significantly undervalued

My summary shows that IMX Resources is well diversified resources junior with projects at various stages.

In my opinion, IMX is still significantly undervalued, considering its exploration and development pipeline, not to mention that it has a profitable iron ore operation at Cairn Hill.

EXPLORATION

1. Nachingwea (Tanzania) – Ni, Au, Cu, C [IMX 100%]
- Gold grades of 2.7gpt confirmed from drilling results at the Hog Prospect on 15 Nov 2012. Other results expected from Jan 2013 following identification of 25 high priority targets after completion of VTEM surveys.

2. Mibango (Tanzania) – Ni, Cu, PGE [IMX 100%] is a future exploration target

3. Milange (Mozambique) – Ni, Cu, PGE [IMX 100%]. IMX is currently sampling soils.

4. Tasmania – Ni, Cu, PGE [IMX 96%]
- Drilling results of 6 holes totalling 568m expected from January 2013.

5. St Stephen (Canada) – Ni, Cu, Co [IMX earning 50%] is at an advanced exploration stage

DEVELOPMENT

Ntaka Hill (Tanzania) - Nickel sulphide [IMX 100%]
This is the company’s main focus.

- Close proximity to road, port and energy infrastructure
- Scoping study completed on 1 Oct 2012 with NPV of USD 147m using a combination of open pit and underground mining methods. Value should significantly increase following drill results on 9 Oct 2012 and 20 Dec 2012. Remember the Nickel price is currently significantly depressed, there is plenty of upside considering the demand for this product.
- Scoping Study shows an improvement to initial metallurgical test work completed in Sep 2012 using an overall concentrate of 16.2% Ni with 79.7% Nickel recovery. Optimised test work to be completed during in Q1 2013 and looks certain to significantly improve following latest batches of Sleeping Giant drill results on 9 Oct 2012 (14 holes) and 20 Dec 2012 (26 holes) which should lead to a significant extension of the 289,700t Ni resource both in tonnage and grade. These 2 announcements revealed a total of 11 intercepts with greater than 50m of continuous nickel, the largest intercept was 153m in length was 20m from surface. The best grade reported was 16.3% Ni.
- Further diamond drilling results expected from Jan 2013. There are still pending holes from the Sleeping Giant prospect and several holes from other prospects.
- Updated JORC statement due in Feb 2013
- Environment approvals expected in Mar 2013
- IMX is aiming to be in production at Ntaka Hill by Q4 2015.

Mt Woods (South Australia) – Fe [IMX 100%]

- IMX owns 100% of the iron ore rights of the Mt Wood tenement package where it currently has a JORC resource of 569Mt @ 27% Fe at the Snaefield Magnetite deposit. It is located just 12km from its profitable Cairn Hill mining operation in Coober Pedy.
- The Snaefield concept study was completed on 27 Aug 2012 showing promise with its 66% FE coarse-grained premium magnetite concentrate @ 180-200 micron grind size. Other benefits include a relatively low cost operation and access to existing infrastructure capability. IMX is initiating discussions with potential project development partners. Another profitable mining operation in the making.
- Drilling completed in Nov 2012 at Bumblebee, Fitzgerald Dam and Tomahawk prospects targeting 200-380Mt @ 25-35% Fe. Results expected from Jan 2013. Next step is the PFS.

PRODUCTION

Cairn Hill (South Australia) – DSO coarse grained Fe-Cu [IMX earns 51% in its JV with Taifeng].

- FY13 free cash is budgeted to be $35-$40m.
- Operation producing 1.8Mt p.a. of generating around $200m in revenue. Mine life until late 2015, with extensional drilling underway, hoping to extend mine life.
- IMX is now debt-free following the repayment of debt of $9m on 10 Dec 2012 out of profits from the Cairn Hill mine operation.

RECENT POSITIVES

- 4 directors purchased shares on market whilst they were at near 52 week lows (late Nov 2012 and early Dec 2012).
- Exceptional drill results at Sleeping Giant sets the path for a substantial nickel resource upgrade. More drill results to follow prior to a JORC upgrade in Feb 2013
- Cairn Hill operation is becoming more profitable through reduced costs and improving iron ore prices (currently at US$139 per tonne with gains of nearly 60% since lows of US$87 per tonne Sep 2012), which should negate the need for near term capital raisings preventing dilution of an already low share price.
- $3.7m received on 28 Nov 2012 in a recent capital raising. Remaining $5m receivable from Oz Minerals for sale of Copper-Gold rights at Mt Wood.
- There is so much happening with $20m committed to exploration and project evaluation. It is hard to believe that IMX’s share price declined from $0.355 on 20 Apr 2012 to $0.10 on 3 Dec 2012.
- There is suddenly increased interest in IMX following outstanding nickel results at Ntaka Hill. It is good to see an upswing to $0.165, however this share has a long way to go in my opinion. Just look at recent volumes, over the last 2 days in particular.

Volumes of 3,839,903 shares traded on 28 Dec 2012 are significant factors above recent daily trading despite the Christmas break, however the share price is still significantly depressed.
- Last 12 months average shares traded of 146,587 per day (a factor of 26 times)
- Last 6 months average shares traded of 223,474 per day (a factor of 17 times)
- Last 3 months average shares traded of 366,087 per day (a factor of 10 times)
- Last 1 month average shares traded of 774,425 per day (a factor of 5 times)

How many companies possess ALL of the below:
1. Are currently valued at $65m in market capitalisation;
2. Are debt-free;
3. Are generating significant cash flow (Cairn Hill). Cash flow positive for all of 2012;
4. Have a world class undeveloped nickel prospect that is growing by the day (Ntaka Hill);
5. Have significant mineral diversification to cope with difficult times. IMX have another iron ore operation in the pipeline (Mt Wood) and own a 25% equity investment in a uranium exploration company, Uranex (UNX);
6. Possess several exploration prospects in 3 continents focussing on valuable metals including nickel, copper, gold and platinum; and
7. Can spend around $20m in a period of 6 months to further its development and exploration prospects.

You will probably find that some companies will satisfy 5 of the 7 points above, however they will struggle to satisfy points 3 and 7, the critical ones that will help them advance their projects.

I believe holders are in for a massive 2013. Please DYOR