Image Resources Posts 30% Q4 Production Growth, 44% Sales Jump, and New Gold Resource

Strong Operational Performance at Atlas

Image Resources NL (ASX – IMA) closed out 2025 with a standout quarter at its Atlas mineral sands project in Western Australia. Heavy Mineral Concentrate (HMC) production surged 30% quarter-on-quarter to 73,000 dry metric tonnes, driven by an 11% increase in ore processed and an 18% improvement in ore grade. Sales volumes also jumped 44% to over 70,000 tonnes, reflecting strong demand and operational efficiency.

This robust production performance came despite softer commodity prices, with the company managing to reduce its C1 operating costs by 5% to A$270 per tonne and all-in sustaining costs (AISC) by 10% to A$317 per tonne for the quarter. These cost reductions contributed to a positive operating margin of A$26 million for the year, underscoring the project's resilience and cost discipline.

Strategic Advances Beyond Atlas

Beyond Atlas, Image Resources announced a maiden Mineral Resource estimate for its Erayinia/King gold project, revealing 2.1 million tonnes at 2.1 grams per tonne gold for 139,000 ounces. This marks a significant milestone for the company’s diversification into gold exploration, with a strategic review underway to explore options for unlocking shareholder value, including potential divestment or in-house development.

Meanwhile, the company is actively pursuing extensions to the Atlas mine life through potential mining at Atlas North and the nearby Hyperion deposit. Both projects require environmental approvals and land access agreements but offer a cost-effective way to leverage existing infrastructure. Additionally, development options at other mineral sands projects such as Yandanooka, Durack, and Bidaminna are progressing, with feasibility studies and drilling programs advancing.

Innovation in Synthetic Rutile Production

Image Resources is also pushing forward with a novel synthetic rutile (SR) production process that uses hydrogen instead of coal as the iron reductant, aiming to significantly reduce carbon emissions. The process is under provisional patent application, and the company has applied for grant funding through the WA Investment Attraction Fund’s New Energy Industries program. If successful, a demonstration SR plant is planned for construction at the Boonanarring site in the second half of 2026, potentially adding substantial value to future ilmenite production.

Financial Position and ESG Commitment

Financially, Image Resources ended the quarter with a healthy cash balance of A$7.7 million and is steadily repaying its US$20 million prepayment facility through delivery of HMC shipments. The company reported positive net cash flow from operations of A$11.2 million for the quarter, supported by strong revenue growth and disciplined capital management.

On the environmental, social, and governance (ESG) front, the company continues rehabilitation efforts at Boonanarring and maintains a strong safety record with no reportable injuries during the quarter. Community engagement remains a priority, with initiatives supporting local groups and mental health programs.

Looking Ahead

Market guidance for 2026 anticipates increased HMC production and shipments, with unit costs expected to remain competitive. The company’s development team is focused on securing necessary approvals and land access to extend mine life and advance future projects, while innovation in low-carbon synthetic rutile production could position Image Resources as a leader in sustainable mineral sands processing.