Financial picture improves for Image with higher zircon pricing

HIGHER forecast zircon pricing and other favourable modelling inputs have seen mineral sands developer Image Resources improve the financial metrics for its currently being built Boonanarring project north of Perth in Western Australia.

Financial picture improves for Image with higher zircon pricing Financial picture improves for Image with higher zircon pricing Financial picture improves for Image with higher zircon pricing Financial picture improves for Image with higher zircon pricing Financial picture improves for Image with higher zircon pricing

Image is building a mine as zircon pricing improves.

The project's pre-tax NPV has increased from A$197 million to $235 million, with a pre-tax IRR of 125% (previously 104%), and payback now expected after 13 months rather than 16 months.

As well as the zircon change, Image's modelling updated other mineral sands prices and used a USD:AUD foreign exchange rate of US$0.75.

Meanwhile the capital cost of the project remains unchanged at A$52 million, with the project nearly halfway through the 6-7 month construction timeframe.

The project is fully funded (using debt and equity), with the company having sufficient capability for the build and to meet corporate overhead and minimum exploration expenditure commitments through to positive cashflow - scheduled to be in the first quarter of 2019.

Mineral sands pr...

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