Image Resources NL (ASX: IMA) has successfully completed its first operational quarter at the Atlas mineral sands project, located 170 km north of Perth. The company reported three shipments of heavy mineral concentrate (HMC) totaling approximately 35,000 dry tonnes during the June quarter, generating approximately AU$22 million in revenue. This achievement aligns with the company’s forecasts and is an important milestone for the Atlas project.
Quarterly Achievements and Financial Overview
In total, Image Resources booked revenue of approximately AU$22 million from the three bulk shipments made through Geraldton Port. A portion of this revenue, about 25%, was allocated to principal repayments under two HMC offtake prepayment facilities executed in the final quarter of 2024. The net cash received for the shipments during the quarter was around 75% of the total revenue, reflecting the effective financial strategy employed by the company.
The operations at the Atlas project officially commenced on April 1, 2025, after a successful commissioning phase in February and March. This marks the first quarter of production for the Atlas project, with total HMC production reaching approximately 45,000 tonnes, which is about 85% of the forecasted output.
Managing Director and CEO Patrick Mutz expressed satisfaction with the quarterly results, stating, “It is gratifying to report that HMC sales for the June quarter remained in line with forecast sales, despite early operational challenges.” He highlighted the proactive measures taken to address lower heavy mineral recovery rates, which were affected by organic root matter in the CT1 spirals.
Operational Adjustments and Future Plans
To enhance operational efficiency, Image Resources implemented a contingency plan to replace the CT1 spirals with conventional MG12 spirals during a planned three-day shutdown in May. This strategic move significantly improved heavy mineral recovery rates and allowed the project to achieve nameplate processing capacity by the end of June.
While HMC production was slightly below forecast, Mutz remains optimistic about meeting the company’s market guidance for the calendar year 2025. “Our focus for the September quarter will be to deliver steady state production and to meet or beat forecast targets for HMC production,” he stated.
Following the quarter’s end, Image Resources added six additional MG12 rougher spirals to the Atlas wet concentration plant. This expansion aims to boost throughput capacity and compensate for the production shortfall experienced in June.
Image Resources NL operates the Atlas project alongside its high-grade Boonanarring project, which is recognized as one of the leading zircon-rich mineral sands projects in Australia. The company continues to demonstrate strong performance in the mineral sands sector, positioning itself for future growth and production stability.
With a solid operational framework and financial strategy, Image Resources is poised to navigate the evolving market landscape while maintaining its commitment to performance and environmental responsibility.
