The way i see it is the increase in Zircon by 50 $ 1 April and the falling AUD will see inventory monetised at a higher level - perhaps 2.5-3 m more than what was the case last quarter. This current quarter will also see higher realised price both from price increases, currency and grade. Boonanaring will produce all of this quarter and may cross over marginally into next. The gap to Atlas is thus reduced and the operational outflow per month while not producing is low. The cash flow is being used to partially fund Atlas move and they would have paid for 5-6 m of the 43 m spend, In addition they continue to remediate leased land. The requirement to remediate their own land is not time bound, and could be done years form now, and furthermore a separation facility at Boonanaring may result in a significantly lower remediation cost which is also part of current studies /considerations One thing is certain, the company is looking at all angles and continues in my view to be great stewards of our capital. I also read through the bullishness most analysts have on a Ilu as an indication that IMa assetshave a lot of value. Even after move to Atlas , Image would still have circa 35-45 m cash
IMA Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
