ANNUAL REPORT
2021
Image Resources NL
ABN 57 063 977 579
ABOUT IMAGE RESOURCES
Image Resources NL (ASX: IMA) is a mineral sands
focused mining company operating an open-cut mine
and ore processing facility at its 100%-owned, high-grade,
zircon-rich Boonanarring Project, located 80km north of
Perth in the infrastructure rich North Perth Basin.
Boonanarring Project
A uniquely rich and valuable mineral sands project.
Social License
Integrated into the local community with an
environmentally friendly ethos.
Operational Performance
Demonstrating a solid track record of operational
performance.
Growth
Exciting exploration upside and an enviable portfolio
of potential development projects.
FOCUSED ON
HIGH-VALUE ZIRCON
CONTENTS
Business Review
Our Approach
The Value of Mineral Sands
Chairman’s Report
Managing Director’s Report
Review of Operations
Mineral Resources and Ore Reserves Statement
Financial Report
Directors’ Report
Remuneration Report
Auditor’s Independence Declaration
Corporate Governance Statement
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to and forming part of the
Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
2
4
6
8
13
20
29
34
41
42
43
44
45
46
47
72
73
ASX Additional Information
77
2021 HIGHLIGHTS
A$179m
CY2021 revenue
293,000t
HMC tonnes sold
A$75m
Project EBITDA
A$19
m
Net profit after tax
Annual Report 2021
1
OUR APPROACH
Your company has taken the bold step of successfully
demonstrating concurrent mining and mine rehabilitation,
by completing rapid rehabilitation of the first thirteen-
hectare area of the Boonanarring mine, including
re-establishment of the vegetation.
2
Image Resources NL
SOCIAL LICENSE AND COMMUNITY
Integrated into the local community
with an environmentally friendly ethos.
REHABILITATION
Once mining is complete,
overburden is returned (as
required), topsoil is replaced
and the land is re-seeded.
MINING
Classic dry, open-cut
mining utilising standard
truck and shovel fleet.
PROCESSING
3.7Mtpa conventional wet concentrate
plant producing a high-quality HMC.
TRUCKING
HMC trucked to
Bunbury port.
SOLAR FARM
On average 25% of
electricity requirements
generated from solar.
GLOBAL MARKETS FOR MINERAL SANDS
Zircon and titanium contained in Image HMC
is further processed into final products with
a wide range of applications globally.
SHIPPING
Bulk shipments to China out
of Bunbury WA under life-of-
mine offtake contracts based
on market prices.
SOCIAL LICENSE AND COMMUNITY
Integrated into the local community
with an environmentally friendly ethos.
Annual Report 2021
3
THE VALUE OF
MINERAL SANDS
Zr02
ZIRCON
CERAMICS
Zircon contributes to
whiteness and abrasion
and heat resistance.
FOUNDRY EQUIPMENT
REFRACTORIES
OTHER
Zircon is widely used
in the foundry industry,
mostly in the form of
SAND and FLOUR (milled
sand) for casting.
Some refractory
applications include
refractory linings for glass
and metal furnaces as well
as fibres, nozzles, slide
gates and valves.
Other applications
include: pigments in
paints; cosmetics and
catalysts; and it has
an increasing role in
biomedical implants.
DELIVERING MINERAL
SANDS COMMODITIES
AROUND THE GLOBE
4
Image Resources NL
TiO2
TITANIUM DIOXIDE
PAINTS & COATINGS
NANOMATERIALS
PLASTICS & PAPER
COSMETICS
Titanium dioxide
provides opacity and
durability, while helping
to ensure the longevity of
paint and protection of
the painted surface.
Titanium dioxide
nanoparticles are used in
sunscreens, self-cleaning
windows, light emitting
diodes and solar cells.
Titanium dioxide can
help minimise the
brittleness, fading and
cracking that can occur
in plastics.
Pigment-grade titanium
dioxide is used in some
cosmetics to aid in
hiding blemishes and
brightening skin.
Annual Report 2021
5
CHAIRMAN'S
REPORT
Dear Shareholders,
On behalf of your Board of Directors, I am
honoured to report your Company has
completed another successful year of operation,
which was buoyed by strong commodity prices
and, despite the continuing challenges from
COVID-19, we ended the year in a very strong,
debt-free, cash position.
I am pleased to advise your Company has
now successfully completed its third full year
(CY2021) of mining operations and, as forecast,
results were very positive albeit slightly lower
than achieved in CY2020.
We finished CY2021 in a very strong financial
position with A$80m in the bank, and
importantly, a debt-free balance sheet. Our
financial strength comes even after we paid out
A$19 million in the form of an inaugural dividend
of 2 cents per share in April 2021.
Your Board is committed to promoting
continuous improvement in the areas of the
health, safety and well-being of our employees,
contractors, their families and members of
the local community. I am pleased to report
our operating team, including contractors and
exploration crews, have reported zero lost-time
injuries for CY2021. This is supported through
the forward-looking practice of collating positive
performance scoring from safety audits, as well
as a 12-month rolling average total reportable
incident frequency rate (TRIFR) at the end of
December 2021 of 7.2 per million hours worked.
Image is also focused on being proactive in
protecting the environment, actively engaging
and supporting local communities and
stakeholders and striving to improve corporate
governance. We look forward to formalising a
framework for reporting on your Company’s
environmental, social and governance (ESG)
performance in CY2022.
Your Company proudly continues to source on
average 25% of our electrical requirements at
Boonanarring as CO2-free, renewable energy
from a solar farm constructed at Boonanarring
in 2019 by Sunrise Energy. To our knowledge,
Image remains the only mineral sands mining
company in Australia utilising direct solar power
to significantly reduce its carbon footprint.
Key Highlights
A$179
m
Total revenue
A$75m
Project EBITDA
A$19m
Net Profit after tax
6
Image Resources NL
REFRACTORIES
Zr02
Some refractory applications include
refractory linings for glass and metal
furnaces as well as fibres, nozzles,
slide gates and valves.
Your Company is also supporting
field trials in the Boonanarring area
focused on improving topsoils
for greatly enhanced carbon
sequestration as well as higher crop
yields. Image is also supporting
efforts to establish a green hydrogen
production facility at Boonanarring,
which could serve as a hydrogen fuel
generation and dispensing terminal
for commercial vehicles following
cessation of mining at Boonanarring.
It gives me great pleasure, on behalf
of your Board, I would like to thank
and congratulate all our employees,
contractors and consultants on
another very successful year of
operation. I would also like to
acknowledge the strong leadership of
our senior executive Team under the
direction of our Managing Director
Mr Patrick Mutz. Collectively our
operating Team has steered the
Company into a solid position to be
able to continue to benefit from the
current buoyant commodity prices,
and through the next phase of
growth.
I also want to thank my fellow
Directors for their leadership and
guidance to direct the Company
through these continuing challenging
times.
Finally, on behalf of the Board and
employees of your Company, I
want to say thank you to all our
shareholders for your continuing
support.
Your Board is cognisant of the
continuing challenges facing the
Company and we are confident that
with our proven operational Team and
your Company’s debt-free position,
we are now firmly on a path of
sustainable development and growth.
Despite the continuing challenges from the global COVID-19
pandemic, Image achieved its production and sales targets,
maintained its cost control initiatives and capitalised on
a buoyant mineral sands commodities market to improve
profitability, complete early repayment of debt and pay
shareholder a healthy, inaugural 2 cent dividend.
Robert Besley
Non-Executive Chairman
Annual Report 2021
7
MANAGING DIRECTOR’S
REPORT
Dear Shareholders,
Your Image Operational Team has delivered
another year of very positive results. We met
guidance on production and operating costs,
positioning us to take full advantage of very
buoyant commodity prices, and we developed
and advanced progress on a multi-component
growth strategy. The strong performance,
combined with the previous year’s positive
results, allowed Image to achieve early
repayment of its debt and payment of an
inaugural dividend.
I am pleased to report your Operating Team,
including exploration and development, has
delivered another very positive set of results.
Operationally we achieved guidance on heavy
mineral concentrate (HMC) production at 296kt,
despite significantly restricted production in Q3
due to wet weather delays with the relocation of
the ore slurry unit from Block ‘A’ to Block ‘C’.
In addition, project operating costs were also
within guidance at A$97m, despite spending
more than A$10m extra for the year on HMC
shipping due to record high shipping costs.
HMC sales were slightly below guidance at
293kt and was a reflection of the tight availability
of ships as opposed to market demand.
Demand for zircon, ilmenite and rutile, including
Image’s HMC remained strong and commodity
prices continued to rise throughout the year.
While the HMC realised price and revenue in
1H 2021 were negatively impacted by lower
zircon content in the HMC and a strengthening
of the Australian dollar to the US Dollar, HMC
realised prices in 2H 2021 were bolstered to
record highs due to rising zircon content in the
HMC, weakening Australian dollar, plus higher
commodity prices and the elimination of the
standard grade zircon penalty in September.
The net result of meeting production guidance
and successfully controlling costs, was
completing the year with a revenue to cost ratio
of 1.8:1, and having $80 million cash in the bank
and zero debt. Substantially higher shipping
costs than forecast was the reason the revenue
to cost ratio was less than 2:1.
Continuing strong operational performance at
Boonanarring was positively augmented with
development planning for the next stage of mining
at Atlas, commencement of a feasibility study
for a standalone dredge mining operation at
Bidaminna, the acquisition of a strategic package
of tenements in the Eneabba area for future
development and the earn-in and acquisition of
80% ownership of the King Gold Prospect, along
with outlining work programs for implementation of
a formal ESG framework in CY2022.
PAINTS & COATINGS
Titanium dioxide provides opacity
and durability, while helping to
ensure the longevity of paint and
protection of the painted surface.
Ti02
8
Image Resources NL
Image strives to maintain its social
licence to operate by focusing
on protecting the health, safety
and well-being of our employees,
consultants, contractors, visitors and
members of the local community;
protecting the environment; providing
local employment; cultivating
positive landowner and community
relations and providing support for
local business and not-for-profit
organisations.
In CY2022, these efforts are being
consolidated into a formal framework
under the banner of environmental,
social and governance (ESG)
for reporting on the Company’s
continuing improvement efforts.
In addition to solid operational
results, the Company’s overall
performance was enhanced by the
early elimination of Boonanarring
construction debt in February and
the payment of a two-cent dividend
in April.
Overall positive results were achieved
despite the continuing challenges
of responding to the various travel
and workplace restrictions and
mandates implemented by the WA
Government to control the spread
of COVID-19. Among these was the
mandate to ensure all employees
and visitors to the Company’s
operating and exploration sites met
COVID vaccination requirements.
The Company complied with the
Government mandates even at
the expense of the loss of a few
employees who chose not to be
vaccinated.
On the environmental front, your
company took a proactive approach
to reduce its carbon footprint
through the construction of a solar
farm by Sunrise Energy Group, at
Boonanarring back in 2020. This farm
has been producing on average 25%
of Boonanarring project electricity
requirements as renewal solar energy
September 2020. Your company may
be the only mineral sands mining
company in Australia with the green
credentials of using solar power
directly to offset a significant portion
of its carbon emissions.
Image is also supporting field trials
with local landowners to improve
the soil matrix to enhance carbon
sequestration into the soils while
increasing crop yields. Subsequent
to the end of CY2021, we are also
supporting the efforts of the Sunrise
Energy Consortium to secure grants
to install a green hydrogen fuel
production and dispensing facility
at Boonanarring after mining is
complete.
Annual Report 2021
9
CY2021 has also been a productive
year for your Operating Team to
develop and implement a ‘growth’
strategy which includes:
•
•
•
•
continuing profitable operations
and growing total ore reserves;
feasibility study investigations on
Bidaminna, for its potential as a
second profitable mining centre
to be operated in parallel with
current dry mining operations;
evaluation of the Company’s
currently held gold tenements,
including the King Gold Farm-in
Prospect; and
assessment of projects outside of
our current portfolio for possible
involvement with targets that
have potential for long-life ore
reserves.
CERAMICS
Zircon contributes to whiteness
and the abrasion and heat
resistance that tiles provide.
Zr02
10
Image Resources NL
Significant progress has been
achieved on this growth strategy
including development planning on
Image’s Atlas project; expanding
Image’s Bidaminna Project Mineral
Resources to 102mt at 2.2%HM as
well as commencement of feasibility
study; earn-in and acquisition of
80% ownership interest in the King
Gold Farm-in Prospect; evaluation
of numerous mineral sands project
opportunities; and subsequent to
the end of CY2021, the successful
strategic acquisition of a package
of mineral sands tenements in the
historic Eneabba mining district
containing 6.3mt in-situ heavy
minerals.
Subsequent to the end of the year,
Image secured 100% ownership of
the King Gold Prospect with only a
residual 2.0% net smelter royalty to
the original owners, and the Company
announced its intention to pay a fully
franked two-cent dividend in 2022.
Finally, I wish to thank our Board of
Directors and all our shareholders
for their continuing support during
another challenging year. The Image
Team and I look forward to continuing
the journey in building a sustainable
and growing mid-tier mining company.
Patrick Mutz
Managing Director
I want to thank our CFO Mr John
McEvoy, our COO Mr Todd Colton
and Executive Advisor Exploration,
Mr George Sakalidis as key
members of the senior executive
team, for their unwavering support
of Image’s objectives over the last
four years. I also want to thank all
our valued employees, contractors
and consultants that make up our
Operating Team. This note of thanks
extends to our offtake partners, our
local landowners and community
members. It is through everyone’s
ongoing diligent effort and support
that we are able to achieve such
positive results for CY2021.
Annual Report 2021
11
12
Image Resources NL
REVIEW OF OPERATIONS
Image Resources NL (“Image” or “the Company”) successfully completed
its third full year (CY2021) of operations at the Company’s 100%-owned,
high-grade, zircon-rich Boonanarring Mineral Sands Project (Boonanarring)
in the North Perth Basin, located 80 Kilometres north of Perth. During the
year the Company either met or was reasonably close to achieving market
guidance in all areas, despite the heavy rainfall impacts on mining and HMC
production encountered at Boonanarring during Q3 2021 and the challenges
posed by COVID-19, including the variety of related restrictive measures
implemented by State and Commonwealth governments.
Zero LTIs
Solar power
installed
supplying on average
25% OF MINE SITE POWER
A$83m
Project net cashflow
296,000
t
HMC produced
Annual Report 2021
13
The average HMC realised price for the full year was
A$611 per tonne (CY2020: A$566/t) reflecting slightly
higher average zircon and ilmenite benchmark prices.
2021 in Review
Operations
CY2021 was another successful year
for the Company, having completed its
third full year as a profitable Australian
mining company.
The March 2021 quarter was
marked by two major milestones
for the Company. In February 2021
the Company announced the early
repayment of its debt, and on 17
March 2021 the Company announced
an intention to pay an inaugural
dividend of $0.02 per share, on the
back of a CY2020 net profit after tax
of $24.8 million, with the dividend
being unfranked and subsequently
paid on 27 April 2021.
The March quarter ended with the
Company having a $51 million cash
balance, pre dividend payment, on
strong sales despite lower heavy
mineral concentrate (HMC) realised
prices from lower zircon content and
higher Australian dollar. The March
quarter marked record high HMC
production of 85.2kt.
In the June 2021 quarter, the
Company achieved record high
Quarterly HMC production of 102.3kt.
Record production was supported
by Quarterly record high ore grade of
12.1% HM. Despite higher production
and a small increase in average
realised price per tonne HMC sold,
margins per tonne of HMC sold fell
slightly from A$190/t in Q1 to A$147/t
in Q2 2021 due to lower sales
volumes and lower zircon content in
HMC sold.
14
Image Resources NL
In August 2021 the Company
announced an after-tax profit of
A$2.9 million for the half year ended
30 June 2021 (2020: A$14.2 million)
with the fall in profit compared to the
prior year due to lower zircon content
in HMC and less favourable FX,
combined with higher shipping costs.
In the September 2021 quarter, the
zircon benchmark price increased
8.3% and the ilmenite benchmark
price was up 7.3% quarter on quarter.
As a result of rising commodity prices,
higher zircon content in the HMC and
lower Australian dollar, the quarterly
average realised HMC price increased
26% to A$631/t and the final shipment
in the quarter achieved a record high
price to date of A$794/t.
C1 cash costs per tonne sold fell 13%
in the September quarter, mainly due
to higher sales volumes, and which
combined with higher commodity
prices, higher zircon and lower
Australian dollar, increased margins
from A$147/t in Q2 to $321/t in Q3.
The December quarter was highlighted
by the average HMC realised price
increasing a further $273/t to A$904/t,
as a result of further increases in
commodity prices, zircon content of
the HMC and lower Australian dollar.
In addition, due to substantially higher
zircon spot pricing in China, Image
negotiated higher than standard
market-based benchmark pricing
via the elimination of the standard
grade zircon penalty and a further
5% premium to benchmark pricing
as prescribed in the HMC offtake
agreements. As a result, cash margins
per tonne increased from A$321/t in
Q3 2021 to A$500/t in Q4, a further
56% increase and representing a
117% increase from Q4 2020 at
A$230/t.
Full Year Results
Consistent HMC sales to the
Company’s off-take partners resulted
in total HMC sales of 293kt for
CY2021 (compared to 306kt in
CY2020) on HMC production of
296kt. Total HMC stocks increased
only marginally from the end of
CY2020 to the end of CY2021 and
remain near minimal working levels of
approximately 50kt (including HMC
storage pad bases).
The average HMC realised price for
the full year was A$611 per tonne
(CY2019: A$566/t) reflecting higher
average zircon and ilmenite market
benchmark prices compared to
CY2020.The Boonanarring project
generated EBITDA of approximately
A$75 million in CY2021 (CY2020:
A$86 million).
Lower guidance for CY2022 of 200-
230kt HMC production and 220-250kt
HMC sales, reflects the anticipated
progression of mining to the southern
end of Block C at Boonanarring and
into the lower HM grade and lower
zircon grades in Block D as we
approach the end of Ore Reserves at
Boonanarring before relocating mining
and ore processing operations to
Image’s 100%-owned Atlas deposit
which is currently under development
planning and final permitting.
FOUNDRY EQUIPMENT
Zr02
Zircon is widely used in the foundry
industry, mostly in the form of SAND
and FLOUR (milled sand) for casting.
Mineral Sands Commodity Prices
and FX
Boonanarring HMC pricing is based
on the underlying content of zircon
(as % of ZrO2+HfO2) and titanium
dioxide (as % of TiO2) in the HMC
and benchmark market prices for
the various products (zircon, rutile,
and ilmenite) at appropriate quality
specifications, with the majority of the
value of Boonanarring HMC derived
from the zircon content.
Benchmark prices for zircon started
to increase in Q2 2021 and continued
to strengthen on a Quarterly basis
for the remainder of the year and
into 2022 (Figure 1), rising 26% from
start to the end of CY2021, and then
rising a further 12% on 1 Jan 2022.
Benchmark prices for ilmenite rose
steadily in Q1 and Q2 2021 and
levelled off in Q3 (Figure 2), rising 54%
from start to the end of CY2021.
CY2021 saw significant variability in
the zircon content of the ore mined,
and therefore in the HMC sold. The
content of zircon (as % of ZrO2+HfO2)
averaged roughly 18% in the HMC
for Q1 and Q2, declined to roughly
17% in Q3 and then rebounded
sharply to over 21% in Q4 with the
return of mining ore from Block ‘C’ at
Boonanarring.
Higher benchmark prices for
contained zircon and titanium in
HMC sold, coupled with higher zircon
content in the HMC in Q4 were the
main reasons for a significant increase
in average HMC realised prices in
2021. However, due to significantly
higher zircon spot market prices in
China, Image secured certain pricing
concessions from its offtakers which
pushed HMC realised prices higher
than benchmark market pricing in
Q4 2021. Concessions included
elimination of the standard grade
zircon penalty and a further 5%
premium to benchmark pricing as
a result of competitive demand for
Image’s HMC. In addition, the AUD:
USD FX rate declined during CY2021
to more favourable levels in 2H 2021.
The net result of these positive
changes saw HMC realised prices
increase from an average A$463
per tonne in Q1 2021 to an average
A$904 per tonne in Q4, for an overall
average A$611 per tonne for CY2021
(compared to A$566for CY2020).
With the further increase in the
benchmark market price for zircon,
effective 1 January 2022, and
continuing high demand for mineral
sands commodities in general, strong
HMC realised prices are expected
in 1H 2022, although zircon grades
in the ore and HMC are forecast to
decline in 2H 2022.
Zircon Benchmark Price (US$/tonne)
2,000
1,850
1,700
1,550
1,400
Jan-21
Apr-21
Jul-21
Oct-21
Jan-22
Ilmenite Benchmark Price (US$/tonne)
360
320
280
240
Jan-21
Apr-21
Jul-21
Oct-21
Jan-22
Annual Report 2021
15
Corporate
Sales revenue for the year was
A$179 million (2020: A$176 million)
with project operating and selling
costs of A$97 million (2020: A$91
million) and with full-year CY2021
project EBITDA of A$75 million (2020:
A$86 million). During CY2021 the
Company generated a Net Profit After
Tax (NPAT) of A$19.4 million (2020:
A$24.8 million) for a total NPAT of over
A$65 million for the first 3 full years of
operations.
As at 31 December 2021 Image had a
cash position of A$79.8 million (2020:
A$50.8million), after fully repaying
remaining debt of A$17.2 million and
dividend payments of A$19.0 million.
For CY2021, the Company generated
net cash flow from mine operating
activities of A$82.8 million (2020:
A$75.8 million).
In February 2022, the Company
announced it had received a Section
249D notice from Murray Zircon
Pty Ltd (MZ) requesting the removal
of three current Image directors
and replacing them with three MZ
nominees. The shareholder meeting to
consider the resolutions is scheduled
for 24 March 2022.
Social License
Safety
Image recorded zero lost-time injuries
(LTI) during calendar year 2021 (2020:
1 LTI). During the year the Company
also started reporting total recordable
injury frequency rate (TRIFR) to further
improve the transparency of the
effectiveness of its safety programs.
The 12-month rolling average TRIFR
at the end of December 2021 was 7.2
per million hours worked.
Image maintains its proactive
promotion of a positive safety culture
which includes safety programs and
procedures that encourage job safety
analysis and planning as well as active
incident reporting for the purpose of
continuous improvement of the health,
safety and well-being of all employees,
contractors, visitors and members of
the community as well as protection of
the environment. The success of these
programs is monitored through the
use of regular internal Health, Safety
and Environment audits and monthly
Positive Performance Indicator (PPI)
scoring. PPI scoring was reasonably
steady for the whole of CY2021.
PAINTS & COATINGS
Titanium dioxide provides opacity
and durability, while helping to
ensure the longevity of paint and
protection of the painted surface.
Ti02
16
Image Resources NL
Community
Environment
Image continues to proudly contribute
to the local community, including
through local employment. At year end
approximately 45% of the workforce
at Boonanarring lived locally to the
operation or within local regional
shires.
In addition, the Company has an
active and varied community support
and engagement program. Image
provides access to land to a local
community group to graze sheep and
cattle, and during the year supported
other local community and charitable
groups such as Lions Institute, Vinnies
(CEO Sleepout) and Happiness Co
Foundation (mental health support
programmes).
Image also elevated its focus on
cultural engagement with the Yued
Traditional Owners in Q4 2021 in
connection with the Company’s
ongoing development plans for its
Atlas and Bidaminna mineral sands
projects in WA. This engagement is
anticipated to be further expanded in
CY2022.
Image is committed to minimising any
potential long-term adverse impacts
of its operations on the environment.
The Company strives to maintain
compliance with all of its licence
requirements while it actively seeks
to identify ways to ensure lasting
improvements to certain aspects
of the environment such as soil
water retention, by using terracing
and blending clayey materials into
rehabilitated topsoils.
The Company has taken actions
to minimise its carbon footprint by
working with Sunrise Energy Group to
construct and operate a 2.3MW solar
farm at Boonanarring, even though
the Boonanarring project could be
fully and adequately supplied with
all its electricity requirements from
the WA State power grid. In CY2021
approximately 24% of electricity
requirements for Boonanarring were
supplied as renewable solar energy
from the solar farm, at costs slightly
below grid power prices.
The use of solar power at
Boonanarring provides Image
Resources with green credentials
and positions the Company as one
of the very few mining companies in
Australia to directly utilise solar energy
to offset a substantial portion of its
grid-based energy supply, and thereby
significantly reducing its carbon
emissions.
The Company has also assisted
local landowners in their efforts to
establish carbon sequestration field
trials in conjunction with CSIRO to
identify optimum clay and compost
soil mixtures to enhance the carbon
capture potential of the soils.
Subsequent to the end of CY2021,
Image has also engaged with the
Sunrise Energy Consortium to seek
grants to establish a green hydrogen
production and dispensing terminal
at Boonanarring as a post-mining
business enterprise.
For the full December quarter, the solar farm supplied approximately 30% of total
electricity requirements at Boonanarring at a slightly lower cost than grid power.
Annual Report 2021
17
As part of its published growth
strategy, in CY2021 Image embarked
on the review of opportunities to
secure additional mineral sands
tenements to expand the Company’s
overall portfolio of Mineral Resources
for potential increased mine-life. In
Q4 2021, Image participated in a
tender process to acquire tenements.
Subsequent to the end of CY2021,
on 19 January 2022 the Company
announced that it had completed the
strategic acquisition of a package
of mineral sands tenements in the
historic Eneabba mining district
located 275km north of Perth in
Western Australia. The package
of tenements was acquired from
Sheffield Resources Limited under an
asset sale and purchase agreement
announced on 29 November 2021.
The full package of tenements
consists of 8 exploration licences
(“ELs”), 3 mining leases (“MLs”) and
1 retention licence (“RL”) covering 8
project areas (“Eneabba Tenements”)
with transfer of the MLs subject to
regulatory (FIRB) approval.
Project Developments
The Atlas Project is 100%-owned
and was included as part of Image’s
Bankable Feasibility Study (BFS)
published in 2017. It is contemplated
to be mined at the conclusion
of mining at Boonanarring and
is currently undergoing detailed
development planning, heritage
clearance and final permitting.
Atlas is located approximately
160km north of Perth (80km
north of Boonanarring). The plan
outlined in the BFS was for the
wet concentration plant (WCP) and
associated equipment, infrastructure
and mining operations to be relocated
from Boonanarring when mining
and processing at Boonanarring is
complete. The forecast for completion
of mining and processing at
Boonanarring is late CY2022 or early
2023.
Atlas is a high-grade deposit and
has coarse grained minerals which
favour high recoveries, very much
like Boonanarring. However, the strip
ratio is much lower at Atlas which
translates to significantly lower mining
costs. Offsetting this benefit the zircon
content of the HM in the ore at Atlas is
lower compared to Boonanarring.
18
Image Resources NL
Project development, planning and
study costs for Atlas are being funded
internally.
The 100%-owned Hyperion and
Helene projects are located to the
immediate north of Atlas, and are
potentially within economic pumping
distance from the planned location
of the Atlas WCP. Both projects are
being assessed as part of the overall
plan to extend the mine life in the
Atlas area.
The Bidaminna Project is also
100%-owned and is currently
under feasibility study as a potential
stand-alone production centre, to be
operated in parallel with operations in
the Atlas area. Bidaminna is located
100km north of Perth. Subsequent to
the end of CY2021, additional drilling
for upgrading of Mineral Resources
and for the collection of geotechnical
data to support feasibility study has
commenced.
Ground magnetic surveys were
completed late in CY2021 at a
secondary target area at Bidaminna
Northwest and results suggest
potential mineral sand signatures
worthy of additional testing. Drilling
programmes are planned in this area
with the goal of adding significantly to
Mineral Resources and potential Ore
Reserves in the area.
Mineralisation in all of the Eneabba
Tenement project areas is accessible
by dry mining methods and testing
has demonstrated the mineralisation
is amenable to typical heavy mineral
processing technology such as
the WCP currently used at Image’s
Boonanarring Project. Plans include
fast-tracking the conversion of
Eneabba Tenements contained Mineral
Resources to Ore Reserves during the
first half of 2022.
Exploration
The Company’s exploration portfolio
is predominantly focussed on mineral
sands, with the exception of two,
adjacent exploration licences (ELs)
and affiliated smaller ELs associated
with an earn-in and purchase
arrangement completed with the
owners under a farmin arrangement
subsequent to the end of CY2021,
with a focus on gold. All tenements
are located in Western Australia
and all mineral sands tenements are
located in the North Perth Basin.
Early in 2021 the Company
announced maiden Mineral Resources
estimates for Boonanarring Northern
Extension and Boonanarring North-
western Extension area, and Mineral
Resources updates for Gingin North,
Hyperion and Helene, entitled “Project
‘MORE’ Update, Boonanarring and
Atlas Project Areas” (ASX: 31 March
2021).
In addition, the Company announced
a maiden dredge mining Mineral
Resources estimate for the Bidaminna
Project entitled “102 Million Tonnes
Inaugural Dredge Mining Mineral
Resources Estimate for Bidaminna
Mineral Sands Project” (ASX: 31
March 2021). This announcement
was closely followed by the grant of
a number of new tenements covering
potential extensions and parallel
strand systems north and northwest
of the Bidaminna Mineral Resources
area.
An RC drill program for gold was
completed at the Erayinia and King
Prospect (refer to ASX release entitled
“King Gold Prospect Delivers High
Grade Intersection”, (ASX: 26 July
2021)).
Activity in early 2022 focussed on
mineral sand resource drilling at
Bidaminna, Hyperion and Bidaminna
West and gold drilling at Erayinia and
King.
King Gold Farmin
Image met the initial expenditure
requirements to earn an initial 40%
interest in the King Gold Prospect
under a Farm-in Agreement late in
CY2021 and subsequently acquired
a further 40% interest for a cash
payment to the owners of A$240k
quartering Q1 2022. The owners
then agreed to forego their remaining
20% interest by reverting to a 2%
net smelter royalty. Therefore,
subsequent to the end of CY2021,
the King Gold Prospect is now 100%
owned by Image, and subject to a 2%
royalty. Additional drilling and Mineral
Resources study work is planned
on King and Image’s adjacent gold
tenements in CY2022.
Annual Report 2021
19
MINERAL RESOURCES &
ORE RESERVES STATEMENT
20
Image Resources NL
Ore Reserves – Material Mining Projects
The estimated Ore Reserves at Boonanarring have been updated to include depletion from mining through
31 December 2021 and thereby represent remaining Ore Reserves as at 31 December 2021.
Table 1 – Ore Reserves – Strand Deposits; in accordance with the JORC Code (2012) – as at 31 December 2021
Project / Deposit
Ore
Reserve
Category
Proved
Boonanarring1
Probable
Sub-Total
Probable
Sub-Total
Atlas2
Total Ore Reserves
Tonnes
(million)
In-situ HM
Tonnes
(millions)
Total HM
grade
(%)
HM Assemblage (% of total HM)
Zircon
Rutile
Leuc.
Ilmenite
Slimes
(%)
Oversize
(%)
2.8
1.1
3.9
9.5
9.5
13.4
0.21
0.07
0.28
0.80
0.80
1.08
7.4
6.2
7.1
8.1
8.1
7.8
20
17
19
11
11
13
2.9
4.8
3.4
7.5
7.5
6.4
1.8
6.2
2.9
4.5
4.5
4.1
49
43
48
51
51
50
12
15
13
16
16
15
4.5
6.1
4.9
5.7
5.7
5.5
1
2
Refer to Boonanarring Ore Reserves release 11 March 2022 “Boonanarring Annual Ore Reserve Update”
Atlas Ore Reserves refer to the 30 May 2017 release “Ore Reserves Update for 100% Owned Atlas Project”
The Company’s Ore Reserves at Boonanarring show changes from the Ore Reserves as at 31 December 2020 (Table 2). The
material changes arise from mining depletion from 31 December 2020 through 31 December 2021. Refer to the Company’s
ASX release dated 11 March 2022 for further information. For the period between 31 December 2020 and 31 December 2021
the Company is not aware of any new information or data that materially affects the Ore Reserve at Boonanarring other than
the changes shown due to mining depletion.
As shown in Tables 1 & 2, the Company’s Ore Reserves at Atlas are unchanged from 31 December 2020 and the Company is
not aware of any new information or data that materially affects this information for the period ending 31 December 2021.
Table 2 – Comparative Ore Reserves – Strand Deposits; in accordance with JORC Code (2012)
Project / Deposit
As at 31 Dec 2020
Boonanarring
Atlas
Total Ore Reserves
As at 31 Dec 2021
Boonanarring
Atlas
Total Ore Reserves
Tonnes
(million)
In-situ HM
Tonnes
(millions)
Total HM
grade
(%)
HM Assemblage (% of total HM)
Zircon
Rutile
Leuc.
Ilmenite
Slimes
(%)
Oversize
(%)
6.1
9.5
15.6
3.9
9.5
13.4
0.48
0.8
1.28
0.28
0.80
1.1
7.8
8.1
8.0
7.1
8.1
7.8
24
11
16
19
11
13
3.5
7.5
6.0
3.4
7.5
6.4
3.6
4.5
4.2
2.9
4.5
4.1
49
51
50
48
51
50
15
16
16
13
16
15
6.0
5.7
5.8
4.9
5.7
5.5
Drilling programs are also being conducted on several other project areas,
including Bidaminna, Atlas, Hyperion and Helene to advance the understanding
of the mineralised system and enhance the size of existing Mineral Resources.
Annual Report 2021
21
Mineral Resources – Material Mining Project
The estimated Mineral Resources at Boonanarring have been updated to include depletion from mining through 31 December
2021 and thereby represent remaining Mineral Resources as at 31 December 2021.
Table 3 – Mineral Resources – Dry Mining Strand Deposits; in accordance with the JORC Code (2012)
– as at 31 December 2021
Mineral
Resource
Category
Cut-off
(total
HM%)
Tonnes
(million)
In-situ HM
Tonnes
(millions)
Total HM
grade
(%)
Deposit
HM Assemblage (% of total HM)
Zircon
Rutile
Leuc.
Ilmenite
Slimes
(%)
Oversize
(%)
Boonanarring
Atlas
Measured
Indicated
Inferred
Sub-Total
Measured
Indicated
Inferred
Sub-Total
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
Total Measured
Total Indicated
Total Inferred
Grand Total
3.9
5.4
0.9
10.2
9.9
6.4
1.8
18.1
13.7
11.8
2.7
28.3
0.28
0.26
0.03
0.57
0.78
0.24
0.07
1.09
1.06
0.50
0.10
1.66
7.2
4.8
3.3
5.6
7.9
3.7
4.0
6.0
7.7
4.2
3.8
5.9
18.1
12.3
11.5
15.1
10.5
6.8
4.8
9.3
12.5
9.7
6.7
11.3
2.9
4.6
4.4
3.7
7.2
4.7
4.4
6.4
6.0
4.6
4.4
5.5
2.8
9.8
5.5
6.1
4.2
3.4
3.3
4.0
3.8
6.8
4.0
4.7
48
49
53
49
49
42
29
46
49
45
36
47
12
17
15
15
16
17
20
17
15
17
18
16
4.5
4.8
6.4
4.8
5.8
5.2
7.2
5.7
5.4
5.0
7.0
5.4
Table 4 – Mineral Resources – Dredge Mining Strand Deposits; in accordance with the JORC Code (2012)
– as at 31 December 2021
Deposit
Bidaminna
Mineral
Resource
Category
Cut-off
(total
HM%)
Tonnes
(million)
In-situ HM
Tonnes
(millions)
Total HM
grade
(%)
HM Assemblage (% of total HM)
Zircon
Rutile
Leuc.
Ilmenite
Slimes
(%)
Oversize
(%)
Indicated
Inferred
Total
0.5
0.5
0.5
17
84
102
0.6
1.7
2.2
3.2
2.0
2.2
5.0
5.1
5.1
5.1
4.2
4.4
30
38
36
53
47
48
3.6
3.3
3.4
1.4
2.4
2.2
Table 5 – Mineral Resources – Combined Dredge and Dry Mining Strand Deposits; in accordance with the
JORC Code (2012) – as at 31 December 2021
Deposit
Material
Mineral
Resources
Mineral
Resource
Category
Cut-off
(total
HM%)
Tonnes
(million)
In-situ HM
Tonnes
(millions)
Total HM
grade
(%)
HM Assemblage (% of total HM)
Zircon
Rutile
Leuc.
Ilmenite
Slimes
(%)
Oversize
(%)
Total Measured
Total Indicated
Total Inferred
Grand Total
14
29
87
130
1.1
1.0
1.8
3.9
7.7
3.6
2.0
3.0
12.5
7.2
5.2
7.7
6.0
4.9
4.2
4.9
4
19
36
23
49
49
46
48
15.1
2.4
3.2
4.3
5.4
0.9
2.3
2.3
22
Image Resources NL
The Company’s Mineral Resources at Boonanarring show changes from the Mineral Resources as at 31 December 2020
(Table 6). The material changes arise primarily from mining depletion from 31 December 2020 through 31 December 2021.
For the period between 31 December 2020 and 31 December 2021 the Company is not aware of any new information or
data that materially affects the Mineral Resource Estimate at Boonanarring other than the changes shown due primarily to
normal mining depletion.
The Company’s Mineral Resources at Atlas are unchanged from 31 December 2020 (Tables 3 & 6) and the Company is not
aware of any new information or data that materially affects this information for the period ending 31 December 2021.
The Companies Mineral Resources at Bidaminna have been included in Material Mining Projects as at 31 December 2021 on
the basis of the Mineral Resource estimate being re-estimated and reported in accordance with the JORC Code 2012 and
additional studies and investigations being carried out to progress the deposit towards production.
Table 6 – Comparative Mineral Resources – Strand Deposits – JORC Code 2012
Cut-off
(total
HM%)
Tonnes
(million)
In-situ HM
Tonnes
(millions)
Total HM
grade
(%)
HM Assemblage (% of total HM)
Zircon
Rutile
Leuc.
Ilmenite
Slimes
(%)
Oversize
(%)
2.0
2.0
2.0
2.0
0.5
15.9
18.1
34.0
10.2
18.1
102
130
1.0
1.1
2.1
0.6
1.1
2.2
3.9
6.1
6.0
6.1
5.6
6.0
2.2
3.0
19.0
9.3
13.9
15.1
9.3
5.1
7.7
3.8
6.4
5.2
3.7
6.4
4.4
4.9
6
4
5
6
4
36
23
50
46
48
49
46
48
48
15
17
16
15
17
3
9
4.8
5.7
5.3
4.8
5.7
2.2
3.6
Project / Deposit
As at 31 Dec 2020
Boonanarring
Atlas
Total Material Resources
As at 31 Dec 2021
Boonanarring
Atlas
Bidaminna
Total Material Resources
Governance Controls
Mineral Resources and Ore Reserves are compiled by qualified Image Resources personnel and / or independent consultants
following industry standard methodology and techniques. The underlying data, methodology, techniques and assumptions
on which estimates are prepared are subject to internal peer review by senior Company personnel, as is JORC compliance.
Where deemed necessary or appropriate, estimates are reviewed by independent consultants. Competent Persons named
by the Company are members of the Australasian Institute of Mining and Metallurgy and / or the Australian Institute of
Geoscientists and qualify as Competent Persons as defined in the JORC Code 2012.
Annual Report 2021
23
Mineral Resources – Non-Material Projects
The Mineral Resources for the Company’s non-material mining projects as at 31 December 2021 are shown in the tables
below. The Mineral Resources for Helene, Hyperion and Gingin North have been re-estimated and reported in accordance
with the JORC Code 2012 during the year (Tables 7 & 8). New Mineral Resource estimates were completed and reported
for Boonanarring North West and Boonanarring North Extension in accordance with the JORC Code 2012 during the year
(Tables 7 & 8).
Table 7 – Mineral Resources – Dry Mining Strand Deposits; in accordance with JORC Code 2012
– as at 31 December 2021
Mineral
Resource
Category
Cut-off
(total
HM%)
Tonnes
(million)
In-situ HM
Tonnes
(millions)
Total HM
grade
(%)
HM Assemblage (% of total HM)
Zircon
Rutile
Leuc.
Ilmenite
Slimes
(%)
Oversize
(%)
Deposit
Boonanarring
North West
Boonanarring
North
Extension
Indicated
Inferred
Sub Total
Indicated
Inferred
Sub Total
Indicated
Gingin North
Inferred
Sub Total
Indicated
Helene
Inferred
Sub Total
Indicated
Hyperion
Inferred
Sub Total
Total Indicated
Total Inferred
Grand Total
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
3.1
1.2
4.3
2.5
0.2
2.7
6.6
2.0
8.7
12.1
1.0
13.1
3.6
0.0
3.6
27.9
4.4
32.3
0.16
0.06
0.22
0.29
0.01
0.30
0.31
0.10
0.41
0.59
0.04
0.63
0.30
0.00
0.30
1.65
0.20
1.86
5.1
5.0
5.1
11.8
4.7
11.2
4.7
4.7
4.7
4.9
4.0
4.8
8.3
5.9
8.3
5.9
4.6
5.7
9.6
8.3
9.2
16.4
16.0
16.4
7.2
5.5
6.8
7.4
7.5
7.4
8.0
7.3
8.0
9.3
7.2
9.1
6.8
7.4
6.9
2.7
2.5
2.7
4.5
5.4
4.7
5.1
5.7
5.2
6.7
5.0
6.7
5.0
5.9
5.1
30.4
36.2
32.0
11.5
10.7
11.5
14.8
23.2
16.8
14.4
16.1
14.5
8.1
4.9
8.1
14.4
24.8
15.5
35
27
33
41
39
41
50
41
48
47
45
47
36
31
36
44
38
43
11
10
11
17
17
17
16
13
15
18
15
18
19
17
19
17
13
16
1.2
0.8
1.1
7.1
8.4
7.2
4.5
5.3
4.7
1.4
1.1
1.4
2.6
4.3
2.6
2.8
3.3
2.9
Table 8 – Comparative Mineral Resources – Dry Mining Strand Deposits – JORC Code 2012
– as at 31 December 2021
Cut-off
(total
HM%)
Tonnes
(million)
In-situ HM
Tonnes
(millions)
Total HM
grade
(%)
HM Assemblage (% of total HM)
Zircon
Rutile
Leuc.
Ilmenite
Slimes
(%)
Oversize
(%)
Project / Deposit
As at 31 Dec 2020
Helene
Hyperion
Gingin North
Total Non-Material Resources
As at 31 Dec 2021
Boonanarring NW*
Boonanarring N Ext*
Gingin North**
Helene**
Hyperion**
Total Non-Material Resources
2.0
2.0
2.5
2.0
2.0
2.0
2.0
2.0
13.2
5.0
2.4
20.6
4.3
2.7
8.7
13.1
3.6
32.3
0.57
0.32
0.10
0.99
0.22
0.30
0.41
0.63
0.30
1.86
4.3
6.3
5.5
4.9
10.5
7.3
5.7
9.0
5.1
9.2
11.2
16.4
4.7
4.8
8.3
5.7
6.8
7.4
8.0
9.1
3.6
6.3
3.4
4.5
6.9
2.7
4.7
5.2
6.7
5.1
10.2
32
11
17
14
8
16
75
56
57
19
19
15
67.0
18.5
33
41
48
47
36
43
11
17
15
18
19
16
1.1
7.2
4.7
1.4
2.6
2.9
* maiden resource estimate
** updated to JORC 2012
24
Image Resources NL
The Company’s Mineral Resources at Titan, Telesto, Calypso, Gingin South, Regans Ford and Red Gully are unchanged from
31 December 2020 (Tables 9 & 10) and the Company is not aware of any new information or data that materially affects this
information for the period ending 31 December 2021.
Table 9 – Mineral Resources – Dredge Mining Strand Deposits; in accordance with JORC Code 2012
– as at 31 December 2021
Deposit
Titan
Telesto
Calypso
Mineral
Resource
Category
Cut-off
(total
HM%)
Tonnes
(million)
In-situ HM
Tonnes
(millions)
Total HM
grade
(%)
HM Assemblage (% of total HM)
Zircon
Rutile
Leuc.
Ilmenite
Slimes
(%)
Oversize
(%)
1.0
1.0
1.0
1.0
1.0
1.0
1.0
Indicated
Inferred
Sub Total
Indicated
Sub Total
Inferred
Sub Total
Total Indicated
Total Inferred
Grand Total
21
115
137
4
4
51
51
25
167
192
0.38
2.21
2.59
0.13
0.13
0.85
0.9
0.51
3.06
3.57
1.8
1.9
1.9
3.8
3.8
1.7
1.7
2.1
1.8
1.9
9.5
9.5
9.5
9.5
9.5
10.8
10.8
9.5
9.8
9.8
3.1
3.1
3.1
5.6
5.6
5.1
5.1
3.8
3.6
3.7
1.5
1.5
1.5
0.7
0.7
1.6
1.6
1.3
1.5
1.5
72
72
72
67
67
68
68
71
71
71
22
19
19
17
17
14
14
21
17
18
Table 10 – Mineral Resources – Historic; in accordance with JORC Code 2004 – as at 31 December 2021
Mineral
Resource
Category
Cut-off
(total
HM%)
Tonnes
(million)
In-situ HM
Tonnes
(millions)
Total HM
grade
(%)
Deposit
HM Assemblage (% of total HM)
Zircon
Rutile
Leuc.
Ilmenite
Slimes
(%)
Oversize
(%)
0.0
11.0
8.7
8.7
Gingin South
Measured
Indicated
Inferred
Sub Total
Indicated
Regans Ford
Inferred
Sub Total
Indicated
Red Gully
Inferred
Sub Total
Total Measured
Total Indicated
Total Inferred
Grand Total
2.5
2.5
2.5
2.5
2.5
2.5
2.5
2.5
2.5
2.5
1.5
5.8
0.7
8.1
9.0
0.9
9.9
3.4
2.6
6.0
1.5
18.2
4.2
24.0
0.07
0.38
0.05
0.49
0.90
0.10
1.00
0.27
0.19
0.46
0.07
1.54
0.34
1.95
4.4
6.5
6.5
6.1
9.9
6.5
9.6
7.8
7.5
7.7
4.4
8.4
7.1
7.9
7.8
8.1
10.9
8.3
10.0
10.1
10.0
12.4
12.4
12.4
7.8
10.0
11.5
10.2
5.6
5.1
5.8
5.2
4.3
4.4
4.3
3.1
3.1
3.1
5.6
4.3
3.8
4.2
15.3
9.8
7.5
10.3
10.0
7.7
9.8
8.3
8.3
8.3
15.3
9.7
8.0
9.6
51
68
67
65
70
68
70
66
66
66
51
69
67
68
7
7
8
7
17
19
17
12
11
11
7
13
12
12
Annual Report 2021
25
Competent Person Statement And Previously Reported Information
The information in this report
that relates to the Boonanarring,
Bidaminna, Boonanarring North
West, Boonanarring North Extension,
Hyperion, Helene, Gingin North and
Atlas Mineral Resource estimates
is based on and fairly represents,
information which has been prepared
by Mrs Christine Standing, who is a
Member of the Australasian Institute
of Mining and Metallurgy (AusIMM)
and the Australian Institute of
Geoscientists (AIG). Mrs Standing is
a full-time employee of Optiro Pty Ltd
(Snowden Optiro) and has sufficient
experience which is relevant to the
style of mineralisation and type of
deposit under consideration and to
the activity which she is undertaking
to qualify as a Competent Person
as defined in the 2012 Edition of the
‘Australasian Code for Reporting
of Exploration Results, Mineral
Resources and Ore Reserves’.
The information in this report that
relates to the Titan, Telesto and
Calypso Mineral Resource estimates
is based on and fairly represents,
information which has been prepared
by Mr Lynn Widenbar BSc, MSc,
DIC MAusIMM MAIG employed by
Widenbar & Associates who is a
consultant to the Company. Lynn
Widenbar has sufficient experience
which is relevant to the style of
mineralisation and type of deposit
under consideration and to the activity
which he is undertaking to qualify as
a Competent Person as defined in the
2012 Edition of the ‘Australasian Code
for Reporting of Exploration Results,
Mineral Resources and Ore Reserves’.
The information in this report that
relates to the Gingin South and Red
Gully Mineral Resource estimates
(not part of the Company’s material
mining projects) is based on and
fairly represents, information which
has been prepared by Mr Lynn
Widenbar BSc, MSc, DIC MAusIMM
MAIG employed by Widenbar &
Associates who is a consultant to
the Company. Lynn Widenbar has
sufficient experience which is relevant
to the style of mineralisation and type
of deposit under consideration and to
the activity which he is undertaking
to qualify as a Competent Person
as defined in the 2004 Edition of the
‘Australasian Code for Reporting
of Exploration Results, Mineral
Resources and Ore Reserves’. This
information was prepared and first
disclosed under the JORC Code
2004. It has not been updated since
to comply with the JORC Code 2012
on the basis that the information has
not materially changed since it was
last reported.
The information in this table that
relates to tonnes, grades and mineral
assemblage for Regans Ford Deposit
(not part of the Company’s material
mining projects) is based on historic
information published by Iluka
Resources Limited and indicating the
Mineral Resources were compiled in
accordance with the 2004 Edition of
the ‘Australasian Code for Reporting
of Exploration Results, Mineral
Resources and Ore Reserves’. This
information was prepared and first
disclosed under the JORC Code
2004. It has not been updated since
to comply with the JORC Code 2012
on the basis that the information has
not materially changed since it was
last reported.
This Mineral Resources and Ore
Reserves Statement as a whole has
been approved by George Sakalidis
who is the Executive Advisor -
Exploration of Image Resources NL.
George Sakalidis is a Member of the
Australasian Institute of Mining and
Metallurgy (AusIMM) and has sufficient
experience which is relevant to the
style of mineralisation and type of
deposit under consideration and to
the activity which he is undertaking
to qualify as a Competent Person
as defined in the 2012 Edition of the
‘Australasian Code for Reporting
of Exploration Results, Mineral
Resources and Ore Reserves’. George
Sakalidis has given his prior written
consent to the inclusion in this report
of the Mineral Resources and Ore
Reserves statement in the form and
context in which it appears.
The information in this report that
relates to the Boonanarring Ore
Reserves estimate is based on
and fairly represents, information
which has been prepared by Mr
Per Scrimshaw, Member of the
Australasian Institute of Mining and
Metallurgy (AusIMM). Mr Scrimshaw
is a full-time employee of Entech Pty
Ltd and has sufficient experience
which is relevant to the style of
mineralisation and type of deposit
under consideration and to the activity
which he is undertaking to qualify as
a Competent Person as defined in the
2012 Edition of the ‘Australasian Code
for Reporting of Exploration Results,
Mineral Resources and Ore Reserves’.
The information in this report that
relates to the Atlas Ore Reserves
estimate is based on and fairly
represents, information which has
been prepared by Mr Jarrod Pye,
Mining Engineer and then full-time
employee of Image Resources, under
the direction of Andrew Law, then
of Optiro, who is a Fellow of the
Australasian Institute of Mining and
Metallurgy. Mr Law has sufficient
experience which is relevant to the
style of mineralisation and type of
deposit under consideration and to
the activity which he is undertaking
to qualify as a Competent Person
as defined in the 2012 Edition of the
‘Australasian Code for Reporting
of Exploration Results, Mineral
Resources and Ore Reserves’.
26
Image Resources NL
This report includes information that
relates to Ore Reserves and Mineral
Resources which were prepared and
first disclosed under JORC Code
2012. The information was extracted
from the Company’s previous ASX
announcements as follows:
•
•
•
Boonanarring Mineral Resources
and Ore Reserves: 11 March
2022 “Boonanarring Annual Ore
Reserve Update”
Atlas Ore Reserves: 30 May 2017
“Ore Reserves Update for 100%
Owned Atlas Project”
Bidaminna Mineral Resource:
31 March 2021 – “102 Million
Tonnes Inaugural Dredge Mining
Mineral Resource Estimate for
Bidaminna Mineral Sands Project”
• Gingin North Mineral Resource:
31 March 2021 – “Project MORE
Update Boonanarring Atlas
Projects”
•
•
Boonanarring North Extension
Mineral Resource: 31 March
2021 – “Project MORE Update
Boonanarring Atlas Projects”
Boonanarring North West
Mineral Resource: 31 March
2021 – “Project MORE Update
Boonanarring Atlas Projects”
• Helene Mineral Resources:
31 March 2021 – “Project MORE
Update Boonanarring Atlas
Projects”
• Hyperion Mineral Resources:
31 March 2021 – “Project MORE
Update Boonanarring Atlas
Projects”
•
•
Titan Mineral Resources:
31 October 2019
Telesto South Mineral Resources:
31 October 2019
• Calypso Mineral Resources:
31 October 2019.
The Company confirms it is not aware
of any new information or data that
materially affects the information
included in the original market
announcements and, in the case
of reporting of Ore Reserves and
Mineral Resources, that all material
assumptions and technical parameters
underpinning the estimates in the
relevant market announcements
continue to apply and have not
materially changed. The Company
confirms that the form and context
in which any Competent Person’s
findings are presented have not been
materially modified from the original
market announcement.
This report includes information that
relates to Mineral Resources for
non-material mining projects of the
Company which were prepared and
first disclosed under JORC Code
2004. The information was extracted
from the Company’s previous ASX
announcements as follows:
•
Regans Ford Mineral Resources:
20 February 2017 (released
21 February 2017)
• Gingin South Mineral Resources:
21 July 2011
•
Red Gully Mineral Resources:
9 March 2011
The Company confirms it is not aware
of any new information or data that
materially affects the information
included in the original market
announcements and, in the case
of reporting of Ore Reserves and
Mineral Resources, that all material
assumptions and technical parameters
underpinning the estimates in the
relevant market announcements
continue to apply and have not
materially changed. The Company
confirms that the form and context
in which any Competent Person’s
findings are presented have not
been materially modified from the
original market announcement. This
information was prepared and first
disclosed under the JORC Code
2004. It has not been updated since
to comply with the JORC Code 2012
on the basis that the information has
not materially changed since it was
last reported.
Annual Report 2021
27
FINANCIAL
REPORT
30
Image Resources NL
DDiirreeccttoorrss’’ RReeppoorrtt
Directors’ Report
Your directors present their report, together with the financial statements of the Group, being the Company, Image Resources
NL, and its controlled entities, for the financial year ended 31 December 202 1 compared with the financial year ended 31
December 2020.
DIRECTORS
The following persons were directors of Image Resources NL (“ Image”) during the year and up to the date of this report, unless
stated otherwise:
Robert Besley
Patrick Mutz
Chaodian Chen
Aaron Chong Veoy Soo
Huangcheng Li (Alternate: Dennis Lee )
Peter Thomas
Fei Wu (Resigned 18 May 2021)
PRINCIPAL ACTIVITIES
The principal activities of the Group during the year involved the operation of the 100%-owned, high-grade, zircon-rich
Boonanarring mineral sands project located 80km north of Perth in WA and exploration of tenements in the North Perth basin .
RESULTS FROM OPERATIONS
During the year the Group recorded an operating profit of $19,384,000 (for the year to 31 December 2020: operating profit of
$24,783,000). Basic profit per share for the year was 1.94 cents (year to 31 December 2020: profit of 2.53 cents). Diluted profit
per share for the year was 1.81 cents (year to 31 December 2020: profit of 2.44 cents).
DIVIDENDS PAID OR RECOMMENDED
During the reporting period, Image paid an unfranked maiden dividend of 2.0 cents per share in April 2021. The financial impa ct
of dividends paid during the reporting period totalled $19.6m.
Since the end of the reporting period the Board announced the intention to pay a franked dividend of 2.0 cents per share. The
dividend is expected to be paid towards the end of April 2022.
Dividend Policy
The Company’s dividend policy provides for the Board of Directors, as soon as practicable after the end of a Group financial
year, and to the extent permitted by law, to distribute to Shareholders as a dividend, all Excess Cash held at the end of tha t
Financial Year; with Excess Cash defined as cash held by the Group, other than cash that the Board considers is necessary or
desirable to be retained by the Group for the Group’s existing liabilities and future activities.
REVIEW OF OPERATIONS
A review of operations is covered elsewhere in this Annual Report.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
All significant changes in the state of affairs of the Group during the year are discussed in detail above.
SIGNIFICANT EVENTS SUBSEQUENT TO REPORTING DATE
Other than the following matters:
On 18 January 2022, the Group completed the strategic acquisition of a package of mineral sands tenements in the historic
Eneabba mining district for $23m in cash. Further information is provided in the ASX announcement lodged on 19 January
2022.
On 21 January 2022 the Company announced that it had received a notice pursuant to section 249D of the Corporations
Act 2001 (Cth) (Corporations Act) on behalf of Murray Zircon Pty Ltd (MZ), regarding the intention to move resolutions at
a general meeting of the Company for the removal of three directors of the Company and appointment of three new directors
that are associates/directors of MZ, and to requisition a meeting of the Company’s shareholders to consider those
resolutions (Notice). On 25 January, the Company announced that MZ had withdrawn the Notice on the basis that the
Company formed the view the Notice was invalid as it sought to appoint an executive director. Then on 28 January, the
Company announced it had received a further 249D notice (Further Notice) from MZ proposing the Company’s shareholders
consider resolutions to: (i) remove three directors of the Company, being Mr Robert Besley, Mr Patrick Mutz and Mr
Chaodian Chen; and (ii) appoint Mr Chaohua Huang, Mr Graham Hewson and Ms Ran Xu as directors of the Company. The
notice of general meeting of shareholders (Meeting) was announced on 14 February 2022 w ith the meeting to be held on
24 March 2022.
18
Annual Report 2021
29
Directors’ Report (cont.)
DDiirreeccttoorrss’’ RReeppoorrtt ((CCoonntt..))
On 10 February 2022, the Group announced the intention to pay a 2 cent fully franked dividend once the Calendar Year
2021 annual financial results have been finalised.
On 14 March 2022, the Group announced the strategic acquisition of the McCalls Mineral Sands Project for $12m in cash.
Further information is provided in the ASX announcement lodged on 14 March 2022.
There were no other material significant events subsequent to the reporting date.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
The Review of Operations set out on pages 3 to 7 of this Annual Financial Report, provide an indication of the Group’s likely
development and expected results. In the opinion of the Directors, disclosure of any further information about these matters and
the impact on Group operations could result in unreasonable prejudice to the Group and has not been included in this report .
ENVIRONMENTAL ISSUES
The Group carries out operations in Australia which are subject to environmental regulations under both Commonwealth and
State legislation in relation to those activities. The Group’s MD, Head of Exploration, COO and Operations Manager are
responsible for monitoring and reporting on compliance with all environmental regulations. During or since the financial year
there have been no known significant breaches of these regulations.
INFORMATION ON DIRECTORS AND COMPANY SECRETARIES
Robert Besley
Chairman
Appointed as Director and Chair on 8 June 2016 Robert Besley and has more than 40 years’
experience in the mining industry. Mr Besley has served in a number of Government and industry
advisory roles including several years as Deputy Chairman of the NSW Min erals Council. He holds
a BSc (Hons) in Economic Geology from the University of Adelaide and is a Member of the
Australian Institute of Geoscientists. He managed the creation, listing and operation of two
successful mining companies; CBH Resources Limited which he led as Managing Director from a
small exploration company to Australia’s 4th largest zinc producer; and Australmin Holdings
Limited (acquired by Newcrest) which brought into production a gold mine in WA and mineral
sands mine in N S W. More recently he was a founding Director of KBL Mining Limited which operated
the Mineral Hill copper-gold mine in NSW and was Chairman of Silver City Minerals Limited, which
explored for silver-lead-zinc in the Broken Hill District. He was a Non -Executive and independent
Director of Murray Zircon from commencement of development and production of the Mindarie
Mineral Sands Project until June 2016. He also serves on the Company’s audit , remuneration and
hedging committees. As at 31 December 2021, during the past three years he has served as a
director of the following other listed companies:
Silver City Minerals Limited - appointed 5 March 2010, resigned effective 28 February
2019.
Patrick Mutz has more than 40 years of international mining industry experience in technical
(metallurgist), managerial, consulting and executive roles in all aspects of the industry from
exploration through project development, mining and mine rehabilitation. He has operational
experience in open cut, underground, and in-situ mining and related processing, on projects in
the USA, Germany, Africa and Australia. Since his arrival in Australia from the USA in 1998, he
has served as CEO / Managing Director of a number of publicly listed and private mining
companies based in South Australia, Victoria and Western Australia, primarily involved with
project development and company transitioning from explorati on to production. Mr Mutz is a
Fellow of the AusIMM. He holds a Bachelor of Science (Honours) and an MBA from the University
of Phoenix in the US. Prior to joining Image Patrick was CEO of Murray Zircon Pty Ltd focusing
on the development and mining and pr ocessing operations of its 100% -owned Mindarie Mineral
Sands Project in South Australia, where he led the company on its goal of becoming a successful
new mining company in South Australia. He also serves on the Company’s hedging committee.
Mr Mutz has not been a director of any other listed public companies in the past 3 years.
19
Patrick Mutz
Managing Director
30
Image Resources NL
Directors’ Report (cont.)
DDiirreeccttoorrss’’ RReeppoorrtt ((CCoonntt..))
Peter Thomas
Non-Executive Director
Aaron Chong Veoy Soo
Non-Executive Director
Chaodian Chen
Non-Executive Director
Huangcheng Li
Non-Executive Director
Mr Thomas, having served on ASX listed company boards for over 30 years, has been a non -
executive director of Image Resources NL since 19 April 2002. For over 30 years until June 2011,
he ran a legal practise on his own account specialising in the delivery of wide ranging legal,
corporate and commercial advice to listed explorers and miners. He serves on the Company’s
audit and remuneration committees. During the past three years he has served as a director of
the following other listed companies:
Emu NL – appointed August 2007,
Middle Island Resources Limited –
continuing.
appointed March 2010, continuing.
Mr Soo has been a long-term supporter and shareholder in Image Resources. Mr Soo is an
advocate & solicitor practising in West Malaysia with 22 years of experience in legal practice and
currently a partner in Stanley Ponniah, Ng & Soo, Advocates & Solicitors. He also serves on the
Company’s audit committee. Mr Soo has not been a director of any other listed public companies
in the past 3 years.
Mr Chen founded Guangdong Orient Zirconic Ind. Sci. Tech. Co., Ltd. ( OZC) in 1995 and built
that company into a leader in the zirconium industry. He served as President and Chairman of
OZC until mid-2013 when China National Nuclear Corporation (CNNC) became the largest
shareholder in OZC. He became the Chairman of Murray Zircon when th at company was founded
in 2011 as a result of OZC’s first investment in mining in Australia. Mr Chen is the Vice President
of China non-ferrous metals industry association titanium zirconium & Hafnium Branch. He holds
an EMBA degree and is a Certified Engineer. He also owns a number of patents involving the
processing of zircon. During the past three years he has served as a director of the following
other listed companies:
Guangdong Orient Zirconic Ind Sci & Tech Co., Ltd, resigned 9 November 2016 .
Reappointed 11 January 2020.
Mr Li is an investor from Taiwan, with more than 30 years of experience investing in various
industries ranging from the general merchandising, precious stones and certification businesses.
Mr Li graduated from Tamkang University and in 1981 founded Leecot ex International Limited in
Taiwan and Capital 88 International Limited in Hong Kong in 1993 where he served as the
Managing Director. In 2015 Mr Li acquired a 49% ownership interest in Giochi Preziosi Group
(“GP Group”) and served as the Vice President until July 2017. GP Group is a leading global toy
company and has undergone a process of diversification and has expanded into new sectors and
markets where it has successfully operated. Mr Li has not been a director of any other listed
public companies in the past 3 years.
20
Annual Report 2021
31
Directors’ Report (cont.)
DDiirreeccttoorrss’’ RReeppoorrtt ((CCoonntt..))
Dennis Wilkins
Company Secretary (Appointed 25 September 2012)
Mr Wilkins is the founder and principal of DW Corporate Pty Ltd, a leading privately held corporate
advisory firm servicing the natural resources industry. Since 1994 he has been a director of, and
involved in the executive management of, several publicly listed resource companies with
operations in Australia, PNG, Scand inavia and Africa. From 1995 to 2001 he was the Finance
Director of Lynas Corporation Ltd during the period when the Mt Weld Rare Earths project was
acquired by the group. He was also founding director and advisor to Atlas Iron Limited at the time
of Atlas’ initial public offering in 2006. Since July 2001 Mr Wilkins has been running DW Corporate
Pty Ltd, where he advises on the formation of, and capital raising for, emerging companies in the
Australian resources sector.
AUDIT COMMITTEE
At the date of this report the members of the Company’s audit committee comprise Messrs Thomas (Chair), Besley and Soo.
During the year, the committee held two meetings. All members attended these meetings.
REMUNERATION COMMITTEE
At the date of this report the Remuneration Committee (“committee”) comprises Messrs Besley (Chair) and Thomas. During the
year, the committee held one meeting. All members attended this meeting.
HEDGING COMMITTEE
At the date of this report the Hedging Committee (“committee”) comprises Messrs Besley (Chair), Mutz and McEvoy. During the
year, the committee held one meeting. All members attended this meeting.
MEETINGS OF DIRECTORS
During the financial year ended 31 December 2021, there were seven meetings of directors held. Attendances by each director
during the year were as follows:
Directors’
Meetings
Audit
Committee
Remuneration
Committee
Hedging
Committee
Number
eligible
to attend
Number
attended
Number
eligible
to attend
Number
attended
Number
eligible
to attend
Number
attended
Number
eligible
to attend
Number
attended
Robert Besley
Patrick Mutz
Peter Thomas
Aaron Soo
Chaodian Chen
Huangcheng Li
Dennis Lee
(Alternate for
Huangcheng Li)
Fei (Eddy) Wu
(Resigned 18 May
2021)
7
7
7
7
7
7
7
2
7
7
7
7
7
7
6
2
2
-
1
2
-
-
-
1
2
-
1
2
-
-
-
1
1
-
1
-
-
-
-
-
1
-
1
-
-
-
-
-
1
1
-
-
-
-
-
-
1
1
-
-
-
-
-
-
21
32
Image Resources NL
Directors’ Report (cont.)
DDiirreeccttoorrss’’ RReeppoorrtt ((CCoonntt..))
OPTIONS
At the date of this report, unissued ordinary shares of the Company under option or warrant are:
Type
Options
Warrants
Warrants
Number
10,000,000
11,250,000
21,525,000
Exercise Price
Expiry Date
$0.32
$0.1365
27 May 2023
20 May 2023
$0.11385
24 May 2023
The options were issued during the financial year on 27 May 2021.
During the financial year 3,035,714 warrants were exercised at 0.1365 cents per share to acquire 3,035,714 fully paid ordinary
shares and since the end of the financial year, as at the date of this report, no options or warrants were exercised to acquire
fully paid ordinary shares.
CORPORATE STRUCTURE
Image is a no liability company incorporated and domiciled in Australia.
ACCESS TO INDEPENDENT ADVICE
Each director has the right, so long as he is acting reasonably in the interests of the Group and in the discharge of his duties as
a director, to seek independent professional advice and recover the reasonable costs thereof from the Group. The advice shall
only be sought after consultation about the matter with the chairman (where it is reasonable that the chairman be consulted) or,
if it is the chairman that wishes to seek the advice or it is unreasonable that he be consulted, another director (if that be
reasonable). The advice is to be made immediately available to all Board members other than to a director against whom privil ege
is claimed.
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Company has entered into agreements indemnifying, to the extent permitted by law, all the directors and officers of the
Company against all losses or liabilities incurred by each direct or and officer in their capacity as directors and officers of the
Company. During the year an amount of $168,049 (the year to 31 December 2020: $ 121,704) was incurred in insurance
premiums for this purpose.
PROCEEDINGS ON BEHALF OF THE GROUP
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of
the Group, or to intervene in any proceedings to which the Group is a party, for the purpose of taking responsibility on behalf of
the Group for all or part of those proceedings.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out in th is
annual report.
22
Annual Report 2021
33
RReemmuunneerraattiioonn RReeppoorrtt ((aauuddiitteedd))
Remuneration Report - Audited
Names and positions held of key management personnel (defined by the Australian Accounting Standards as being “those people
having authority and responsibility for planning, directing, and controlling the activities of an entity, either directly or indirectly.
This includes an entity's directors”) in office at any time during the financial year were:
Name
Non-Executive Directors
Robert Besley
Peter Thomas
Aaron Soo
Chaodian Chen
Huangcheng Li
Fei Wu (Resigned 18 May 2021)
Executive Directors
Patrick Mutz
Executive Officers
George Sakalidis
John McEvoy
Todd Colton
Position
Non-Executive Chairman
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Managing Director
Head of Exploration
Chief Financial Officer
Chief Operating Officer
The Group’s policy for determining the nature and amount of emoluments of key management personnel is set out below:
Key Management Personnel Remuneration and Incentive Policies
The Remuneration committee’s mandate is to make recommendations to the Board with respect to appropriate and competitive
remuneration and incentive policies (including basis for paying and the quantum of any bonuses), for key management personnel
and others as considered appropriate to be singled out for special attention, which:
• motivates them to contribute to the growth and success of the Group within an appropriate control framework;
•
•
aligns the interests of key leadership with the interests of the Company’s shareholders;
are paid within any limits imposed by the Constitution and make recommendations to the Board with respect to the need
for increases to any such amount at the Company’s annual general meeting; and
•
in the case of directors, only permits partici pation in equity-based remuneration schemes after appropriate disclosure
to, due consideration by and with the approval of the Company’s shareholders.
Non-Executive Directors
•
•
The committee is to ensure that non-executive directors are not provided with ret irement benefits other than statutory
superannuation entitlements.
To the extent that the Company adopts a remuneration structure for its non -executive directors other than in the form
of cash and superannuation, the disclosure there of shall be made to stakeholders and approvals obtained as required
by law and the ASX listing rules.
Incentive Plans and Benefits Programs
The committee is to:
•
•
•
review and make recommendations concerning long -term incentive compensation plans, including the use of equity -
based plans. Except as otherwise delegated by the Board, the committee will act on behalf of the Board to administer
equity-based and employee benefit plans, and as such will discharge any responsibilities under those plans, including
making and authorising grants, in accordance with the terms of those plans;
ensure that, where practicable, incentive plans are designed around appropriate and realistic performance targets that
measure relative performance and provide remuneration when they are achieved; and
review and, if necessary, improve any existing benefit programmes established for employees.
23
34
Image Resources NL
RReemmuunneerraattiioonn RReeppoorrtt –– aauuddiitteedd ((ccoonntt..))
Remuneration Report - Audited (cont.)
Key Management Personnel Contracts
Remuneration arrangements for Key Management Personnel are formalised in employment agreements. The following outlines
the details of contracts:
Executives
Patrick Mutz – Managing Director
•
•
•
•
Base Salary - $517,230 per annum (from 1 July 2021) inclusive of superannuation.
Performance bonus – participates in a Group-wide executive performance incentive scheme.
Allowances – from 1 January 2019, the Group will contribute up to $40,000 per 12 month period or proportion thereof
for accommodation whilst located in Perth and towards airfares for travel between Adelaide and Perth. The Group
provides a Group vehicle for use on Group business and commuting betwee n his place of residence in the Perth area
and the corporate office and the Group’s various mining and exploration sites as and when necessary .
The agreement may be terminated by the Group by the provision of three months written notice. The employee may
terminate the contract by the provision of two months’ notice.
George Sakalidis – Head of Exploration (From 29 May 2020) and Executive Director – Exploration (Retired 29 May 2020)
•
•
•
Base Salary - $249,690 per annum (from 1 July 2021) inclusive of superannuation based on a 70% commitment of time
being an average of 28 hours work per week. Salary is paid monthly based on a rate of $1 71.49 per hour inclusive of
10% superannuation.
Performance bonus – participates in a Group-wide executive performance incentive scheme.
The agreement may be terminated by the provision of one month’s written notice by either the Group or Mr Sakalidis.
John McEvoy – Chief Financial Officer
•
•
•
Base Salary - $375,166 per annum (from 1 July 2021) inclusive of superannuation.
Performance bonus – participates in a Group-wide executive performance incentive scheme.
The agreement may be terminated by the provision of three month’s written notice by either the Group or Mr McEvoy.
Todd Colton – Chief Operating Officer
•
•
•
Base Salary - $38 5,220 per annum (from 1 July 2021) inclusive of superannuation.
Performance bonus – participates in a Group-wide executive performance incentive scheme.
The agreement may be terminated by the provision of three month’s written notice by either the Group or Mr Colton.
Non-Executives
Clause 91 (1) of the Company’s Constitution provides that Directors are entitled to receive Directors’ fees within the limits
approved by shareholders in general meeting. Shareholders approved the aggregate fees to be paid to Directors to be $500,000
per annum on 29 May 2020.
Each Non-Executive Director’s actual remuneration for the year ended 31 December 2021 and the year to 31 December 2020 is
shown below. Each Non-Executive Director has an unspecified term of appointment, which is subject to the Company’s
Constitution. Conditions are reviewed at least annually by the Remuneration Committee. There are no termination benefits for
any Non-Executive Director.
Base fees for each non-executive director during their period in office were as follows:
Robert Besley
Peter Thomas
Aaron Soo
Chaodian Chen
Fei Wu
Huangcheng Li
Base Fees
per annum
$
100,000
60,000
60,000
60,000
22,769
60,000
Audit Committee Fee
$
Remuneration
Committee Fee
$
-
6,000
6,000
-
2,277
-
-
6,000
-
-
2,277
-
Fees are inclusive of superannuation where required.
24
Annual Report 2021
35
RReemmuunneerraattiioonn RReeppoorrtt –– aauuddiitteedd ((ccoonntt..))
Remuneration Report - Audited (cont.)
Consultant Agreements
DW Corporate Services Pty Ltd: provides the services of Dennis Wilkins as Company Secretary. These services are provided
under a services agreement for a fixed monthly retainer fee of $2,000 plus additional services charged at specified hourly ra tes.
Four months’ written notice of term ination is required from either party.
Guaranteed Rate Increases
There are no guaranteed rate increases fixed in the contracts of any of the key management personnel.
Non-Executive Director Options
Non-Executive Director (NED) options were issued after shareholder approval at the Shareholder General Meeting held on 27
May 2021.
The purpose of the grant of these options was to provide a mid -term incentive for each NED’s continuing and future efforts as a
Director of the Company. The Directors consider that the NED options are the most cost effective and efficient means to reward
and align the interests of the Company’s Directors with the interest of all shareholders. To that end, the NED Options have a n
exercise price with the objective of the Group’s strategy, being to increase Shareholder value. Also, to that end, each
unexercised NED option will lapse prior to the expiry date if a Directors ceases to be an officer or employee of the Company.
Issue of NED options to Directors of the Company requires prior approval of Shareholder in accordance with Listing Rule 10.1 1.
During the 31 December 2021 year 10,000,000 options were issued to NED’s at an exercise price of $0.32 per share and an
expiry date of 27 May 2023.
Employee Share Plan
The Image Employee Share Plan (ESP) was implemented after shareholder approval at the Shareholder General Meeting held
on 13 February 2018.
The purpose of the ESP is to give an additional incentive to employees of the Group to provide dedicated and ongoing
commitment and effort to the Group, and for the Group to reward its employees for their efforts. It is considered to be an effective
way to align the objectives of management with the interests of shareholders.
The plan rewards share price growth. The plan shares a re of value to the holder of the shares only to the extent to which the
share price exceeds the share price after the offer is made to the employee. Furthermore, the plan does not give rise to a ta x
liability on issue (unlike some options) therefore encour aging long term holdings.
Issue of Plan Shares to Directors of the Company requires prior approval of Shareholder in accordance with Listing Rule 10.14 .
During the 31 December 2021 year 16,353,949, ESP shares were issued. Of these 1,395,628 shares were issued to Directors.
The principal provisions of the plan include:
•
•
•
•
•
•
•
•
•
The Plan is available to all executive Directors and employees of the Group;
The Company may at any time, in its absolute discretion, make an offer to an Eligible Employee;
The number of Plan Shares issued to an Eligible Employee is determined by the Directors of the Company;
The issue price is the volume weighted average price of shares in the 5 trading days prior to the Issue Date;
The person accepting the offer (“Participant”) is deemed to have agreed to borrow from the Company on the terms of
the loan agreement referred to below an amount to fund the purchase of the Plan Shares;
The Plan Shares rank pari passu with all issued fully paid shares in respect of voting rights, dividends and en titlement
to participate in any bonus or rights issues;
Plan participants may not dispose of any ESP Shares within 12 months of the issue date;
Until the loan to the Participant is fully repaid the Company has control over the disposal of the Plan Shares; and
Application will be made as soon as practicable after the allotment of the Plan Shares for listing for quotation on ASX.
25
36
Image Resources NL
RReemmuunneerraattiioonn RReeppoorrtt –– aauuddiitteedd ((ccoonntt..))
Remuneration Report - Audited (cont.)
The principal provisions of the loan agreement include:
•
•
•
•
The amount lent will be an advance equal to the issue price of the Plan S hares multiplied by the number of Plan Shares
issued.
The repayment date is the date falling 3 years after the Issue Date.
The loan can be repaid at any time but the Participant must pay any amount outstanding on the date the employee
ceases to be an employee of Image (or such late date as determined by Image at its discretion ). All dividends declared
and paid on the Plan Shares will be applied towards the repayment of the advance and there is no interest on the
advance.
A holding lock will be placed on th e Plan Shares until the loan is fully repaid.
Retirement and Superannuation Payments
Prescribed benefits were provided by the Company to direct ors by way of superannuation contribut ions to externally managed
complying superannuation funds during the year. These benefits were paid as superannuation contributions to satisfy (at least)
the requirements of the Superannuation Contribution Guarantee Act and in satisfaction of any salary sacrifice requests. All
contributions were made to accumulation type funds se lected by the director and accordingly actuarial assessments were not
required.
Relationship between Group Performance and Remuneration
There is no relationship between the financial performance of the Group for the current or previous financial year and the
remuneration of the key management personnel. Remuneration is set having regard to market conditions and to encourage the
continued services of key management personnel.
Use of Remuneration Consultants
The Group did not employ the services of a remuneration consultant during the financial year ended 31 December 20 21 to make
a remuneration recommendation in relation to any Key Management Personnel.
Current Board Remuneration Structure
The current remuneration structure for the board is as follows:
Director
Annual Directors Fees
Committee Fees
Mr R Besley
(Non-Executive Chairman)
$100,000 inclusive of super
Mr P Mutz
(Managing Director)
$501,000 inclusive of super
-
-
Mr P Thomas
(Non-Executive Director)
$60,000 inclusive of super
$12,000 inclusive of super
Mr A Soo
(Non-Executive Director)
Mr C Chen
(Non-Executive Director)
Mr H Li
(Non-Executive Director)
$60,000 1
$60,000 1
$60,000 1
$6,000 1
-
-
Note 1: No super is required to be paid as the Directors are permanent foreign residents .
26
Annual Report 2021
37
RReemmuunneerraattiioonn RReeppoorrtt –– aauuddiitteedd ((ccoonntt..))
Remuneration Report - Audited (cont.)
Non-Executive Director remuneration for the years ended1 31 December 2021 and 31 December 2020
Robert Besley
Peter Thomas
Aaron Soo
Fei Wu
Chaodian Chen
Huangcheng Li
Financial
year
Board
fees
Committee
fees
Super-
annuation
Share-based
payments
Total
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
100,000
75,662
54,729
47,272
60,000
51,763
20,794
47,272
60,000
51,763
60,000
51,763
-
2,500
8,662
5,240
6,000
3,000
4,159
7,980
-
-
-
-
8,676
7,425
6,186
4,989
-
-
2,370
5,249
-
-
-
-
13,456
122,132
-
85,587
13,456
83,033
-
57,501
13,456
79,456
-
-
-
54,763
27,323
60,501
13,456
73,456
-
51,763
13,456
73,456
-
51,763
355,523
18,821
17,232
67,280
458,856
325,495
18,720
17,663
-
361,878
Key Management Personnel Remuneration
Table 1: Remuneration for the year s ended 31 December 2021 and 31 December 2020
Short-term benefits
Post
Employment
Financial
Year
Salary
($)
Cash
Bonus
($)
Non-
monetary
benefits2
($)
Other
($)
Super-
annuation
($)
Total
($)
Executive Directors
Patrick Mutz
2021
482,895
148,775
44,134
29,182
26,219
731,205
2020
464,691
97,789
34,642
George Sakalidis
1
Executive Officers
John McEvoy
2020
196,372
19,160
2021
2020
344,879
80,133
334,279
36,000
Todd Colton
2021
353,568
82,280
George Sakalidis
2020
2021
2021
2020
337,000
70,500
176,222
25,998
-
-
-
-
-
25,309
622,431
20,442
235,974
24,824
449,836
22,841
393,120
26,042
461,890
30,202
25,000
462,702
-
19,770
221,990
-
-
-
-
-
-
1,357,564
337,186
44,134
29,182
96,855
1,864,921
1,332,342
223,449
34,642
30,202
93,592
1,714,227
1. George Sakalidis retired as an Executive Director during the 2020 financial year.
2. Non-monetary benefits include allowances paid for travel and accommodation during the financial year.
3. Long term benefits relate to long term leave entitlements earned during the financial year.
27
38
Image Resources NL
RReemmuunneerraattiioonn RReeppoorrtt –– aauuddiitteedd ((ccoonntt..))
Remuneration Report - Audited (cont.)
Options Granted as Remuneration
During the 2021 financial year 10,000,000 options were issued to Non -Executive Directors. Details of the options issued
are as follows:
Exercise
price per
Fair value
Number of
Balance at
of options
Options
the end of the
Name
Grant date
option
Expiry date
granted
Issued
year
Robert Besley
27 May 2021
$0.32
27 May 2023
13,456
2,000,000
2,000,000
Chaodian Chen
27 May 2021
$0.32
27 May 2023
13,456
Aaron Chong Veoy
Soo
27 May 2021
$0.32
27 May 2023
13,456
Huangcheng Li
27 May 2021
$0.32
27 May 2023
13,456
Peter Thomas
27 May 2021
$0.32
27 May 2023
13,456
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
All options were granted for nil consideration. Options lapse if the Non -Executive Director ceases employment with the Company.
The options vested on the grant date. The fair value of the options is calculated at the date of the grant using the Black Schol es
option pricing model.
Shares held by Key Management Personnel
The number of shares in the company held at the beginning and end of the year and net movements during the financial year by
key management personnel and/or their related entities are set out below:
Balance at
Beginning of
Year or Date of
Appointment
Purchased
during the Year
Award under
Employee
Share Plan
Sold
during the Year
Balance at End
of Year or Date
of Retirement
666,667
2,104,306
-
-
Aaron Soo
14,330,000
470,000
Chaodian Chen
-
-
Huangcheng Li
136,445,311
9,070,183
-
-
-
-
-
-
-
-
-
-
666,667
2,104,306
14,800,000
-
145, 515,494
Executive Directors
Patrick Mutz
George Sakalidis
Executive Officers
John McEvoy
Todd Colton
3,654,506
5,584,497
3,785,096
2,103,263
-
-
-
-
1,395,628
(900,671)
4,149,463
509,072
(2,528,038)
3,565,531
917,542
(784,973)
3,917,665
1,025,630
(706,860)
2,422,033
Total
168,673,646
9,540,183
3,847,872
(4,920,542)
177,141,159
Other Equity-related KMP Transactions
There have been no other transactions involving equity instruments, apart from those described in the tables above, relating to
options, rights and shareholdings.
28
Annual Report 2021
39
Name
Non-Executive
Directors
Robert Besley
Peter Thomas
RReemmuunneerraattiioonn RReeppoorrtt –– aauuddiitteedd ((ccoonntt..))
Remuneration Report - Audited (cont.)
Other Transactions with KMP and/or their Related Parties
There were no other transactions conducted between the Group and KMP or their related parties, apart from those disclosed
above relating to equity, compensation and loans, that were conducted other than in accordance with normal employee, customer
or supplier relationships on terms no more favourable than those reasonably expected under arm’s length dealings with unrelat ed
persons.
This Report of Directors, incorporating the Remuneration Report, is s igned in accordance with a resolution of the directors .
ROBERT BESLEY
CHAIRMAN
Perth, 17 March 202 2
29
40
Image Resources NL
AAuuddiittoorr’’ss IInnddeeppeennddeennccee DDeeccllaarraattiioonn
Auditor’s Independence Declaration
Auditor's Independence Declaration
As auditor for the audit of Image Resources NL for the year ended 31 December
2021, I declare that, to the best of my knowledge and belief, there have been:
I)
II)
no contraventions of the independence requirements of the
Corporations Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in
relation to the audit.
This declaration is in respect of Image Resources NL and the entities it controlled
during the period.
Elderton Audit Pty Ltd
Nicholas Hollens
Managing Director
17 March 2022
Perth
30
Annual Report 2021
41
CCoorrppoorraattee ggoovveerrnnaannccee ssttaatteemmeenntt
Corporate Governance Statement
Image Resources NL and the Board are committed to achieving and demonstrating the highest standards of corporate
governance. Image Resources NL has reviewed its corporate governance practices against the Corporate Governance Principles
and Recommendations (4th edition) published by the ASX Corporate Gover nance Council.
The 2021 Corporate Governance Statement is dated at 6 April 2022 and reflects the corporate governance practices in place
throughout the year ended 31 December 2021. The 2021 Corporate Governance Statement was approved by the Board on 6
April 202 2. A description of the Company’s current corporate governance practices is set out in the Company’s Corporate
Governance Statement which can be viewed at www.imageres.com.au.
31
42
Image Resources NL
CCoonnssoolliiddaatteedd ssttaatteemmeenntt ooff pprrooffiitt oorr lloossss aanndd ootthheerr
ccoommpprreehheennssiivvee iinnccoommee
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended 31 December 2021
FOR THE YEAR ENDED 31 DECEMBER 2021
Continuing operations
Operating sales revenue
Cost of sales
Gross profit
Government royalties
Shipping and other selling costs
Corporate expenses
Exploration and evaluation expenses
Other income and expense
Foreign currency gain / (loss)
Operating profit
Finance income
Financing costs
Profit before income tax
Income tax expense
Profit for the year from continuing operations
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Changes in the fair value of available -for-sale financial assets
Items that will not be reclassified to profit or loss
Hedging costs
Total other comprehensive income
Total comprehensive income for the year
Earnings per share
Basic earnings per share
Diluted earnings per share
The accompanying notes form part of these financial statements.
Year to
31 Dec
202 1
($000)
Year to
31 Dec
2020
($000)
Notes
3
3
3
3
3
6
178,847
176,378
(115,143)
(104,224)
63,704
72,154
(7,944)
(20,253)
(4,986)
(3,549)
86
1,429
28,487
27
(1,192)
27,322
(7,938)
19,384
4
(475)
(471)
18,913
(8,262)
(10,248)
(4,684)
(4,980)
107
(3,783)
40,304
36
(5,817)
34,523
(9,740)
24,783
2
-
2
24,785
Notes
Cents
Cents
5
5
1.94
1.81
2.53
2.44
32
Annual Report 2021
43
CCoonnssoolliiddaatteedd ssttaatteemmeenntt ooff ffiinnaanncciiaall ppoossiittiioonn
As at 31 December 2021
Consolidated Statement of Financial Position
AS AT 31 DECEMBER 2021
Notes
7
8
12
9
10
11
13
14
15
6
14
15
6
16
17
17
31 Dec
202 1
($000)
79,840
2,960
21,739
1,085
18
31 Dec
2020
($000)
50,761
12,191
20,441
392
-
105,642
83,785
68,962
4,629
73,591
82,806
4,951
87,757
179,233
171,542
19,560
1,004
148
11,093
31,805
35,611
172
742
36,525
68,330
19,610
903
17,199
1,282
38,994
19,807
10
4,101
23,918
62,912
110,903
108,630
113,999
26,764
(29,860)
110,903
110,607
27,883
(29,860)
108,630
Current assets
Cash and cash equivalents
Trade and other receivables
Inventory
Other assets
Derivatives
Total current assets
Non-current assets
Property, plant and equipment
Other financial assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Provisions
Borrowings
Income tax payable
Total current liabilities
Non-current liabilities
Provisions
Borrowings
Deferred tax liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
The accompanying notes form part of these financial statements.
33
44
Image Resources NL
CCoonnssoolliiddaatteedd ssttaatteemmeenntt ooff cchhaannggeess iinn eeqquuiittyy
For the Year Ended 31 December 2021
Consolidated Statement of Changes in Equity
FOR THE YEAR ENDED 31 DECEMBER 2021
Issued
Capital
($000)
Profit
Reserve
Account
($000)
Other
Reserves
($000)
Accum’d
Losses
($000)
Total
($000)
Balance at 1 January 2020
108,553
Comprehensive profit
Operating profit for the year
Other comprehensive income
Transfer to profit reserve – dividend
Total comprehensive profit for the year
Transactions with owners in their capacity as
owners
Shares issued during the year
Shares cancelled during the year
Cost of share issue
Total transactions with owners in their capacity
as owners
-
-
-
-
2,511
(447)
(10)
2,054
-
-
-
24,783
24,783
-
-
-
-
3,098
(29,860)
81,791
-
2
-
2
-
-
-
-
24,783
24,783
-
(24,783)
-
-
-
-
-
2
-
24,785
2,511
(447)
(10)
2,054
Balance at 31 December 2020
110,607
24,783
3,100
(29,860)
108,630
Balance at 1 January 2021
110,607
24,783
Issued
Capital
($000)
Profit
Reserve
Account
($000)
Other
Reserves
($000)
3,100
Accum’d
Losses
($000)
Total
($000)
(29,860)
108,630
Comprehensive profit
Operating profit for the year
Other comprehensive income
Transfer to profit reserve – dividend
Total comprehensive profit for the year
Derivatives fair value movement
Transactions with owners in their capacity as
owners
Dividends paid
Share based payment
Warrants exercised during the year
Shares issued during the year
Shares cancelled during the year
Cost of share issue
-
-
-
-
-
-
-
-
3,916
(510)
(14)
-
-
19,384
19,384
(471)
-
(471)
19,384
(19,384)
-
19,384
(471)
-
18,913
18
18
(19,877)
(19,877)
67
(240)
-
-
-
-
-
-
-
-
-
67
(240)
3,916
(510)
(14)
(16,640)
Total transactions with owners in their capacity
as owners
3,392
(19,877)
(173)
Balance at 31 December 2021
113,999
24,290
2,474
(29,860)
110,903
The accompanying notes form part of these financial statements .
34
Annual Report 2021
45
CCoonnssoolliiddaatteedd ssttaatteemmeenntt ooff ccaasshh fflloowwss
Consolidated Statement of Cash Flows
For the Year Ended 31 December 2021
FOR THE YEAR ENDED 31 DECEMBER 2021
Notes
Year to
31 Dec
202 1
($000)
Year to
31 Dec
2020
($000)
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and contractors
Interest received
Interest paid
Other income
Income tax paid
Net cash from operating activities
7
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for security deposits
Proceeds from sale of property, plant and equipment
Purchase of property, plant and equipment
Payments for exploration and evaluation
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from new issues of shares
Payments for share issue costs
Proceeds from employee loan repayments
Dividends paid
Repayment of borrowings
Net cash used in financing activities
Net increase in cash held
Cash at beginning of the year
Effect of exchange fluctuations on cash held
Cash at the end of the year
The accompanying notes form part of these financial statements.
16
15
15
7
190,587
164,854
(113,332)
(93,543)
27
36
(1,147)
(6,560)
84
(1,486)
74,733
(85)
4
(7,630)
(3,795)
151
-
64,938
-
1
(16,362)
(4,841)
(11,506)
(21,202)
414
(15)
512
(19,025)
-
(10)
-
-
(17,169)
(38,313)
(35,283)
(38,323)
27,944
50,761
1,135
79,840
5,413
49,935
(4,587)
50,761
35
46
Image Resources NL
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2021
This financial report includes the financial statements and notes of the Group.
Note 1 Statement of Significant Accounting Policies
Basis of Preparation
The financial report is a general -purpose financial report that has been prepared in accordance with Australian Accounting
Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards
Board (AASB) and the Corporations Act 2001.
The consolidated financial statements of the Comp any, as at and for the year ended 31 December 2021, comprises the Company
and its wholly owned subsidiaries (together referred as the Group). The financial statements were authorised for issue on 17
March 2022 , subject to minor typographical amendments.
The following is a summary of the material accounting policies adopted by the Group in the preparation of the financial report.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report
containing relevant and reliable information about transactions, events and conditions. Compliance with Australian Accounting
Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. Mater ial
accounting policies adopted in the preparation of this financial report are presented below and have been consistently applied
unless otherwise stated.
Reporting Basis and Conventions
The financial report has been prepared on an accruals basis and is based on his torical costs modified by the revaluation of
selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied.
Going Concern
These financial statements have been prepared on the going con cern basis, which contemplates the continuity of normal
business activities and the realisation of assets and discharge of liabilities in the normal course of business. The Directors
consider the going concern basis of preparation to be appropriate based o n forecast future cash flows.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australi an
Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
ACCOUNTING POLICIES
a) Revenue Recognition
The Group recognises revenue as follows:
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the Group is expected to be entitled in
exchange for transferring goods or services to a customer. For each contract with a customer, the Group: identifies the
contract with a customer; identifies the performance obligations in the contract; determines the transaction price which
takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the
separate performance obligations on the basis of the relative stand -alone selling price of each distinct good or service to
be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the
transfer to the customer of the goods or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts,
rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates
are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable consideration
is subject to a constraining principle whereby revenue will only be recognised to the ext ent that it is highly probable that
a significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues
until the uncertainty associated with the variable consideration is subsequently resolved. Amount s received that are subject
to the constraining principle are initially recognised as deferred revenue in the form of a separate refund liability.
Sale of goods
Revenue from the sale of goods is recognised at the point in time when the customer obtains control of the goods, which
is generally at the time of delivery.
36
Annual Report 2021
47
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2021
Rendering of services
Revenue from a contract to provide services is recognised over time as the services are rendered based on either a fixed
price or an hourly rate.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest
rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset
to the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receiv e payment is established.
b) Employee Benefits
Provision is made for the Group’s liability for employee benefits arising from services rendered by non -casual employees
to balance date. Employee benefits that are expected to be settled within one year have bee n measured at the amounts
expected to be paid when the liability is settled.
c) Foreign Currency Translation
Functional and Presentation Currency
Both the functional and presentation currency of Image is Australian Dollars.
Foreign Currency Translation
Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange rates ruling
at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rat e
of exchange at balance date.
All translation differences relating to transactions and balances denominated in foreign currency are taken to the Statement
of Profit and Loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are t ranslated using the exchange
rate as at the date of the initial transaction. Non -monetary items measured at fair value in a foreign currency are translated
using the exchange rate at the date when the fair value was determined.
d) Exploration and Evaluation Expenditure
All exploration and evaluation expenditure associated with exploration and evaluation activity including direct costs and
an appropriate portion of related overhead expenditure is expensed to the Statement of Profit or Loss and other
Comprehensive Income as incurred. The effect of this write -off is to decrease the profit incurred from continuing operations
as disclosed in the Statement of Profit or Loss and other Comprehensive I ncome and to decrease the carrying values in
the Statement of Financial Position. That the carrying value of mineral assets, as a result of the operation of this policy, is
zero does not necessarily reflect the board’s view as to the market value of that asset.
Exploration expenditure associated with the acquisition of tenement licences may be recognised as an exploration asset if
it is considered that the expenditures incurred are expected to be recouped through successful development and
exploitation of the area of interest. Additional exploration and evaluation expenditure incurred on these tenement licences
acquired is also added to the value of the exploration asset.
Accounting for exploration and evaluation expenditure is assessed separately for each ‘area of interest’. An ‘area of
interest’ is an individual geological area which is considered to constitute a favourable environment for the presence of a
mineral deposit or has been proved to contain such a deposit.
Once a development decision is made, all past exploration and expenditure in respect of an area of interest that has been
capitalised is transferred to mine properties where it is amortised over the life of the area of interest to which it relates on
a unit of production basis. No amortisation is charged during the exploration and evaluation phase.
The application of the above accounting policy requires to make certain estimates and assumptions as to future events
and circumstances, in particular, the assessment of whether economic quantities of reserves will be found. Any such
estimates and assumptions may change as new information becomes available, which may require adju stments to the
carrying value of assets. Capitalised exploration and evaluation expenditure is assessed for impairment when an indicator
of impairment exists, and capitalised assets are written off where required.
37
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Image Resources NL
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2021
e) Asset Acquisitions
The cost method is used for all acquisitions of assets regardless of whether shares or other assets are acquired. Cost is
determined as the fair value of assets given up at the date of acquisition plus costs incidental to the acquisition.
Costs relating to the acquisition of new areas of interest are c lassified as either exploration and evaluation expenditure or
mine properties based on the stage of development reached at the date of acquisition.
f) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST except wh ere the GST incurred on a purchase
of goods and services is not recoverable from the taxation authority. In these circumstances, the GST is recognised as
part of the cost of acquisition of the asset or as part of the expense item as applicable. Receivabl es and payables in the
Statement of Financial Position are shown inclusive of GST.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables
in the Statement of Financial Position.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and
financing activities, which are disclosed as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recovera ble from, or payable to, the taxation
authority.
g)
Income Tax
The income tax expense for the year comprises current income tax expense and deferred tax expense.
Current income tax expense charged to the Statement of Profit or Loss and Other Comprehensive Inc ome is the tax payable
on taxable income calculated using applicable income tax rates enacted, or substantially enacted, as at reporting date.
Current tax liabilities and assets are therefore measured at the amounts expected to be paid to or recovered fro m the
relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year
as well as unused tax losses, if any in fact are brought to account.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have
been fully expensed but future tax deduc tions are available. No deferred income tax will be recognised from the initial
recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable
profit or loss.
Deferred tax assets and liabilities a re calculated at the tax rates that are expected to apply to the year when the asset is
realised or the liability is settled, based on tax rates enacted or substantively enacted at reporting date. Their measureme nt
also reflects the manner in which manage ment expects to recover or settle the carrying amount of the related asset or
liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is
probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.
Current tax assets and liabilities are offset where a legally enforceable right of set -off exists and it is intended that net
settlement or simultaneous realisation and settlem ent of the respective asset and liability will occur. Deferred tax assets
and liabilities are offset where a legally enforceable right of set -off exists, the deferred tax assets and liabilities relate to
income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it
is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur i n
future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.
h) Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks and other short -term highly liquid
investments with original maturities of three months or less.
i)
Impairment of Assets
At each reporting date, the Group reviews the carrying values of its tangible and intangible assets to determine whether
there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the
asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying
38
Annual Report 2021
49
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2021
value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the Statement o f Profit or Loss
and Other Comprehensive Income. This policy has no application where paragraph ( d) Exploration and Evaluation
Expenditure applies.
j)
Earnings per Share
(i)
Basic Earnings per Share – Basic earnings per share (EPS) is determined by dividing the loss from continuing
operations after related income tax expense by the weighted average number of ordinary shares outstanding during
the financial year.
(ii) Diluted Earnings per Share – Options that are considered to be dilutive are taken into consi deration when calculating
the diluted earnings per share.
k)
Inventory
Inventories of heavy mineral concentrate are valued at the lower of an average weighted cost and net realisable value
(NRV). Cost comprises direct costs and an appropriate proportion of fixed and variable expenditure including depreciation
and amortisation.
Inventories of consumable supplies and spare parts to be used in production are valued at weighted average cost.
NRV is the estimated selling price in the ordinary cour se of business less the estimated costs of production and to complete
the sale.
l)
Property, plant, and equipment
Property, plant and equipment is stated at historical cost, less accumulated depreciation and accumulated impairment
losses, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items and costs
incurred in bringing the asset into use.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with the item flow to the Group and the cost of the item can be
measured reliably.
Mine development costs are capitalised to property, plant and equipment only once a decision to mine is made and the
development is fully funded. Mine development expenditure represents the cost incurred in preparing mines for
commissioning and production, and also includes other attributable costs incurred before production commences. These
costs are capitalised to the extent they are expected to be recouped through successful exploitation of the related mining
project. Once production commences, these costs are amortised over the estimated economic life of the mine on a units
of production basis. Mine development costs are written off if the mine property is abandoned. Development costs incurred
to maintain production are expensed as incurred against the related production.
At each reporting date, the entity assesses whether there is any indication that an asset may be impaired. Where an
indicator of impairment exists, the entity makes a formal assessment of recoverable amount. Where the carrying amount
of an asset exceeds its recoverable amount the asset is considered impaired and is written down to its recoverab le amount.
Recoverable amount is the greater of fair value less costs of disposal and value in use.
Depreciation
Depreciation is provided on a straight-line or units of production basis on all plant and equipment commencing from the
time the asset is held ready for use. Major depreciation periods are:
•
•
Plant and equipment – 1 to 5 years
Motor vehicles – 3 to 5 years
An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or
when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de -recognition of the
asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in
the income statement when the ass et is derecognised.
The assets’ residual values, useful lives and depreciation methods are reviewed at each reporting period and adjusted
prospectively, if appropriate.
39
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Image Resources NL
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2021
m) Borrowings
Recognition and Measurement
Borrowings are initially recognised at fair value and revalued where the borrowings are denominated in a foreign currency.
Transaction costs paid on the establishment of loan facilities are capitalised to property, plant and equipment to the extent
that it is probable that some or all of the facility will be drawn down and that the borrowings are directly related to the
purchase of property, plant and equipment. Where there is no evidence that it is probable that some or all of the facility
will be drawn down, the fee is expensed to profit and loss. Borrowing costs incurred after the property, plant and equipment
is installed and operating are expensed to the profit and loss statement directly.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability
for at least 12 months after the reporting period.
The fair value of financial liabilities carried at amortised cost approximates their carrying values.
n)
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the
initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured
at either amortised cost or fair value depending on their classification. Classification is determined based on both the
business model within which such assets are held and the contractual cash flow characteristics of the financial asset
unless, an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the
Group has transferred substantially all the risks and rewards of ownership. When there is no reasonable expect ation of
recovering part or all of a financial asset, it's carrying value is written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as
financial assets at fair value through profit or loss. Typically, such financial assets will be either: (i) held for trading, where
they are acquired for the purpose of selling in the short -term with an intention of making a profit, or a deri vative; or (ii)
designated as such upon initial recognition where permitted. Fair value movements are recognised in profit or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the Group intends to
hold for the foreseeable future and has irrevocably elected to classify them as such upon initial recognition.
Impairment of financial assets
The Group recognises a loss allowance for expected c redit losses on financial assets which are either measured at
amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon
the Group’s assessment at the end of each reporting period as to whether the f inancial instrument's credit risk has
increased significantly since initial recognition, based on reasonable and supportable information that is available, without
undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12 -month expected
credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attribut able
to a default event that is possible within the next 12 months. W here a financial asset has become credit impaired or where
it is determined that credit risk has increased significantly, the loss allowance is based on the asset's lifetime expected
credit losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present
value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the lo ss allowance is recognised within
other comprehensive income. In all other cases, the loss allowance is recognised in profit or loss.
Fair Value
Fair value is determined based on closing market prices for all quoted investments. Valuation techniques are applied to
determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar
instruments and option pricing models. The expression “fair value” – and derivatives thereof – wherever used in this report
bears the meaning ascribed to that expression by the Australian Accounting Standards Board.
40
Annual Report 2021
51
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2021
Impairment
At each reporting date, the Group assesses whether there is objective evidence that a financial instrument has been
impaired. In the case of available -for-sale financial instruments, a prolonged decline in the value of the instrument is
considered to determine whether an impairment has arisen. Im pairment losses are recognised in the profit or loss.
De-recognition
Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred
to another party whereby the entity no longer has any significa nt continuing involvement in the risks and benefits associated
with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or
expired. The difference between the carrying value of the financial li ability extinguished or transferred to another party
and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in
profit or loss.
o) Provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is
probable that an outflow of economic benefits will result and that outflow can be reliably measured.
p) Leases
As a lessee, the Group recognises a right-of-use asset, representing its right to use the underlying asset and a
corresponding lease liability, on the statement of financial position , for leases (other than short term and low value lease) .
The right-of-use asset is amortised on a straight-line basis over its lease term.
The Group recognises the right-of-use asset and the lease liability at the lease commencement date . The right-of-use asset
is initially measured at cost (at the present value of future lease payments), and subsequently at cost less accumulated
depreciation, any impairment losses and adjustments for remeasurement of the lease liability. The lease liability is initially
measured at the present value of the lease payments expected to be paid over the lease term, discounted using the interest
rate implicit in the lease or, if the rate cannot be readily determined, then the Groups’ incremental borrowing rate or, where
not available, a market rate alternative. The lease liability is further remeasured if the estimated future lease payments
change.
q) Contributed Equity
Ordinary share capital is recognised at the fair value of the consideration received by the Group. Any transaction costs
arising on the issue of ordinary shares are recognised directly in equity as a reduction of the share proceeds received.
r) Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation
for the current financial year.
s) Segment Reporting
Operating segments are reported in a manner that is consistent with the internal reporting to the chief operating decision
maker (“CODM”), which has been identified by the Group as the Managing Director and other members of the Board of
directors.
t) Critical Accounting Estimates, Assumptions and Judgements
The Group makes estimates and assumptions concerning the future in applying its accounting policies. The resulting
accounting estimates will, by definition, seldom equal the related actual results. The est imates and assumptions that have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financi al
year are discussed below. Estimates and underlying assumptions are reviewed on an ongoing basis , with revisions
recognised in the period in which the estimates are revised and future periods affected.
Impairment of Property, Plant and Equipment and Mine Development Expenditure
Non-current assets are assessed for impairment when there is an indicatio n that their carrying amount may not be
recoverable. The recoverable amount of each Cash Generating Unit (CGU) is determined as the higher of value -in-use and
fair value less costs of disposal estimated on the basis of discounted present value of the futur e cash flows (a level 3 fair
value estimation method).
41
52
Image Resources NL
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2021
The estimates of discounted future cash flows for each CGU are based on significant assumptions including:
•
•
•
•
•
•
estimates of the quantities of mineral reserves and ore resources for which there is a high degree of confidence
of economic extraction and the timing of access to these reserves and ore resources ;
future production levels and the ability to s ell that production;
future product prices based on the Group’s assessment of forecast short and long term prices for each of the
key products;
future exchange rates for the Australian dollar compared to the US dollar using external forecasts by recognised
economic forecasters;
future cash costs of production, sustaining capital expenditure, rehabilitation an d mine closure;
the asset specific discount rate applicable to the CGU .
Determination of Mineral Resources and Ore Reserves
The determination of reserves impacts the accounting for asset carrying values, depreciation and amortisation rates, and
provision for decommissioning and restoration. The information in this report as it relates to ore reserves, mineral resource s
or mineralisation is reported in accordance with the AusIMM “Australian Code for Reporting of Identified Mineral Resources
and Ore Reserves 2012”. The information has been prepared by or under supervision of competent persons as identified
by the Code.
There are numerous uncertainties inherent in estimating mineral resources and ore reserves and assumptions that are
valid at the time of estimation may change significantly when new information becomes available. Changes in the forecast
prices of commodities, exchange rates, production costs or recovery rates may change the economic status of reserves
and may ultimately result in the r eserves being restated.
Rehabilitation and Site Restoration Provision
Significant estimates and assumptions are made in determining the provision for rehabilitation of the mine as there are
numerous factors that will affect the ultimate liability payable. These factors include estimates of the extent and costs of
rehabilitation activities, technological changes, regulatory changes, cost increases as compared to inflation rates, and
changes in discount rates. These uncertainties may result in future actual expenditure differing from amounts currently
provided.
Recovery of Deferred Tax Assets
Judgement is required in determining whether deferred tax assets are recognised in the Consolidated Statement of
Financial Position. Deferred tax assets, includi ng those arising from unutilised tax losses, require management to assess
the likelihood that the Group will generate taxable earnings in future periods, in order to utilise recognised deferred tax
assets. Estimates of future taxable income are based on fo recast cash flows from operations and the application of existing
tax laws. To the extent that future cash flows and taxable income differ significantly from estimates, t he ability of the Group
to realise net deferred tax assets could be impacted. Addition ally, future changes in tax laws could limit the ability of the
Group to obtain tax deductions in future periods.
The Group has unrecognised deferred tax assets arising from tax losses and other temporary differences. The ability of
the Group to utilise its tax losses is subject to meeting the relevant statutory tests.
The income tax expense has been estimated and calculated based on management’s best knowledge of current income
tax legislation. There may be differences with the treatment of individual juri sdiction provisions but these are not expected
to have any material impact on the amounts as reported.
u) New Accounting Standards for Application in Future Years
There are a number of new Accounting Standards and Interpretations issued by the AASB that are not yet mandatorily
applicable to the Group and have not been applied in preparing these financial statements. The Group does not plan to
adopt these standards early.
These standards are not expected to have a material impact on the Group in the current or future period until mandatory
adoption.
v) Rounding
Rounding of amounts All amounts in the financial statements have been rounded to the nearest thousand dollars, except as
indicated, in accordance with the ASIC Corporations Instrument 2016/191.
42
Annual Report 2021
53
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2021
Note 2 Operating Segments
Segment Information
Identification of reportable segments
The Group has identified that it operates in only one segment based on the internal reports that are reviewed and used by the
board of directors (chief operating decision makers) in assessing performance and determining the allocation of resources. The
Group is a minerals sands production and exploration Group. Currently all the Group’s mineral sands tenements and resources
are located in Western Australia.
Revenue and assets by geographical region
The Group's revenue is derived from sources and assets located wholly within Australia .
Major customers
The Group currently provides products to two off -takers plus one buyer outside the primary offtake agreements .
Financial information
Reportable items required to be disclosed in this note are consistent with the information disclosed in the Statement of Prof it or
Loss and Other Comprehensive Income and Stateme nt of Financial Position and are not duplicated here.
Note 3 Revenue and Expenses
Sales Revenue
Concentrate sales
Operating Expenses
Mine operating costs
Depreciation and amortisation
Amortisation of capitalised borrowing costs
Inventory movement
Cost of sales
Gross Profit
Foreign Currency Gain / (Loss)
Realised foreign currency gain / (loss)
Unrealised foreign currency gain / (loss)_
Finance Income
Interest income
Finance Costs
Interest expense
Loss on hedging maturities
Other financing costs
Year to
31 Dec
202 1
($000)
Year to
31 Dec
2020
($000)
178,847
176,378
(77,092)
(33,362)
(5,705)
1,016
(74,105)
(27,713)
(5,749)
3,343
(115,143)
(104,224)
63,704
72,154
247
1,182
1,429
(1,896)
(1887)
(3,783)
27
36
(906)
(286)
-
(1,192)
(5,670)
-
(147)
(5,817)
Note 4
Auditors Remuneration
Amounts received or due and receivable by the auditors of the Company for:
-
Auditing and reviewing the financial reports – (Elderton Audit Pty Ltd)
51
54
43
54
Image Resources NL
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2021
Note 5
Basic earnings per share
Earnings Per Share
Diluted earnings per share
Year to
31 Dec
202 1
(Cents)
1.94
1.81
Year to
31 Dec
2020
(Cents)
2.53
2.44
($000)
($000)
Reconciliation of earnings used in calculating earnings per share
Profit attributable to ordinary equity holders of the Company used in calculating basic
and diluted earnings per share
19,384
24,783
Weighted average number of ordinary shares used in the calculation of basic
earnings per share
998,194,328
981,236,917
Weighted average number of ordinary shares used in the calculation of diluted
earnings per share
Weighted average number of ordinary shares (basic)
998,194,328
981,236,917
Number of
Number of
shares
shares
Effects of dilution from:
Warrants
Options
33,689,873
10,000,000
35,810,714
-
Weighted average number of ordinary shares (diluted)
1,041,884,200
1,017,047,631
The Company had 10,000,000 (2020: Nil) options over fully paid ordinary shares on issue at balance date.
Note 6
Income Tax
Income tax expense
Current tax
Deferred tax
Income tax expense in the statement of profit or loss
Reconciliation of income tax expense to prima facie tax payable
The prima facie tax payable on profit / (loss) from ordinary activities before tax is
reconciled to the income tax (expense) / benefit as follows:
Accounting profit before tax
Prima facie tax on operating profit at statutory rate of 30% (2019: 30%)
Non-deductible expenses
Non-assessable income
Capital raising costs charged to equity
Under provision in prior year
Costs classified as other comprehensive income
Adjustments in respect of current income tax of previous years
Adjustments in respect of deferred tax of previous years
Income tax expense
($000)
($000)
7,938
-
7,938
1,282
8,458
9,740
27,322
8,196
30
-
(5)
-
(142)
(1,282)
1,141
7,938
34,523
10,357
36
(30)
(3)
(620)
-
-
-
9,740
The Corporate tax rate payable by the Company if the Company was required to pay income tax in the year ended 31
December 2021 was 30% (31 December 2020: 30%). The deferred tax asset held on the balance sheet is calculated at the
30% income tax rate.
44
Annual Report 2021
55
31 Dec
2020
($000)
5,338
(9,439)
(4,101)
2020
($000)
(5,578)
1,940
366
245
2,787
(2,869)
(4)
(984)
(4)
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2021
Deferred tax assets
Deferred tax liabilities
Net deferred tax assets / (liabilities)
Composition of and movements in deferred tax assets and liabilities during the year
31 Dec
2021
($000)
8,865
(9,607)
(742)
Property, plant and equipment
Unrealised foreign exchange gains
Provisions and accruals
Capital raising costs
Mine rehabilitation
Borrowing costs
Receivables
Inventories
Investments
Net deferred tax assets /
(liabilities)
Assets
Liabilities
Net
2021
($000)
-
1,284
394
113
7,074
-
-
-
-
2020
($000)
-
1,940
366
245
2,787
-
-
-
-
2021
($000)
(6,344)
2020
($000)
(5,578)
-
-
-
-
-
-
-
-
(1,476)
(2,869)
(4)
(1,777)
(6)
(4)
(984)
(4)
2021
($000)
(6,344)
1,284
394
113
7,074
(1,476)
(4)
(1,777)
(6)
8,865
5,338
(9,607)
(9,439)
(742)
(4,101)
31 Dec
202 1
($000)
79,824
16
79,840
19,384
6,452
39,241
3,549
(2)
(411)
(659)
67
(475)
-
10,957
(608)
(1,298)
(1,340)
(171)
47
74,733
31 Dec
2020
($000)
50,745
16
50,761
24,783
9,740
33,496
4,980
44
2,978
617
-
-
(359)
(11,598)
77
(3,652)
3,662
(45)
215
64,938
Note 7 Cash and Cash Equivalents
Cash at bank
Deposits at call
Cash flows from operating activities reconciliation
Operating profit after income tax
Income tax expense
Depreciation and amortisation expense
Exploration and evaluation expense
Loss / (profit) on sale of property, plant and equipment
Realised foreign currency loss
Unrealised foreign currency (gain) / loss
Share based payments expense
Hedging expenses
Borrowing costs
Changes in operating assets and liabilities:
Increase in trade and other receivables relating to operating activities
Decrease in prepayments
Increase in inventory
Increase in trade and other payables relating to operating activities
Increase / (decrease) in current borrowings
Increase in provisions
Cash flow from operations
45
56
Image Resources NL
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2021
Note 8
Trade and Other Receivables
Trade receivables
GST and tax refundable
Loans to employees – (Employee share plan)
Loans to Key Management Personnel – (Employee share plan)
Other receivables
Note 9 Other Assets – Current
Restricted cash – security for guarantees
Prepayments
31 Dec
2021
($000)
-
1,022
1,137
590
211
2,960
140
945
1,085
31 Dec
2020
($000)
11,342
792
-
-
57
12,191
57
335
392
Restricted cash represents term deposits held by the Group’s bank as security for a bank guarantee ($34,667) in favour of the
property manager in relation to operating lease commitments for the office premises and security for the Company credit card
($20,000).
Deposits at call consist of term deposits with matu rity dates greater than three months.
Note 10 Property, Plant and Equipment
Plant and
Land and
Mine
Borrowing
Equipment
Buildings
Development
Costs
Exploration
($000)
($000)
($000)
($000)
($000)
Year ended 31 December 2020
Balance at 1 January 2020
Additions
Mine closure and rehabilitation
asset
Disposals
Depreciation
39,602
1,713
-
(45)
(15,926)
11,469
6,919
-
-
-
28,135
7,386
4,781
-
16,376
-
-
-
(11,855)
(5,749)
Closing Net Book Value
25,344
18,388
28,447
10,627
At 31 December 2020
Cost
Accumulated Depreciation
55,351
(30,007)
18,388
45,145
21,968
-
(16,698)
(11,341)
Net Book Value
25,344
18,388
28,447
10,627
Year ended 31 December 2021
Balance at 1 January 2021
Additions
Mine closure and rehabilitation
asset
Disposals
Depreciation
25,344
1,594
-
(12)
(12,482)
18,388
2,203
-
-
-
28,447
5,598
15,859
-
10,627
-
-
-
(21,053)
(5,706)
-
-
-
-
-
-
-
-
-
-
155
-
-
-
Total
($000)
95,582
16,018
4,781
(45)
(33,530)
82,806
140,852
(58,046)
82,806
82,806
9,550
15,859
(12)
(39,241)
Closing Net Book Value
14,444
20,591
28,851
4,921
155
68,962
At 31 December 2021
Cost
Accumulated Depreciation
56,929
(42,485)
20,591
66,602
21,968
-
(37,751)
(17,047)
Net Book Value
14,444
20,591
28,851
4,921
155
-
155
166,245
(97,283)
68,962
46
Annual Report 2021
57
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2021
Property, plant and equipment includes the purchase of a wet concentration mineral sands processing plant and ancillary minin g
and processing equipment from Murray Zircon on 8 June 2016 for $11,935,028 and construction costs incurred building the
Boonanarring Mine. Mine development expenditure represents the cost incurred in preparing mines for commissioning and
production, other attributable costs incurred before production commences and min e closure and rehabilitation costs.
Land represents farm lots at Boonanarring which the Group has acquired.
Borrowing costs incurred financing the senior debt facility were fully capitalised to property, plant and equipment. Deprecia tion
on plant and equipment, mine development and borrowing costs is charged to the inventory cost base.
The calculation of the plant and equipment depreciation assumes that the plant and equipment will have a market value of $15M
once the processing of all Boonanarring mined or e has been completed. At 1 January 2021 this value was increased from $10M
to $15M.
Leases
The Group has lease contracts for motor vehicles and office equipment used in its operations. The leases have lease terms
between 3 and 5 years. The Group’s obligations under its leases are secured by the lessor’s title to the leased assets. The right
of use assets is included in Plant and Equipment above as their values are too immaterial to state separately .
Set out below are the leased assets carrying amounts recognised and the movements during the period.
Year ended 31 December 2020
Balance at 1 January 2020
Additions
Depreciation
Closing Net Book
Year ended 31 December 2021
Balance at 1 January 2021
Additions
Depreciation
Closing Net Book
Office
Lease
($000)
Motor
Office
Vehicles
Equipment
($000)
($000)
-
-
-
-
-
355
(79)
276
111
53
(86)
78
78
32
(76)
34
11
-
(6)
5
5
-
(5)
-
Set out below are the carrying amounts of lease liabilities (included under borrowings, Note 15)
Opening Net Book Value
Additions
Accretion of interest
Payments
Closing Net Book Value
Current
Non-Current
Note 11 Other Financial Assets
Non-Current
Loans to Employees – (Employee Share Plan)
Loans to Key Management Personnel (Employee Share Plan)
Equity investments at fair value – shares in listed corporations
47
58
Image Resources NL
31 Dec
202 1
($000)
105
392
22
(199)
320
148
172
3,420
1,176
33
4,629
Total
($000)
122
53
(92)
83
83
387
(160)
310
31 Dec
2020
($000)
127
57
16
(95)
105
95
10
3,391
1,532
28
4,951
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2021
Note 12
Inventory
Current
Ore stockpiles
Heavy mineral concentrate and other intermediate stockpiles
Stores and consumables
31 Dec
202 1
($000)
2,459
17,506
1,774
21,739
31 Dec
2020
($000)
2,259
16,689
1,493
20,441
Inventories of heavy mineral concentrate are valued at the lower of an average weighted cost and net realisable value (NRV).
Cost comprises direct costs and an appropriate proportion of fixed and variable expenditure including depreciation and
amortisation.
Inventories of consumable supplies and spare parts to be used in production are valued at weighted average cost.
NRV is the estimated selling price in the ordinary course of business less the estimated costs of production and to complete the
sale.
Note 13 Trade and Other Payables
Trade creditors
Accruals
GST and tax payable
Other payables
10,418
8,848
209
85
10,787
8,509
235
79
19,560
19,610
Trade creditors, accruals, GST and tax payables and other payables are normally settled on 30 Day terms.
These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which are
unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months from the
reporting date.
Note 14 Provisions
Current
Employee leave benefits
Non-Current
Employee leave benefits
Mine closure and rehabilitation
1,004
903
32
35,579
35,611
87
19,720
19,807
Mine closure and rehabilitation obligations
The calculation of the mine closure and rehabilitation provision requires assumptions such as application of environmental
legislation, plant closure dates, available technologies, engineering costs and inflation and discount rates. A change in any of
the assumptions used may have a material impact on the carrying value of mine closure and reh abilitation obligations.
The mine closure and rehabilitation provision is recorded as a liability at fair value, assuming a risk -free discount rate equivalent
to the 5 year Australian US Government bond rate of 0.99% as at 31 December 2021 (31 December 2020: 0.99%) and an inflation
factor of 1.0% (31 December 2020: 1.0%). Although the ultimate amount to be incurred is uncertain, management has, at 31
December 2021, estimated the asset retirement cost of work completed to date using an expected remaining mine life of 1.5
years and a total undiscounted estimated cash flow of $34,523,627 (31 December 2020: $19,718,091). Management’s estimate
of the underlying asset retirement costs are independently reviewed by an external consultant on a regular basis for
completeness and was most recently reviewed in December 2021.
48
Annual Report 2021
59
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2021
Recognition and measurement of provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is
probable that an outflow of economic benefits will result and that outflow can be reliably measured.
A mine closure and rehabilitation provision is recognised at the comm encement of a mining project and/or construction based
on the estimated costs necessary to meet legislative requirements by estimating future costs and discounting these to a present
value. The provision is recognised as a liability, separated into current (estimated costs arising within twelve months) and non-
current components based on the expected timing of these cash flows. A corresponding asset is included property, plant and
equipment (mine development assets section), only to the extent that it is pr obable that future economic benefits associated
with the restoration expenditure will flow to the entity, and is amortised over the life of the mine.
At each reporting date the mine closure and rehabilitation provision is re -measured in line with changes in discount rates and
timing or amounts of the costs to be incurred. Adjustments to the estimated amount and timing of future closure and rehabilitation
cash flows are a normal occurrence in light of the significant judgements and estimates involved and ar e dealt with on a
prospective basis as they arise.
Changes in the liability relating to mine closure and rehabilitation obligations are added to or deducted from the related asset
(where it is probable that future economic benefits will flow to the entity) , other than the unwinding of the discount which is
recognised as a financing expense in the Statement of Profit and Loss and Other Comprehensive Income. Changes in the asset
value have a corresponding adjustment to future amortisation charges.
The mine closure and rehabilitation provision does not include any amounts related to remediation costs associated with
unforeseen circumstances.
Note 15 Borrowings
Current
Lease liabilities
Interest bearing loan – Senior Secured Loan Notes
Non-Current
Lease liabilities
Interest bearing loan – Senior Secured Loan Notes
Interest
Rate
(8%)
(13%)
(8%)
(13%)
31 Dec
202 1
($000)
31 Dec
2020
($000)
148
-
148
172
-
172
95
17,104
17,199
10
-
10
Senior Secured Debt Facility.
A senior secured debt facility which raised A$50,000,000 from the issue of senior secured loan notes. The senior loan notes
amounted to US$38,865,000 plus capitalised interest of US$7,257, 672. The loan balance at 31 December 2020 of US$13,173,620
was repaid on 10 February 2021. US$26,347,241 was repaid during the year ended 31 December 2020 .
The key terms of the loan include a loan period of three years from draw down, an interest rate of 14% for the first fifteen months
following draw down and 13% thereafter for the balance of the loan. Interest for the first fifteen months was added to the loan
amount and thereafter paid quarterly in arrears. The principal is be ing repaid in seven equal instalments starting in the 18 th
month following drawdown. Drawdown occurred on 25 May 2018.
Lease liabilities includes leases for motor vehicles and the office lease for three years from 1 May 2021 for Level 2, 7 Vent nor
Avenue, West Perth WA 6005.
49
60
Image Resources NL
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2021
Note 16
Issued Capital
Contributed Equity – Ordinary Shares
At the beginning of the period
Warrants exercised at $0.1365 expiring 20 May 2023
Dividend reinvestment plan shares issued at $0.172
Employee share plan shares issued at $0.1 95
Employee share plan shares issued at $0.162
Employee shares cancelled
Share issue costs
Balance at the end of the period
Terms and Conditions of Contributed E quity
Year to 31 Dec 2021
Year to 31 Dec 2020
No.
($000)
No.
($000)
992,139,693
110,607
980,979,899
108,553
3,035,714
3,562,802
-
16,353,949
(2,449,772)
-
654
613
-
2,649
(509)
(15)
-
-
12,875,014
-
(1,715,220)
-
-
-
2,510
-
(446)
(10)
1,012,642,386
113,999
992,139,693
110,607
Ordinary shares have the right to receive dividends as declared and, in the event of winding up of the Company, to participate
in the proceeds from the sale of all surplus assets in proportion to the number of shares held, regardless of the amount paid up
thereon. At a general meeting every shareholder present in person or by prox y, representative or attorney has: a) on a show of
hands, one vote; and b) on a poll, one vote for each fully paid share held .
Note 17 Reserves and Accumulated Losses
Reserves
Profit Reserve – Dividend
Other Reserves
Fair value reserve of financial assets
Hedging reserve
Warrants reserve
Share based payments reserve
Other reserves - OCI
Closing balance
Profit Reserve Account
Balance at the beginning of the period
Transfer from accumulated losses
Dividend paid
Balance at the end of the period
Fair Value Reserve of Financial Assets
Balance at the beginning of the period
Changes in the fair value of equity investments
Balance at the end of the period
Hedging Reserve
Balance at the beginning of the period
Changes in hedging fair value
Balance at the end of the period
Reserve – Warrants
Balance at the beginning of the period
Issue of warrants
Exercise of warrants
Balance at the end of the period
50
31 Dec
202 1
($000)
31 Dec
2020
($000)
24,290
24,783
16
18
2,848
67
(475)
2,474
26,764
24,783
19,384
(19,877)
12
-
3,088
-
-
3,100
27,883
-
24,783
-
24,290
24,783
12
4
16
-
18
18
3,088
-
(240)
2,848
10
2
12
-
-
-
3,088
-
-
3,088
Annual Report 2021
61
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2021
Share Based Payments Reserve
Balance at the beginning of the period
Share based payment
Balance at the end of the period
Other Reserves
Balance at the beginning of the period
Other comprehensive income
Balance at the end of the period
Profit Reserve Account
31 Dec
2021
($000)
31 Dec
2020
($000)
-
67
67
-
(475)
(475)
-
-
-
-
-
-
The profits from the years ended 31 December 2021 and 31 December 2020 were transferred to a profit reserve to be applied
against future dividend payments.
Warrants Reserve
The warrants reserve is used to recognise the fair value of warrants issued
Hedging Reserve
Image uses two types of hedging instruments as part of its foreign currency risk management strategy. These include foreign
currency forward contracts and foreign currency call options. To the extent these hedges ar e effective, the change in fair value
of the hedging instrument is recognised in the cash flow hedge reserve.
Warrants
The Company had the following warrants over un-issued fully paid ordinary shares at
the end of the year:
Exercisable at $0.1365 on or before 20 May 2023
Exercisable at $0.11385 on or before 24 May 2023
Accumulated Losses
Opening balance
Profit for the year
Transfer to profit reserve account
31 Dec
202 1
No.
31 Dec
2020
No.
11,250,000
21,525,000
14,285,714
21,525,000
32,775,000
35,810,714
($000)
($000)
(29,860)
19,384
(19,384)
(29,860)
(29,860)
24,783
(24,783)
(29,860)
a) Summaries of warrants granted
The following table details the number and weighted average exercise prices (WAEP) and movements in warrants issued during
the year.
Outstanding at 1 January
Issued during the year
Exercised during the year
Number
2021
35,810,714
-
WAEP
2021
0.1204
-
(3,035,714)
0.1365
Number
2020
35,810,714
-
-
WAEP
2020
0.1204
-
-
Outstanding at 31 December
32,775,000
0.1216
35,810,714
0.1204
Exercisable at 31 December
32,775,000
0.1216
35,810,714
0.1204
51
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Image Resources NL
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2021
b) Weighted average remaining contractual life
The weighted average remaining contractual life for the warrants outstanding as at 31 December 20 21 is between 1 and 2 years
(31 December 2020: Between 2 and 3 years).
c) Range of exercise price
The range of exercise prices for warrants outstanding at the end of the year was $0.11385 to $0.1365 (31 December 2020:
$0.11385 to $0.1365).
d) Weighted average fair value
The weighted average fair value of warrants granted during the year was Nil (31 December 2020 : Nil).
e) Warrants pricing model
The fair value of the warrants granted during the year ending 31 December 2018 was estimated as at the date of grant using a
Black-Scholes option pricing model taking into account the terms and conditions upon which the warrants were granted.
The following table lists the inputs to the model used for the year ended 31 December 2018.
31 Dec
2018
31 Dec
2018
Tranche A
Tranche B
Dividend yield (%)
Expected volatility (%)
Risk-free interest rate (%)
Expected life of warrants (years)
Warrant exercise prices ($)
Weighted average share price at grant
date ($)
Nil
85%
2.50%
5.02
$0.091
$0.13
Nil
85%
2.47%
4.95
$0.79
$0.12
The minimum life of the Warrants is the length of any vesting period. The maximum life is based on the expiry date. For the
purposes of these warrants the exercise date is estimated as the expiry date. The expected volatility reflects the assumption
that the historical volatility was indicative of future trends, which may also not necessarily be the actual outcome. No othe r
features of warrants granted were incorporated into the measurement of fair value.
Note 18 Tenement Expenditure Commitments
The Group has certain obligations to perform minimum exploration work on the tenements in which it has an interest. These
obligations vary from time to time. The aggregate of the prescribed expenditure conditions applicable to the granted tenemen ts
for the next twelve months amounts to $1,838,620.
Application for exemption from all or some of the prescribed expenditure conditions will be made but no assurance is given that
any such application will be granted. Nevertheless, the Group is optimistic, given its level of expenditure in the North Perth
Basin, that it would likely be granted exemptions , on a project basis, in respect of the prescribed expenditure conditions
applicable to many of its North Perth Basin tenements.
If the prescribed expenditure conditions a re not met with respect to a tenement, that tenement is liable to forfeiture.
The Group has the ability to diminish its exposure under these conditions through the application of a variety of techniques
including applying for exemptions (from the regulato ry expenditure obligations), surrendering tenements, relinquishing portions
of tenements or entering into farm -out agreements whereby third parties bear the burdens of such obligation in whole or in part.
Note 19 Tenement Access
The interests of holders of freehold land encroached by the Tenements are given special recognition by the Mining Act (WA).
As a general proposition, a tenement holder must obtain the consent of the owner of freehold before conducting operations on
such freehold land. Unless it already has secured such rights, there can be no assurance that the Group will secure rights to
access those portions of the Tenements encroaching freehold land.
The Group has finalised negotiations with the Traditional Owners and their representatives in regard to the Native Title claim
affecting part of the Atlas deposit and being the subject of a registered (but undetermined) claim. The agreement is in the
52
Annual Report 2021
63
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2021
process of being signed by all parties. This is the only deposit forming part of the high-grade dry mining targets within the North
Perth Basin (NPB) Project which has, insofar as the Group is aware, any potential to be subject to Native Title. However, heritage
aspects of the remaining areas of the project still have to be taken in to consideration.
Outside of the NPB Project the Group’s other tenements may contain dredge mining targets which could be subject to Native
Title claim.
The Group is not in a position at this time to assess the likely effect of any Native Title claim impacting the Group.
Note 20 Significant Events Subsequent to Reporting Date
Other than the following matter s:
On 18 January 2022, the Group completed the strategic acquisition of a package of mineral sands tenements in the historic
Eneabba mining district for $23m in cash. Further information is provided in the ASX announcement lodged on 19 January
2022.
On 21 January 2022 the Company announced that it had received a notice pursuant to section 249D of the Corporations
Act 2001 (Cth) (Corporations Act) on behalf of Murray Zircon Pty Ltd (MZ), regarding the intention to move resolutions at
a general meeting of the Company for the removal of three directors of the Company and appointment of three new directors
that are associates/directors of MZ, and to requisition a meeting of the Company’s shareholders to consider those
resolutions (Notice). On 25 January, the Company announced that MZ had withdrawn the Notice on the bas is that the
Company formed the view the Notice was invalid as it sought to appoint an executive director. Then on 28 January, the
Company announced it had received a further 249D notice (Further Notice) from MZ proposing the Company’s shareholders
consider resolutions to: (i) remove three directors of the Company, being Mr Robert Besley, Mr Patrick Mutz and Mr
Chaodian Chen; and (ii) appoint Mr Chaohua Huang, Mr Graham Hewson and Ms Ran Xu as directors of the Company. The
notice of general meeting of shareholders (Meeting) was announced on 14 February 2022 w ith the meeting to be held on
24 March 2022.
On 10 February 2022, the Company announced the intention to pay a 2 cent fully franked dividend once the Calendar Year
2021 annual financial results have been finalised.
On 14 March 2022, the Group announced the strategic acquisition of the McCalls Mineral Sands Project for $12m in cash.
Further information is provided in the ASX announcement lodged on 14 March 2022.
There were no other material significant events subsequent to the reporting date.
Note 21 Employee Benefits
Employee Share Plan
Under the terms of the Image Share Plan (“ESP”), as approved by shareholders, Image may, in its absolute discretion, make an
offer of ordinary fully paid shares in Image to any Eligible Employee, to be funded by a limited recourse interest free loan granted
by the Company.
The issue price is determined by the Directors and is not to be less than the volume weighted average price of shares in the 5
trading days prior to the Issue Date. Eligible Employees use the abovementioned loan to acquire the plan shares. The loan
amount per share may in certain circumstances be more than the issue price where shareholder approval is required for the
issue and the share price is more than the issue price. The shares may be sold 12 months after their issue date generally only
if the employee is currently employed.
The following table illustrates the number , weighted average share loan prices (WASLP) and weighted average share issue price
(WASIP), and movements in plan shares during the year.
Outstanding at 1 January
Granted during the year
Sold during the year
Cancelled during the year
Number
2021
WASIP
2021
24,013,898
16,353,949
(4,317,076)
(2,449,772)
0.205
0.162
0.119
0.208
WASLP
2021
0.205
0.162
0.162
Number
2020
12,854,104
12,875,014
-
0.208
(1,715,220)
Outstanding at 31 December
33,600,999
0.188
0.188
24,013,898
WASIP
2020
0.230
0.195
-
0.260
0.205
Exercisable at 31 December
17,247,050
0.213
0.213
11,138,884
0.225
WASLP
2020
0.224
0.195
-
0.260
0.205
0.217
53
64
Image Resources NL
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2021
Non-Executive Directors Option Plan
The Shareholders of the Company approved the issue of 10,000,000 options to Non -Executive Directors of the Company at the
Annual General Meeting of the Company on 27 May 2021.
(a) General terms of Option Plan
There is no consideration paid for the issue of the Options.
There is no vesting period required for the exercise of the options to shares .
Unexercised options will lapse prior to the expiry date if a Directors ceases to be an officer or employee of the Company.
(b) Recognise share-based payment expense
The share-based payment expense for the year ended 31 December 2021 in relation the non -executive director option plan
charged to profit and loss was $67,000. (31 December 2020: Nil) .
(c) Summary of options granted
Outstanding at 1 January
Issued during the year
Exercised during the year
Outstanding at 31 December
Exercisable at 31 December
Number
2021
-
10,000,000
-
10,000,000
10,000,000
WAEP
2021
Number
2020
WAEP
2020
-
0.32
-
0.32
0.32
-
-
-
-
-
-
-
-
-
-
(d) Weighted average remaining contractual life
The weighted average remaining contractual life for the share options outstanding as at 31 December 2021 is between one and
two years. (31 December 2020: N/A).
(e) Range of exercise price
The range of exercise price for options outstanding at the end of the year was $0. 32 (2020: N/A).
(f) Weighted average fair value
Weighted average fair value of options granted during the year was $0.006728 (2020: N/A).
(g) Option pricing model
The fair value of the equity-settled share options granted under the option plan is estimated as at the date of grant using a Black -
Scholes model taking into account the terms and conditions upon which the options were granted.
The following table lists the inputs to the model used for the year ended 31 December 2 021:
Dividend yield (%)
Expected volatility (%)
Risk-free interest rate (%)
Expected life of options (years)
Option exercise price
Weighted average share price at grant date ($)
2021
12.12%
50.33%
0.015%
2 years
$0.3200
$0.1689
54
Annual Report 2021
65
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 22 RELATED PARTY AND RELATED ENTITY TRANSACTIONS
Key Management Personnel Compensation
Short- term employee benefits
Post-employment benefits
Equity-settled share-based payments
31 Dec
202 1
($000)
2,143
114
67
2,324
31 Dec
2020
($000)
1,965
111
-
2,076
Short-term employee benefits
These amounts include fees and benefits paid to non -executive Chair and non-executive directors as well as all salary and paid
leave benefits awarded to executive directors and other KMP.
Post-employment benefits
These amounts are the costs of superannuation contributions payable for the period.
Equity-settled share-based payments
This amount is calculated as the fair value of the options and represents the value of the services received during the perio d
the options are held over the financial period. This v alue was calculated using the Black -Scholes option pricing model. Further
information on the share-based payment transaction is disclosed in Note 21.
Further key management personnel remuneration information has been included in the Remuneration Report sec tion of the
Directors Report.
Transactions with other related parties
Transactions between related parties are on commercial terms and conditions, no more favourable than those available to other
parties unless otherwise stated. Transactions with directors, director -related parties and related entities other than those
disclosed elsewhere in this financial report are as follows:
Year to
31 Dec
202 1
($000)
Year to
31 Dec
2020
($000)
Revenue
Concentrate Sales - Orient Zirconic Resources (Australia) Pty Ltd
45,487
53,105
Expenses
Magnetic Resources NL, a George Sakalidis related party, purchase of stationary
Magnetic Resources NL, a George Sakalidis related party, vehicle hire
Murray Zircon Pty Ltd – Additional equipment – poly pipe
Spouse of Patrick Mutz – The Group purchases travel expenses from a national travel
agency of which his spouse is an agent and receives a commission. The amount
disclosed is an estimate of the fees and commissions which is shared between the
agency and the spouse of Patrick Mutz
(1)
(2)
-
(1)
-
(10)
(1)
45,483
(2)
53,092
Total amounts owing to directors and/or director -related parties and related entities at 31 December 2021 were Nil (31 December
2020: $Nil ). All transactions were incurred on normal commercial terms and were arm’s length transactions.
Orient Zirconic Resources (Australia) Pty Ltd is a related party due to its 5.11% interest in the shares of the Company and
Director Chaodian Chen being a director of its owner Guangdong Orient Zirconic In Sci & Tech Co., Lt d. Murray Zircon Pty Ltd
is a related party due to it holding a 20.11% interest in the shares of the Company.
NOTE 23 CONTINGENT LIABILITIES
At 31 December 2021 the Group had a contingent liability in respect of the strategic acquisition of a package of mineral sand s
tenements in the historic Eneabba mining district for $23m in cash. At period end date there were conditions precedent that
needed to be complied with prior to the settlement of the transaction. Further information on the transaction is provided in the
ASX announcement lodged on 19 January 2022.
Other than those matters disclosed in Notes 1 8 and 19, there are no contingent liabiliti es or commitments.
55
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Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 24 FINANCIAL RISK MANAGEMENT
a)
Financial Risk Management Policies
The Group’s financial instruments consist of deposits with banks, receivables, available -for-sale financial assets, payables and
borrowings.
Risk management policies are approved and reviewed by the board. The use of hedging derivative instruments is not
contemplated at this stage of the Group’s development.
Specific Financial Risk Exposure and Management
The main risks the Group is exposed to through its financial instruments, are commodity price, interest rate and liquidity risks.
Interest Rate Risk
Exposure to interest rate risk arises on financial assets and financial liabilities recognised at reporting date whereby a fu ture
change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments.
Liquidity Risk
The Group manages liquidity risk by monitoring forecast cash flows, cash reserves, liquid investments, receivables, financial
liabilities and commitments.
Capital Risk
Management controls the capital of the Group in order to maintain the appropriate working capital position to ensure that the
Group can fund its operation, continue as a going concern and continue to provide returns for shareholders and benefits for
other stakeholders. Capital is managed by assessing the Group’s financial risks and adjusting its capital structure in response
to changes in these risks and in the market.
The working capital position of the Group at 31 December 202 1 and 31 December 2020 was as follows:
Cash and cash equivalents
Restricted cash
Trade and other receivables
Inventory
Trade and other payables and provisions
Borrowings
Income Tax Payable
Working capital position
Credit Risk
31 Dec
202 1
($000)
79,700
140
4,908
21,739
(20,564)
(148)
(11,093)
74,682
31 Dec
2020
($000)
50,706
55
12,191
20,441
(19,610)
(17,199)
-
46,584
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group.
Credit risk arises from cash and deposits with financial institutions as well as credit exposures to outstanding receiv ables.
The Group is not exposed to credit risk through sales of mineral sands product due to a letter of credit being in place prior to a
mineral sands shipment leaving port. The maximum exposure to credit risk, excluding the value of any collateral or oth er security,
at balance date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as
disclosed in the Statement of Financial Position and notes to the financial statements.
The Group has lodged cash deposits (designated as restricted cash above) totalling $139,645 (2020: $54,667) with the bank as
collateral security for office lease property managers for rental guarantees and also security for company credit cards .
The following table provides inform ation regarding the credit risk relating to cash and cash equivalents , term deposits and
restricted cash based on Standard & Poors credit ratings:
AA- rated
56
31 Dec
202 1
($000)
79,980
31 Dec
2020
($000)
50,816
Annual Report 2021
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Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2021
Financial Instrument composition and maturity analysis
The table below reflects the undiscounted contractual settlement terms for financial instruments .
Weighted
Average
Effective
Interest
Rate %
Fixed
Interest
Rate
($000)
Floating
Interest
Rate
($000)
Non-
Interest
Bearing
($000)
31 December 2021
Financial Assets:
Cash and cash equivalents
Restricted cash
Trade and other receivables
Derivatives
Equity investments at fair value
Total Financial Assets
%
Financial Liabilities:
Trade and other payables and provisions
Borrowings
Total Financial Liabilities
Net Financial Assets
31 December 2020
Financial Assets:
Cash and cash equivalents
Restricted cash
Trade and other receivables
Equity investments at fair value
Total Financial Assets
0.003%
Financial Liabilities:
Trade and other payables and provisions
Borrowings
Total Financial Liabilities
13%
(320)
79,980
(16,549)
63,111
Total
($000)
79,825
155
2,960
18
33
79,825
155
-
-
-
-
-
2,960
18
33
79,980
3,011
82,991
-
-
-
19,560
19,560
320
19,560
19,880
Floating
Interest
Rate
($000)
50,761
55
-
-
Non-
Interest
Bearing
($000)
-
-
Total
($000)
50,761
55
12,191
12,191
28
28
50,816
12,219
63,035
-
-
-
19,610
-
19,610
19,610
17,199
36,809
-
-
-
-
-
-
-
320
320
-
-
-
-
-
-
17,199
17,199
Weighted
Average
Effective
Interest
Rate %
Fixed
Interest
Rate
($000)
Net Financial Assets
(17,199)
50,816
(7,391)
26,226
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Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2021
The table below summarises the maturity profile of the Group’s’ financial liabilities according to their contractual maturities. The
amounts disclosed are based on contractual undiscounted cash flows. As a result, these balances may not agree with the
amounts disclosed in the statement of financial position:
31 December 2021
Trade and other payables and provisions
Borrowings
31 December 2020
Trade and other payables and provisions
Borrowings
Less than
3 months
($000)
3 to 12
Months
($000)
1 to 5
years
($000)
19,560
3
19,563
19,610
8,552
28,162
-
17
17
-
8,552
8,552
-
300
300
-
-
-
Total
($000)
19,560
320
19,880
19,610
17,104
36,714
Please refer to Note 15 for further details of the Senior Secured Debt Facility .
b)
Financial Instruments Measured at Fair Value
The financial instruments recognised at fair value in the statement of financial position have been analysed and classified u sing
a fair value hierarchy reflecting the significance of the inputs used in making the measurements. The fair value hierarchy consists
of the following levels:
• Quoted prices in active markets for identical assets or liabilities (Level 1);
•
Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as
prices) or indirectly (derived from prices) (Level 2); and
•
Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Leve l 3).
Level 1
($000)
Level 2
($000)
Level 3
($000)
Total
($000)
31 December 2021
Financial Assets:
Financial assets at fair value through profit or loss:
Equity investments at fair value :
-
Listed investments
Derivatives at fair value
31 December 2020
Financial Assets:
Financial assets at fair value through profit or loss:
Equity investments at fair value :
-
Listed investments
32
-
32
28
28
-
18
18
-
-
-
-
-
-
-
32
18
50
28
28
58
Annual Report 2021
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Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2021
Sensitivity Analysis – Interest rate risk
The Group has performed a sensitivity analysis relating to its exposure to interest rate risk at balance date. The sensitivity
analysis demonstrates the effect on the financial period results and equity which could result from a change in this risk.
As at balance date, the effect on loss and equity as a result of changes in the interest rate on financial assets, with all other
variables remaining constant would be as follows:
Change in loss – increase/(decrease):
-
-
Decrease in interest rate by 2%
Increase in interest rate by 2%
Change in equity – increase/(decrease):
Increase in interest rate by 2%
-
Decrease in interest rate by 2%
-
NOTE 25 HEDGING
Current assets / (liabilities)
Foreign exchange forwards
Foreign exchange options
Year to
31 Dec
202 1
($000)
(1,600)
1,600
1,600
(1,600)
31 Dec
2021
($000)
101
(83)
18
Year to
31 Dec
2020
($000)
(1,015)
1,015
1,015
(1,015)
31 Dec
2020
($000)
-
-
-
The Group is exposed to risk from movements in foreign exchange in relation to its forecast US dollar denominated sales and
as part of the risk management strategy has entered into foreign exchange forward contracts and has purchased Australian
dollar call options.
(a) Recognition
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re -
measured to their fair value at the end of the reporting period. The acco unting for subsequent changes in fair value depends on
whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged relationship
designated.
(b) Fair value of derivatives
Derivative financial instruments are the only assets and liabilities measured and recognised at fair value at 31 December 2021
(31 December 2020:” Nil) comprising the above hedging instruments. The fair value of hedging instruments is determined using
valuation techniques with inputs that are obs ervable market data (a level 2 measurement). The valuation of the call options is
determined using forward foreign exchange rates at the balance date. The only unobservable input used in the calculation is t he
credit default rate, movements in which would not have a material effect on the valuation.
(c) Hedge accounting
At the start of a hedge relationship, the Group formally designates and documents the hedge relationship, including the risk
management strategy for undertaking the hedge. This includes identification of the hedging instrument; the hedged item or
transaction and the nature of the risk being hedged. Hedge accounting is only applied where effective tests are met.
(d) Cash flow hedges
For cash flow hedges, the portion of the gain or loss on the hedging instrument that is effective is recognised directly in equity ,
while the ineffective portion is recognised in profit or loss. The ineffective portion was immaterial in the current and prio r periods.
Foreign exchange call options in relation to expected USD revenue, predominantly from contracted sales to 31 December 2022,
remain open at the reporting date. The foreign exchange call option hedges cover US47 million of expected USD revenue to 31
December 2022 at an average strike price of 79.0 cents.
Amounts recognised in equity are transferred to the income statement when the hedging instruments matures.
If the forecast transaction is no longer expected to occur, amounts previously recognised in equity are transferred to the income
statement. If the hedging instrument expires or is sold, terminated or exercised without replacement or roll over, or if its
designation as a hedge is revoked amounts previously recognised in equity remain in equity until the forecast transaction occurs.
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Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2021
NOTE 26 CONTROLLED ENTITIES
The consolidated financial statements incorporate the following subsidiaries:
Controlled Entities
Image Resources NL (Parent Company)
Craton Resources Pty Ltd
Titan Resources Pty Ltd
Country of
Incorporation
Australia
Australia
Australia
2021
2020
100%
100%
100%
100%
The Companies did not operate during the financial year. At 31 December 2021 no Deed of Cross Guarantee had been entered
into.
60
Annual Report 2021
71
DDiirreeccttoorrss’’ DDeeccllaarraattiioonn
Directors’ Declaration
The directors of the Company declare that:
1.
the accompanying financial statements and notes are in accordance with the Corporations Act 2001 and :
(a)
(b)
(c)
comply with Accounting Standards and the Corporations Act 2001;
give a true and fair view of the financial position as at 31 December 20 21 and performance for the year ended
on that date of the Group; and
the audited remuneration disclosures set out in the Remuneration Report section of the Directors’ Report for
the year ended 31 December 2021 complies with section 300A of the Corporations Act 2001;
2.
the Chief Financial Officer has declared pursuant to section 295A(2) of the Corp orations Act 2001 that:
(a)
the financial records of the Group for the financial year have been properly maintained in accordance with
section 286 of the Corporations Act 2001;
(b)
the financial statements and the notes for the financial year comply with Accounting Standards; and
(c)
the financial statements and notes for the financial year give a true and fair view;
3.
4.
in the directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as
and when they become due and payable;
the directors have included in the notes to the financial statements an explicit and unreserved statement of
compliance with International Financial Reporting Standards.
This declaration is made in accordance with a resolution of the Board of Directors.
ROBERT BESLEY
CHAIRMAN
PERTH
Dated this 17 March 202 2
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IInnddeeppeennddeenntt AAuuddiittoorr’’ss RReeppoorrtt
Independent Auditor’s Report
Independent Audit Report to the members of Image Resources NL
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Image Resources NL (“the Company”) and its subsidiaries (“the Group”), which
comprises the consolidated statement of financial position as at 31 December 2021, the consolidated statement of profit
or loss and other comprehensive income, the consolidated statement of changes in equity, the consolidated statement of
cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting
policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Group's financial position as at 31 December 2021 and of its financial performance
for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
further described as in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and
the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for
Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial report of the current year. These matters were addressed in the context of our audit of the financial report as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined
the matters described below to be key audit matters to be communicated in our report.
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IInnddeeppeennddeenntt AAuuddiittoorr’’ss RReeppoorrtt
Independent Auditor’s Report (cont.)
Provision for Rehabilitation
Refer to Note 14, Provisions and accounting policy Notes 1o and 1t
Key Audit Matter
How our audit addressed the key audit matter
As at 31 December 2021, the Group has a
liability of $36 million relating to the estimated
cost of rehabilitation, decommissioning and
restoration relating to areas disturbed during
operation
in Boonanarring but not yet
rehabilitated.
The provision is based upon current cost
estimates and has been determined on a
discounted basis with reference to current
legal requirements and technology. At each
reporting date the rehabilitation liability is
reviewed and
line with
re-measured
changes in observable assumptions, timing
and the latest estimates of the costs to be
incurred based on area of disturbance at
reporting date.
in
This area is a key audit matter as the
determination of
liability
involves a level of complex calculations and
significant management judgement.
restoration
the
Our audit work included, but was not restricted to, the
following:
• Obtaining an Independent expert valuation report and
external underlying documentation for their determination
of future required activities, their timing and assoc iated
cost estimations. We also determined the nature and
quantum of costs contained in the provision estimate.
• Testing
the accuracy of historical
rehabilitation
expenditure.
provisions
by
comparing
restoration and
actual
to
• Assessing the planned timing of environmental restoration
and demobilisation provisions through comparison to mine
plans and reserves.
• Assessing the competence, scope and objectivity of the
Group’s external experts used in determination of the
provisions estimate.
• Analysed inflation rate and discount assumptions in the
provision calculation with current market data and
economic forecasts.
• Evaluating the completeness of the provisions estimate to
the Group’s analysis of each operating location to identify
where disturbance requires rehabilitation or demobilisation
and our understanding of the Group’s operations.
Revenue Recognition
Refer to Note 3, Operating sale revenue and accounting policy Notes 1a
Key Audit Matter
How our audit addressed the key audit matter
The entity has reported revenue of $179
million from sales of minerals.
Our audit work included, but was not restricted to, the
following:
The application of
recognition
accounting standards is complex and involves
a number of key judgements and estimates.
revenue
There is also a risk around the timing of
revenue recognition, particularly focused on
the contractual terms of delivery and location
of the customers.
• considering the appropriateness of the revenue recognition
accounting policies.
• understanding the significant revenue processes including
performance of an end to end walkthrough of the revenue
assurance process and identifying the relevant cont rols.
• performing cut off procedures
Based on these factors, we have identified
revenue recognition as a key risk for our audit
• assessing the transfer of control to the customer by
reviewing contracts and shipping documentation.
• verifying a sample of
transactions with supporting
documents
• ensuring adequate disclosure in the financial statements
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Independent Auditor’s Report (cont.)
Other Information
The directors are responsible for the other information. The other information obtained at the date of this auditor's report is
included in the annual report but does not include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the
audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information obtained prior to the date of this auditor's report, we
conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing
to report in this regard.
Responsibilities of Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the
directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free
from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian
Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of the financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal
control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether
the financial report represents the underlying transactions and events in a manner that achieves fair presentation.
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IInnddeeppeennddeenntt AAuuddiittoorr’’ss RReeppoorrtt
Independent Auditor’s Report (cont.)
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear
on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance in the audit
of the financial report of the current year and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 34 to 40 of the directors’ report for the year ended 31
December 2021.
In our opinion, the Remuneration Report of Image Resources NL for the year ended 31 December 2021 complies with
section 300A of the Corporations Act 2001.
Responsibilities
The directors of Company are responsible for the preparation and presentation of the Remuneration Report in accordance
with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report,
based on our audit in accordance with Australian Auditing Standards.
Elderton Audit Pty Ltd
Nicholas Hollens
Managing Director
17 March 2022
Perth
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Image Resources NL
AASSXX AAddddiittiioonnaall IInnffoorrmmaattiioonn
ASX Additional Information
Image Resources NL (ASX: IMA) provides the following information as required by the ASX Listing Rules. The information is current
as at 10 March 2022.
Distribution of Equity Securities
1
1,000
5,000
10,001
100,001
-
-
-
-
-
1,000
5,000
10,000
100,000
And over
The number of shareholders holding less than a
marketable parcel of shares are:
Twenty Largest Shareholders:
The names of the twenty largest holders of quoted ordinary shares are:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
MURRAY ZIRCON PTY LTD
VESTPRO INTERNATIONAL LIMITED
ORIENT ZIRCONIC RESOURCES (AUSTRALIA) PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CITICORP NOMINEES PTY LIMITED
BRAZIL FARMING PTY LTD
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
PERFECT WELL INDUSTRIAL LIMITED
BRAZIL FARMING PTY LTD
AVA CARTEL SDN BHD
BNP PARIBAS NOMINEES PTY LTD
LUMIOUS PARTNERING PTY LTD
BNP PARIBAS NOMS PTY LTD
MISS CHOY FUAN KU
TQ INTERNATIONAL
PONTIAN ORICO PLANTATIONS SDN BHD
MRS SHUMEI CHEN
SPARTA AG
MR LIM PANG SOO
RIBTON SUPERANNUATION FUND PTY LTD
Number of Holders
Number of Shares
281
560
400
1,043
433
2,717
362
127,727
1,725,478
3,146,477
40,073,301
965,862,694
1,010,935,677
233,193
Number of Shares
Percentage of ordinary
shares
151,902,001
137,936,921
80,507,536
78,529,010
36,663,776
29,700,000
22,574,465
22,420,082
21,597,109
18,000,000
15,696,664
15,071,895
14,927,240
14,800,000
12,000,000
11,539,728
11,092,500
11,000,000
10,760,103
10,100,000
726,819,030
15.03%
13.64%
7.96%
7.77%
3.63%
2.94%
2.23%
2.22%
2.14%
1.78%
1.55%
1.49%
1.48%
1.46%
1.19%
1.14%
1.10%
1.09%
1.06%
1.00%
71.90%
66
Annual Report 2021
77
AASSXX AAddddiittiioonnaall IInnffoorrmmaattiioonn ((CCoonntt..))
ASX Additional Information (cont.)
Substantial shareholders:
The names of substantial shareholders who have notified the Company in accordance with section 617B of the
Corporations Act 2001 are:
Murray Zircon Pty Ltd together with Orient Zirconic Resources (Australia) Pty Ltd, Guangdong
Orient Zirconic Ind. Sci. Tech. Co. Ltd. and XQ (HK) Enterprises Limited
Huangcheng Li and Vestpro International Limited
Paradice Investment Management Pty Ltd
Number of Ordinary Shares
232,409,537
151,515,494
64,183,760
Voting Rights
The voting rights attaching to ordinary shares are governed by the Constitution. On a show of hands every person presents who is a
Member or representative of a member shall have one vote, and on a poll, every member present in person or by proxy or by attorney
or duly authorised representative shall have one vote for each fully paid ordinary share held. None of the options have any voting
rights.
Unquoted Securities
Class
Warrants exercisable at $0.1365 expiring
20/05/2023
Number of
Securities
11,250,000
Number of
Holders
2
Holders of 20% or more of the class
Holder Name
Number of
Securities
Jett Capital Advisors LLC
9,000,000
Warrants exercisable at $0.11385 expiring
24/05/2023
Options exercisable at $0.32 expiring 27 May
2023
21,525,000
10,000,000
1
5
Liquidity Finance LP
UBS Nominees Pty Ltd
R E & J M Besley
Chong Veoy Soo
Chaodian Chen
Vestpro International Ltd
Northern Griffin Pty Ltd
2,250,000
21,525,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
67
78
Image Resources NL
AASSXX AAddddiittiioonnaall IInnffoorrmmaattiioonn ((CCoonntt..))
ASX Additional Information (cont.)
Schedule of Tenements
Areas of Interest
Tenements
Western Australia
Economic
Entity’ Interest
- Atlas Project
E70/2636, E70/2898, E70/3997, E70/4244, E70/4656, E70/4663,
100%
E70/5034, E70/5268, E70/5552, M70/1305, R70/051, R70/062
- Boonanarring Project
E70/3032, E70/3041, E70/3100, E70/3192, E70/3720, E70/4077,
100%
E70/4689, E70/4946, E70/4949, E70/5213, E70/5306, E70/5646,
M70/1192, M70/1194, M70/1311, M70/448, G70/0250
- Bidaminna Project
E70/2844, E70/4779, E70/4794, E70/4919, E70/5763, E70/5776,
100%
E70/5777
E70/3298
- Erayinia Project
E28/1895, E28/2742
P28/1320, P28/1321
- Chapman Hill Project
E70/3892, E70/5193
- Yandanooka Project
E70/3762, E70/3813
90%
100%
100%,
2%
net
smelter
royalty
payable to former
owners
100%
100%
- Eneabba Project
E70/3814, E70/4190, E70/4292, E70/4719, E7/4747, M70/0872,
100%
M70/0965, M70/1153, R70/0035
E = Exploration Licence, M = Mining Lease, P = Prospecting Licence, R = Retention Licence, G = General Purpose Licence
68
Annual Report 2021
79
www.imageres.com.au
80
Image Resources NL
CORPORATE DIRECTORY
Directors
Mr Robert Besley
Mr Patrick Mutz
Mr Chaodian Chen
Mr Huancheng Li
Non-Executive Chairman
Managing Director
Non-Executive Director
Non-Executive Director
Mr Aaron Chong Veoy Soo
Non-Executive Director
Mr Peter Thomas
Non-Executive Director
Company Secretary
Mr Dennis Wilkins (DW Corporate)
Principal Place of Business & Registered Office
Level 2
7 Ventnor Avenue
West Perth WA 6005
Contact Details
+61 8 9485 2410
T:
E:
info@imageres.com.au
W: www.imageres.com.au
Australian Business Number
Auditors
ABN: 57 063 977 579
Share Registry
Automic Pty Ltd
Level 5
126 Phillip Street,
Sydney NSW 2000
+61 (0) 2 9698 5414 (International)
1300 288 664 (within Australia)
T:
T:
E:
hello@automic.com.au
W: www.automicgroup.com.au
Elderton Audit Pty Ltd
Level 2
267 St Georges Terrace
Perth WA 6000
T:
+61 8 6324 2900
Stock Exchange
Australian Securities Exchange (ASX)
ASX Code - IMA (Fully paid shares)
Issued Capital
1,010,935,677 fully paid ordinary shares
www.imageres.com.au
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