Image Resources NL (ASX:IMA) has marked a pivotal quarter, announcing the first production and shipment of heavy mineral concentrate (HMC) from its Atlas project — located 170 kilometres north of Perth in Western Australia.
The March 2025 quarterly report confirms the company’s return to mining and revenue generation, following a 16-month hiatus after the completion of its Boonanarring project.
The company achieved first HMC production at Atlas in February 2025 as part of early-stage commissioning.
By March, trucking of HMC to interim storage in Geraldton commenced, paving the way for the inaugural bulk shipment.
On 10 April 2025, Image completed its first shipment of 9,735 dry tonnes of Atlas HMC from Geraldton Port, generating total revenue of US$4.2 million.
Of this, 75 per cent was received in cash by mid-April, with the remainder credited to the repayment of the HMC Offtake Prepayment Facility.
CEO Patrick Mutz described the achievement as a major milestone: “CY2025 is shaping up to be a milestone year for Image Resources, with a return to mining and HMC production at Atlas in Q1, forecast achievement of positive operating cash flow in Q2, and targeting repayment of the HMC Offtake Prepayment Facilities by the end of CY2025.”
He added: “I would like to congratulate our internal development team and our Atlas project partners — including ProjX, LGM and BESC — on successfully completing the Atlas construction in line with the approved construction schedule and budget, replicating the construction achievements at our Boonanarring project.”
The company forecasts two further HMC shipments in the June quarter, targeting a total of 30,000–35,000 dry metric tonnes (DMT) for Q2 and an additional 135,000–150,000 DMT for the second half of 2025.
Market guidance for the calendar year projects HMC production at 175,000–195,000 DMT, shipments of 165,000–185,000 DMT, and a cash cost per tonne produced of $340–400, with all-in sustaining costs (AISC) at $410–470 per tonne.
Atlas’ commissioning phase saw throughput rates reach up to 80 per cent of nameplate capacity and operating availability of 95 per cent.
The HMC produced was of high quality, containing up to 94 per cent heavy mineral and 21 per cent zircon.
The processing plant incorporated Mineral Technologies’ novel CT1 spiral technology, marking its first commercial application.
While the technology delivered high recoveries, it showed sensitivity to fine fibrous root matter in the shallow Atlas ore, necessitating periodic cleaning and prompting a decision to replace the CT1 spirals with conventional MG12 spirals to maintain operational efficiency.
This replacement is expected to require only a week of downtime and cost less than $1 million, leaving the project on track to meet its production guidance.
Mutz highlighted the company’s forward outlook: “We now look forward to a rapid ramp-up to nameplate capacity at Atlas and the achievement of positive operational cash flow, which will help fund our Chapter 2 ambitions including the development of additional mining projects such as Yandanooka (subject to access agreement) and further investigations and testing of our innovative SR technology.”
On the corporate front, Image completed a US$15 million drawdown in January 2025 under its HMC Offtake Prepayment Facility agreements, supporting working capital needs with key partners Shantou Natfort Zirconium and Titanium Co., Ltd and Billion Sunny Investment Limited.
The company reported a closing cash position of $13.6 million at 31 March 2025, with Atlas revenue received in mid-April. The annual financial report was released on 31 March 2025.
The Atlas project, with a mine life of two to three years and a resource estimate of 109 million tonnes at 2.5 per cent heavy minerals, is expected to underpin Image’s return to sustained revenue and operational growth through 2025.
