Image lifts guidance after another strong quarter

MINERAL sands miner Image Resources has increased its full-year guidance after better-than-expected operational performance from its Boonanarring mine, north of Perth.
Image lifts guidance after another strong quarter Image lifts guidance after another strong quarter Image lifts guidance after another strong quarter Image lifts guidance after another strong quarter Image lifts guidance after another strong quarter

Image's Boonanarring mine, north of Perth

Heavy mineral concentrate production of 66,300 tonnes was in line with the June quarter, while sales were slightly weaker at 58,800t.

The company focused on mining of the Western Strand, which is lower grade than the Eastern Strand, though positive grade reconciliations continued.

Ore processing rates lifted by 11%, benefitting from the installation of a larger trammel.

C1 cash costs rose from A$280 per tonne to $344/t, while all-in sustaining costs increased from $337/t to $410/t.

The average realised HMC price increased to $639/t from $624/t.

Operating cashflow for the quarter was $13 million, with Image closing the September quarter with $35.8 million cash.

A further $12.3 million was received this month for the quarter's final shipment.

Image had another 46,000t of HMC inventory on hand at the end of the quarter with an estimated sales value of $32 million.

Year-to-date HMC production was 201,400t at AISC of $390/t.

The company increased 2019 guidance from 240,000-260,000t to 260,000-280,000t, while sales guidance was left unchanged at 230,000-250,000t.

Sales price guidance was increased to $590-610/t from $568-592/t.

C1 cost guidance of $320-350/t was left unchanged, while the company reported an AISC target of $370-390/t for the first time.

EBITDA guidance was increased from $60-70 million to $90-100 million.

Image shares were unchanged at 27.5c, valuing the company at nearly $270 million. The stock's 52-week high was 30.5c, reached in July.