Image Resources has announced its intention to pay a 2 cent fully franked dividend after it receives the final results from the 2021 calendar year which it says are strong. The continued solid demand for Image’s heavy mineral sands from its Boonanarring project 80km north of Perth along with buoyed mineral sands prices and some cost control has resulted in a bumper calendar year for the Perth based company.
Last year the company also paid a 2c dividend however it was unfranked, this year’s payout will be franked, offering shareholders a substantial tax advantage.
Image says its Boonanarring project in the North Perth Basin is arguably one of the highest grade, zircon-rich mineral sands projects in Australia.
Boonanarring was constructed and commissioned on-time and on-budget in 2018 with first production following shortly thereafter. The project quickly ramped up and managed to exceed its nameplate capacity in only the second month of operation in January 2019.
Image quickly paid off its outstanding debt ahead of schedule in February 2021 and remarkably, managed to pay out its first dividend just two years after becoming an active mining company.
The company is kicking goals on all fronts with the spot price for heavy mineral concentrate having increased a whopping 43 per cent over the December 2021 quarter to $904 per tonne along with a streamlining of operations and a reduction in costs of production of 43 per cent.
Cash on hand at the end of December 2021 was a very healthy $79.8 million - up $29.5 million or 59 per cent over the previous quarter’s end.
Moving forward, Image is focused on a multi-pronged growth strategy that aims to maintain its strong economic performance at Boonanarring in addition to mining at its nearby Atlas, Helene and Hyperion mineral sands projects.
Whilst mining operations continue unabated at Boonanarring, the company is progressing a feasibility study at its 100 per cent owned gold tenements and King Farmin tenement located 135 km southeast of Kalgoorlie. The study closely follows a spate of high-grade gold hits over a 400m long strike within a possibly much larger mineralised system.
Image Resources Managing Director, Patrick Mutz said:
“CY2021 results reflect the strong performance of our operating team, and when combined with continuing high demand for our HMC and positive market outlook for zircon, in particular, this has allowed the Board to confirm its intention to pay a fully franked two-cent per share dividend.”
“In addition, our strong balance sheet, debt-free position and healthy cash balance, has allowed the Company to advance progress on its growth strategy, including the acquisition of a strategic package of mineral sands tenements in the historic Eneabba mining district, advancing pre-development activities at Atlas and Bidaminna, and expanding our gold interests through the King Farmin Prospect. We look forward to another exciting year of success.”
By any measure Image has turned out a successful year – both in terms of production and financially. It is not often in mining that a plan comes together but it would appear that has been the case for Image who built its mine on time and on budget and then promptly moved to repay shareholders by way of dividends.
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