The threads for IMA are still sensible. A bit of scepticism is good. It also means this stock still has quite a long runway in terms of share price.
However quarterly deliveries for December quarter would already be being contracted out. So low and behold, there will be another group completely surprised by the price increase in the next quarterly and it will jump again once that comes out if enough people don't do their OWN research.
If you take a look at the BSE report, they already offered some guidance on what is going on with contract pricing:
"Zircon demand continues to be very strong due to recoveries in all end use sectors and regions, which, when combined with limited
supply and minimal inventories, has resulted in a tightening zircon market and significant upward price pressure. Zircon prices for the
Company’s September quarter contracts increased by approximately US$150/t from the June quarter and prices agreed for the
Company’s December quarter contracts have increased by an additional US$600/t."
Certainly longer term, RB coming back online should stabilise the prices at some point pending how quickly that happens and how quickly inventories recover. It will be interesting to watch going forward to see if the prices are sustained through this quarter as then we will likely get the contracts locked in at these levels again for one more quarter after this one. If that turns out to be a case and this stock isn't a buy then I don't know what is
.
That is all prior to any multiples expansion. IMA trading at a discounted PE due to life of mine concerns. With this much cash in hand and the projects in its pipeline, if they can show that that is unwarranted, it will get a significant re-rate just to come in line with other companies in the same industry.
DYOR, GLTAH
