zircon price market research, page-74

Hi Autosime,

I’ve held IMA and BSE for many years and know them well. I consider IMA to be the lower risk option and better valued on a risk basis right now. However, there are two things that would flip that - government approvals on Toliara or Kwale mine life extension via Kuranze.

Yes Toliara is in Madagascar and carries the usual African risk. But the deposit really is something special … and that’s before considering the last round of drilling (e.g. 81m @ 15.1% HMC). Yes the Capex is significant, but Tim has been very clear that funding will come from debt and selling down a small portion of the project to a downstream producer/buyer. So don’t expect to see any capital raising.

I’m very happy holding both companies at the moment. IMA is still undervalued and should rerate when the market comes to its senses. BSE may be closer to fully valued at present, but their management is the best I’ve seen in the mining industry and they will become a major mineral sands player if things go their way. All in my opinion of course.

PS - thanks for your regular comments on IMA - they are always worth reading!