Ann: MINES ULTRA HIGH GRADE ZIRCON-RICH ORE, page-8

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13/05/19

22:23

Post #: 38545763
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Originally posted by moorookamick: ↑

The key paragraph in the ann. is:

"Fourth Shipment of HMC:
The early successes of higher than expected HMC production allowed Image to complete planned monthly shipments in January, February and the end of March. However, the unplanned extra production also taxed the capacity of the HMC off-takers in the shorter term, which when combined with limited ship availability, did not provide an opportunity for a shipment in April. Shipment No. 4 was also delayed somewhat in May due to limited ship availability and is scheduled to sail on 20 May 2019. Additional shipments are in the planning stage with the goal of increasing shipment size from the nominal 20,000 to 28,000 tonnes."

This, IMO, indicates that the Chinese offtake customers are incapable of taking full IMA production as expected and that spot sales may be needed; otherwise the stockpile which is close to 70K ton now will grow further. If I were to be the Chairman I would try to headhunt Iluka's Marketing 2IC.
Option B: cut back on production IMO.

http://www.byport.com.au/shipping/shiplist.htm

Looks like "Thetis" is the ship for the May 20K shipment

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Image has an agreement with their take off partners it was to buy to ramp up schedule. However image ramp up has been very successful now they're take off partner's have supplies they are currently buy from and are reducing from them and in time will be able to handle it all.

Why would you sell all that extra HMC right now?

What do you have to offset it again.

You start sell all that extra HMC come the next quarter that's when Image started paying off there loan and when you are able to offset all that extra money otherwise you're just paying extra tax.

IMA Price at posting: 20.0¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

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