How Image Resources Turned Atlas Cash Flow Positive in Q2 2025

Atlas Project Milestone

Image Resources NL (ASX – IMA) has marked a significant milestone with its Atlas mineral sands project generating positive operating cash flow of A$5 million in the second quarter of 2025, its first full quarter of operations. This achievement follows the processing of 674,000 tonnes of ore yielding approximately 45,900 dry metric tonnes (DMT) of Heavy Mineral Concentrate (HMC), with shipments totaling 35,359 DMT, comfortably within the company’s forecast range.

Operational challenges early in the quarter, including lower throughput and heavy mineral recovery due to root matter accumulation in the CT1 spirals, were swiftly addressed by replacing these with conventional MG12 spirals. This technical adjustment, combined with the completion of a sealed external access road, has improved logistics and positioned the company well for an aggressive shipping schedule in the second half of the year.

Maintaining Market Guidance Amidst Operational Refinements

Despite initial production rates falling short of forecasts, Image Resources has maintained its full-year 2025 guidance, targeting HMC production between 175,000 and 195,000 DMT and shipments of 165,000 to 185,000 DMT. The company expects cash costs per tonne of HMC produced to range between A$340 and A$400, with all-in sustaining costs between A$410 and A$470.

Revenue for the quarter reached US$14.1 million (A$22.1 million), with an average price of A$624 per tonne sold. The positive cash flow outcome reflects effective cost management and operational resilience, underpinning confidence in the project’s financial trajectory.

Advancing Yandanooka and Other Development Projects

Looking beyond Atlas, Image Resources is progressing its pipeline of development projects, notably the Yandanooka mineral sands project. The company is advancing a bankable feasibility study (BFS) for Yandanooka, contingent on securing land access agreements and mining leases. The project’s pre-feasibility study highlighted robust economics, including a pre-tax net present value of A$151 million and an internal rate of return of 72%, with an anticipated mine life of over eight years.

Yandanooka’s development is expected to benefit from lower environmental sensitivities and minimal heritage constraints, potentially enabling a shorter timeline compared to other projects. The company also continues to evaluate mine life extensions at Atlas and nearby deposits such as Hyperion and Helene, which could leverage existing infrastructure and reduce capital expenditure.

Exploration and Corporate Updates

Exploration activities resumed with drilling at the Erayinia/King gold tenements, confirming geological targets with assay results expected in the third quarter. This diversification into gold exploration complements the company’s mineral sands focus.

Corporate developments include the appointment of Winston Lee as the new board chair following Robert Besley’s departure. Image Resources closed the quarter with a strong cash position of A$10.7 million, supported by a US$20 million prepayment facility and prudent financial management.

Sustainability and Community Engagement

Image Resources continues to prioritize environmental and social governance, with ongoing rehabilitation efforts at its Boonanarring project and community support initiatives. The company also lodged its fourth annual Modern Slavery Statement and is preparing its 2024 Sustainability Report, reflecting a commitment to transparency and responsible mining practices.