More annual reports from Image Resources:
2023 ReportANNUAL
REPORT
2022
FOCUSED ON
GROWTH &
SUSTAINABILITY
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.
2022
HIGHLIGHTS
CY2022 Revenue
A$172M
Project EBITDA
A$69M
HMC tonnes sold
Net profit after tax
187,000T
A$15M
Environment/Community
Growth Projects
ATLAS
BIDAMINNA
YANDANOOKA
MCCALLS
50%
local workforce
Renewable Energy
25%
of power requirements
through solar energy
FOCUSED ON
GROWTH &
SUSTAINABILITY
CONTENTS
Our Approach
Projects with Growth Potential
Mineral Sands Products
Chairman’s Report
Managing Director’s Report
Review of Operations
Environmental, Social & Governance (ESG)
Mineral Resources and Ore Reserves Statement
Financial Report
Directors’ Report
Remuneration Report
ASX Additional Information
Corporate Directory
2
4
6
8
10
14
24
PROJECTS WITH
GROWTH POTENTIAL
MINERAL SANDS PRODUCTS
4
28
36
37
42
84
89
6
REVIEW OF OPERATIONS
ENVIRONMENTAL, SOCIAL &
GOVERNANCE (ESG)
14
24
MINERAL RESOURCES
AND ORE RESERVES
STATEMENT
FINANCIAL REPORT
28
ABN 57 063 977 579
36
Image Resources NL | Annual Report 2022 1
OUR
APPROACH
To successfully and responsibly advance our projects,
in a sustainable manner, for the benefit of our key
stakeholders including shareholders, employees and
the communities in which we operate.
Image Resources has demonstrated its credentials to
successfully develop mineral sands projects in a sustainable
and responsible manner for the benefit of all stakeholders.
The Boonanarring project was developed on time and on
budget; delivering profits of over $80 million over the first four
years of operations. Strong cashflows enabled the company to
pay significant dividends in 2021 and 2022.
The Company encourages a positive, inclusive and safe
work culture. As well as receiving competitive remuneration,
all employees are entitled to participate in annual bonus
programmes and the employee share plan.
The use of solar power at Boonanarring provides Image 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,
thereby significantly reducing carbon emissions.
The Company is also assisting local landowners in their efforts
to establish carbon sequestration field trials in conjunction with
Murdoch University. In calendar year 2022 Image engaged
with Sunrise Energy Consortium to seek support to establish a
hydrogen production facility at Boonanarring.
FOCUSED ON
SUSTAINABILITY
SOCIAL LICENSE AND COMMUNITY
Integrated into the local community
with an environmentally friendly ethos.
2.
REHABILITATION
Once mining is complete,
overburden is returned (as
required), topsoil is replaced
and the land is re-seeded.
4.
TRUCKING
HMC trucked to Bunbury port.
1.
MINING
Classic dry, open-cut mining
utilising standard truck and
shovel fleet.
3.
PROCESSING
3.7Mtpa conventional wet
concentrate plant producing
a high-quality HMC.
SOLAR FARM
25% of power requirements
for Boonanarring supplied as
renewable solar energy.
5.
SHIPPING
Bulk shipments to China out of
Bunbury WA under life-of-mine
offtake contracts based on
market prices.
OUR PROCESS
Your company has taken the bold step of successfully demonstrating
concurrent mining and mine rehabilitation of an initial 13 hectare
area and in 2022 another 9 hectare area of the Boonanarring mine,
including re-establishment of the vegetation.
6.
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.
2 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 3
WESTERN
AUSTRALIA
Yandanooka
Atlas
Bidaminna
McCalls
Boonanarring
North Perth Basin
Perth
PROJECTS WITH
GROWTH POTENTIAL
The Company’s growth strategy reiterates the original plan outlined
in the 2017 Bankable Feasibility Study (“BFS”) of completing mining
at Boonanarring and then relocating to Atlas, and the potential
development of a standalone dredge mining operation at Bidaminna,
but has now been expanded to include studies aimed at demonstrating
the viability of the following:
• Development of an initial dry mining and processing operation at
100%-owned Yandanooka project (or alternatively Durack and later
others) in the Eneabba Tenements area, with potential for 10+ year
mine-life;
• Development of hydraulic mining and processing operations at
100%-owned McCalls project with potential 50+ year mine-life;
• Construction of a Mineral Separation Plant (“MSP”) to capture the
value-adding advantages of separating HMC into final products
(including by-products such as monazite) and expanding the
Company’s market reach geographically, as well as capitalising
on the opportunity for effective post-mining use of the land and
installed infrastructure at Boonanarring; and,
•
Potential for the construction of a Synthetic Rutile (“SR”)
production facility in the vicinity of the MSP, for the value-adding
and market-expanding upgrading of ilmenite from Bidaminna and
McCalls to ‘green’ SR by using hydrogen as the iron reductant.
This strategy (“Chapter 2”) is designed to see Image transition from
a one-operation, one-product company, to multiple-operations with
multiple products and an expanded customer base globally. Chapter 2
is only possible due to the strategic acquisitions completed in CY2022,
which now provides Image the opportunity to expand its position in the
mineral sands industry, to the benefit of all stakeholders.
ATLAS
The Company’s next dry mining
project development once
Boonanarring production is
complete.
BIDAMINNA
YANDANOOKA
MCCALLS
A potential stand-alone dredge
mining production centre.
Potential to be developed in
parallel with Atlas as another dry
mining operation.
A large resource with multi-
decade potential.
Reserve
Resource
Resource
Resource
5.5 Million Tonnes at 9.2% HM.
109 Million Tonnes at 2.7% HM.
61 Million Tonnes at 3.0% HM.
5.8 Billion Tonnes at 1.4% HM.
11.9% Zircon, 7.9% Rutile,
4.9% Leucoxene, 53% Ilmenite,
1.1% Monazite.
Location
160km north of Perth.
4.9% Zircon, 4.0% Rutile,
12% Leucoxene, 72% Ilmenite,
0.33% Monazite.
12.1% Zircon, 3.5% Rutile,
3.6% Leucoxene, 70% Ilmenite.
4.7% Zircon, 2.4% Rutile,
3.0% Leucoxene, 79% Ilmenite.
Location
Location
Location
100km north of Perth in the North
Perth Basin.
275km north of Perth in the Eneabba
mineral sands mining district.
20km north east of Boonanarring.
Expected Mine Life
Expected Mine Life
Expected Mine Life
Expected Mine Life
3 years with potential to extend.
Potential for at least 10 years mine life.
Potential for 10+ years mine life (with
other resources at Eneabba potentially
contributing to mine life extensions).
Potential for 50+ year mine life
operation.
About the project
Currently in the final stages of the
approval process.
Mining scheduled to commence 2H
CY2023 followed by processing late
CY2023.
About the project
About the project
About the project
Long mine life project containing high
quality TiO2 that could support the
introduction of a mineral separation
plant with the TiO2 being suitable for
Synthetic Rutile feed. Currently in
feasibility.
Currently under review with the
potential to be developed in parallel
with Atlas as another dry mining
operation. Location on cleared
agricultural land (in the Eneabba
Tenements area) and the location is
expected to simplify the development
and approval process.
A very large resource close to existing
Image infrastructure with multi-decade
potential, currently at scoping study
stage.
4 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 5
TiO2
TITANIUM DIOXIDE
ZrO2
ZIRCON
PAINTS & COATINGS
Paint coatings |
Plastic and ceramics |
Pigments in paints
COSMETICS
Brightening skin |
Hiding blemishes
NANOMATERIAL
Sunscreen |
Self-cleaning windows |
Solar Cells
PLASTICS AND PAPER
Wide range of everyday
products.
FOUNDRY CASTINGS
Sand casting | Investment
casting | Mold coating
REFRACTORIES
Linings for glass | Metal
furnaces | Fibres | Nozzles |
Slide gates | Valves
OTHER
Zirconia | Catalysts |
Medical equipment |
Sporting equipment
CERAMICS
Floor and wall tiles |
Sanitary ware |
Cookware
MINERAL SANDS PRODUCTS
ENRICHING DAILY LIVING
6 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 7
CHAIRMAN'S
REPORT
Image achieved its market guidance on HMC sales and
project operating costs for the year and capitalised on
continuing higher commodity prices and favourable
AUD:USD foreign exchange rates to end the year with a
strong cash balance and debt-free position, even after
paying a second annual dividend of two cents (fully
franked) and completing two strategic acquisitions
(valued at A$36 million) from cash reserves.
Dear Shareholders,
On behalf of your Board of Directors,
I am pleased to report your Company
has completed another successful and
profitable year of operation, bolstered by
continuing strong commodity prices and
despite significant new challenges of a tight
labour market and significant inflationary
pressures on top of continuing impacts from
COVID-19.
I am delighted to report Image completed
its fourth full year (CY2022) of mining
operations and heavy mineral concentrate
production (HMC), with very positive
economic results, albeit slightly lower than
achieved in CY2021.
CY2022 ended with a strong, debt-free
cash position of A$53m in the bank, even
after paying a second annual dividend of
2 cents per share (fully franked) in April
2022 for a total of A$20 million (less
dividend reinvestment of A$6.8m), and
cash payments totalling $36m for two
strategic acquisitions which added some six
billion tonnes of Mineral Resources to the
Company’s mineral sands portfolio.
Your Company Directors are 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,
reported only a single lost-time injury for
CY2022.
KEY HIGHLIGHTS
Total Revenue
$172M
A
A$179M CY21
Project EBITDA
$69M
A
A$75M CY21
Net Profit after Tax
$15M
A
A$19M CY21
Your Company continues to focus
on being proactive in protecting the
environment, actively engaging and
supporting local communities and
stakeholders and striving to improve
corporate governance. In CY2022,
we took steps to adopt a formal
environmental, social and governance
(ESG) reporting framework, which
will be used to highlight our informal
approach to ESG which started five
years ago. Our focus on ESG began
with the decision in 2018 to utilise
solar energy to offset greenhouse
gas emissions from operations, and
this continued with operations in
CY2019 and through CY2022. An
inaugural ESG sustainability report is
scheduled to be published in CY2023
which will incorporate ESG metrics
captured annually for CY2019 through
CY2022 to show actual trends and
the effectiveness of our informal ESG
efforts.
CY2022 included some special
challenges, including actions requiring
the Company to defend itself against
a 249-D action filed by our biggest
shareholder. The action was designed
to remove three directors from the
then-current board and replace them
with 3 new directors aligned with the
largest shareholder. Thanks to the
very strong support of shareholders,
the 249-D actions were defeated and
no changes to the Board occurred
as a result of the proposed action.
Subsequently, in an effort to realign the
interests of our biggest shareholder
with the Company’s interests for
the longer term, a director seat was
added to the Board for a director
to be nominated by the largest
shareholder. In addition, our second
largest shareholder opted to change its
nominated director.
During the year, your Company also
adopted a new longer-term growth
and sustainability strategy, which
was made possible by the strategic
acquisitions of the Eneabba Tenements
and McCalls project early in CY2022.
These new projects provide a large
base of over 6 billion tonnes of Mineral
Resources to potentially build several
longer-term production centres as
well as provide the justification for
considering a mineral separation plant.
In addition, ilmenite from our Bidaminna
and McCalls projects is anticipated
to meet the specifications of high-
quality feedstock for the production of
synthetic rutile.
On behalf of your Board, I want
to thank and congratulate all
our employees, contractors and
consultants on completing another year
of successful and profitable results. I
also want to acknowledge the strong
leadership of our senior executive team
under the direction of our Managing
Director Mr Patrick Mutz. Collectively,
our Image Team has successfully
navigated the Company through
challenging times and built a solid
base for the next stage of growth and
sustainability.
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.
Robert Besley
Non-Executive Chairman
8 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 9
MANAGING DIRECTOR’S
REPORT
Completion of a fourth full year of profitable operations
at Boonanarring was highlighted by continuing strong
commodity prices and favourable AUD:USD foreign
exchange rate. While day-to-day activities and future
project development efforts were challenged significantly
by continuing COVID restrictions, a tight labour market
and spiralling inflation, significant progress was
made in shifting the focus to longer term growth and
sustainability. A key component of this progress was
the completion of a second strategic acquisition of the
McCalls mineral sands project located near current
operations at Boonanarring, with potential for one or
more multi-decade mining operations.
Dear Shareholders,
Your Image Team has proudly delivered
its fourth year of profitable results. While
the mix of challenges was greater than
in the past years, the overall results of
production, sales and cost control were
sufficiently positive to allow the Company to
continue to take full advantage of favourable
commodity prices. Strong economic
performance continuing from the previous
year allowed our Board of Directors to pay
a second annual dividend, this time fully
franked. Importantly, your Team has shifted
its focus to growth and sustainability, with
emphasis on future project development
which includes the transition of operations
to Atlas as well as advancing pre-
development activities at Bidaminna to
progress towards multi-operations status.
I am honoured to report your Image Team
(operations, exploration, development and
corporate) has continued to deliver positive
results, despite new challenges on top of
continuing COVID restrictions.
Our operational team has risen to the
challenge of adjusting to the upcoming,
planned and scheduled completion of
mining at Boonanarring in CY2023.
Consequently, focus expanded to extending
mining as long as practicable to minimise
the gap in heavy mineral concentrate (HMC)
production during the relocation of mining
and processing equipment to Atlas.
The achievement of access to mine the
southern extension of Boonanarring in Block
‘D’ was a positive step to extend mining.
This required a modification to the mining
plan to mine additional ore commencing
in Q4 2022. As the heavy mineral (HM) ore
grade in this extension area was lower than
ore in Block ‘C’, HMC production in Q4
was lower than originally planned and as a
result, HMC production of 177kt for CY2022
was slightly below guidance for the year.
KEY HIGHLIGHTS
$0.02
A
fully franked dividend paid
in CY22
$36M
A
on strategic acquisitions of
Eneabba and McCalls Projects
Atlas
mining scheduled to
commence 2H CY23
On the other hand, project operating
costs were in line with guidance at
A$108m, despite significant inflationary
pressure on costs in particular the rise
and fall adjustment to mining costs due
to rising fuel and labour costs.
HMC sales were also in line with
guidance at 187kt, with sales revenue
benefitting from continuing strong
commodity prices that only weakened
slightly in Q4.
While the zircon content in the HMC
decreased during the year, its effect on
HMC pricing was largely negated by a
declining (more favourable) AUD:USD
foreign exchange rate. Consequently,
realised prices remained fairly steady
and averaged over A$900 per tonne for
the year.
The net result of meeting HMC sales
guidance and successfully controlling
costs, was completing the year with a
healthy revenue-to-cost ratio of 1.7:1,
having A$53 million cash in the bank
with zero debt, and NPAT of A$15.2
million.
The cash balance at end of year was
strong despite the payment of a fully
franked dividend of $0.02 per share
in April for a total cost of A$21m (less
dividend reinvestment credits of $7m),
and cash payments for the strategic
acquisitions of the Eneabba Tenements
and McCalls Project for a total of
approximately $36m.
During the year, your Team also made
significant progress towards the
adoption of a formal ESG reporting
framework with the support of BDO
Advisory. However, this was not the
start of Image’s ESG journey. That
journey began back in 2018 with plans
to install a solar farm at Boonanarring
despite having full access to grid
power. The solar farm continues
to provide 25% of total electricity
requirements at Boonanarring.
Image’s informal ESG focus continued
into CY2019 (first full year of mining)
with the collection of critical operational
data to determine GHG emissions,
water usage, waste generation and
tailings management. Consequently,
as the Company approaches the
publication of its inaugural ESG and
Sustainability Report in CY2023, the
report will demonstrate Image’s early
informal adoption of ESG principles,
through the inclusion of annual non-
financial ESG operational and business
metrics back to the beginning of
CY2019.
The Company continues to focus on
maintaining 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;
engaging with local Aboriginal
groups on heritage issues and job
opportunities and providing support
for local business and not-for-profit
organisations.
10 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 11
The Company’s safety efforts are
tracked and measured through the
forward-looking practice of collating
positive performance scoring
(PPS) from safety audits, as well
as a 12-month rolling average total
reportable incident frequency rate
(TRIFR). PPS scoring remained positive
throughout the year and a TRIFR of 4.6
(per million hours worked) at the end of
December 2022; down from 7.2 at the
end of December 2021. The Company
reported one lost-time injury for the full
year.
Image also supported field trials
conducted by local landowners with
university collaboration, to determine
optimum clay and compost ratios to
improve the soil matrix to enhance
carbon sequestration while increasing
crop yields. The Company also
remains in discussions with the Sunrise
Energy Consortium on its ambitions to
potentially install a green hydrogen fuel
production and dispensing facility at
Boonanarring after mining is complete.
Another area of significant progress
during CY2022 was with the
development of a longer-term growth
strategy which has been adopted
by the Board of Directors. A new
strategy was only possible following the
strategic acquisitions of the Eneabba
Tenements and McCalls Project
completed during the year.
The vision of the new strategy is for the
Company to transition from a single
mining operation, with a single product,
marketed in a single geographical
jurisdiction (Chapter 1), to multiple
operations, selling multiple products, in
multiple jurisdictions globally (Chapter
2). A broad outline of the strategy
includes the following ambitions:
•
Finalising mining at Boonanarring
and transitioning to production at
Atlas (completion of Chapter 1);
Chapter 2:
•
•
•
•
•
Positive feasibility study
on Bidaminna for potential
development as standalone dredge
mining operation independent of
dry mining operations;
Feasibility study on Yandanooka
(Eneabba Tenements) for potential
standalone dry mining operation;
Feasibility studies on McCalls for
potential standalone hydraulic
mining project with high economy-
of-scale and potential for one
or more multi-decade mining
operations;
Feasibility study for construction
of mineral separation plant (MSP);
and
Studies to determine feasibility of
synthetic rutile production from
ilmenite from Bidaminna and
McCalls.
The vision of the new strategy is for the Company to
transition from a single mining operation, with a single
product, marketed in a single geographical jurisdiction
(Chapter 1), to multiple operations, selling multiple
products, in multiple jurisdictions globally (Chapter 2).
I want to thank our CFO Mr John
McEvoy, our COO Mr Todd Colton and
Executive Advisor Mr George Sakalidis
as key members of the senior executive
team, for their unwavering support of
Image’s objectives since we embarked
on our collective journey in 2016.
I am also most grateful for the
support of all our valued employees,
contractors and consultants that make
up our Operating and Development
teams. This gratitude extends to our
offtake partners, local landowners and
community members in the areas that
we are active.
Finally, I wish to thank our Board of
Directors and all our shareholders for
their continuing patience and support
during another challenging year.
The Image Team and I look forward to
continuing the journey and transitioning
from Chapter 1 humble beginnings
with a single mining operation
and single product, to Chapter 2
aspirations of multiple operations with
multiple products and growing into a
sustainable long-life mining company.
Patrick Mutz
Managing Director
12 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 13
KEY HIGHLIGHTS
Ore Processed
3.4MT
HMC Produced
177,200T
HMC Sold
187,000T
Revenue
$172M
A
Operating Costs
$103M
A
Project EBITDA
$69M
A
Image Resources NL (“Image” or “the Company”) completed its 4th full year
(CY2022) of successful operations at the Company’s 100%-owned, high-grade,
zircon-rich Boonanarring mineral sands project in the North Perth Basin, located
80km north of Perth. The Company met its market guidance in all areas except
heavy mineral concentrate (“HMC”) production which was 2% below the guidance
range due to the mining and processing of lower grade ore in Q4. Importantly,
guidance on project operating costs was met despite significant inflationary
pressures and other cost rises affecting all areas of the business including mining,
logistics and labour.
CY2023 is scheduled to be a year of transition with the relocation of mining and
processing operations from Boonanarring to Atlas whilst continuing to advance
studies and pre-development efforts on the Company’s 100%-owned Bidaminna
project as a standalone dredge mining operation, as well as new projects
associated with the strategic acquisition of the Eneabba Tenements and McCalls
project in CY2022 which added substantially to Image’s potential future project
development opportunities.
2022 IN REVIEW
Operations
CY2022 was another successful year
for the Company, and the 4th full-
year as a profitable Australian mining
company. In Q2, Image paid its second
annual dividend of A$0.02 per share
fully franked, on the back of almost
A$80 million cash on hand and a debt
free position at the end of CY2021.
The March 2022 Quarter was marked
by a number of other key events
including very strong shareholder
support in defence against an
action by the Company’s largest
shareholder (under section 249D of the
Corporations Act 2001 (Cth)) (“249D
action”), to remove three Directors
from the Board and replace them with
three new Directors aligned with the
largest shareholder. The 249D action
was defeated as a result of very strong
shareholder support at an extraordinary
general meeting of shareholders on
24 March 2022. More than 96% of
shareholders who cast a vote, voted
against the 249D action and in support
of the three then-current Image
Directors remaining on the Board.
Two other key events during the March
Quarter were the strategic acquisitions
of the Eneabba Tenements and the
McCalls project, located in the North
Perth Basin near Image’s other mineral
sands projects. These new projects
have transformed Image’s mineral
sands portfolio to one with potential for
multiple, multi-decade operations, and
the opportunity to grow the Company
into a sustainable, long-life multi-
operation mining company.
The March quarter was also highlighted
by a 6% QoQ increase in average
realised HMC prices to a record
quarterly high of A$961/tonne.
Image engaged in a cost-
sharing arrangement with Mineral
Technologies (“MT”) in late CY2021
for the construction and operation of a
demonstration-scale wet concentration
plant (“WCP”) located at Boonanarring.
Construction was completed in
Q1 2022 to demonstrate MT’s
ground-breaking CT1 heavy mineral
separation technology. CT1 technology
advantages include a smaller footprint
compared to conventional spiral
separation technology and the ability
to operate at higher solids content
in the slurry feed. Operation of the
demonstration plant continued through
Q4 2022 and was deemed to have
successfully demonstrated its design
advantages at comparable metallurgical
recoveries. The technology is now
being considered for commercial
scale use at the Company’s Atlas and
Bidaminna projects.
In Q2 2022, a Standstill Agreement
was signed with the Company’s largest
shareholder and associates to refrain
from further 249D actions for at least
14 months in exchange for a nominated
director Board seat and access to 50%
of HMC production through Image’s
existing offtake partners at full market-
based pricing.
During Q2 2022, zircon and ilmenite
prices both increased a further 5%,
although average HMC realised prices
declined QoQ due to lower zircon
content in the HMC.
REVIEW OF
OPERATIONS
ALLOYS, CERAMICS & LININGS
Zirconium resists water and most acids, and
applications include steel alloys, ceramics and
linings in nuclear reactors.
ZrO2
14 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 15
The Boonanarring project generated
EBITDA of approximately A$69 million
in CY2022 (CY2021: A$75 million).
Lower HMC sales guidance for CY2023
of 110-120kt HMC and forecast for
CY2024 of 220-250kt, reflects the
anticipated completion of mining and
processing at Boonanarring in Q3
2023, before relocating mining and
ore processing operations to Image’s
100%-owned Atlas deposit which
is currently under final development
planning and permitting.
Mineral Sands Commodity Prices
and FX
Boonanarring HMC pricing is based
on the underlying content of zircon (as
% ZrO2+HfO2) and titanium dioxide (as
% 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.
After starting to increase in Q1 2021,
benchmark market prices for zircon
continued to strengthen on a quarterly
basis through the remainder of 2021
and continuing through Q3 2022 before
declining slightly in Q4 2022, resulting
in an overall increase of 56% from
start of CY2021 to end of CY2022.
Similarly, benchmark prices for ilmenite
benchmark market prices rose steadily
from Q1 2021 through Q3 2022 before
declining in Q4 2022, and with an
overall increased 55% from start to of
CY2021 to end of CY2022.
CY2022 saw a decline in average
zircon content of ore mined at
Boonanarring, and therefore in HMC
sold. The content of zircon (as %
ZrO2+HfO2) after averaging roughly
22% in the HMC for Q1, declined
to roughly 17% in Q2, and declined
further to 14% and 15% respectively
in Q3 and Q4 2022. Average zircon
grades are expected to increase
somewhat in CY2023 as we complete
mining in Block D and move back to
the final sections in Block C.
Throughout Q2, the Company was also
focussed on securing land access for
the possible extension of Boonanarring
operations beyond the otherwise
planned closure in Q1 2023. As a result
of these efforts, on 9 September 2022,
Image announced the execution of a
land lease agreement to extend mining
at Boonanarring by 3-4 months to the
end of Q2 2023.
In September 2022, the Company
announced underlying EBITDA of
A$40.6 million (1H 2021: A$29.3
million) an after-tax profit of A$17.9
million for the half year ended 30 June
2022 (2021: A$2.9 million) with the
increase in profit compared to the prior
half-year driven by higher zircon and
ilmenite prices combined with a lower
(more favourable) AUD:USD foreign
exchange rate, partly offset by cost
inflation including higher diesel, parts
and labour costs.
The December quarter was highlighted
by the release of an Atlas Project Ore
Reserve Update (refer ASX release
dated 21 December 2022). Subject to
receipt of relevant approvals, mining
at Atlas is scheduled to commence 2H
2023 and HMC production in Q4 2023.
HMC sales are fully committed under
existing HMC offtake agreements at
market-based pricing. In December,
the Company also provided an update
on the Bidaminna feasibility study
indicating results of the study were
delayed into CY2023.
Full Year Results
Total HMC sales for CY2022 were
187kt compared to 293kt in CY2021
due to reduced overall production at
Boonanarring, with lower production
mainly driven by declining average HM
ore grades, reflecting the progression
of mining to the southern end of Block
C and Block D at Boonanarring, with
lower HM grades including lower zircon
grades in Block D.
The average HMC realised price for
the full year was A$917 per tonne
(CY2021: A$611/t) reflecting higher
average zircon and ilmenite benchmark
market prices compared to CY2021.
Lower sales volumes, at higher average
realised prices resulted in revenues
for CY2022 being broadly in line with
CY2021 at A$172 million (CY2021:
A$179 million).
Higher benchmark market prices for
contained zircon and ilmenite in HMC
sold, combined with a lower (more
favourable) AUD:USD exchange rate
were the main reasons for a significant
increase in average HMC realised price
in CY2022. This was only partially
offset by lower average zircon grades
in the HMC. The average realised price
per tonne of HMC sold in CY2022 was
A$306/t higher (50% higher) than the
average price in CY2021 (A$917/t vs
A$611/t).
FOCUSED ON
GROWTH &
SUSTAINABILITY
Zircon Benchmark Price (US$/tonne)
Corporate
2,400
2,200
2,000
1,800
1,600
1,400
Jan-21
Apr-21
Jul-21
Oct-21
Jan-22
Apr-22
Jul-22
Oct-22
Jan-23
Ilmenite Benchmark Price (US$/tonne)
430
390
350
310
270
230
Jan-21
Apr-21
Jul-21
Oct-21
Jan-22
Apr-22
Jul-22
Oct-22
Jan-23
Sales revenue for the year was A$172
million (2021: A$179 million) with
project operating and selling costs of
A$103 million (2021: A$97 million) and
with full-year CY2022 project EBITDA
of A$69 million (2021: A$75 million).
During CY2022 the Company generated
a Net Profit After Tax (“NPAT”) of
A$15.2 million (2021: A$19.4 million)
for a total NPAT of approximately
A$80 million for the first 4 full years of
operations.
As at 31 December 2022, Image had a
healthy cash position of A$53.4 million
(2021: A$79.8 million), after outlaying
$37.4 million for project acquisitions,
including indirect costs, (Eneabba and
McCalls), $12.8 million in dividends
and $14.1 million in income tax. For
CY2022, the Company generated net
cash flow from mine operating activities
of A$65.0 million (2021: A$82.8 million).
16 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 17
GROWTH AND SUSTAINABILITY
Growth Strategy
The Company’s original operating
strategy and plan outlined in its 2017
Bankable Feasibility Study (“BFS”) was
to mine and process all available Ore
Reserves at Boonanarring and then to
self-fund the relocation of the mining
fleet and processing facilities to Atlas.
That strategy and plan is still active and
operating as outlined, with completion
of ore processing at Boonanarring
scheduled for the end of Q2 2023 and
mining currently forecast to commence
at Atlas in Q4 2023. However, with
the changes to Image’s mineral sands
portfolio with the strategic acquisition
of the Eneabba Tenements and McCalls
project, a new strategy of growth and
sustainability has been adopted. The
original strategy of Boonanarring and
Atlas is referred to as ‘Chapter 1’,
and the new growth and sustainability
strategy is referred to as ‘Chapter 2’.
The acquisition of the Eneabba
Tenements and McCalls project served
to substantially increase Image’s
100%-owned projects for potential
development and substantially boosted
the Company’s total Mineral Resources.
Following completion of the strategic
acquisitions of the Eneabba Tenements
and the McCalls project in H1 2022,
the Company commenced work
on the assessment of the Mineral
Resources acquired, as well as
securing or transferring necessary
access agreements for exploration.
In addition, in Q4, work commenced
on the preliminary assessment of
Yandanooka and Durack projects as
part of the Eneabba Tenements, for
determination as to which project
amongst the Eneabba Tenements
may be most suitable for fast-track
development. Similarly, in Q4 2022,
work commenced on the preliminary
assessment of the McCalls project to
outline plans for securing land access
for further delineation drilling and bulk
sample collection for the purposes of
wet plant recovery, mineral separation
testing and later synthetic rutile (“SR”)
testing.
Testing by previous owners suggests
the Eneabba Tenements have the
potential for dry mining of very
shallow mineralisation, utilising
conventional recovery techniques
such as the existing equipment
used at Boonanarring. On the other
hand, the McCalls Project will be
evaluated to determine the viability
of using hydraulic mining to mine the
thick and broad seams of shallow
mineralisation containing high quality
ilmenite, likely suitable as a long-term
feedstock supply for chloride slag or
SR production. The McCall project also
provides the opportunity for Image
to consider becoming a potential SR
producer using more environmentally
friendly processing techniques than
those used by existing producers,
representing a potential long-term
competitive advantage.
The Company's simple business model has delivered strong
returns over the first four years of operations.
Chapter 1 strategy involves a single
mining operation and a single product
(HMC) sold into a single geographical
jurisdiction (China). Chapter 2 centres
on the development of potential
multiple simultaneous operations and
multiple products sold into multiple
geographical jurisdictions. Chapter 2
activities commence with studies aimed
at demonstrating economic viability and
leading to the following:
•
•
Finalisation of pre-feasibility study
(“PFS”) and subsequent definitive
feasibility study leading to the
development of a standalone
dredge mining operation at
Bidaminna, to be operated in
parallel with dry mining operations.
Feasibility study leading to the
development of initial dry mining
and processing operations at
100%-owned Yandanooka project
in the Eneabba Tenements area,
with potential for follow-on
operations using the same capital
equipment for dry mining and
processing operations at Durack
and later other projects in the area.
•
•
•
Studies leading to the potential
development of hydraulic mining
and processing operations at
100%-owned McCalls project
to be operated in parallel with
dry mining and dredge mining
operations.
Studies leading to the construction
of a Mineral Separation Plant
(“MSP”) to capture the value-
adding advantages of producing
individual mineral sands products
(including by-products such
as monazite) and expanding
the Company’s market reach
geographically, as well as
capitalising on the opportunity for
effective post-mining use of the
land and installed infrastructure at
Boonanarring; and,
Studies leading to the potential for
construction of an SR production
facility in the vicinity of the MSP,
for the value-adding and market-
expanding upgrading of ilmenite
from Bidaminna and McCalls to
‘green’ SR by using hydrogen as
the iron reductant.
FOCUSED ON
GROWTH &
SUSTAINABILITY
18 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 19
In July 2022, the Company provided
a Mineral Resources Update for West
Mine North, part of the Eneabba
Tenements (refer to the Company’s ASX
release dated 29 July 2022).
In December 2022, the Company
provided an Ore Reserves Update
for Atlas (refer to the Company’s ASX
release dated 21 December 2022).
Exploration activities focussed on the
search for new mineralisation included
aeromagnetic surveys and follow-on
drilling at Woolka South and Bidaminna
Northwest for mineral sands and
continuing but limited drilling at Erayinia
and King for gold.
Drilling results at Woolka South and
Bidaminna Northwest are pending.
Infill drilling at Erayinia in 2022 resulted
in a number of significant gold
intersections mainly within the central
part of the northern mineralised zone,
which was previously sparsely drilled
(refer to the Company’s ASX release
dated 18 January 2023). Several
intersections are open at depth and will
be followed up with deeper RC drilling
in 2023.
Atlas Development
Bidaminna Pre-Development
Exploration
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 dry mining
operations. Bidaminna is located
100km north of Perth and 20km
northwest of the Boonanarring project.
Heritage clearances for drilling at
Bidaminna were delayed in H2 2021
and Q1 2022. Appropriate clearances
were finally provided late in Q1
2022 and drilling, for geotechnical
information to support the ongoing
PFS being conducted by IHC Mining
(formerly known as IHC Robbins),
was completed in Q2 2022. Drilling to
upgrade the Mineral Resources was
also completed in Q2. However, due to
delays with sample analyses because
of worker shortages at the commercial
laboratories, the updated Mineral
Resources estimate has been delayed
into Q1 2023, and consequently the
PFS results have been similarly delayed
into CY2023.
The Company’s portfolio of tenements
is predominantly focussed on mineral
sands, except for four contiguous
exploration licences and prospecting
licences with a focus on gold. The total
area of all tenements is 1,704 square
kilometres. All tenements are located
in Western Australia and all mineral
sands tenements are located in the
North Perth Basin. The gold tenements
are located approximately 120km
southeast of Kalgoorlie.
As Image is an established mining
company, exploration activities in
CY2022 have been largely focused
on the development of known
Mineral Resources, with limited
exploration focusing on identifying new
mineralisation.
In March 2022, the Company released
a Mineral Resources Update on the
Eneabba Tenements (refer to the
Company’s ASX release dated 11
March 2022).
In May 2022, the Company released
a Mineral Resources Update for the
McCalls project (refer to the Company’s
ASX release dated 20 May 2022).
The Atlas Project is 100%-owned and
was included as part of Image’s BFS
published in 2017. It is contemplated
to be mined following the conclusion of
mining at Boonanarring and is currently
progressing through final stages of
development planning and permitting.
Atlas is located approximately
160km north of Perth (80km north of
Boonanarring). The plan outlined in the
BFS was for the WCP and associated
equipment, infrastructure, and mining
operations to be relocated from
Boonanarring to Atlas when mining
and processing at Boonanarring is
complete.
On 21 December 2022 the Company
released an Atlas Project Ore Reserve
Update (refer to the Company’s ASX
release dated 21 December 2022).
The Ore Reserve is limited to the
southern section of the overall Mineral
Resources footprint, due to potential
heritage, native vegetation, and flora
issues in the north. Current plans
are to complete construction and
commence mining at Atlas in H2 2023
and with first HMC production in Q1
2024. Development and construction
is expected to be funded from internal
cash reserves with the Company
maintaining its current debt-free
position.
Atlas is currently progressing through
the final approval process, with the
Environmental Review Document
submitted in December 2022 for public
comment. Current estimate for the
grant of approvals for Atlas is mid-
CY2023.
The 100%-owned Hyperion and Helene
projects are located to the immediate
north of Atlas and are potentially within
economic pumping distance from the
proposed 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.
20 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 21
BUSINESS RISKS
The Company has recently updated its detailed risk review resulting in an amended risk profile and inherent risk ratings for what
are considered significant potential risks to the Company.
The completion of the Boonanarring project, including rehabilitation, and development of the Atlas Project are characterised as
having significant inherent risk, and may not be successful. The risks and uncertainties described below are not the only risks
and uncertainties that the Company faces. Additional risks and uncertainties of which Image is not aware or that Image currently
considers to be immaterial may also adversely affect the business, financial condition, results of operations or prospects.
Each risk area has been rated for residual risk after adjusting for controls and treatment actions.
Key risks with residual ratings of either Very High or High associated with business strategies, and prospects for future financial
years include:
Risk
Residual
risk rating Description
1. Approvals, Licenses
Very High
and Permits
2. Financial Stability
High
and Funding
3. Counterparty Risk
(Offtake Contracts)
High
The Company will require certain licenses, permits and approvals to develop the Atlas
Project, and subsequently other projects. Image has yet to obtain the key permits
and approvals required for the Atlas Project. The duration and success of efforts to
obtain approvals and permits are contingent upon many variables that are outside the
Company’s control. Failure to obtain, or delays in obtaining such licenses and permits
may adversely affect the Company’s ability to proceed with the operating of the Atlas
Project and subsequent projects.
In addition, there is potential for legislative and regulatory reform, which could lead to
more onerous conditions being placed upon approvals for new or existing operations.
The Company manages these risks by ensuring employees have the skills and
disciplines to establish relationships and follow and implement the approval processes
directed at ensuring all contingencies are covered.
Boonanarring is nearing the end of operations and will require significant future
expenditure on rehabilitation. In addition, the Company is advancing the development
of the Atlas Project. Should the Company proceed to develop this project significant
capital expenditure will be incurred. As at 31 December 2022, Image has cash on hand
of $53.5 million but is reliant on the generation of additional cash flow from operations
to meet capital expenditure requirements for Atlas, other project developments and
Boonanarring rehabilitation as well as general corporate and exploration expenditures.
There is no assurance that the Company will be able to generate funds from operations
in the future. There is additional risk with respect to the development of new projects in
respect to forecast and actual future mineral sands prices and foreign exchange rates
which could negatively impact project returns.
If other sources of funding are required, there is no guarantee that such funding will be
available.
The Company has demonstrated a track record of being able to successfully manage
its projects and to generate internal cashflows or raise funds when required. The
Company has strong relationships with potential funding providers.
The Company currently has two offtake contracts in place with product purchasers. If
one or both of these purchasers breaches or otherwise fails to honour its contractual
offtake commitments, any such breach may materially and adversely impact the
Company’s financial results and performance. Image may not be able to find alternative
purchasers for its products.
The Company has close relationships with existing offtakers and at the same time is
looking to develop new markets for its products.
Risk
Residual
risk rating Description
High
4. Operational Risks
including health,
safety & wellbeing
of staff, contractors,
and visitors
5. Ore Reserves –
Depletion and
Replacement
High
6. Employee Attraction
High
and Retention
Mining is inherently dangerous and subject to factors or events beyond the Company’s
control The Company’s current business, and any future development or mining
operations, involve various types of risks and hazards typical of companies engaged in
the mining industry. Such risks include, but are not limited to: (i) industrial accidents; (ii)
structural slides and pit wall failures, ground or slope failures and accidental release of
water from surface storage facilities; (iii) fire or flooding; (iv) periodic interruptions due to
inclement or hazardous weather conditions; (v) environmental hazards; (vi) discharge of
pollutants or hazardous materials; (vii) failure of processing and mechanical equipment
and other performance problems; (viii) geotechnical risks, and unusual and unexpected
geological conditions; and (xi) force majeure events, or other unfavourable operating
conditions.
Open cut mining, plant refurbishment and exploration activities present inherent risks of
injury to people and damage to equipment.
Operational issues could result in reduced operational performance and an inability to
meet target returns and shareholder expectations.
The Company employs appropriately skilled safety professionals to manage the safety
and wellbeing of employees and has well developed procedures and processes, a
strong safety culture, and robust training programs.
Once mining commences, Ore Reserves are gradually depleted. The ability of the
Company to replace the Ore Reserves with equivalent grade and quality is an inherently
uncertain process and the Company may not be able to identify replacement Ore
Reserves that it will be able to extract in a timely manner to maintain revenue streams.
In addition, the quantities of minerals ultimately mined may differ from that indicated by
drilling results. In the event that minerals are present in lower amounts than expected
or the product mined is of a lower quality than expected, the demand for, and realisable
price of, the Company’s products may decrease.
The Company has a pipeline of new projects and has expanded its development team.
Combined with strong relationships with experienced consultants, the Company is
confident that it has the capability to progress development of these projects.
The labour market in Western Australia for experienced employees is highly
competitive, particularly in mining. There is a risk that the Company will not be able
to attract and retain the level of talent necessary to support the Company’s growth
ambitions. The risk is exacerbated in the near term by a requirement to transition from
a mainly daily commute style operation at Boonanarring to onsite accommodation at
Atlas and the resulting increased risk of not being able to retain key people due to
altered working conditions.
The Company has a well-developed program for attracting and retaining key staff,
including paying competitive base salaries, bonuses available to all staff primarily based
on Company performance and an Employee Share Plan (available to all employees).
7. Major Shareholder
High
Relations
Misalignment between the Company’s Board/management and major shareholders
could result in the Company being unable to deliver on its growth plan and failing to
deliver on shareholder expectations.
The Company focuses on maintaining a strong relationship with existing major
shareholders and actively manages the structure of its share register, including
maintaining regular contact.
Other key risks identified with current residual risk ratings of medium, which could result in significant impact on the Company
included geopolitical landscape, community relations including with Traditional Owners, community activism, corporate
governance issues, maintaining a social license to operate and supply chain interruption.
In addition, the Company recognises that physical and transitional impacts of climate change may affect its assets, productivity,
the markets in which it sells its products, and the jurisdictions in which it operates. The Company continues to develop its
assessment of the potential impacts of climate change and the transition to a low carbon economy.
The Company’s physical and transitional risk assessment process is ongoing. Changes in the Company’s climate strategy and
the transition to a low carbon economy may materially impact financial results in future reporting periods.
22 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 23
KEY HIGHLIGHTS
ESG REPORTING FRAMEWORK
TRIFR
4.6
per million hours worked
down from 7.2 in CY21
LTIs
1
up from 0 in CY21
Renewable Energy
25%
of CY22 power
supplied by solar
Mine Rehabilitation
9 ha
in addition to 13 ha
in CY21
In CY2022, Image engaged BDO
Advisory (WA) through its Sustainability
Activation Program to provide support
for the development of an appropriate
strategy, data collection protocols and
reporting framework, leading to the
adoption of a formal ESG program.
BDO utilised a double materiality
assessment to determine the most
appropriate sustainability framework
for Image. The reporting framework
recommended by BDO and adopted by
Image is the Sustainability Accounting
Standards Board (SASB) Metals &
Mining Sustainability Accounting
Standard.
To provide for a robust governance
foundation to support data collection,
and to provide an auditable data
collection trail, an external technology
provider was used to host (database)
the data collected for each of the
Mining & Metal Standard metrics.
The initial focus was on metrics for
CY2021 for an inaugural ESG and
Sustainability Report. However, with the
realisation that Image had already been
proactively collecting and collating
ESG metrics under an informal ESG
focus starting in 2018-19, the decision
was made to incorporate metrics from
the Company’s full operating history
starting with CY2019. Consequently,
the publication of an inaugural
sustainability report was delayed into
CY2023 to capture important trends
and effects from Image’s early adoption
of an informal ESG approach.
SAFETY
Image recorded one lost-time injury
(“LTI”) during calendar year 2022
(2021: 0 LTI). The Company continues
to report total recordable injury
frequency rate (“TRIFR”) as a key
indicator of the effectiveness of its
safety programs. The 12-month rolling
average TRIFR at the end of December
2022 was 4.6 per million hours worked,
representing a significant improvement
compared to the 12-month rolling
average TRIFR of 7.2 at the end of
December 2021.
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 CY2022 despite
the ongoing challenges presented by
COVID particularly during the first half
of the year.
COMMUNITY
Image continues to proudly contribute
to the local community, including
through local employment. At year end
approximately 51% (2021: 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 fee-free access to land
owned by the Company, to a local
community group for grazing sheep
and cattle, with profits returning to local
community groups in the Gingin area.
The Company also supports numerous
local community and charitable groups
such as Lions Institute, Vinnies (CEO
Sleepout), Movember and Happiness
Co Foundation (mental health support
programs).
Image continues to build on its cultural
engagement practices with the Yued
Traditional Owners in connection with
the Company’s ongoing development
plans for its Atlas and Bidaminna
projects, including providing
employment opportunities for members
of the Yued community as monitors for
heritage field surveys. This practice will
continue with other Traditional Owner
groups as appropriate for any other
potential project developments by
Image in WA.
ENVIRONMENTAL, SOCIAL &
GOVERNANCE (ESG)
PAINTS & COATINGS
Titanium dioxide provides opacity and durability,
while helping to ensure the longevity of paint and
protection of the painted surface.
TiO2
24 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 25
ENVIRONMENT
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 use of solar power at Boonanarring
provides Image Resources with green
credentials and positions the Company
as one of the few mining companies in
Australia to directly utilise renewable
solar energy to offset a significant
portion of its grid-based energy supply,
and thereby significantly reducing its
greenhouse gas emissions and carbon
footprint.
The Company has taken actions to
minimise its carbon footprint, for
instance, 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
CY2022 approximately 25% (2021:
24%) of electricity requirements
for Boonanarring were supplied as
renewable solar energy from the solar
farm, at costs slightly below grid power
prices.
Image completed additional
rehabilitation of approximately
nine (9) hectares of mined land at
Boonanarring during CY2022, bringing
the total area rehabilitated and re-
vegetated, concurrently with mining,
to approximately twenty-two (22)
hectares.
The Company has also assisted local
landowners in their efforts to establish
carbon sequestration field trials in
conjunction with Murdoch University
to identify optimum clay and compost
soil mixtures to enhance the carbon
capture potential of the soils.
In CY2022, Image also engaged with
the Sunrise Energy Consortium to seek
support to establish a green hydrogen
production and dispensing terminal
at Boonanarring as a post-mining
business enterprise.
MODERN SLAVERY STATEMENT
In June 2022 the Company published
its inaugural Modern Slavery Statement
for CY2021. The Statement identified
the risk for modern slavery practices
to exist in Image’s day-to-day business
practices is considered to be very low
to non-existent given the Company
operates only in Western Australia
in the extremely competitive mining
industry. It also identified three areas of
its supply chain for minor expenditure
items to have some potential to
harbour modern slavery practices, and
the Company is taking steps to audit
and if necessary to further minimise the
potential risks associated with these
procurement items.
FOCUSED ON
GROWTH &
SUSTAINABILITY
26 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 27
MINERAL RESOURCES
& ORE RESERVES
STATEMENT
ORE RESERVES
The estimated Ore Reserves at Boonanarring have been updated to include depletion from mining through 31 December 2022
and thereby represent remaining Ore Reserves as at 31 December 2022.
Table 1 – Ore Reserves – Strand Deposits; in accordance with the JORC Code (2012) – as at 31 December 2022
Project /
Deposit
Ore
Reserve
Category
Proved
Boonanarring1
Probable
Atlas2
Sub-Total
Proved
Probable
Sub-Total
Total Ore Reserves
Tonnes
(million)
In-situ HM
Tonnes
(millions)
Total HM
grade
(%)
HM Assemblage (% of total HM)
Zircon
Rutile
Leuc.
Ilmenite Monazite
Slimes
(%)
Oversize
(%)
0.8
0.5
1.2
4.5
0.9
5.5
6.7
0.07
0.02
0.08
0.48
0.02
0.50
0.58
8.4
4.7
7.0
10.6
2.1
9.2
8.8
22
21
22
12
8.1
12
13
3.2
8.8
4.7
8.0
5.2
7.9
7.5
2.7
8.7
4.2
4.9
4.7
4.9
4.8
47
42
45
54
29
53
52
14
16
15
15
15
15
15
4.5
6.1
4.9
4.6
8.1
5.2
5.1
1.1
0.8
1.1
1
2
Refer to Boonanarring Ore Reserves release 29 March 2023 “Boonanarring Annual Ore Reserve Update”
Atlas Ore Reserves refer to the 21 December 2022 release “Revised Announcement – Atlas Project Ore Reserve Update”
The Company’s Ore Reserve estimate at Boonanarring shows changes from the estimate as at 31 December 2021 (Tables
1 & 2). The material changes arise from mining depletion from 31 December 2021 through 31 December 2022. Refer to the
Company’s ASX release dated 29 March 2023 for further information.
The Company’s Ore Reserve estimate at Atlas has changed since 31 December 2021 (Tables 1 & 2). The changes are materially
due to the northern section of the Mineral Resource being excluded from the updated Ore Reserve estimate due to uncertainties
of timing for environmental approval. Refer to the Company’s ASX release dated 21 December 2022 for further information.
Table 2 – Comparative Ore Reserves – Strand Deposits; in accordance with JORC Code (2012)
Project / Deposit
As at 31 Dec 2021
Boonanarring
Atlas
Total Ore Reserves
As at 31 Dec 2022
Boonanarring
Atlas
Total Ore Reserves
Tonnes
(million)
In-situ HM
Tonnes
(millions)
Total HM
grade
(%)
HM Assemblage (% of total HM)
Zircon
Rutile
Leuc.
Ilmenite Monazite
Slimes
(%)
Oversize
(%)
3.9
9.5
13.4
1.2
5.5
6.7
0.28
0.80
1.08
0.08
0.50
0.58
7.1
8.1
7.8
7.0
9.2
8.8
19
11
13
22
12
13
3.4
7.5
6.4
4.7
7.9
7.5
2.9
4.5
4.1
4.2
4.9
4.8
48
51
50
45
53
52
1.1
1.1
13
16
15
15
15
15
4.9
5.7
5.4
4.9
5.2
5.1
28 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 29
MINERAL RESOURCES – MATERIAL MINING PROJECTS
The estimated Mineral Resources at Boonanarring have been updated to include depletion from mining through 31 December
2022 and thereby represent remaining Mineral Resources as at 31 December 2022.
Table 3 – Mineral Resources – Dry Mining Strand/Dune Deposits; in accordance with the JORC Code (2012)
– as at 31 December 2022
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 Monazite
Slimes
(%)
Oversize
(%)
Boonanarring
Atlas
Yandanooka
Measured
Indicated
Inferred
Sub Total
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
1.4
1.4
1.4
1.4
Total Measured
Total Indicated
Total Inferred
Grand Total
1.3
4.0
0.7
6.1
7.1
5.0
5.2
17.3
2.6
57.7
0.4
60.8
11.0
66.7
6.4
84.1
0.11
0.17
0.02
0.30
0.63
0.18
0.17
0.98
0.11
1.73
0.01
1.84
0.85
2.07
0.20
3.13
8.1
4.3
3.4
5.0
9.0
3.5
3.3
5.7
4.3
3.0
1.5
3.0
7.7
3.1
3.2
3.7
21.5
11.0
11.1
14.7
10.7
7.0
9.1
9.8
10.3
12.3
10.9
12.1
12.0
11.7
9.4
11.6
3.1
5.2
4.7
4.4
7.5
4.7
4.4
6.5
2.1
3.6
3.0
3.5
6.3
3.9
4.4
4.5
4.5
12.4
6.0
9.1
5.1
5.1
4.8
5.1
2.3
3.7
4.4
3.6
4.7
4.5
4.9
4.6
48
51
55
50
51
42
54
49
72
69
68
70
53
66
54
61
0.9
1.0
1.6
1.1
15.2
17.5
14.1
16.6
14.8
16.0
13.6
14.7
14.9
15.2
20.0
15.2
14.8
15.4
14.1
15.2
6.5
4.2
5.9
4.9
4.6
4.6
2.7
4.0
11.3
11.4
21.9
11.5
6.4
10.5
4.4
9.5
Table 4 – Mineral Resources – Dredge Mining Strand Deposits; in accordance with the JORC Code (2012)
– as at 31 December 2022
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 Monazite
Slimes
(%)
Oversize
(%)
Measured
Indicated
Inferred
Grand Total
0.5
0.5
0.5
0.5
86
13
10
109
2.4
0.3
0.1
2.8
2.8
2.1
0.7
2.5
4.9
4.9
4.6
4.9
4.0
4.2
5.6
4.1
12
13
17
12
72
71
66
72
0.34
0.33
0.19
0.33
3.9
4.7
3.2
3.9
3.2
2.3
1.8
3.0
Table 5 – Mineral Resources – Combined Dredge and Dry Mining Strand/Dune Deposits; in accordance with the
JORC Code (2012) – as at 31 December 2022
Deposit
Material
Mineral
Resources
Mineral
Resource
Category
Total Measured
Total Indicated
Total Inferred
Grand Total
Tonnes
(million)
In-situ HM
Tonnes
(millions)
Total HM
grade
(%)
HM Assemblage (% of total HM)
Zircon
Rutile
Leuc.
Ilmenite
Slimes
(%)
Oversize
(%)
97
80
16
193
3.3
2.3
0.3
5.9
3.4
2.9
1.7
3.0
6.8
10.9
8.2
8.5
4.16
10.1
3.9
4.7
4.3
5.5
8.0
8.2
67
66
57
66
5.1
13.7
7.4
8.9
3.6
9.1
2.8
5.8
The Company’s Mineral Resource estimate at Boonanarring shows changes from the estimate as at 31 December 2021 (Tables
3 & 6). The material changes arise primarily from mining depletion from 31 December 2021 through 31 December 2022. Refer to
the Company’s ASX release dated 29 March 2023 for further information.
The Company’s Mineral Resource estimate at Atlas has been updated since 31 December 2021 (Tables 3 & 6). The changes are
due to additional drill data being available for the Mineral Resource estimate (212 additional drill holes, 2,071m, 24 additional
mineral assemblage composites and qualitative assessment of HM sachets). Refer to the Company’s ASX release dated 15
December 2022 for further information.
The Company’s Mineral Resource estimate at Bidaminna has been updated since 31 December 2021 (Tables 4 & 6). The
changes are due to additional drill data being available for the Mineral Resource estimate (232 additional drill holes, 12,916m,
33 additional mineral assemblage composites and qualitative assessment of HM sachets). Refer to the Company’s ASX release
dated 28 February 2023 for further information.
The Company’s Mineral Resource estimate at Yandanooka was first reported by the Company during 2022 (Tables 3 & 6). Refer
to the Company’s ASX release dated 11 March 2022 for further information. Yandanooka has been included in Material Mining
Projects as at 31 December 2022 on the basis that the Mineral Resource has been prioritised by the Company for development
with several studies and investigations being carried out or commenced 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 Monazite
Slimes
(%)
Oversize
(%)
Project / Deposit
As at 31 Dec 2021
Boonanarring
Atlas
Bidaminna
Total Material Resources
As at 31 Dec 2022
Boonanarring
Atlas
Yandanooka
Bidaminna
2.0
2.0
0.5
2.0
2.0
1.4
0.5
Total Material Resources
GOVERNANCE CONTROLS
10.2
18.1
102.0
130.0
6.1
17.3
60.8
109
193
0.6
1.1
2.2
3.9
0.3
1.0
1.8
2.8
5.9
5.6
6.0
2.2
3.0
5.0
5.7
3.0
2.5
3.0
15.1
9.3
5.1
7.7
14.7
9.8
12.1
4.9
8.5
3.7
6.4
4.4
4.9
4.4
6.5
3.5
4.1
4.3
6
4
36
23
9.1
5.1
3.6
12.2
8.2
49
46
48
48
50
49
70
72
66
15.0
17.0
3.0
9.0
16.6
14.7
15.2
3.9
8.9
4.8
5.7
2.2
3.6
4.9
4.0
11.5
3.0
5.8
1.10
0.33
Mineral Resources and Ore Reserves are prepared 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 by the JORC Code 2012.
30 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 31
MINERAL RESOURCES – NON-MATERIAL PROJECTS
Table 7 – Mineral Resources – Dry Mining Strand/Dune Deposits; in accordance with JORC Code 2012
The Mineral Resource estimates for the Company’s non-material mining projects as at 31 December 2022 are shown in the
tables below.
The Mineral Resource estimates for Red Gull, Regans Ford and Gingin South (still reported in accordance with the JORC Code
2004) have been removed from the Company’s inventory of Mineral Resources. All remaining Mineral Resources reported by the
Company are now reported in accordance with the 2012 edition of the JORC Code.
Projects hosting ten additional Mineral Resource estimates were acquired during the 2022 calendar year and reported by the
Company in accordance with the JORC Code 2012 (Tables 7 & 8). Eight are associated with the Eneabba Tenements purchased
from Sheffield Resources (refer to the Company’s ASX releases dated 19 January 2022, 11 March 2022 and 29 July 2022
for further information). Two are associated with the McCalls Project, also purchased from Sheffield Resources (refer to the
Company’s ASX releases dated 14 March 2022 and 20 May 2022 for further information).
Table 7 – Mineral Resources – Dry Mining Strand/Dune Deposits; in accordance with JORC Code 2012
– as at 31 December 2022
Mindarra
Springs*
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
Helene
Sub Total
Indicated
Inferred
Sub Total
Indicated
Hyperion
Inferred
Drummond
Crossing*
Sub Total
Indicated
Inferred
Sub Total
Indicated
Durack*
Inferred
Sub Total
Indicated
Ellengail*
Inferred
Sub Total
Indicated
Robbs Cross*
Inferred
Thomson*
Corridor*
Sub Total
Inferred
Sub Total
Inferred
Sub 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
1.4
1.4
1.4
1.4
1.4
1.4
2.0
2.0
2.0
1.4
1.4
1.4
1.4
1.4
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
35.5
3.3
38.8
20.7
5.6
26.3
6.5
5.3
11.8
14.0
3.8
17.8
25.7
25.7
18.1
18.1
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
0.8
0.1
0.9
0.6
0.1
0.7
0.3
0.2
0.6
0.3
0.1
0.3
0.5
0.5
0.6
0.6
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
2.4
2.3
2.4
2.9
2.6
2.8
5.3
4.1
4.8
1.9
2.0
1.9
2.0
2.0
3.1
3.1
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
14.1
11.2
13.9
13.7
14.2
13.8
10.0
9.9
9.9
14.7
14.5
14.7
18.8
18.8
6.7
6.7
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
10.3
9.0
10.2
2.9
2.6
2.9
8.0
8.2
8.1
12.7
10.9
12.3
13.8
13.8
5.5
5.5
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
3.4
2.7
3.4
3.7
7.4
4.4
10.4
8.4
9.6
5.0
4.1
4.8
5.4
5.4
0.4
0.4
35
27
33
41
39
41
50
41
48
47
45
47
36
31
36
53.3
56.1
53.6
71.5
64.0
70.0
65.5
62.1
64.2
47.2
50.0
47.8
42.4
42.4
47.2
47.2
11
10
11
17
17
17
16
13
15
18
15
18
19
17
19
14.4
12.1
14.2
13.7
15.7
14.1
14.8
15.0
14.9
6.0
6.3
6.0
17.7
17.7
13.8
13.8
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
7.7
7.2
7.7
14.7
18.3
15.5
3.2
2.5
2.9
6.2
8.1
6.6
6.9
6.9
4.8
4.8
* New Mineral Resource acquired during 2022
32 Image Resources NL | Annual Report 2022
– as at 31 December 2022 (cont.)
Deposit
West Mine
North*
McCalls*
Inferred
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
Sub Total
Indicated
Sub Total
Inferred
Sub Total
Total Indicated
Total Inferred
Grand Total
2.0
2.0
2.0
1.1
1.1
1.1
1.1
1.1
10.2
1.8
12.0
1630
1980
3610
2200
2200
1745
4248
5993
0.7
0.0
0.8
23
24
48
36
36
28
63
90
7.3
2.7
6.6
1.4
1.2
1.3
1.6
1.6
1.6
1.4
1.5
5.8
9.4
6.0
5.2
5.0
5.1
4.2
4.2
6.1
4.7
5.1
6.5
8.6
6.6
3.3
3.8
3.6
0.9
0.9
3.8
2.3
2.7
1.8
2.1
1.8
2.8
3.2
3.0
3.1
3.1
3.6
3.2
3.3
48.1
49.5
48.1
77.0
81.0
79.0
80.0
80.0
73.0
79.5
77.5
10.5
17.4
11.5
21.0
26.0
23.7
20.0
20.0
20.5
22.7
22.1
2.3
3.0
2.4
1.1
1.1
1.1
5.1
5.1
1.5
3.3
2.7
* New Mineral Resource acquired during 2022
Table 8 – Comparative Mineral Resources – Dry Mining Strand/Dune Deposits – JORC Code 2012
– as at 31 December 2022
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
As at 31 Dec 2021
Boonanarring NW
Boonanarring N Ext
Gingin North
Helene
Hyperion
Total Non-Material Resources
As at 31 Dec 2022
Boonanarring NW
Boonanarring N Ext
Gingin North
Helene
Hyperion
Drummond Crossing
Durack
Ellengail
Robbs Cross
Thomson
Corridor
West Mine North
McCalls
Mindarra Springs
Total Non-Material Resources
4.3
2.7
8.7
13.1
3.6
32.3
4.3
2.7
8.7
13.1
3.6
38.8
26.3
11.8
17.8
25.7
18.1
12.0
3610
2200
5993
0.2
0.3
0.4
0.6
0.3
1.9
0.2
0.3
0.4
0.6
0.3
0.9
0.7
0.6
0.3
0.5
0.6
0.8
48
36
90
5.1
11.2
4.7
4.8
8.3
5.7
5.1
11.2
4.7
4.8
8.3
2.4
2.8
4.8
1.9
2.0
3.1
6.6
1.3
1.6
1.5
9.2
16.4
6.8
7.4
8.0
9.1
9.2
16.4
6.8
7.4
8.0
13.9
13.8
9.9
14.7
18.8
6.7
6.0
5.1
4.2
5.1
6.9
2.7
4.7
5.2
6.7
5.1
6.9
2.7
4.7
5.2
6.7
10.2
2.9
8.1
12.3
13.8
5.5
6.6
3.6
0.9
2.7
32.0
11.5
16.8
14.5
8.1
15.5
32.0
11.5
16.8
14.5
8.1
3.4
4.4
9.6
4.8
5.4
0.4
1.8
3.0
3.1
3.3
33.1
41.3
48.4
47.0
35.6
42.9
33.1
41.3
48.4
47.0
35.6
53.6
70.0
64.2
47.8
42.4
47.2
48.1
79.0
80.0
77.5
11.1
17.3
15.3
18.1
18.7
16.4
11.1
17.3
15.3
18.1
18.7
14.2
14.1
14.9
6.0
17.7
13.8
11.5
23.7
20.0
22.1
1.1
7.2
4.7
1.4
2.6
2.9
1.1
7.2
4.7
1.4
2.6
7.7
15.5
2.9
6.6
6.9
4.8
2.4
1.1
5.1
2.7
The Company’s Mineral Resources at Titan, Telesto, Calypso are unchanged from 31 December 2021 and are shown in Table 9.
Refer to the Company’s ASX release dated 31 October 2019 for further information.
Image Resources NL | Annual Report 2022 33
Table 9 – Mineral Resources – Dredge Mining Strand Deposits; in accordance with JORC Code 2012
COMPETENT PERSON STATEMENTS AND PREVIOUSLY REPORTED INFORMATION
– as at 31 December 2022
Deposit
Titan
Telesto
Calypso
Mineral
Resource
Category
Indicated
Inferred
Sub Total
Indicated
Sub Total
Inferred
Sub Total
Total Indicated
Total Inferred
Grand Total
Cut-off
(total
HM%)
Tonnes
(million)
In-situ HM
Tonnes
(millions)
Total HM
grade
(%)
HM Assemblage (% of total HM)
Zircon
Rutile
Leuc.
Ilmenite
Slimes
(%)
1.0
1.0
1.0
1.0
1.0
1.0
1.0
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
34 Image Resources NL | Annual Report 2022
This Mineral Resources and Ore
Reserves Statement as a whole has
been approved by Damien Addison who
is the Exploration Manager of Image
Resources NL. Damien Addison is a
Member of the Australasian Institute of
Geoscientists (AIG) 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’.
Damien Addison 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. Mr Addison
is a shareholder in the Company.
The information in this report that
relates to the Boonanarring and Atlas
Ore Reserves estimate is based on
and fairly represents, information and
supporting documentation 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 by 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 Boonanarring, Bidaminna,
Boonanarring North West, Boonanarring
North Extension, Hyperion, Helene,
Gingin North, Atlas, Drummond
Crossing, Durack, Ellengail, Robbs
Cross, Thomson, Yandanooka,
Corridor, West Mine North, McCalls
and Mindarra Springs Mineral Resource
estimates is based on and fairly
represents, information and supporting
documentation 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
and supporting documentation
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 by the
2012 Edition of the ‘Australasian Code
for Reporting of Exploration Results,
Mineral Resources and Ore Reserves’.
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: 29 March 2023
“Boonanarring Annual Ore Reserve
Update”
Atlas Ore Reserves: 21 December
2022 “Revised Announcement –
Atlas Project Ore Reserve Update”
Atlas Mineral Resource:
15 December 2022 “Mineral
Resource Update Atlas Project”
Bidaminna Mineral Resource:
28 February 2023 – “Mineral
Resources Update - Bidaminna
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.
•
Drummond Crossing, Durack,
Ellengail, Robbs Cross, Thomson,
Yandanooka, Corridor: 11 March
2022 “Mineral Resource Update –
Eneabba Tenements”
• McCalls and Mindarra Springs:
20 May 2022 “Mineral Resource
Update McCalls Mineral Sands
Project”
• West Mine North: 29 July 2022
“Mineral Resource Update – West
Mine North”
The Company confirms it is not aware
of any new information or data that
materially affects the information
included in the original market
announcements (other than mining
depletion for Boonanarring) 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.
Image Resources NL | Annual Report 2022 35
FINANCIAL REPORT
DDiirreeccttoorrss’’ RReeppoorrtt
Directors' Report
Directors’ Report
Remuneration Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and
Other Comprehensive Income
Consolidated Statement of Financial Position
37
42
49
50
51
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
52
53
54
79
80
PLASTICS & PAPER
Titanium has a wide range of everyday uses
including in plastics, paper and sunscreen.
Ti02
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 2 compared with the financial year ended 31
December 2021.
DIRECTORS
The following persons were directors of Image Reso urces 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
Peter Thomas
Ran Xu (Appointed: 1 June 2022)
Winston Lee (Appointed: 14 June 2022)
Huangcheng Li (Resigned: 30 May 2022)
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 $15,168,000 (for the year to 31 December 2021: operating profit of
$19,384,000). Basic profit per share for the year was 1.43 cents (year to 31 December 2021: profit of 1.94 cents). Diluted profit
per share for the year was 1.42 cents (year to 31 December 2021: profit of 1.81 cents).
DIVIDENDS PAID OR RECOMMENDED
During the reporting period, in April 2022, Image paid a franked dividend of 2.0 cents per share. The financial impact of dividends
paid during the reporting period totalled $20.8m.
Dividend Policy
The Company’s dividend policy provides for the Board of Directors, as soon as practicable after the e nd 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 consid ers 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 Financial 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
There were no material significant events subsequent to the reporting date.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
The Review of Operations set out on pages 14 to 23 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 fur ther 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, Exploration Manager, 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.
10
36 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 37
Directors' Report (cont.)
DDiirreeccttoorrss’’ RReeppoorrtt ((CCoonntt..))
INFORMATION ON DIRECTORS AND COMPANY SECRETARIES
Robert Besley
Chair
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 4 th 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
hedge committees. Mr Besley has not been a director of any other listed public companies in the
past 3 years.
Mr Mutz was appointed Managing Director and CEO on 8 June 2016 and 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 exper ience 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
exploration 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 . Patrick serves on the Company’s
hedge committee. During the past 3 years he has served as a director of the following other listed
companies:
Aura Energy Limited – appointed 18 May 2022, continuing.
Mr Thomas, having served on ASX listed company boards for over 30 years, has been a non -
executive director of Image Resources NL since 10 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, remuneration and investment committees. During the past 3 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 & Solicito rs. He also serves on the
Company’s audit and investment committees. Mr Soo has not been a director of any other listed
public companies in the past 3 years .
Patrick Mutz
Managing Director
Peter Thomas
Non-Executive Director
Aaron Chong Veoy Soo
Non-Executive Director
Directors' Report (cont.)
DDiirreeccttoorrss’’ RReeppoorrtt ((CCoonntt..))
Chaodian Chen
Non-Executive Director
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 that 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. He serves on the Company’s investment committee. During the past 3 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 and resigned 13 January 2023.
Ms Ran Xu has a masters degree in HR Management and Industrial Relations. She started working
in LB Group in 2014 as a Procurement and Strategy VP and is now the Associate President of
Strategy. Ms Xu has extensive experience and market intelligence in the ilmenite and pigment
industry. She serves on the Company’s investment committee (appointed July 2022). Ms Xu has
not been a director of any other listed companies in the past 3 years.
Ran Xu
Non-Executive Director
Winston Lee
Non-Executive Director
Winston Lee is the CEO of Vestpro International Limited, a commodity holding company, with assets
under management including major stakes in private and publicly listed mining companies. Mr Lee
is establishing a position in the global mining industry through investments, operations, and
explorations in North America, Asia and Africa. He has 7 years of experience in developing
international cooperation with resource companies as well as investments in heavy metal,
healthcare and other natural resources. He led the Research and Development department of Zipro
Technology Corporation, collaborating with professors and the Dean of Engineering at National
Taiwan University. Mr Lee serves as Head of Finance of an AI driven simulation platform company
and plays a central role covering a wide range of capital and legal structures as well as asset sales.
The company owns patents involving Virtual Matter and Virtual Environments. Mr Lee is a
passionate patron of the arts supporting emerging contemporary artists. Mr Lee has not been a
director of any other listed public companies in the past 3 years.
Dennis Wilkins
Joint 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, Scandinavia 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.
11
12
38 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 39
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
Number
8,000,000
3,351,099
Exercise Price
Expiry Date
$0.32
$0.1365
27 May 2023
20 May 2023
The options were issued during the previous financial year on 27 May 2021.
During this financial year 21,525,000 warrants were exercised at 11.385 cents per share to acquire 21,525,000 fully paid ordinary
shares and 7,898,901 warrants were exercised at 13.65 cents per share to acquire 7,898,901 fully paid ordinary shares. S ince
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 Chair (where it is reasonable that the Chair be consulted) or, if it is
the Chair 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 privilege 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 director and office r in their capacity as directors and officers of the
Company. During the year an amount of $223,086 (the year to 31 December 202 1: $168,049) 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 this
annual financial report.
Directors' Report (cont.)
DDiirreeccttoorrss’’ RReeppoorrtt ((CCoonntt..))
John McEvoy
Joint Company Secretary and Chief Financial Officer (Appointed 4 July 2023)
Mr McEvoy joined Image Resources NL in July 2014 and is Chief Financial Officer and Joint
Company Secretary. Mr McEvoy has an honours degree in Mathematics from Southampton
University and has 30 years of experience in senior mining finance roles incorporating the whole
mining company life-cycle from initial discovery to mine closure. Mr McEvoy is a member of the
Institute of Chartered Accountants in England & Wales (ICAEW) and is a graduate of the Australian
Institute of Company Directors (AICD).
AUDIT COMMITTEE
During the financial year the members of the Company’s audit committee comprised Messrs Thomas (Chair), Besley and Soo.
During the year, the committee held two meetings. All members attended these meetings.
REMUNERATION COMMITTEE
During the financial year the members of the Remuneration Committee (“committee”) comprised Messrs Besley (Chair), Thomas
and Lee. During the year, the committee held five meetings. All members eligible attended these meetings.
HEDGE COMMITTEE
During the financial year the members of the Hedge Committee (“committee”) comprised Messrs Besley (Chair), Mutz and
McEvoy. During the year, the committee held four meetings. All members attended these meetings.
INVESTMENT COMMITTEE
During the financial year the members of the Investment Committee (“committee”) comprised Messrs Thomas (Chair), Chen and
Soo with Ms Xu appointed during July 2022. During the year, the committee held one meeting. All members of the Committee at
the time of the meeting attended this meeting.
MEETINGS OF DIRECTORS
During the financial year ended 31 December 2022, there were twelve meetings of directors held. Attendances by each director
during the year were as follows:
Directors’
Meetings
Audit
Remuneration
Committee
Committee
Investment
Committee
Hedge
Committee
Number
eligible
to
attend
Number
eligible
to
attend
Number
attended
Number
eligible
to
attend
Number
eligible
to
attend
Number
attended
Number
eligible
to
attend
Number
attended
Number
attended
Number
attended
Robert Besley
Patrick Mutz
Peter Thomas
Aaron Soo
Chaodian
Chen
Huangcheng
Li
Dennis Lee
(Alternate for
Huangcheng
Li) (resigned
30 May 2022)
Ran Xu
(Appointed 1
June 2022)
Winston Lee
(Appointed 14
June 2022)
12
12
12
12
12
9
9
3
3
12
12
12
12
12
8
6
3
3
2
-
2
2
-
-
-
-
-
2
-
2
2
-
-
-
-
-
5
-
5
-
-
-
-
-
2
13
5
-
5
-
-
-
-
-
2
-
-
1
1
1
-
-
-
-
-
-
1
1
1
-
-
-
-
4
4
-
-
-
-
-
-
-
4
4
-
-
-
-
-
-
-
40 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 41
14
RReemmuunneerraattiioonn RReeppoorrtt ((aauuddiitteedd))
Remuneration Report – audited
RReemmuunneerraattiioonn RReeppoorrtt –– aauuddiitteedd ((ccoonntt..))
Remuneration Report – audited (cont.)
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
Ran Xu (Appointed 1 June 2022)
Winston Lee (Appointed 14 June 2022)
Huangcheng Li (Resigned 30 May 2022)
Executive Directors
Patrick Mutz
Executive Officers
George Sakalidis
John McEvoy
Todd Colton
Position
Non-Executive Chair
Non-Executive Director
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
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 - $598,000 per annum (from 1 July 2022) 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 between 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 six months written notice. The employee may
terminate the contract by the provision of three months’ notice.
George Sakalidis – Head of Exploration
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 $171.49 per hour inclusive of
10.5% superannuation.
Performance bonus – participates in a Group-wide executive performance incentive scheme.
The agreement may be terminated by the provision of one months written notice by either the Group or Mr Sakalidis.
John McEvoy – Chief Financial Officer
Base Salary - $412,000 per annum (from 1 July 2022) inclusive of superannuation.
Performance bonus – participates in a Group-wide executive performance incentive scheme.
The agreement may be terminated by the provision of three months written notice by either the Group or Mr McEvoy.
The Group’s policy for determining the nature and amount of emoluments of key management personnel is set out below:
Todd Colton – Chief Operating Officer
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
Base Salary - $456,000 per annum (from 1 July 2022) inclusive of superannuation.
Performance bonus – participates in a Group-wide executive performance incentive scheme.
The agreement may be terminated by the provision of three months written notice by either the Group or Mr Colton.
and others as considered appropriate to be singled out for special attention, which:
Non-Executives
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 participation in equity-based remuneration schemes after appropriate disclosure
to, due consideration by and with the approval of the Company’s shareholders.
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 2022 and the year to 31 December 2021 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
Non-Executive Directors
any Non-Executive Director.
The committee is to ensure that non-executive directors are not provided with retirement 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 thereof 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 program established for employees.
Base fees for each non-executive director during their period in office were as follows:
Robert Besley
Peter Thomas
Aaron Soo
Chaodian Chen
Ran Xu
Winston Lee
Huangcheng Li
Base Fees
per annum
$
100,000
60,000
60,000
60,000
60,000
60,000
60,000
Audit Committee Fee
$
-
6,000
6,000
-
-
-
-
Remuneration
Committee Fee
$
-
6,000
-
-
-
-
-
Fees are inclusive of superannuation where required.
15
16
42 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 43
RReemmuunneerraattiioonn RReeppoorrtt –– aauuddiitteedd ((ccoonntt..))
Remuneration Report – audited (cont.)
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 rates.
Four months’ written notice of termination 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
The principal provisions of the loan agreeme nt include:
•
•
•
•
The amount lent will be an advance equal to the issue price of the Plan Shares 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 tim e 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 the Plan Shares until the loan is fully repaid.
No Non-Executive Director (NED) options were issued during the year ended 31 December 2022.
Retirement and Superannuation Payments
NED options were issued during the year ended 31 December 2021 after shareholder approval at the Shareholder General
Meeting held on 27 May 2021.
Prescribed benefits were provided by the Company to direct ors by way of superannuation contributions 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
The purpose of the grant of these options was to provide a mid-term incentive for each NED’s continuing efforts as a Director of
contributions were made to accumulation type funds s elected by the director and accordingly actuarial assessments were not
the Company. The Directors consider that the NED options were a cost effective and efficient means to reward and align the
required.
interests of the Company’s Directors with the interest of all shareholders. To that end, the NED Options have an 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.
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. Policy requires that remuneration be set having regard to market conditions
Issue of NED options to Directors of the Company requires prior approval of Shareholders in accordance with Listing Rule 10.11.
and to encourage the continued services of key management personnel.
During the 31 December 2021 year 10,000,000 options were issued to NEDs at an exercise price of $0.32 per share and an
expiry date of 27 May 2023.
Employee Share Plan
Use of Remuneration Consultants
Executive Remuneration
During CY2022, the Company (through the Remuneration Committee) engaged BDO Remuneration and Reward (“BDO”) to
benchmark individual executive remuneration against similar positions of an appropriate group of peer companies of relative
The Image Employee Share Plan (ESP) was implemented after shareholder approval at the Shareholder General Meeting held
market cap, number of employees and number of operations, and to recommend changes to the remuneration program with
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 was considered an effective
way to align the objectives of management with the interests of shareholders.
The plan rewards share price growth. The plan shares are 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 tax
liability on issue (unlike some options) therefore encouraging 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 2022 year 17,978,563 ESP shares were issued. Of these 1,485,333 shares were issued to a Director.
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 entitlement
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, for Plan Shares to be listed for quotation on ASX.
respect to fixed remuneration, short-term incentives and long-term incentives, with the objective of ensuring executive
remuneration is market competitive while impro ving alignment with shareholder value. BDO’s approach was to recommend
remuneration program features that have already been adopted by other resources companies and deemed to align with
shareholder expectations. BDO’s key recommendations included:
•
•
•
•
•
•
the development of formal short-term incentive plan (STIP) and formal long -term incentive plan (LTIP).
measuring performance based on established key performance indicators.
establishing an appropriate peer group of companies for market comparisons of total fixed remuneration (TFR) and
total incentive opportunity (TIO).
STIP to include mix of cash and equity, with 12 -month vesting period on equity component.
LTIP vesting period to increase from one year to three years to align with longer term shareholder value, a nd
utilise the services of an independent remuneration consultant to ensure appropriate market comparisons, performance
ratings and incentive awards.
BDO’s recommendations were endorsed by the Board and have been adopted for application for the 2022- 23 Performance Year,
subject to any required shareholder approvals at the May 2023 annual general meeting of shareholders, such as for new equity
instruments.
Non-Executive Director Remuneration
The Remuneration Committee also engaged BDO to review no n-executive director (“NED”) remuneration against the same basket
of peer companies used for the executive remuneration benchmarking, and to make recommendations to improve market
competitiveness. BDO identified that NED salaries were substantially below market levels and recommended that salaries
increase, but that 30% of NED salaries be paid in equity. The Board adopted BDO’s recommendations subject to shareholder
approval for an increase of the maximum aggregate amount of directors’ fees payable as NED remuneration (“NED Fee Cap”)
and the specific equity instrument to be used. Resolutions for shareholder approval will be included in the Notice of Meeting for
the upcoming annual general meeting in May 2023 proposing an increase to the NED Fee Cap and outlining the specific equity
instruments proposed to be used for 33% of NED remuneration going forward.
17
18
44 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 45
RReemmuunneerraattiioonn RReeppoorrtt –– aauuddiitteedd ((ccoonntt..))
Remuneration Report – audited (cont.)
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 Chair)
$100,000 inclusive of super
Mr P Mutz
(Managing Director)
$598,000 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)
Mrs R Xu
(Non-Executive Director)
Mr W Lee
(Non-Executive Director)
$60,000 1
$60,000 1
$60,000 1
$60,000 1
$6,000 1
-
-
-
Note 1: No super is required to be paid as the Directors are permanent foreign residents.
Non-Executive Director remuneration for the years ended 31 December 2022 and 31 December 2021
Financial
year
Board
fees
Committee
fees
Super-
annuation
Share-based
payments
Robert Besley
Peter Thomas
Aaron Soo
Chaodian Chen
Ran Xu
Winston Lee
Huangcheng Li
Fei Wu
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2021
2022
2021
100,000
100,000
54,546
54,729
60,000
60,000
60,000
60,000
35,000
-
32,833
-
25,000
60,000
20,794
367,379
355,523
-
-
10,909
8,662
6,000
6,000
-
-
-
-
-
-
-
-
8,676
8,676
6,709
6,186
-
-
-
-
-
-
-
-
-
-
4,159
16,909
18,821
2,370
15,385
17,232
-
13,456
-
13,456
-
13,456
-
13,456
-
-
-
-
-
13,456
-
-
67,280
Notes: Huancheng Li resigned as a director on 30 May 2022
Ran Xu was appointed as a director on 1 June 2022
Winston Lee was appointed as a director on 14 June 2022
Fei Wu resigned as a director on 18 May 2021
Total
108,676
122,132
72,164
83,033
66,000
79,456
60,000
73,456
35,000
-
32,833
-
25,000
73,456
27,323
399,673
458,856
19
RReemmuunneerraattiioonn RReeppoorrtt –– aauuddiitteedd ((ccoonntt..))
Remuneration Report – audited (cont.)
Key Management Personnel Remuneration
Table 1: Remuneration for the years ended 31 December 2022 and 31 December 2021
Financial
Year
Executive Directors
Patrick Mutz
Executive Officers
John McEvoy
Todd Colton
George Sakalidis
2022
2021
2022
2021
2022
2021
2022
2021
Short-term benefits
Salary
($)
Cash
Bonus
($)
Non-
monetary
benefits 1
($)
Post
Employment
Other
($)
Super-
annuation
($)
Total
($)
529,831
185,687
482,895
148,775
45,372
44,134
-
29,182
27,784
26,219
788,674
731,205
364,335
344,879
393,110
353,568
157,771
176,222
75,000
80,133
77,000
82,280
20,594
25,998
-
-
-
-
-
-
2022
1,445,047
358,281
2021
1,357,564
337,186
45,372
44,134
-
-
-
-
-
-
-
27,555
24,824
27,500
26,042
18,321
19,770
466,890
449,836
497,610
461,890
196,686
221,990
101,160
1,949,860
29,182
96,855
1,864,921
1. Non-monetary benefits include allowances paid for travel and accommodation during the financial year.
Options Granted as Remuneration
During the 2022 financial year no options were issued to Non-Executive Directors. During the 2021 financial year
10,000,000 options (in aggregate) were issued to Non-Executive Directors. Details of the options issued are as follows:
Name
Grant date
Exercise
price per
option
Expiry date
Fair value
of options
granted
Number of
Options
Issued
Balance at
the end of
the 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
2,000,000
2,000,000
Aaron Chong Veoy Soo
Huangcheng Li 1
27 May 2021
$0.32
27 May 2023
13,456
2,000,000
2,000,000
27 May 2021
$0.32
27 May 2023
13,456
2,000,000
-
Peter Thomas
27 May 2021
$0.32
27 May 2023
13,456
2,000,000
2,000,000
Note 1: Huangcheng Li resigned as a director on 30 May 2022 and subsequently his conditional right to the options
lapsed as he ceased employment with the company, The options were subsequently cancelled.
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 Scholes
option pricing model.
Options held by Non-Executive Directors
Name
Robert Besley
Chaodian Chen
Aaron Chong Veoy Soo
Huangcheng Li
Peter Thomas
Balance at the
beginning of
the year
Exercised
Lapsed
Balance at the
end of the year
No.
No.
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
10,000,000
-
-
-
-
-
-
20
$
-
-
-
-
-
-
No.
No.
-
-
-
2,000,000
2,000,000
2,000,000
(2,000,000)
-
-
2,000,000
(2,000,000)
8,000,000
46 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 47
RReemmuunneerraattiioonn RReeppoorrtt –– aauuddiitteedd ((ccoonntt..))
Remuneration Report – audited (cont.)
AAuuddiittoorr’’ss IInnddeeppeennddeennccee DDeeccllaarraattiioonn
Auditor’s Independence Declaration
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
Expired
during the
Year
Balance at
End of Year
or Date of
Retirement
Other
Name
Non-Executive
Directors
Robert Besley
Peter Thomas
666,667
2,104,306
-
-
Aaron Soo
14,800,000
200,000
Chaodian Chen
-
-
Huangcheng Li
145,515,494
6,000,000
Winston Lee
Ran Xu
Executive
Directors
-
-
Patrick Mutz
4,149,463
Executive Officers
George Sakalidis
3,565,531
John McEvoy
Todd Colton
3,917,665
2,422,033
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,485,333
(685,190)
490,690
(315,651)
-
-
-
-
(151,515,494) 1
151,515,494 2
-
-
-
1,000,000
(564,306)
(1,749,211) 3
666,667
2,104,306
15,000,000
-
-
151,515,494
-
4,949,606
3,740,570
2,604,148
1,026,667
(560,208)
-
2,888,492
Total
177,141,159
6,000,000
4,002,690
(2,125,355)
(1,749,211)
183,469,283
Note 1: Number of shares held when director resigned on 30 May 2022.
Note 2: Number of shares held when director was appointed on 14 June 2002.
Note 3: Number of shares sold during the year.
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.
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 unrelated
persons.
This Report of Directors, incorporating the Remuneration Report, is signed in accordance with a resolution of the directors.
ROBERT BESLEY
CHAIR
Perth, 21 March 2023
Auditor's Independence Declaration
As auditor for the audit of Image Resources NL for the year ended 31 December
2022, 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
Rafay Nabeel
Director
21 March 2023
Perth
21
22
48 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 49
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 2022
FOR THE YEAR ENDED 31 DECEMBER 2022
CCoonnssoolliiddaatteedd ssttaatteemmeenntt ooff ffiinnaanncciiaall ppoossiittiioonn
As at 31 December 2022
Consolidated Statement of Financial Position
AS AT 31 DECEMBER 2022
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 financial assets measured at fair value
through other comprehensive income
Items that will not be reclassified to profit or loss
Hedging gain / (loss)
Total other comprehensive income
Total comprehensive income for the year
Year to
31 Dec
2022
($000)
Year to
31 Dec
2021
($000)
Notes
3
3
3
3
3
6
171,537
178,847
(113,880)
(115,143)
57,657
63,704
(7,790)
(16,035)
(6,385)
(5,330)
115
1,810
24,042
58
(2,539)
21,561
(6,393)
15,168
(7,944)
(20,253)
(4,986)
(3,549)
86
1,429
28,487
27
(1,192)
27,322
(7,938)
19,384
(6)
4
177
171
15,339
(475)
(471)
18,913
Net profit attributable to owners of Image Resources NL
15,168
19,384
Total comprehensive income attributable to owners of Image
Resources NL
Earnings per share
Basic earnings per share
Diluted earnings per share
The accompanying notes form part of these financial statements.
15,339
18,913
Notes
Cents
Cents
5
5
1.43
1.42
1.94
1.81
Current assets
Cash and cash equivalents
Trade and other receivables
Inventory
Other financial assets
Total current assets
Non-current assets
Property, plant and equipment
Other financial assets
Deferred tax assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Provisions
Borrowings
Income tax payable
Total current liabilities
Non-current liabilities
Trade and other payables
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.
Notes
7
8
11
9
10
9
6
12
13
14
6
13
14
6
15
16
16
31 Dec
2022
($000)
53,455
2,021
27,950
1,416
84,842
107,045
4,658
4,534
116,237
201,079
21,718
11,929
108
8,622
42,377
455
41,961
89
-
42,505
84,882
31 Dec
2021
($000)
79,840
2,318
21,739
1,745
105,642
68,962
4,629
-
73,591
179,233
19,560
1,004
148
11,093
31,805
-
35,611
172
742
36,525
68,330
116,197
110,903
127,331
18,713
(29,847)
116,197
113,999
26,764
(29,860)
110,903
23
24
50 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 51
CCoonnssoolliiddaatteedd ssttaatteemmeenntt ooff cchhaannggeess iinn eeqquuiittyy
Consolidated Statement of Changes in Equity
For the Year Ended 31 December 2022
FOR THE YEAR ENDED 31 DECEMBER 2022
CCoonnssoolliiddaatteedd ssttaatteemmeenntt ooff ccaasshh fflloowwss
Consolidated Statement of Cash Flows
For the Year Ended 31 December 2022
FOR THE YEAR ENDED 31 DECEMBER 2022
Balance at 1 January 2021
110,607
24,783
3,100
(29,860)
108,630
Issued
Capital
($000)
Profit
Reserve
Account
($000)
Other
Reserves
($000)
Accum’d
Losses
($000)
Total
($000)
-
-
-
19,384
19,384
(471)
-
(471)
19,384
-
(19,384)
-
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 declared
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
(471)
-
18
(19,877)
-
-
-
-
-
-
67
(240)
-
-
-
Total transactions with owners in their capacity
as owners
3,392
(19,877)
(155)
Balance at 31 December 2021
113,999
24,290
2,474
(29,860)
110,903
Issued
Capital
($000)
Profit
Reserve
Account
($000)
Other
Reserves
($000)
Accum’d
Losses
($000)
Total
($000)
-
15,168
15,168
-
-
15,168
15,168
-
171
-
-
(15,168)
171
(18)
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 declared
Warrants exercised during the year
Shares issued during the year
Shares cancelled during the year
Options cancelled during the year
Cost of share issue
-
-
-
-
-
-
-
15,402
(2,043)
-
(27)
(20,776)
-
-
-
-
-
-
(2,583)
-
-
(13)
-
-
-
-
-
-
-
-
-
-
18,913
18
(19,877)
67
(240)
3,916
(510)
(14)
(16,640)
171
-
15,339
(18)
(20,776)
(2,583)
15,402
(2,043)
-
(27)
-
-
-
-
-
-
13
-
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
Payments for financial derivatives
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
Dividends paid
Repayment of borrowings
Net cash used in financing activities
Net increase / (decrease) in cash held
Cash at beginning of the year
Effect of exchange fluctuations on cash held
Cash and cash equivalents at the end of the year
7
The accompanying notes form part of these financial statements.
Notes
Year to
31 Dec
2022
($000)
Year to
31 Dec
2021
($000)
173,446
190,587
(121,372)
(113,332)
58
27
(1,258)
(1,147)
60
(14,139)
36,795
-
(228)
3
(49,692)
(5,231)
84
(1,486)
74,733
(85)
-
4
(7,630)
(3,795)
(55,148)
(11,506)
3,529
(27)
996
414
(15)
512
(12,770)
(19,025)
-
(17,169)
(8,272)
(35,283)
(26,625)
79,840
240
53,455
27,944
50,761
1,135
79,840
15
14
14
Balance at 1 January 2022
113,999
24,290
2,474
(29,860)
110,903
Proceeds from employee loan repayments
Total transactions with owners in their capacity
as owners
13,332
(20,776)
(2,614)
13
(10,045)
Balance at 31 December 2022
127,331
18,682
31
(29,847)
116,197
The accompanying notes form part of these financial statements.
25
26
52 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 53
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
For the year ended 31 December 2022
Note 1 Basis of Preparation
The financial statements cover the consolidated group comprising Image Resources NL (the Company) and its subsidiaries,
together referred to as Image or the Group. The Company is a for-profit company limited by shares and incorporated in Australia,
whose shares are publicly traded on the Australian Stock Exchange. The financial statements were authorised for issue on 21
March 2023.
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
For the year ended 31 December 2022
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
These general-purpose financial statements have been prepared in accordance with Australian Accounting Standards, Australian
Group is a minerals sands production and exploration Group. Currently all the Group’s mineral sands tenements and resources
Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board (AASB) and the
are located in Western Australia.
Corporations Act 2001.
Revenue and assets by geographical region
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report
The Group's revenue is derived from sources and assets located wholly within Australia.
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 (IFRSs).
Material accounting policies adopted in the preparation of this financial report are presented below and have been consistently
Major customers
The Group currently provides products to two off-takers plus one buyer outside the primary offtake agreements.
applied unless otherwise stated.
Financial information
The financial report has been prepared on an accruals basis and is based on historical 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.
These financial statements have been prepared on the going concern 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 on forecast future cash flows.
Foreign Currency Translation
Both the functional and presentation currency of the Company is in Australian Dollars.
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 rate 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 translated 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.
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 estimates and assumptions that have a significant risk
of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are found in the
following notes:
Income Tax
Property, Plant and Equipment
Provisions
Note 6
Note 10
Note 13
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.
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.
Other Accounting Policies
Significant and other accounting policies that summarise the measurement basis used and are relevant to an understanding of
the financial statements are provided throughout the notes to the financial statements or at note 26
Reportable items required to be disclosed in this note are consistent with the information disclosed in the Statement of Profit or
Loss and Other Comprehensive Income and Statement of Financial Position and are not duplicated here.
Accounting Policy
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.
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
Year to
31 Dec
2022
($000)
Year to
31 Dec
2021
($000)
171,537
178,847
(84,230)
(33,112)
(2,461)
5,923
(77,092)
(33,362)
(5,705)
1,016
(113,880)
(115,143)
57,657
63,704
(88)
1898
1,810
247
1,182
1,429
58
27
(1,436)
(1,103)
(2,539)
(906)
(286)
(1,192)
27
28
54 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 55
Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2022Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2022
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
For the year ended 31 December 2022
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
For the year ended 31 December 2022
Note 3 Revenue and Expenses (Cont’d)
Accounting Policy
Revenue Recognition
The Group recognises revenue as follows:
Revenue from contracts with customers
Note 5
Earnings Per Share
Basic earnings per share
Diluted earnings per share
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
Reconciliation of earnings used in calculating earnings per share
estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance
Profit attributable to ordinary equity holders of the Company used in calculating basic
obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognises
and diluted earnings per share
revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods
Year to
31 Dec
2022
(Cents)
1.43
1.42
Year to
31 Dec
2021
(Cents)
1.94
1.81
($000)
($000)
15,168
19,384
Number of
shares
Number of
shares
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 extent 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. Amounts 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.
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 receive payment is established.
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)
56
51
Year to
31 Dec
2022
($000)
Year to
31 Dec
2021
($000)
Weighted average number of ordinary shares used in the calculation of basic
earnings per share
1,060,059,599
998,194,328
Weighted average number of ordinary shares used in the calculation of diluted
earnings per share
Weighted average number of ordinary shares (basic)
1,060,059,599
998,194,327
Effects of dilution from:
Warrants
Options
9,525,458
8,416,438
33,689,873
10,000,000
Weighted average number of ordinary shares (diluted)
1,078,001,495
1,041,884,200
The Company had 8,000,000 (2021: 10,000,000l) options over fully paid ordinary shares on issue at balance date.
Accounting Policy
(i)
(ii)
Basic Earnings per Share – Basic earnings per share (EPS) is determined by dividing the profit or loss from continuing
operations after related income tax expense by the weighted average number of ordinary shares outstanding during the
financial year.
Diluted Earnings per Share – Options that are considered to be dilutive are taken into consideration when calculating the
diluted earnings per share.
Year to
31 Dec
2022
($000)
Year to
31 Dec
2021
($000)
Note 6
The major components of income tax expense for the years ended 31 December 2022 and 2022 are:
Income Tax
Current income tax
Current income tax charge
Adjustments in respect of current income tax of previous years
Deferred income tax
Relating to origination and reversal of temporary differences
Adjustments in respect of deferred tax of previous years
Income tax expense in the statement of profit or loss
12,001
(332)
(5,427)
151
6,393
12,579
(1,282)
-
(4,500)
1,141
7,938
29
30
56 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 57
Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2022Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2022
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
For the year ended 31 December 2022
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
For the year ended 31 December 2022
Year to
31 Dec
2022
($000)
Year to
31 Dec
2021
($000
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
21,561
27,322
Prima facie tax on operating profit at statutory rate of 30% (2019: 30%)
Non-deductible expenses
Capital raising costs charged to equity
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
6,469
63
(10)
53
(333)
151
6,393
8,196
30
(5)
(142)
(1,282)
1,141
7,938
The Corporate tax rate payable by the Company if the Company was required to pay income tax in the year ended 31
December 2022 was 30% (31 December 2021: 30%). The deferred tax asset held on the balance sheet is calculated at the
30% income tax rate.
Deferred tax assets
Deferred tax liabilities
Net deferred tax assets / (liabilities)
12,678
(8,144)
4,534
Composition of and movements in deferred tax assets and liabilities during the year
Property, plant and equipment
Unrealised foreign exchange gains
Provisions and accruals
Capital raising costs
Mine rehabilitation
Borrowing costs
Receivables
Consumables
Inventories
Financial derivatives
Investments
Net deferred tax assets /
(liabilities)
Assets
2022
($000)
-
715
431
22
11,510
2021
($000)
-
1,284
394
113
7,074
-
-
-
-
-
-
-
-
-
-
-
-
Liabilities
Net
2022
($000)
(4,780)
2021
($000)
(6,344)
-
-
-
-
(738)
(3)
(619)
-
-
-
-
(1,476)
(4)
(532)
2022
($000)
(4,780)
715
431
22
11,510
(738)
(3)
(619)
(1,947)
(1,245)
(1,947)
(1,245)
(53)
(4)
-
(6)
(53)
(4)
-
(6)
12,678
8,865
(8,144)
(9,607)
4,534
(742)
8,865
(9,607)
(742)
2021
($000)
(6,344)
1,284
394
113
7,074
(1,476)
(4)
(532)
Accounting Policy
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 Income 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 from 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 deductions 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 are 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 measurement also reflects
the manner in which management 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 settlement 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 in future periods in which significant
amounts of deferred tax assets or liabilities are expected to be recovered or settled.
Key Estimate - Recovery of Deferred Tax Assets or Liabilities
Judgement is required in determining whether deferred tax assets or liabilities are recognised in the Consolidated Statement of
Financial Position. Deferred tax assets or liabilities, including 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 or liabilities. Estimates of future taxable income are based on forecast 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, the ability of the
Group to realise net deferred tax assets or liabilities could be impacted. Additionally, 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 or liabilities 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 jurisdiction provision’s but these are not expected to have
any material impact on the amounts as reported.
31
32
58 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 59
Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2022Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2022
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
For the year ended 31 December 2022
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
For the year ended 31 December 2022
Note 7 Cash and Cash Equivalents
Cash at bank
Deposits at call
Cash flows from operating activities reconciliation
Operating profit after income tax:
Effect of non-cash items
Income tax expense
Depreciation and amortisation expense
Exploration and evaluation expense
Profit on sale of property, plant and equipment
Realised foreign currency loss
Unrealised foreign currency (gain) / loss
Share based payments expense
Financial derivative expenses
Changes in operating assets and liabilities:
Increase in trade and other receivables relating to operating activities
Decrease in prepayments
Increase in inventory
Increase / (Decrease) in trade and other payables relating to operating activities
Increase / (Decrease) in provisions
Cash flow from operations
Recognition and Measurement
31 Dec
2022
($000)
53,439
16
53,455
31 Dec
2021
($000)
79,824
16
79,840
15,346
19,384
(7,747)
35,835
5330
(3)
1,658
(1,898)
-
(177)
255
43
(6,211)
1,051
(6,687)
36,795
6,452
39,241
3,549
(2)
(411)
(659)
67
(475)
10,957
(608)
(1,298)
(1,511)
47
74,733
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.
Note 8
Trade and Other Receivables
GST and tax refundable
Restricted cash – security for guarantees
Prepayments
Other receivables
Note 9 Other Financial Assets
Current
Loans to employees – (Employee share plan)
Loans to Key Management Personnel – (Employee share plan)
Derivatives
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
877
142
900
102
2,021
696
316
404
1,416
3,544
1,088
26
4,658
1,022
142
943
211
2,318
1,137
590
18
1,745
3,420
1,176
33
4,629
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 2021
Balance at 1 January 2020
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)
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
Year ended 31 December 2022
Balance at 1 January 2021
Additions
Mine closure and rehabilitation
asset
Asset Transfer
Disposals
Depreciation
Closing Net Book Value
At 31 December 2022
Cost
Accumulated Depreciation
14,444
726
-
10,000
(9,030)
16,140
67,655
(51,515)
20,591
5,477
-
-
-
-
28,851
5,175
23,961
(10,000)
-
4,921
-
-
-
-
(24,343)
(2,461)
155
38,578
-
-
-
-
68,962
49,956
23,961
-
-
(35,834)
26,068
23,644
2,460
38,733
107,045
26,068
85,738
21,968
38,733
240,162
-
(62,094)
(19,508)
-
(133,117)
Net Book Value
16,140
26,068
23,644
2,460
38,733
107,045
Property, plant and equipment includes the purchase of a wet concentration mineral sands processing plant and ancillary mining
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 mine closure and rehabilitation costs.
Land represents farm lots at Boonanarring and Atlas which the Group has acquired.
Borrowing costs incurred financing the senior debt facility were fully capitalised to property, plant and equipment. Depreciation
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 ore 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.
33
34
60 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 61
Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2022Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2022
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
For the year ended 31 December 2022
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
For the year ended 31 December 2022
Set out below are the leased assets carrying amounts recognised and the movements during the period.
Year ended 31 December 2021
Balance at 1 January 2021
Additions
Depreciation
Closing Net Book
Year ended 31 December 2022
Balance at 1 January 2022
Additions
Depreciation
Closing Net Book
Office
Lease
($000)
Motor
Office
Vehicles
Equipment
($000)
($000)
-
355
(79)
276
276
-
(118)
158
78
32
(76)
34
34
78
(61)
51
5
-
(5)
-
-
-
-
-
Total
($000)
83
387
(160)
310
310
78
(179)
209
Recognition and Measurement of 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.
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.
Key Estimate - Impairment of Property, Plant and Equipment and Mine Development Expenditure
Non-current assets are assessed for impairment when there is an indication 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 future cash flows (a level 3 fair value estimation
method).
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 sell 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 and 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 resources 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
Mine development costs are capitalised to property, plant and equipment only once a decision to mine is made and the
Code.
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 recoverable 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 asset is derecognised.
The assets’ residual values, useful lives and depreciation methods are reviewed at each reporting period and adjusted
prospectively, if appropriate.
Right of Use Assets
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.
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 reserves being restated.
Note 11
Current
Inventory
Ore stockpiles
Heavy mineral concentrate and other intermediate stockpiles
Stores and consumables
31 Dec
2022
($000)
3,220
22,667
2,063
27,950
31 Dec
2021
($000)
2,459
17,506
1,774
21,739
Accounting Policy
Inventories of heavy mineral concentrate are valued at the lower of weighted average 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.
35
36
62 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 63
Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2022Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2022
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
For the year ended 31 December 2022
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
For the year ended 31 December 2022
Note 12 Trade and Other Payables
Current
Trade creditors
Accruals
GST and tax payable
Dividends payable
Other payables
Non-Current
Other payables
31 Dec
2022
($000)
10,694
9,474
7
1,082
461
21,718
455
455
31 Dec
2021
($000)
10,418
8,848
209
-
85
19,560
-
-
Trade creditors, accruals, GST and tax payables and other payables are normally settled on 30 Day terms.
Accounting Policy
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.
Mine Closure and Rehabilitation
A mine closure and rehabilitation provision is recognised at the commencement 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 probable 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 are dealt with on a
prospective basis as they arise.
Employee Benefits
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
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 been measured at the amounts expected
reporting date.
Note 13 Provisions
Current
Employee leave benefits
Mine closure and rehabilitation
Non-Current
Employee leave benefits
Mine closure and rehabilitation
Movement in mine closure and rehabilitation
Balance at the beginning of the year
Increase in rehabilitation estimate
Rehabilitation activities
Unwinding of discount
1,329
10,600
11,929
58
41,903
41,961
35,579
23,961
(7,296)
259
52,503
1,004
-
1,004
32
35,579
35,611
19,720
15,663
-
196
35,579
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 rehabilitation 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 1.45% as at 31 December 2022 (31 December 2021: 0.99%) and an inflation
factor of 3.0% (31 December 2021: 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 2021: $34,523,627). 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.
to be paid when the liability is settled.
Key Estimate - 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.
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 14 Borrowings
Current
Lease liabilities
Non-Current
Lease liabilities
Total Current and Non-Current
Lease Liabilities Movement
Balance at the beginning of the year
Additions
Accretion of interest
Payments
Balance at the end of the year
Interest
Rate
(8%)
(8%)
31 Dec
2022
($000)
31 Dec
2021
($000)
108
108
89
89
197
320
79
35
(237)
197
148
148
172
172
320
105
392
22
(199)
320
37
38
Lease liabilities includes leases for motor vehicles and the office lease for three years from 1 May 2021 for Level 2, 7 Ventnor
Avenue, West Perth WA 6005.
64 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 65
Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2022Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2022
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
For the year ended 31 December 2022
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
For the year ended 31 December 2022
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.
Note 16 Reserves and Accumulated Losses
Reserves
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
Profit Reserve – Dividend
Other Reserves
depreciation, any impairment losses and adjustments for remeasurement of the lease liability. The lease liability is initially
Fair value reserve of financial assets
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.
Accounting Policy
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.
Note 15
Issued Capital
Contributed Equity – Ordinary Shares
At the beginning of the period
Warrants exercised at $0.1365 expiring 20 May 2023
Warrants exercised at $0.11385 expiring 24 May 2023
Dividend reinvestment plan shares
Employee share plan shares issued at $0.162
Employee share plan shares issued at $0.145
Employee shares cancelled
Share issue costs
Balance at the end of the period
Terms and Conditions of Contributed Equity
Year to 31 Dec 2022
Year to 31 Dec 2021
No.
($000)
No.
($000)
1,012,642,386
113,999
992,139,693
110,607
7,898,901
21,525,000
33,384,977
1,702
4,409
6,683
3,035,714
-
3,562,802
-
-
16,353,949
17,978,563
(9,236,211)
-
2,607
(2,042)
(27)
-
(2,449,772)
-
654
-
613
2,649
-
(509)
(15)
1,084,193,616
127,331
1,012,642,386
113,999
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 proxy, 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.
Accounting Policy
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.
31 Dec
2022
($000)
31 Dec
2021
($000)
18,682
24,290
10
-
265
54
(298)
31
16
18
2,848
67
(475)
2,474
Hedging reserve
Warrants reserve
Share based payments reserve
Other reserves – OCI
Closing balance
18,713
26,764
Profit Reserve Account
Balance at the beginning of the year
Current year profit
Dividend paid
Balance at the end of the year
Fair Value Reserve of Financial Assets
Balance at the beginning of the year
Changes in the fair value of equity investments
Balance at the end of the year
Hedging Reserve
Balance at the beginning of the year
Changes in hedging fair value
Balance at the end of the year
Reserve – Warrants
Balance at the beginning of the year
Exercise of warrants
Balance at the end of the year
Share Based Payments Reserve
Balance at the beginning of the period
Share based payment
Cancellation of director options
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
24,290
15,168
24,783
19,384
(20,776)
(19,877)
18,682
24,290
16
(6)
10
18
(18)
-
2,848
(2,583)
265
67
-
(13)
54
(475)
177
(298)
12
4
16
-
18
18
3,088
(240)
2,848
-
67
-
67
-
(475)
(475)
39
40
66 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 67
Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2022Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2022
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
For the year ended 31 December 2022
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
For the year ended 31 December 2022
Profit Reserve Account
The following table lists the inputs to the model used for the year ended 31 December 2018.
The profits from the years ended 31 December 2022 and 31 December 2021 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 are 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
Cancellation of director option – share based payment reversal
31 Dec
2022
No.
31 Dec
2021
No.
3,351,099
-
11,250,000
21,525,000
3,351,099
32,775,000
($000)
($000)
(29,860)
15,168
(15,168)
13
(29,860)
19,384
(19,384)
-
(29,847)
(29,860)
a) Summaries of warrants granted
The following table details the number and weighted average exercise prices (WAEP) and movements in warrants issued during
the year.
Outstanding at 1 January
Issued during the year
Exercised during the year
Number
2022
32,775,000
-
WAEP
2022
0.1216
-
Number
2021
35,810,714
-
WAEP
2020
0.1204
-
31 Dec
2018
31 Dec
2018
Tranche A
Tranche B
Dividend yield (%)
Expected volatility (%)
Risk-free interest rate (%)
Expected life of warrants (years)
Warrant exercise prices ($)
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 other
features of warrants granted were incorporated into the measurement of fair value.
Note 17 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 tenements
for the next twelve months amounts to $1,860,820.
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 are 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 regulatory 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 18 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
(29,423,901)
0.1199
(3,035,714)
0.1365
such freehold land. Unless it already has secured such rights, there can be no assurance that the Group will secure rights to
Outstanding at 31 December
3,351,099
0.1365
32,775,000
0.1216
access those portions of the Tenements encroaching freehold land.
Exercisable at 31 December
3,351,099
0.1365
32,775,000
0.1216
b) Weighted average remaining contractual life
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
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
The weighted average remaining contractual life for the warrants outstanding as at 31 December 2022 is between 0 and 1 years
aspects of the remaining areas of the project still have to be taken into consideration.
(31 December 2021: Between 1 and 2 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 2021:
$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 2021: Nil).
e) Warrants pricing model
The fair value of warrants previously granted 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.
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 19 Significant Events Subsequent to Reporting Date
There were no material significant events subsequent to the reporting date.
41
42
68 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 69
Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2022Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2022
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
For the year ended 31 December 2022
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
For the year ended 31 December 2022
Note 20 Employee Benefits
Employee Share Plan
(f) Weighted average fair value
Weighted average fair value of options granted during the year was $0.006728 (2021: $0.006728).
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
(g) Option pricing model
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
Released to employee
Number
2022
WASIP
2022
33,600,999
17,978,563
(4,919,423)
(339,976)
0.188
0.145
0.202
-
WASLP
2022
0.188
0.145
Number
2021
24,013,898
16,353,949
0.202
(4,317,076)
-
-
Cancelled during the year
(9,236,211)
0.221
0.221
(2,449,772)
Outstanding at 31 December
37,083,952
0.152
0.152
33,600,999
0.205
0.162
0.162
-
0.208
0.188
Exercisable at 31 December
19,105,389
0.159
0.159
17,247,050
0.213
0.205
0.162
0.162
-
0.208
0.188
0.213
WASIP
2021
WASLP
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.
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 2021:
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
NOTE 21 RELATED PARTY AND RELATED ENTITY TRANSACTIONS
Key Management Personnel Compensation
Short-term employee benefits
Post-employment benefits
Equity-settled share-based payments
31 Dec
2022
($000)
2,233
117
-
2,350
31 Dec
2021
($000)
2,143
114
67
2,324
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
Unexercised options will lapse prior to the expiry date if a Directors ceases to be an officer or employee of the Company.
These amounts are the costs of superannuation contributions payable for the period.
(b) Recognise share-based payment expense
Equity-settled share-based payments
The share-based payment expense for the year ended 31 December 2022 in relation the non-executive director option plan
charged to profit and loss was Nil. (31 December 2021: 67,000).
(c) Summary of options granted
Outstanding at 1 January
Issued during the year
Lapsed during the year
Outstanding at 31 December
Exercisable at 31 December
Number
2021
10,000,000
WAEP
2021
0.32
Number
2021
-
-
-
10,000,000
(2,000,000)
8,000,000
8,000,000
0.32
0.32
0.32
-
10,000,000
10,000,000
WAEP
2021
-
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 2022 is between 0 and 1
year. (31 December 2021: 1 and 2 years).
(e) Range of exercise price
The range of exercise price for options outstanding at the end of the year was $0.32 (2021: $0.32).
This amount is calculated as the fair value of the options and represents the value of the services received during the period
the options are held over the financial period. This value was calculated using the Black-Scholes option pricing model. Further
information on the share-based payment transaction is disclosed in Note 20.
Further key management personnel remuneration information has been included in the Remuneration Report section of the
Directors Report.
43
44
70 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 71
Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2022Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2022
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
For the year ended 31 December 2022
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
For the year ended 31 December 2022
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 2
($000)
Year to
31 Dec
202 1
($000)
Revenue
Concentrate Sales - Guangdong Orient Zirconic Ind Sci & Tech Co., Ltd
47,035
45,487
Expenses
Magnetic Resources NL, a George Sakalidis related party, purchase of stationary
Magnetic Resources NL, a George Sakalidis related party, vehicle hire
-
-
(1)
(2)
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
(3)
47,032
(1)
45,483
Total amounts owing to directors and/or director -related parties and related entities at 31 December 2022 were Nil (31 December
2021: $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 5.2% interest in the shares of the Company and Director
Chaodian Chen being a director of its owner Guangdong Orient Zirconic In d Sci & Tech Co., Ltd. Murray Zircon Pty Ltd is a
related party due to it holding a 21.12% interest in the shares of the Company.
NOTE 22 CONTINGENT LIABILITIES
Other than those matters disclosed in Notes 17 and 18, there are no contingent liabilities or commitments.
NOTE 23 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 financia l instruments.
Liquidity Risk
The Group manages liquidity risk by monitoring forecast cash flows, cash reserves, liquid investments, receivables, financial
liabilities and commitments.
The working capital position of the Group at 31 December 2022 and 31 December 2021 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
2022
($000)
53,315
140
1,990
27,950
(23,047)
(108)
(8,622)
51,618
31 Dec
2021
($000)
79,700
140
4,908
21,739
(20,564)
(148)
(11,093)
74,682
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 receivables.
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 other 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 (2021: $139,645) 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 information regarding the credit risk relating to cash and cash equivalents, term deposits and
restricted cash based on Standard & Poors credit ratings:
AA- rated
Financial Instrument composition and maturity analysis
The table below reflects the undiscounted contractual settlement terms for financial instruments.
31 Dec
2022
($000)
53,594
31 Dec
2021
($000)
79,980
31 December 2022
Financial Assets:
Cash and cash equivalents
Restricted cash
Trade and other receivables
Derivatives
Equity investments at fair value
Weighted
Average
Effective
Interest
Rate %
Fixed
Interest
Rate
($000)
Floating
Interest
Rate
($000)
Non-
Interest
Bearing
($000)
Total
($000)
53,439
155
1,990
405
26
53,439
155
-
-
-
-
-
1,990
405
26
53,594
3,011
56,605
-
-
-
22,173
22,173
-
198
22,173
22,371
-
-
-
-
-
-
-
198
198
Capital Risk
Total Financial Assets
0.13%
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.
Financial Liabilities:
Trade and other payables
Borrowings
Total Financial Liabilities
0.16%
45
46
Net Financial Assets
(198)
53,594
(19,162)
34,234
72 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 73
Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2022Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2022
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
For the year ended 31 December 2022
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
For the year ended 31 December 2022
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
0.07%
Financial Liabilities:
Trade and other payables
Borrowings
Total Financial Liabilities
0.18%
-
-
-
-
-
-
-
320
320
79,825
155
-
-
-
-
-
2,960
18
33
79,980
3,011
82,991
-
-
-
19,560
19,560
-
320
19,560
19,880
Net Financial Assets
(320)
79,980
(16,549)
63,111
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 2022
Trade and other payables
Borrowings
31 December 2021
Trade and other payables
Borrowings
Less than
3 months
($000)
3 to 12
Months
($000)
1 to 5
years
($000)
21,263
33
21,296
19,560
3
19,563
455
116
571
-
17
17
455
49
504
-
300
300
Total
($000)
22,173
198
22,371
19,560
320
19,880
Total
($000)
79,825
155
2,960
18
33
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 using
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) (Level 3).
Level 1
($000)
Level 2
($000)
Level 3
($000)
Total
($000)
31 December 2022
Financial Assets:
Financial assets at fair value through profit or loss:
Equity investments at fair value:
-
Listed investments
Derivatives at fair value
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
32
-
32
32
-
32
-
18
18
-
18
18
-
-
-
-
-
-
32
18
50
32
18
50
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%
-
Year to
31 Dec
2022
($000)
(1,072)
1,072
1,072
(1,072)
Year to
31 Dec
2021
($000)
(1,600)
1,600
1,600
(1,600)
47
48
74 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 75
Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2022Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2022
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
For the year ended 31 December 2022
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
For the year ended 31 December 2022
NOTE 24 HEDGING
Current assets / (liabilities)
Foreign exchange forwards
Foreign exchange options
31 Dec
2022
($000)
31 Dec
2021
($000)
-
405
405
101
(83)
18
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 accounting 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 2022
(31 December 2021: Nil) comprising the above hedging instruments. The fair value of hedging instruments is determined using
valuation techniques with inputs that are observable market data (a level 2 measurement). The valuation of the call options is
NOTE 26 OTHER ACCOUNTING POLICIES
Exploration and Evaluation Expenditure
Exploration and evaluation expenditure is accounted for differently as follows:
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 Income 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.
determined using forward foreign exchange rates at the balance date. The only unobservable input used in the calculation is the
The application of the above accounting policy requires to make certain estimates and assumptions as to future events and
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,
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 adjustments 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.
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST except where 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
while the ineffective portion is recognised in profit or loss. The ineffective portion was immaterial in the current and prior periods.
of acquisition of the asset or as part of the expense item as applicable. Receivables and payables in the Statement of Financial
Foreign exchange call options in relation to expected USD revenue, predominantly from contracted sales to 31 December 2022,
Position are shown inclusive of GST.
remain open at the reporting date. The foreign exchange call option hedges held at 31 December 2022 cover US$16.8 million
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in
of expected USD revenue at an average strike price of 70.0 cents (At 31 December.2021: US47 million of expected USD revenue
the Statement of Financial Position.
at an average strike price of 79.0 cents).
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and
Amounts recognised in equity are transferred to the income statement when the hedging instruments matures.
financing activities, which are disclosed as operating cash flows.
If the forecast transaction is no longer expected to occur, amounts previously recognised in equity are transferred to the income
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.
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.
NOTE 25 CONTROLLED ENTITIES
The consolidated financial statements incorporate the following subsidiaries:
Controlled Entities
Image Resources NL (Parent Company)
Craton Resources Pty Ltd
Titon Resources Pty Ltd
Titan-DR Resources Pty Ltd
Titan-SR Resources Pty Ltd
Country of
Incorporation
Australia
Australia
Australia
Australia
Australia
100%
100%
100%
100%
100%
100%
100%
100%
The Controlled Entities did not operate during the financial year. At 31 December 2022 no Deed of Cross Guarantee had been
entered into as they have not yet incurred any debts.
2021
2020
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 expectation of recovering part
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.
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 derivative; or (ii) designated as
such upon initial recognition where permitted. Fair value movements are recognised in profit or loss.
49
50
76 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 77
Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2022Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2022
NNootteess ttoo tthhee ccoonnssoolliiddaatteedd ffiinnaanncciiaall ssttaatteemmeennttss
For the year ended 31 December 2022
DDiirreeccttoorrss’’ DDeeccllaarraattiioonn
Directors’ Declaration
Financial assets at fair value through other comprehensive income
The directors of the Company declare that:
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 credit 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 financial 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 attributable to a default
event that is possible within the next 12 months. Where 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 loss allowance is recognised within other
comprehensive income. In all other cases, the loss allowance is recognised in profit or loss.
1.
the accompanying financial statements and notes are in accordance with the Corporations Act 2001 and:
(a)
(b)
comply with Accounting Standards and the Corporations Act 2001;
give a true and fair view of the financial position as at 31 December 2022 and performance for the year ended
on that date of the Group;
2.
3.
4.
this declaration has been made after receiving the declarations required to be made to the directors by the CEO and
CFO in accordance with section 295A of the Corporations Act 2001 for the year ended 31 December 2022;
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 and
the directors have included in the notes to the financial statements an explicit and unreserved statement of
compliance with International Financial Reporting Standards.
Fair Value
This declaration is made in accordance with a resolution of the Board of Directors.
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.
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. Impairment 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 significant 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 liability 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.
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 Australian
Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
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.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the
current financial year.
ROBERT BESLEY
CHAIR
PERTH
Dated this 21 March 2023
51
52
78 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 79
Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2022
IInnddeeppeennddeenntt AAuuddiittoorr’’ss RReeppoorrtt
Independent Auditor’s Report
IInnddeeppeennddeenntt AAuuddiittoorr’’ss RReeppoorrtt
Independent Auditor’s Report (cont.)
Provision for Rehabilitation
Refer to Note 13
Key Audit Matter
How our audit addressed the key audit matter
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 2022, 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 2022 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.
As at 31 December 2022, the Group has a
liability of $52.5 million relating
the
rehabilitation,
estimated
decommissioning and restoration relating to
areas
in
operation
Boonanarring but not yet rehabilitated.
disturbed
during
cost
to
of
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 re-measured
line with
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.
the restoration
Our audit work included, but was not restricted to, the
following:
underlying
Obtaining an Independent expert valuation report and
external
their
determination of future required activities, their timing
and associated cost estimations. We also determined the
nature and quantum of costs contained in the provision
estimate.
documentation
for
Testing
the accuracy of historical
rehabilitation provisions by comparing
expenditure.
restoration and
to actual
Assessing
the planned
restoration and demobilisation provisions
comparison to mine plans and reserves.
timing of environmental
through
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
Key Audit Matter
How our audit addressed the key audit matter
The entity has reported revenue of $171.5
million from sales of minerals.
Our audit work included, but was not restricted to, the
following:
revenue
recognition
The application of
accounting standards
is complex and
involves a number of key judgements and
estimates.
There is also a risk around the timing of
revenue recognition, particularly focused on
terms of delivery and
the contractual
location of the customers.
Based on these factors, we have identified
revenue recognition as a key risk for our
audit
considering
the appropriateness of
the
revenue
recognition accounting policies.
the
understanding
processes
significant
including performance of an end to end walkthrough of the
revenue assurance process and identifying the relevant
controls.
revenue
performing cut off procedures.
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
53
54
80 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 81
IInnddeeppeennddeenntt AAuuddiittoorr’’ss RReeppoorrtt
Independent Auditor’s Report (cont.)
IInnddeeppeennddeenntt AAuuddiittoorr’’ss RReeppoorrtt
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.
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 42 to 48 of the directors’ report for the year ended 31
December 2022.
In our opinion, the Remuneration Report of Image Resources NL for the year ended 31 December 2022 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
Rafay Nabeel
Director
21 March 2023
Perth
55
56
82 Image Resources NL | Annual Report 2022
Image Resources NL | Annual Report 2022 83
AASSXX AAddddiittiioonnaall IInnffoorrmmaattiioonn
ASX Additional Information
AASSXX AAddddiittiioonnaall IInnffoorrmmaattiioonn ((CCoonntt..))
ASX Additional Information (cont.)
Image Resources NL (ASX: IMA) provides the following information as required by the ASX Listing Rules. The information is current
Substantial shareholders:
as at 20 March 2023.
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
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
ORIENT ZIRCONIC RESOURCES (AUSTRALIA) PTY
LTD
LUMINOUS PARTNERING PTY LTD
CITICORP NOMINEES PTY LIMITED
DCL SPECIAL SITUATION FUND LP
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