Ann: Half Year Accounts, page-35

I have a lot of shares mate and bought more recently, but it seems the market is cautious.

I agree on prices being strong, but it has not moved our share price, unlike Iluka. Rather than assume the market is stupid the question is why is our share price stagnant.

As I illustrated above, the risk for IMA is that with the lower grades the company has flagged we get lower production over the the rest of 2021 and 2022, plus a period of no production while we switch to Atlas. To keep revenue up in that period we need to run down stocks. The doubt is over how much production falls and whether we can maintain sales from the stock rundown.

We can keep sales up running down stocks and get earnings of 2cps in 2021. On my guesses it looks likely revenue will fall in 2022, even running stocks right down. The key is how large is the drop off in production over the next 18 months. You are optimistic, but until we get guidance on production for 2022, I can understand new investors being cautious about buying IMA. We may have good times ahead, but the question is how deep is the valley we have to cross first.