Exploration activities are set to resume in Q2 2025 after a hiatus, with drilling planned at the Erayinia gold project near Kalgoorlie and extensive mineral sands drilling at Bidaminna and other North Perth Basin tenements. These efforts aim to upgrade resource classifications and expand the company’s mineral sands portfolio.

Innovation and ESG Commitments

Image Resources continues to pursue value-adding innovation through its synthetic rutile (SR) production technology, which promises a lower carbon footprint compared to existing methods. The company is progressing towards installing a pilot SR plant at Boonanarring by the end of 2025, supported by ongoing patent applications and grant funding investigations.

On the environmental and social front, Image maintains a strong commitment to rehabilitation, having restored 85 hectares at Boonanarring to date, with plans to recommence seeding following the receipt of Atlas revenues. Safety performance remains exemplary, with no lost-time injuries reported during the quarter, and the company actively supports local communities through various initiatives.