ANNUAL
REPORT
2024
IMAGE RESOURCES IS
MEETING THE GLOBAL
DEMAND FOR AUSTRALIA'S
CRITICAL MINERALS
ZIRCONIUM AND TITANIUM
A Bright Future
2
Meeting Future Demand
3
Critical Minerals - Zircon
4
Critical Minerals - Ilmenite/Titanium Dioxide
6
Chairman's & Managing Director's Report
8
Review of Operation
10
Environmental, Social & Governance (ESG)
18
Mineral Resources and Ore Reserves Statement
21
Financial Report
27
Directors’ Report
28
Remuneration Report
33
ASX Additional Information
99
Corporate Directory
101
IMAGE RESOURCES
Image Resources NL is a mineral sands focused miner and
supplier of critical minerals titanium dioxide, zircon and monazite
containing rare earth elements for sale into global markets. The
Company has a demonstrated track record of successful project
development and operations at its Boonanarring project located
80km north of Perth in the infrastructure rich North Perth Basin.
Image is currently developing the Atlas project, 180km north
of Perth. In Q4 2024, the processing plant and equipment
from Boonanarring was successfully relocated to Atlas,
and construction is nearing completion. First heavy mineral
concentrate was achieved in February 2025 as part of early-
stage commissioning, and the Company anticipates returning to
production and positive cashflow in 1H 2025.
CHAPTER 1:
Transition from advanced explorer to active miner in CY2018, operating
one mine at a time, and producing a single product (HMC) sold into a
single jurisdiction (China).
CHAPTER 2:
Strategy (post Atlas) focuses on growth and sustainability and involves
the operation of multiple mines in parallel, producing multiple products
(separating HMC), and selling into a global market.
LOOKING TO THE FUTURE
ABN 57 063 977 579
IMAGE RESOURCES NL
IMAGE RESOURCES NL | ANNUAL REPORT 2024 1
1.
CT1 SPIRALS: Mineral Technologies' modular spiral plant reduces water usage and plant footprint
HIGHLIGHTS
DIVERSE, 100%-OWNED PORTFOLIO WITH
MULTI-DECADE MINE LIFE POTENTIAL
NEXT PROJECT
FUNDING
INNOVATION
A$277M
EBITDA
$20M
CLOSING CASH CY2024
30Mt
ORE RESERVES
+US$15M
YANDANOOKA PFS
COMPLETE
PREPAYMENT FUNDING
AVAILABLE
CT1 SPIRALS AT ATLAS
1ST COMMERCIAL
APPLICATION1
NEW SYNTHETIC
RUTILE PROCESS
PILOT PLANT
PLANNED FOR
CY2025
ZERO
LTIs
ZERO
TRIFR
ENVIRONMENT
SAFETY
SUSTAINABILITY
REPORT CY2023
REDUCED WATER USE
& USE OF
SOLAR POWER
Q1 2025
FIRST HMC
PRODUCTION
ATLAS MINE UNDER
CONSTRUCTION
$
2 IMAGE RESOURCES NL | ANNUAL REPORT 2024
ATLAS
5.5MT RESERVE
AT 9.2% HM AND
1:1 STRIP RATIO.
• HMC PRODUCTION
COMMENCED
Q1 2025 WITH PRODUCTION
EXTENDING TO CY2027.
• FIRST COMMERCIAL
OPERATION TO IMPLEMENT
CT1 SPIRAL TECHNOLOGY
TURNING CONCEPTS
INTO REALITY TO
MEET DEMAND
FOR CRITICAL
MINERALS.
OUR PROJECTS –
MEETING FUTURE DEMAND
ATLAS CONCEPT DESIGN
ATLAS ACTUAL BUILD
1
YANDANOOKA
PFS APRIL 2024 (DRY MINING)
- 30Mt Ore Reserves at 3.9% HM
- High quality ilmenite suitable as SR feed
PROJECT EBITDA
A$277M
3
MSP/SR
MSP PFS BEING PREPARED to include
potentially Yandanooka and Bidaminna
feed.
SR PILOT PLANT CONSTRUCTION PLANNED for
CY2025 to include novel technology with
reduced carbon footprint.
2
BIDAMINNA
PFS JUNE 2023 (DREDGE MINING)
- 123Mt Ore Reserves at 1.8% HM
- High quality ilmenite suitable as SR feed
PROJECT EBITDA
A$379M
4
MCCALLS/MINDARRA SPRINGS
(DREDGE MINING)
Longer term mine developments with
potential to provide multi decade feed for
MSP/SR processes.
5.8BT
RESOURCES
A BRIGHT
FUTURE
IMAGE RESOURCES NL | ANNUAL REPORT 2024 3
MEETING FUTURE DEMAND
CRITICAL
MINERALS
DEMAND
ZIRCON Zr02
US$3.8B
by 2032
TITANIUM DIOXIDE TiO2
US$21B
by 2032
HYPERION
HMC Resource:
2.0Mt
ATLAS
HMC Production
CY2025-CY2027 Reserve:
5.5Mt
HELENE
HMC Resource:
2.0Mt
MSP 2027:
BOONANARRING SITE
YANDANOOKA
HMC CY2026
Reserve:
30Mt
SR 2027:
BOONANARRING SITE
HMC
SHIPMENTS
ZIRCON/ZIC
SHIPMENTS
SR
SHIPMENTS
MCCALLS/MINDARRA SPRINGS
HMC CY2030
Resource:
5,800Mt
BIDAMINNA
HMC CY2028
Reserve:
109Mt
Other ENEABBA
HMC CY2028 & Beyond
Resource:
150Mt
IMAGE RESOURCES PROJECTS
PROJECT TIMELINE LEGEND
CY2025
CY2026
CY2027
CY2028
CY2030
CY2032
4 IMAGE RESOURCES NL | ANNUAL REPORT 2024
ZIRCON
BIOMEDICAL APPLICATIONS
Wear resistance and non-reactive
in the human body
NUCLEAR ENERGY
High corrosion resistance
and low neutron absorption.
AEROSPACE
Improved fuel efficiency
and operational lifespan.
ZIRCON Zr02
APPLICATIONS IN
MODERN TECHNOLOGY
• AEROSPACE: Zirconia-based ceramics
are used for thermal barrier coatings
(TBCs) on turbine blades and jet engines,
improving fuel efficiency and operational
lifespan.
• LIGHTWEIGHT CERAMIC COMPONENTS
reduce aircraft weight, enhancing fuel
efficiency.
• NUCLEAR ENERGY: Zirconium alloys are
used as fuel rod cladding in nuclear
reactors due to their high corrosion
resistance and low neutron absorption.
• BIOMEDICAL APPLICATIONS: Zirconia
ceramic dental implants and prosthetic
joints are highly biocompatible, wear-
resistant, and non-reactive in the human
body.
• 3D-PRINTED ZIRCONIA IMPLANTS
for customized bone and dental
reconstructions.
Zircon is increasingly being used in
advanced electronics, a number of renewable
energy technologies, aerospace and medical
implants.
• SOLID OXIDE FUEL CELLS (SOFCS):
Zirconia is used as an electrolyte material,
improving energy efficiency in high-
performance fuel cells.
• ZIRCONIA OXYGEN SENSORS: Used in
automotive exhaust monitoring to optimise
fuel efficiency and reduce emissions.
• OPTICAL COATINGS: Nano-zirconia
coatings improve smartphone camera
lenses by enhancing light transmission
and scratch resistance.
ZIRCON REMAINS ESSENTIAL IN TRADITIONAL
INDUSTRIES SUCH AS CERAMICS
AND REFRACTORIES.
IMAGE RESOURCES NL | ANNUAL REPORT 2024 5
ZIRCON SAND APPLICATIONS IN AEROSPACE,
BIOMEDICAL, ELECTRONICS, AND ENERGY
SECTORS ARE EXPANDING RAPIDLY.
UHT REFRACTORY MATERIALS
Applications in rocket engine nozzles
and hypersonic vehicles.
MEDICAL IMPLANTS
3D printing for bone
and dental surgery.
ELECTRONICS
& RENEWABLE ENERGY
Zirconia based solid-state battery
electrolytes are safer and more stable
than lithium-ion batteries.
LATEST TECHNOLOGICAL
DEVELOPMENTS
• RECENT ADVANCEMENTS in zircon sand
and zirconium-based materials include
• NANO-ZIRCONIA MATERIALS: Offer
superior strength and transparency,
used in high-end optical coatings,
synthetic diamonds (cubic zirconia), and
transparent ceramics for displays.
• USED AS A CERAMIC SEPARATOR in next-
generation lithium batteries, improving
safety and battery lifespan.
• 3D-PRINTED ZIRCONIA CERAMICS:
Advanced additive manufacturing (AM)
techniques enable the production of
ultra-durable, heat-resistant ceramic
components for aerospace, medical, and
electronics applications.
• ULTRA-HIGH-TEMPERATURE REFRACTORY
MATERIALS: New formulations of zirconia-
based ceramics are being developed for
extreme environments, such as rocket
engine nozzles and hypersonic vehicle
coatings.
• NEXT-GENERATION SOLID ELECTROLYTES:
Zirconia-based materials are being
researched as solid-state battery
electrolytes, offering safer and more
stable alternatives to traditional lithium-ion
batteries.
SUMMARY
While zircon sand is essential in traditional
industries like refractories and ceramics,
its applications in aerospace, biomedical,
electronics, and energy sectors are
expanding rapidly. The future of zircon-based
materials lies in nanotechnology, 3D-printed
ceramics, advanced energy storage, and
high-temperature applications, driving
innovation in high-tech manufacturing.
6 IMAGE RESOURCES NL | ANNUAL REPORT 2024
THE FUTURE OF ILMENITE LOOKS BRIGHT IN
NEXT-GEN SOLAR CELLS, ENERGY STORAGE, AND
HIGH-TEMPERATURE APPLICATIONS.
ILMENITE/
TITANIUM
DIOXIDE
ARTIFICIAL BONES, JOINTS,
AND DENTAL IMPLANTS
Highly durable and biocampatible.
HYPERSONIC AIRCRAFT
AND JET FIGHTERS
High strength, corrosion
resistance and lightweight.
LITHIUM-ION BATTERIES
NANO-TIO2 MATERIALS
Improving charge speed and
battery lifespan.
ILMENITE / TIO2
APPLICATIONS IN
MODERN TECHNOLOGY
AEROSPACE AND DEFENSE
• Titanium alloys are used in aircraft
engines, structural components, satellites,
and rocket bodies. These applications
require high strength, corrosion
resistance, and lightweight properties.
• As an ultra-high-temperature-resistant
material, titanium is also used in
hypersonic aircraft (Mach 5+), jet fighter
components (F-35), and missile thermal
protection layers.
BIOMEDICAL APPLICATIONS
• Artificial bones, joints, and dental implants
Titanium is biocompatible, non-toxic, and
highly durable for long-term implantation.
• 3D-printed titanium implants enable
custom designs for patients.
• Nano-TiO2 antibacterial materials are
used in medical coatings, face masks,
and antimicrobial textiles for improved
healthcare protection.
IMAGE RESOURCES NL | ANNUAL REPORT 2024 7
THE INTEGRATION OF ARTIFICIAL INTELLIGENCE (AI) IN
THE OPTIMISATION OF TITANIUM ALLOYS FOR BIOMEDICAL
APPLICATIONS IS REVOLUTIONISING THE FIELD.
MARINE APPLICATIONS
Corrosion resistance and light weight
makes titanium attractive in a marine
environment.
SOLAR PANELS
Titanium dioxide boosts efficiency
and is lighter and cheaper than using
traditional materials.
CLEAN AIR
Nano-TiO2 breaks down pollutants in UV
light - applied in air purification.
LATEST TECHNOLOGICAL
DEVELOPMENTS
Ilmenite is the world’s primary source of
titanium, with major applications in the
production of paints, plastics and paper but is
increasingly important in Titanium Metal form
(aerospace, defense, biomedical, energy).
ELECTRONICS AND RENEWABLE ENERGY
• Lithium-ion batteries Nano-TiO2 materials
enhance battery anode performance,
improving charge speed and lifespan
and titanium-based electrolyte coatings
improve battery cycle stability.
• Photocatalysis Nano-TiO2 breaks down
pollutants under UV light and this is
applied in air purification (smart air
conditioners, purifiers)
• Water treatment (photocatalytic
degradation of organic pollutants)
• Perovskite solar cells: Titanium dioxide
is used as an electron transport layer,
boosting efficiency in solar energy
conversion.
• Lighter and cheaper than traditional
silicon-based solar panels.
MARINE APPLICATIONS
• Ultra-corrosion-resistant properties of
titanium alloys means this material is being
increasingly used in marine applications.
SUMMARY
Ilmenite not only supports traditional
industries but also plays a key role in
advanced technology fields, particularly in
aerospace, renewable energy, biomedical,
and nanotechnology. Its future looks
promising in next-gen solar cells, energy
storage, and high-temperature applications.
8 IMAGE RESOURCES NL | ANNUAL REPORT 2024
CY2024 marked a pivotal year for Image
Resources, defined by strategic focus and
disciplined execution, and augmented by a
disciplined cash conservation program in
response to the absence of operating
revenue following the final sale of heavy
mineral concentrate (HMC) from
Boonanarring in Q4 CY2023.
While our original strategy was to transition
swiftly from Boonanarring to Atlas, permitting
delays outside the Company’s control meant
final approvals for Atlas construction were
not received until August 2024.
Despite the permitting delays, we were able
to maintain our commitment to self-fund the
construction at Atlas, consistent with the
approach outlined in our 2017 Bankable
Feasibility Study for Boonanarring and
Atlas. This was made possible by a strong
cash position of A$46.2 million at the start
of the year, and assisted by the deferral
of expenditures on secondary projects to
conserve cash.
Atlas development progressed rapidly
following receipt of construction permits
in August 2024, with completion of critical
components achieved in January 2025, in
accordance with an aggressive CY2024
budget and schedule. This paved the way for
the commencement of project
commissioning and consequent first HMC
production in February 2025, and the
forecast receipt of first Atlas revenue in
April 2025.
DEAR SHAREHOLDERS,
On behalf of the Board of Directors, we are
pleased to report that Image has successfully
navigated the challenging revenue gap that
followed completion of mining and processing
at Boonanarring and continued throughout
CY2024, without the need for equity funding
support from shareholders.
Despite unforeseen delays in final
regulatory approvals for construction at
our 100%-owned Atlas project, our project
development teams were able to rapidly
progress construction of the mine, processing
plant and supporting infrastructure in the
last four months of the year. As a result,
the Company returned to active mining in
January 2025, and commenced project
commissioning and achieved first heavy
mineral concentrate (HMC) production at
Atlas in February 2025. First HMC sales from
Atlas and a return to revenue are forecast for
April 2025.
While initial permitting for Atlas began in late
2019, the approvals process was impacted
and delayed by several unanticipated
developments in the environmental review
and permitting processes, cultural heritage
regulations, and regulatory agencies’ inability
to meet high demand for permit applications.
Despite best efforts by the Company and our
consultants, final approvals were delayed by
more than 12 months.
However, importantly, once approvals
were secured for Atlas, the team was able
to replicate the successful construction
model used at Boonanarring in 2018. Atlas
construction was completed in under six
months in accordance with the Board-
approved budget for CY2024 which included
an aggressive forecast and schedule for Atlas
development.
Subsequent to year end, Atlas commissioning
is tracking in line with the rapid ramp-up
experienced at Boonanarring. By the end of
February 2025, ore throughput had ramped
up to 80% of nameplate capacity, with heavy
mineral recovery rates exceeding 90%.
HMC produced is of high-quality, in line with
expectations.
Our strong cash position at the start of
CY2024 of $46.2 million, combined with
disciplined cash conservation measures,
enabled the self-funding of Atlas construction.
However, the delays in receipt of final
approvals for construction did lead to a
requirement for additional funding to ensure
sufficient working capital for Atlas through to
the achievement of first revenue.
While conventional debt sources for working
capital were investigated, the Company
secured more favourable terms through a
US$20 million HMC Offtake Prepayment
Facility agreement with long-standing
Chinese HMC offtake partner Shantou Natfort
Zirconium and Titanium Co., Ltd (Natfort).
US$5 million of this facility was drawn down
in late December 2024, with a further US$5
million drawn down subsequent to year end in
January 2025.
Following execution of the Prepayment
Facility with Natfort in October 2024, a
second financier was added to minimise
the risk of a single funding provider. This
resulted in 50% of the original Prepayment
Facility amount with Natfort being provided
under a separate but identical Prepayment
Facility with Billion Sunny Investment Limited
(BSI), an independent third-party financing
entity. US$10 million from BSI was received in
January 2025. The unsecured facilities carry
an interest rate of 10% and will be repaid
over a 12-month term via HMC shipments,
with notionally 25% of each shipment being
applied towards the repayment of principal
and interest.
CY2024 also saw significant progress across
Image’s growth portfolio. In April 2024, we
announced positive pre-feasibility study (PFS)
results for our 100%-owned Yandanooka
project, which was part of the Eneabba
Tenements acquisition in 2022. The PFS
added 30 million tonnes of Ore Reserves
to the Company’s development pipeline
and includes low capital costs, very low
strip ratio, 8-year mine life, and high-quality
mineral assemblage. Yandanooka has the
shortest development timeline of any project
in Image’s portfolio due to deemed lower
heritage and environmental sensitivities given
the deposit is located on active farmland. A
Bankable Feasibility Study (BFS) is underway,
subject to a land access agreement.
Our development team has also completed
an internal PFS for a mineral separation plant
(MSP) planned to be located at Boonanarring
to take advantage of the sunk capital for land
and installed infrastructure (roads, water,
power etc.). An MSP at Boonanarring could
serve as a central hub for future processing
of HMC from all of Image’s future mining
projects in its current portfolio.
CHAIR & MANAGING DIRECTOR’S REPORT
DIVERSE,
100%-OWNED
PORTFOLIO WITH
MULTI-DECADE MINE
LIFE POTENTIAL
IMAGE RESOURCES NL | ANNUAL REPORT 2024 9
An investment decision for the construction of
an MSP will be informed by planned technical
and economic investigations into the
Company’s provisionally patented synthetic
rutile (SR) production process which uses a
different furnace and hydrogen to significantly
reduce carbon dioxide emissions relative
to existing SR production technology. If
validated, this novel process could be used
for the conversion of ilmenite from Image’s
Yandanooka, Bidaminna and later projects,
into value-added SR. While research on
SR was scaled back during the year in line
with cash conservation measures, activity is
expected to accelerate in CY2025 when the
Company returns to positive cashflow from
operations at Atlas.
We are equally proud of our strong safety
and Environmental, Social and Governance
(ESG) performance. There were no lost
time injuries reported during the year
and the 12-month Total Recordable Injury
Frequency Rate (TRIFR) was zero. We
remain committed to proactive environmental
stewardship, meaningful engagement with
local communities and stakeholders, and
upholding robust corporate governance
standards. In October 2024, we published
our second annual ESG Sustainability Report,
which included continued progress towards
our renewable energy targets, underscored
by 25% of the Boonanarring project’s
electricity requirements being met by solar
energy.
Looking ahead, the Board and management
team remain optimistic about Image’s
future. With a 100%-owned project portfolio
offering multi-decade mine life potential,
all within 200km of Boonanarring, we are
well-positioned for long-term sustainable
growth. Our strategic focus is delivering on
our ‘Chapter 2’ growth and sustainability
ambitions, which focuses on operating
multiple mining and processing projects
simultaneously, the separation of HMC into
individual products to expand our global
market reach, and value-added downstream
processing through innovative and low-
carbon technologies.
On behalf of the Board, we thank our
executive team and all Image employees,
contractors, and consultants for their
dedication and hard work throughout the
year, particularly implementing a disciplined
cash conservation program and delivering
on the rapid construction and overall project
development actions at Atlas to enable the
start of commissioning early in CY2025.
Your Directors are confident that our
experienced project development and
operations teams will return the Company to
positive cash flow and profitability over the
coming year. They will continue to navigate
the challenges of future project development
opportunities, leveraging our large, diverse,
and 100%-owned project portfolio, which
provides a solid foundation for growing
shareholder value.
We also want to thank our fellow Directors for
their leadership and guidance to direct the
Company through the challenging decisions
over the past 12-months highlighted by the
transition to a new production centre at Atlas.
Finally, on behalf of the Board, management,
and employees of your Company, we want
to say ‘thank you’ to all our shareholders and
stakeholders for your continuing support.
PATRICK MUTZ
Managing Director
ROBERT BESLEY
Non-Executive Chairman
ROBERT BESLEY
Non-Executive Chairman
PATRICK MUTZ
Managing Director
AN MSP AT BOONANARRING COULD SERVE AS A CENTRAL HUB
FOR PROCESSING OF HMC FROM ALL OF IMAGE’S FUTURE MINING
PROJECTS IN ITS CURRENT PORTFOLIO.
ATLAS HMC PRODUCTION
COMMENCED Q1 2025
WITH PRODUCTION
EXTENDING TO CY2027
10 IMAGE RESOURCES NL | ANNUAL REPORT 2024
ROBOTICS
Robotics and titanium have formed a powerful partnership that has
enabled the industry to make further advances in the field.
REVIEW OF
OPERATIONS
LTIs
CY2024
ZERO
ATLAS CONSTRUCTION
ADVANCED RAPIDLY
Q4 2024
PREPAYMENT FACILITY
SECURED
US$20M
$
IMAGE RESOURCES
NL (“IMAGE” OR “THE
COMPANY”) REVIEW OF
OPERATIONS FOR CY2024.
CY2024 was a very challenging year for the
Company as it received zero revenue from
operations for the full year. Mining operations
at Boonanarring were completed in the
latter part of CY2023 with final revenue from
operations from the sale of Boonanarring
heavy mineral concentrate (“HMC”) received
in November 2023.
Image’s operational strategy, as outlined in
its 2017 Bankable Feasibility Study, was for
the self-funded development of the Atlas
project following the completion of mining
and processing at Boonanarring. And,
while the implementation of this strategy is
technically still being followed, the receipt
of final permitting for Atlas construction was
delayed by more than a year due to a variety
of factors outside of Image’s control including
regulators adjusting the review processes
and conditions for rehabilitation and land
offset requirements regarding the clearing
of Banksia Woodlands which are classified
as TECs under the Biodiversity Conservation
Act and associated regulations of 2018, the
introduction and later rescinding of the WA
Aboriginal Cultural Heritage Act 2021 and
associated regulations of 2022 which resulted
in substantial delays in conducting heritage
surveys, and the inability of regulatory
departments, esp. WA EPA, to meet their
internal timelines for the various steps in
processing mining applications, due in part to
labour shortages.
While the Company’s cash balance at 31
December 2023 was A$46.2 million and
sufficient to self-fund the construction at
Atlas, the delay in receipt of construction
permits required a disciplined cash
conservation approach throughout CY2024
to ensure Atlas construction could be so
funded. Cash conservation measures
included delaying work on secondary
projects including Bidaminna, McCalls,
mineral separation plant feasibility study,
synthetic rutile research, mineral sands and
gold project exploration, and also deferring
rehabilitation activities at Boonanarring.
The key focus areas for CY2024 were
finalising environmental permitting and
advancing construction for the Company’s
100%-owned Atlas project. A Preliminary
Feasibility Study (“PFS”) was also completed
for the Company’s 100%-owned Yandanooka
project with positive results announced 19
April 2024 (ASX: “Strong Feasibility Results -
Yandanooka Project").
Initial Atlas permitting activities commenced
in Q4 2019. Despite the Company’s and
its consultant’s best efforts to push the
permitting process, final approval for the
commencement of construction at Atlas
was not received until early August 2024.
Immediately following this date, construction
crews were mobilised to Atlas to commence
site development and construction.
Construction at Atlas advanced rapidly
from the second half of August 2024. The
Atlas accommodation camp (Nambung
Village) construction was completed in early
September. Dismantling of the Boonanarring
wet concentration plant and associated
equipment was also completed in September
in preparation for transport to Atlas.
In November 2024 the Atlas site was affected
by a major bushfire that burned on all sides
of the construction area. Thanks to the
diligent efforts of a small crew of employees
and contractors that remained on site, in
coordination with DFES personnel, to defend
against spot fires and expand fire breaks,
the initial fire burned through the area
without affecting the construction areas or
the mining camp. However, secondary fires
from changing wind directions did result in
minor damage to slurry pipelines and related
equipment.
Despite the loss of approximately a week of
construction time due to site evacuation for
the bushfire in November, upon returning
to the site, construction activities were
accelerated and plant and equipment from
Boonanarring was relocated to Atlas and
largely erected and fitted with piping and
electrical by the end of December 2024.
The Atlas development team, comprising
Image employees and the experienced team
from ProjX that managed the successful build
at Boonanarring, made tremendous progress
during November and December to make up
for the lost time from the bushfire evacuation.
The development team’s success bolstered
confidence that Image will complete its
second mineral sands project development
in accordance with the Company’s board
approved 2024 forecast and schedule.
WORKING CAPITAL
FUNDING
While the Company’s cash reserves at the
end of CY2023 were sufficient to self-fund
the construction at Atlas, the extended
permitting delays did require Image to
consider additional funding for working
capital to get to first revenue from the sale of
Atlas HMC. While conventional debt funding
was investigated, the short operating mine life
for Atlas proved to be a disqualifying factor
for such funding. However, funding on more
favourable terms than conventional debt was
secured through Image’s long-standing HMC
offtake partner Shantou Natfort Zirconium
and Titanium Co., Ltd (“Natfort”) in China
through an Offtake Prepayment Facility for
US$20 million.
While the original Prepayment Facility for
US$20 million was executed with Natfort
in October 2024, in November 2024, a
decision was made to minimise the risk to
Image of having a single funding provider,
and to allow a second fund provider (Billion
Sunny Investment Limited) to participate and
provide US$10 million (50% of the original
Prepayment Facility amount).
Drawdown of an initial US$5 million from
the Natfort Prepayment Facility occurred
in late December 2024, and the balance of
US$5 million from Natfort plus US$10 million
from the Billion Prepayment Facility were
drawndown and received subsequent to the
end of the reporting period in January 2025.
IMAGE RESOURCES NL | ANNUAL REPORT 2024 11
FIRST ATLAS SHIPMENT AND REVENUE
IMMINENT - APRIL 2025
12 IMAGE RESOURCES NL | ANNUAL REPORT 2024
STRATEGY
In contrast to Image’s Chapter 1 simple
business model of operating Boonanarring
and then Atlas as one mine at a time,
producing a single product (HMC) and
marketing the HMC to a single geographical
jurisdiction (China), the Company is
advancing studies on its other 100%-owned
projects under its Chapter 2 ambitions
which involve multiple mines operating
simultaneously, producing multiple products
including potentially synthetic rutile,
and marketing into multiple geographic
jurisdictions.
The Company published a positive Pre-
Feasibility Study (PFS) on its Yandanooka
project on 19 April 2024, and due to the
positive results, work on a Bankable
Feasibility Study (BFS) was started. However,
due to the cash conservation measures
adopted to ensure Atlas construction could
be self-funded, the BFS was put on hold.
Work is continuing to secure a mining lease
over the area and to advance negotiations
with the landholder for access for mining. The
strategic objective is for mining to commence
at Yandanooka prior to the completion of
mining at Atlas. The development timeline for
Yandanooka is anticipated to be shorter than
any of Image’s other projects due to lower
environmental and heritage sensitivities.
LOOKING FORWARD
CY2025 is shaping up to be a milestone year
with the return to mining and HMC production
at Atlas, as well as a return to positive
cash flow in the first half of the year and
the forecast repayment of the Prepayment
Facilities by the end of the calendar year
through the delivery of HMC.
A BFS for the Yandanooka project is
scheduled to be completed during CY2025
which will allow advancing the project
towards financing through a combination of
debt and cash flow generated from Atlas.
In addition, the Company is considering
plans to acquire and assemble a synthetic
rutile (“SR”) pilot or demonstration plant at
the Boonanarring site to test the Company’s
proposed novel SR production technology
which is covered by a provisional patent.
Demonstrating the technical and economic
aspects of this technology has the potential to
considerably enhance the overall economics
of the Company’s future mining operations for
decades.
CY2025 IS SHAPING
UP TO BE A
MILESTONE YEAR
WITH THE RETURN
TO MINING AND HMC
PRODUCTION AT ATLAS
IMAGE RESOURCES NL | ANNUAL REPORT 2024 13
OPERATIONS
The original operating plan published in
the 2017 Bankable Feasibility Study was
for mining and processing operations to
be relocated from Boonanarring to Atlas
following the depletion of Ore Reserves at
Boonanarring. This relocation was delayed
longer than originally planned due to delays
in receipt of environmental permitting and
other regulatory approvals for construction
and mining at Atlas.
Following receipt of all relevant approvals
in August 2024, relocation of mining and
processing equipment, and site construction
accelerated rapidly and was funded from
cash reserves. Mining at Atlas commenced
in September 2024 with first HMC production
forecast for Q1 2025 and actually achieved,
subsequent to the end of the reporting
period, on 19 February 2025.
HMC sales for Atlas are fully committed
under existing HMC offtake agreements
successfully used at Boonanarring, which
includes market-based pricing, and with a
portion of each shipment (notionally 25%)
being allocated to repaying the US$20 million
HMC Offtake Prepayment Facility.
MINERAL SANDS COMMODITY
PRICES AND FX
The Company’s HMC pricing model for
both Boonanarring and Atlas 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.
The majority of the value of Boonanarring
HMC (circa 80%) was derived from the zircon
content, whilst the value of Atlas HMC is
expected to be relatively evenly split between
zircon and titanium. Benchmark prices are
denominated in USD.
Market pricing for mineral sands (zircon,
ilmenite and rutile) remained relatively stable
throughout 2024.
• Zircon: The average benchmark price for
CY2024 was approximately US$2,050 per
tonne.
• Ilmenite: The average benchmark price in
CY2024 was approximately US$310 per
tonne.
• Rutile: The average benchmark price for
2024 was slightly above US$1,200 per
tonne.
MARKET DYNAMICS & IMPACT ON HMC
PRICING
The combination of relatively stable pricing
for zircon, ilmenite, and rutile in CY2024
contributed to a consistent valuation
environment for HMC forecast value such as
for Atlas, albeit Image did not sell any HMC
in CY2024. The Company would have also
benefited from favourable FX conditions,
supporting steady HMC forecast pricing.
The market for Image HMC remains strong,
with existing and potential new customers
expressing interest in the timing of HMC for
sale from Atlas, as well as future HMC or
separated products from Yandanooka and
proposed other Image development projects.
CORPORATE
During CY2024 the Company generated a Net
Loss of A$9.4 million compared to CY2023
Net Loss of A$4.7 million. The higher loss was
primarily due to Boonanarring being on care
and maintenance for the whole of CY2024,
whereas Boonanarring was operational for
the majority of CY2023
As at 31 December 2024, Image had a
healthy cash position of approximately A$20
million, which included A$8 million (US$5
million) December drawdown under an HMC
Offtake Prepayment Facility (2023: A$46
million and no debt) with an additional A$24
million (US$15 million) received in early
January 2025 from final drawdown under the
HMC Offtake Prepayment Facilities which
totalled US$20 million.
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 self-fund the
relocation of the mining fleet and processing
equipment and support facilities to Atlas. That
strategy and plan is still active, however, with
completion of ore processing at Boonanarring
in Q3 2023 and permitting for Atlas not
finalised until August 2024, the gap in
production between Boonanarring and Atlas
was extended beyond that anticipated in the
2017 BFS. The original strategy of operating
Boonanarring and Atlas in series and
generating a single HMC product supplied to
a single geographical jurisdiction is referred
to as ‘Chapter 1’.
“Looking to a bright future”
The current growth and sustainability strategy
under the banner of Chapter 2 expanded
on the original strategy and incorporates
the potential development of multiple
mining/processing operations operating
simultaneously, producing multiple products
through a mineral separation facility and
potentially upgrading ilmenite to SR and
expanding to a global market, subject as
always to regulatory approvals, land access
agreements where required, positive
bankable feasibilities, project funding and
final investment decisions.
In addition to the development of Atlas
under the original strategy, the new strategy
encompasses ambitions for studies and
planning for the following:
• Fast-track development of dry mining and
processing operations at 100%-owned
Yandanooka project (and later Durack and
others) in the Eneabba tenements area.
• Development of a standalone dredge
mining operation at 100%-owned
Bidaminna project.
• Development of hydraulic or dredge
mining and processing operations at
100%-owned McCalls project.
• Construction of an MSP to capture the
value-adding advantages of multiple
products (including by-products such as
monazite) and expanding the Company’s
market reach geographically, while
capitalising on the opportunity for effective
post-mining use of the land and installed
infrastructure at Boonanarring.
• Potential for the construction of an SR
production facility in the vicinity of the
MSP, for the value-adding and market-
expanding upgrading of ilmenite from
Bidaminna, Yandanooka and McCalls
to potentially lower carbon dioxide
emissions SR by using hydrogen as the
iron reductant, instead of coal as is used
in current commercial processes.
2024 IN REVIEW
14 IMAGE RESOURCES NL | ANNUAL REPORT 2024
SUSTAINABILITY
ESG & SUSTAINABILITY REPORTING
During October 2024, Image finalised
its second Annual Sustainability Report
covering CY2023. The report highlighted
the Company’s efforts to reduce water
consumption, reduce disposable wastes
and the continuation of offsetting 25% of
electricity requirements with renewal solar
electricity from the solar farm installed on
Image-owned land near Boonanarring.
VALUE-ADDING INNOVATION
Positive test results on upgrading ilmenite
have opened the door to the critical value-
adding opportunity of upgrading ilmenite from
Bidaminna, and from the Company’s other
development projects, to SR, using a novel
processing technology that has the potential
to substantially reduce carbon dioxide
emissions compared to the currently used
process technology. Importantly, the potential
for multi-decade operating life from these
projects could serve to support justification
for capital expenditure for SR production in
the event project feasibility study results are
determined to be positive.
COMMUNITY
Image continues to proudly contribute to
the local communities in which it operates,
including through local employment and
support for local community events.
MODERN SLAVERY STATEMENT
Image continues to implement initiatives
under the Modern Slavery Act. Image
completed and lodged its 3rd annual Modern
Slavery Statement for CY2023 in June 2024.
ATLAS DEVELOPMENT
The Atlas project is located approximately
170km north of Perth in the Dandaragan
Shire.
Construction of the accommodation
camp commenced in June 2024 under
a Development Application approved
by the Dandaragan Shire, as the camp
site is located outside of the Atlas project
mining lease. Construction of the camp
was completed at the end of August and
immediately occupied by construction crews.
Project construction within the mining
lease commenced in August 2024 with
construction of the site entry road and the
clearing of vegetation following receipt
of final construction permits, and quickly
advanced to topsoil stripping at the mine and
civil construction for the processing plant
including concrete pads. Construction was
accelerated during the December quarter
following receipt of the final regulatory
permissions for mine development and
project operations, being approval of the
Groundwater Operating Strategy and grant of
5C water licences in October 2024.
In late November 2024, a massive, out
of control bushfire burned through the
Atlas project area requiring evacuation
of construction crews and resulting in the
loss of a week of construction activities
due to Department of Fire and Emergency
Services (DFES) mandated site evacuation.
Fortunately, thanks to the superb efforts
of a small crew of Image personnel and
contractors with firefighting and heavy
equipment operations experience, in
coordination with DFES personnel, the
accommodations camp and construction
areas were protected from major fire damage.
Minor amounts of piping, related fittings, and
pipeline assembly equipment were damaged
from secondary fires fuelled by strong winds.
Following the passing of the initial front of the
bushfire, Image provided accommodation to
DFES personnel who remained in the area
battling the fire as it continued towards the
town of Cervantes.
Following the return of construction crews
and Image personnel to the Atlas site in early
December, construction progressed rapidly
throughout the month, including the delivery
and erection of the plant and equipment from
Boonanarring and substantial progress on
configuration of piping and electrical supply.
Construction progress during Q4 2024
served to renew confidence in achieving the
forecast goal of early-stage commissioning
and first HMC production before the end of
March 2025.
With the forecast return to HMC production
and positive cashflow in Q2 2025, the
Company will be investigating potential for
regulatory approvals for mining the northern
half of the Atlas deposit which extends to
the north of the current approved mining
footprint as well as the potential for regulatory
approvals and any required land access
agreements for mining and HMC production
from Image’s Helene and Hyperion projects
located northwest of Atlas.
YANDANOOKA PFS
Image’s 100%-owned Yandanooka mineral
sands project is located approximately 300
km north of Perth in the infrastructure-rich
North Perth Basin in Western Australia.
During Q2 2024, the Company completed
a PFS for Yandanooka (ASX: 19 April 2024:
Strong Feasibility Results Yandanooka
Project). Yandanooka has an expected
shorter development timeline than the
Company’s other projects, including
Bidaminna, McCalls and Mindarra Springs,
due to lower-level environmental sensitivities
and minimal heritage considerations as it is
located on private farmland.
Project economics are based on an initial
8-year mine life at a processing rate of 420
tph rougher head feed. The throughput
rate was determined based on the existing
Boonanarring WCP capability (using the
available spirals and quantities for each spiral
stage).
Yandanooka PFS Highlights include:
• Pre-tax NPV8: A$151 million
• Pre-tax IRR8: 72%
• Initial Development Capital: A$50.3 million
• Capital payback (post first revenue): 15
months
• Project EBITDA: A$277 million
• Forecast mine-life: 8.2 years
• Total HMC production: 1.04 Mt
Based on the positive results of the PFS,
this study is being upgraded to BFS
standard based on the same development
methodology as used for the successful
Boonanarring project. However, given
components of the Boonanarring plant
have been relocated to Atlas, the initial
Yandanooka development capital in the PFS
is expected to increase by approximately
$22 million for replacement equipment, and
will be captured in the BFS anticipated to be
completed in CY2025, pending finalisation of
a land access agreement.
BIDAMINNA PRE-DEVELOPMENT
The Bidaminna Project is a mineral sands
deposit located in the Mid-West region of
Western Australia, approximately 120 km
north-northwest of Perth in the Shire of
Gingin. Results on the Bidaminna PFS were
announced in June 2023 (ASX: 27 June 2023:
PFS Results - Bidaminna Mineral Sands
Project). The PFS was based on inaugural
Ore Reserves of 123Mt at 1.8% HM with
4% slimes, 4% oversize, 93% VHM and
85% of the HM as high-quality ilmenite and
leucoxene suitable as synthetic rutile (“SR”)
feedstock (refer Table 2).
Results of the PFS were positive, with select
highlights of pre-tax NPV8 of A$192 million,
pre-tax IRR8 of 28%, project EBITDA of
A$379 million for a 10.5-year mine life and
3.8-year capital payback period. Project
revenue in the Bidaminna PFS was based
on producing and using a simple business
model of selling an HMC product, and
therefore excludes any potential value-adding
from mineral separation and upgrading of
ilmenite to SR.
Based on the positive PFS results, this study
is being upgraded to a BFS. However, in an
effort to conserve cash for the development
of Atlas, work on the Bidaminna BFS was
curtailed for the entirety of CY2024. The BFS
will be based on a number of optimisation
steps as well as an updated Mineral
Resources Estimate (MRE) which will build on
the latest MRE announced in February 2023
(ASX: 28 February 2023: Mineral Resources
Update Bidaminna Project) with total Mineral
Resources of 109 million tonnes at 2.5% HM.
The Bidaminna deposit is located on Crown
land in the vicinity of the Moore River and
is overlain by areas of Banksia Woodlands
and project development is subject to
environmental permitting, potential land offset
requirements and regulatory approval risks.
IMAGE RESOURCES NL | ANNUAL REPORT 2024 15
VALUE ADDING SR INNOVATION
Positive test results on upgrading Bidaminna
ilmenite to synthetic rutile (SR), published
in August 2023, opened the door to
the potentially significant value-adding
opportunity of upgrading ilmenite from
Yandanooka, Bidaminna, McCalls, and
Mindarra Springs. Importantly, the potential
for multi-decade operating life from these
projects could serve to support justification
for capital expenditure for a commercial
SR processing plant, provided pilot-scale
and/or demonstration-scale test results
are determined to be technically and
economically viable and future feasibility
study results are deemed to be positive.
An original provisional patent was filed
in Q4 2023 on a novel SR production
process and ongoing literature research
and concept study for a potential SR
production facility continued on a limited
basis during CY2024. This novel process
is designed to have a significantly reduced
carbon footprint compared to existing SR
production technology. As a result of the cash
conservation measure adopted to ensure
Atlas construction is fully funded, research
to demonstrate the provisionally patented
process could not be completed and the
patent expired after 12-months. A provisional
patent was refiled in Q4 2024. The Company
is considering a second patent application for
different feedstocks for this novel process.
A specialist, innovative technology
development consultant was engaged
in CY2024 to conduct an SR production
scoping study. Initial work, based on
first principles, indicates the process is
potentially feasible both technically and
economically and that the process could
add significant economic benefits to Image’s
projects with HMC production. However
additional testing work must be completed
to confirm certain assumptions regarding
hydrogen consumption and costs, as well as
hydrochloric acid recycle metrics.
The Company is investigating opportunities
for funding support for a pilot and/or
demonstration scale testing facility for this
novel SR process. An initial grant application
in CY2024 targeting up to 50% support for
a demonstration plant was unsuccessful.
Alternative funding support avenues are
being sought.
EXPLORATION
The Company’s exploration portfolio is
primarily focused on mineral sands, with the
exception of two exploration licenses and
two prospecting licenses, located southeast
of Kalgoorlie, which make up the Erayinia/
King Gold Project. (see Table 1 – Tenement
Schedule). All tenements are located in
Western Australia, and all mineral sands
related tenements are located in the North
Perth Basin, across a combined area of 1,516
square kilometers. With the expansion of the
Company’s minerals sands portfolio through
the strategic acquisitions of the Eneabba
Tenements and McCalls Project in CY2022,
the North Perth Basin tenements now
consist of 23 named project areas, each with
identified Mineral Resources.
In April 2024, the Company provided an initial
Ore Reserve estimate for the Yandanooka
project. Highlights included:
• 30 million tonnes of Probable Ore
Reserves at 3.9% total heavy minerals
(“HM”)
• Mineralisation from the surface with an
average waste-to-ore strip ratio of 0.1:1
• 90.5% valuable heavy minerals ("VHM") in
HM
• High-value mineral assemblage with 14%
zircon, 3.3% rutile, 27% leucoxene, 46%
ilmenite, and 0.19% monazite in HM
The Company has several drilling programs
planned, in both greenfields exploration and
resource development, but is waiting on the
Company’s return to positive cashflow at Atlas
prior to execution. These include:
• 290 holes for approximately 20,000m at
the Bidaminna project planned to upgrade
all material inside the proposed dredge
mining pond limits to Measured Resources
as defined by the JORC Code 2012;
• exploration drilling west of Yandanooka on
the recently granted E70/6549;
• phase-two exploration at the south end of
Woolka on E70/4244; and
• deeper target drilling at Erayinia/King gold
project in the Eastern Goldfields.
IMAGE HAS SEVERAL DRILLING PROGRAMS PLANNED, IN BOTH
GREENFIELDS EXPLORATION AND RESOURCE DEVELOPMENT.
16 IMAGE RESOURCES NL | ANNUAL REPORT 2024
RISK
RESIDUAL
RISK RATING
DESCRIPTION
1.
APPROVALS,
LICENSES AND
PERMITS:
VERY HIGH
The Company will require certain licenses, permits and approvals to develop the Atlas Project (subsequent
to the risk review Atlas approvals were received in Q3 2024) and other projects. The duration and success of
efforts to obtain approvals and permits or secure land access to privately-owned land are contingent upon
many variables, some of which are outside the Company’s control. Failure to obtain, or delays in obtaining
such licenses, permits and land access may adversely affect the Company’s ability to proceed with proposed
project developments.
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 addresses these risks by ensuring employees have the skills and disciplines and/or engage
appropriate consultants and contractors to establish relationships and follow and implement the approval
processes directed at ensuring all contingencies are adequately addressed.
2.
FINANCIAL
STABILITY AND
FUNDING:
VERY HIGH
Boonanarring reached the end of operations and requires significant expenditure (~A$50m provision) for mine
rehabilitation. During 2H 2024 the Company advanced the development of the Atlas Project and incurred
significant capital expenditure from cash reserves. As at 31 December 2024, Image had cash on hand of
$19.9 million and subsequent to the end of the reporting period, in January 2025, US$15 million (A$24 million),
being the remaining funds available from a US$20 million HMC offtake prepayment facility, was drawn down.
Significant funds are required to finalise the remaining construction requirements for Atlas, for working capital
at Atlas to achieve first revenue, other project studies and pre-development expenditures, general corporate
and exploration expenditures, as well as Boonanarring rehabilitation. There is no certainty that the Company
will be able to generate sufficient funds from operations in the future to meet these requirements. 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.
Since 2018, the Company has built a track record of raising funds when required for project development and
of successfully managing its project development activities and to generate internal cashflows from operations
to sustain the business. That track record has been maintained with the execution of US$20 million HMC
Offtake Prepayment Facility which was subsequently drawn down in December 2024 and January 2025.
3.
COUNTERPARTY
RISK (OFFTAKE
CONTRACTS):
HIGH
The Company currently has an offtake contract in place for 100% of HMC product with delivery split between
two purchasers. If one, or both purchasers breaches or otherwise fails to honour its contractual commitments,
any such breach or failure could materially adversely impact the Company’s financial results and performance.
There is also the risk Image may not be able to find alternative purchasers for its products in a timely fashion
and/or at favourable market pricing.
The Company has established positive working relationships with its existing HMC purchaser’s and at the
same time is looking to develop new markets for the underlying products contained in HMC. In addition, the
Company regularly receives requests from potential new buyers seeking to acquire Image’s HMC.
BUSINESS RISKS
The Company completed a new formal and externally supported risk review in
Q2 2024 and thus the risks below were rated before the receipt of final approvals
for Atlas. The commentary below has been updated by management to reflect
changes since the formal risk review was undertaken.
The risk review is expected to be updated through a formal review by the end of
Q2 2025 to reflect the completion of construction and commissioning of the Atlas
Project.
The risks and uncertainties described below represent the most significant but
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 future development 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:
IMAGE RESOURCES NL | ANNUAL REPORT 2024 17
RISK
RESIDUAL
RISK RATING
DESCRIPTION
4.
OPERATIONAL
RISKS INCLUDING
HEALTH, SAFETY
& WELLBEING
OF STAFF,
CONTRACTORS,
AND VISITORS:
HIGH
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 including fatalities; (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 business or operating conditions.
Open cut mining, plant refurbishment and exploration activities present inherent risks of injury to people and
damage to equipment.
Adverse 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 policies, procedures and processes, a strong safety culture, and robust
training programs.
5.
ORE RESERVES –
DEPLETION AND
REPLACEMENT:
HIGH
Once mining on a project commences, the Ore Reserves are gradually depleted. The ability of the Company
to replace the Ore Reserves with new Ore Reserves of appropriate 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 100%-owned, undeveloped mineral sands projects and has expanded its
development team to meet the requirements of technical and economic studies to facilitate independent 3rd
party confirmation of feasibility studies. Combined with strong relationships with experienced consultants, the
Company is confident that it has the capability to progress development of these projects, as it has previously
demonstrated with the Boonanarring project and is currently demonstrating at the Atlas project.
6.
EMPLOYEE
ATTRACTION AND
RETENTION:
HIGH
The labour market in Western Australia for experienced employees is competitive, particularly in the mining
industry which includes engineering, geology, operations, maintenance and more. 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 near-
term project developments and growth ambitions. This risk has been increased by a requirement to transition
from a daily commute style operation at Boonanarring to the requirement for onsite accommodation at Atlas
and resulting in increased risk of attracting and retaining key personnel due to the restrictions of a mining
camp environment.
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 work performance and an
Incentive Awards Plan (available to all employees). The Company retained a number of key personnel at
Boonanarring who have successfully transitioned to Atlas and have helped build the new Atlas operating
team.
7.
MAJOR
SHAREHOLDER
RELATIONS:
HIGH
Misalignment between the Company’s Board/management and major shareholders could result in the
Company, as currently structured, being unable to deliver on its operational and growth plans and thus failing
to deliver on overall shareholder expectations.
The Company focuses on maintaining a strong relationship with existing major shareholders and actively
monitors the structure of its share register, including maintaining regular contact with all shareholders through
its ASX announcements, investor presentations, quarterly and annual reports, annual general meetings and
direct communications with any shareholders that seek information from the Board or Management.
Other key risks identified, with current residual risk ratings of medium, which could result in significant impact
on the Company include geopolitical landscape, community relations including with Traditional Owners,
community activism, corporate governance issues, legal issues, maintaining a social license to operate and
supply chain interruption.
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
strategies addressing climate change and transition to a low carbon economy may materially impact financial
results in future reporting periods; as well as risks imposed upon the Company by legislation.
18 IMAGE RESOURCES NL | ANNUAL REPORT 2024
SUNSCREEN
Titanium dioxide is utilised as a physical sunscreen
due to its capability to absorb UV radiation.
SUSTAINABILITY
IS BEHIND EVERY
DECISION WE MAKE
ENVIRONMENTAL,
SOCIAL & GOVERNANCE
OF ATLAS WORKFORCE
from local communities
19%
CT1 SPIRALS AT ATLAS
Reduced water use
INNOVATION
OF POWER GENERATED
FROM SOLAR
for previous mine
25%
ASSISTED DFES WITH
MAJOR BUSHFIRE
threatening communities including
free camp accommodation
IMAGE RESOURCES NL | ANNUAL REPORT 2024 19
SUSTAINABILITY FRAMEWORK
PEOPLE & WELLBEING
Championing an inclusive and diverse workforce and
prioritising the health, safety and wellbeing of our people.
INNOVATION & RESPONSIBLE BUSINESS
Achieving strategic goals
through innovation and technology underpinned by the
principles of good governance, ethics and integrity.
COMMUNITIES & SOCIAL PERFORMANCE
Working with communities and stakeholders to build
genuine relationships that protect human rights and
deliver sustainable, economic and social benefits.
ENVIRONMENTAL STEWARDSHIP
Committing to the responsible stewardship of environmental
management and natural resources for current and future
generations.
ESG
COMMITMENTS
& REPORTING
ESG REPORTING FRAMEWORK
Image previously engaged BDO Advisory
(WA) (BDO) through its Sustainability
Activation Program to provide support for
the development an appropriate strategy,
data collection protocols and reporting
framework, leading to the adoption of a formal
ESG program. 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.
Image released its inaugural Sustainability
Report covering the period CY2019-2022 in
Q2 2023 and its 2nd Sustainability Report in
Q4 2024.
SAFETY
Image recorded no lost-time injuries (“LTI”)
during calendar year 2024 (2023: 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 2024 was
0 per million hours worked, representing a
significant improvement compared to the
12-month rolling average TRIFR of 3.0 at the
end of December 2023. This is particularly
commendable given the latter part of
CY2024 included dismantling of plant at
Boonanarring, transport and construction at
Atlas.
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.
IMAGE MAINTAINS ITS
PROACTIVE PROMOTION
OF A POSITIVE SAFETY
CULTURE WHICH INCLUDES
SAFETY PROGRAMS
AND PROCEDURES THAT
ENCOURAGE JOB SAFETY.
20 IMAGE RESOURCES NL | ANNUAL REPORT 2024
COMMUNITY
Image continues to proudly contribute to
the local community, including through local
employment. At the time of completion of
processing at Boonanarring approximately
46% of the workforce lived locally to the
operation or within local regional shires.
The move to the more remote site at Atlas
has required the construction of a camp
at Nambung to accommodate staff which
has naturally reduced the percentage of
local employees. At the end of CY2024
approximately 19% of Image workforce lived
locally to an operation or with local regional
shires.
Image 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. In November 2024 the Company
provided free camp accommodation and
access to water to DFES personnel fighting
fires that threatened Nambung Station and
Cervantes. The Company also supports
numerous local community and charitable
groups such as Lions Institute 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 Atlas construction and future
development projects at Yandanooka and
Bidaminna projects, including providing
employment opportunities for members of
the Yued and Yamatji community groups
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.
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 Company has previously 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.
Solar power provided approximately 25%
of the power requirements for the life of the
Boonanarring operation supports Image
Resources green credentials and positions
the Company as one of the first mining
companies in Australia to have directly
utilised renewable solar energy.
Image has already commenced rehabilitation
at Boonanarring with approximately 85
hectares rehabilitated and re-vegetated to
date. With the priority being the development
and construction at Atlas, rehabilitation at
Boonanarring was paused in CY2024. Test-
work on different methods for returning waste
material to the voids efficiently and effectively
is planned for CY2025.
MODERN SLAVERY
STATEMENT
Image continues to implement initiatives
under the Modern Slavery Act. While the
Company’s principal suppliers (Tier 1) are
largely long-standing Australian-based
companies, questionnaires continue to be
rolled out to all Tier 1 suppliers to gauge each
supplier’s potential to potentially harbour
modern slavery practices. Fit-for-purpose
software is also being used to help automate
questionnaires mailings to Tier 2 and Tier
3 suppliers. This is a challenging area to
manage, and results have been mixed. None-
the-less, the process is continuing. Image
completed and lodged its 3rd annual Modern
Slavery Statement for CY2023 in June 2024.
The report can be viewed on the Modern
Slavery Register published by the Australian
Attorney’s General Department or it can be
viewed on Image’s website.
IMAGE CONTINUES TO
IMPLEMENT INITIATIVES
UNDER THE MODERN
SLAVERY ACT.
IMAGE HAS AN
ACTIVE AND VARIED
COMMUNITY SUPPORT
AND ENGAGEMENT
PROGRAM.
IMAGE RESOURCES NL | ANNUAL REPORT 2024 21
AEROSPACE
Improved fuel efficiency
and operational lifespan.
23% INCREASE IN
HEAVY MINERAL ORE
RESERVES IN CY2024
MINERAL RESOURCES
& ORE RESERVES
STATEMENT
ORE RESERVES
There has been a substantial
increase in the Company’s heavy
mineral Ore Reserves during
CY2024. A maiden Ore Reserves
estimate was declared for the
Company’s Yandanooka project in
April 2024 (Refer to 19 April 2024
ASX release “Strong Feasibility
Results – Yandanooka Project” for
further information). The current
Ore Reserves estimate at the
Atlas project remains unchanged
from 31 December 2023. As at 31
December 2024 the Company’s
Proved and Probable Ore Reserves
total 159Mt @ 2.5% HM for 3.87Mt of
contained HM (Table 1).
TOTAL RESOURCES
6Bt
TOTAL RESERVES
increased 23% on 2023
159Mt
22 IMAGE RESOURCES NL | ANNUAL REPORT 2024
ORE RESERVES
TABLE 1: Ore Reserves; in accordance with the JORC Code (2012) – as at 31 December 2024
Project / Deposit
Ore Reserve
Category
Tonnes
(million)
In-situ
HM
Tonnes
(millions)
Total HM
grade
(%)
HM Assemblage (% of total HM)
Slimes
(%)
Oversize
(%)
Zircon
Rutile
Leuc.
Ilmenite
Monazite
Bidaminna1
Probable
123
2.20
1.8
5.0
4.1
12.6
72
0.3
4.0
4.0
Sub Total
123
2.20
1.8
5.0
4.1
12.6
72
0.3
4.0
4.0
Atlas2
Proved
4.5
0.48
10.6
12.0
8.0
4.9
54
1.1
15
4.6
Probable
0.9
0.02
2.1
8.1
5.2
4.7
29
0.8
15
8.1
Sub Total
5.5
0.50
9.2
11.9
7.9
4.9
53
1.1
15
5.2
Yandanooka3
Probable
30.0
1.17
3.9
14.0
3.3
27.0
46
0.2
15
14
Sub Total
30.0
1.17
3.9
14.0
3.3
27.0
46
0.2
15
14
Total Ore Reserves
159
3.87
2.5
8.6
4.3
16.0
62
0.4
6.5
5.9
1
Bidaminna Ore Reserves refer to 27 June 2023 ASX release “Pre-Feasibility Study Results, Bidaminna Mineral Sands Project”.
2
Atlas Ore Reserves refer to 21 December 2022 ASX release “Revised Announcement – Atlas Project Ore Reserves Update”.
3
Yandanooka Ore Reserves refer to the 19 April 2024 release “Strong Feasibility Results – Yandanooka Project”
Changes to the Company’s Ore Reserves estimate at Yandanooka are material and arise from significant technical work carried out on the deposit
during the period including a detailed economic evaluation under a pre-feasibility study (PFS). The PFS confirmed the economic viability of a dry
mining operation (Refer to 19 April 2024 ASX release “Strong Feasibility Results, Yandanooka Project”). The PFS included a maiden Ore Reserves
estimate of 30Mt @3.9% HM of probable Ore Reserves which added substantially to the Company’s overall Ore Reserves Statement (Tables 1 & 2).
The Company’s Ore Reserves estimate at Atlas has not changed since 31 December 2023 (Tables 1 & 2).
No mining has occurred during the calendar year of 2024.
TABLE 2: Comparative Ore Reserves; in accordance with JORC Code (2012)
Project / Deposit
Tonnes
(million)
In-situ
HM
Tonnes
(millions)
Total HM
grade
(%)
HM Assemblage (% of total HM)
Slimes
(%)
Oversize
(%)
Zircon
Rutile
Leuc.
Ilmenite
Monazite
As at 31 Dec 2023
Bidaminna
123.0
2.20
1.8
5.0
4.1
12.6
72
0.3
4
4.0
Atlas
5.5
0.50
9.2
12.0
7.9
4.9
53
1.1
15
5.2
Total Ore Reserves
128.5
2.70
2.1
6.3
4.8
11.2
68.5
0.4
4.5
4.1
As at 31 Dec 2024
Yandanooka
30.0
1.2
3.9
14.0
3.3
27.0
46.0
0.2
15.0
14.0
Bidaminna
123
2.20
1.8
5.0
4.1
12.6
72
0.3
4.0
4.0
Atlas
5.5
0.50
9.2
11.9
7.9
4.9
53
1.1
15
5.2
Total Ore Reserves
159
3.87
2.5
8.6
4.3
16.0
62
0.4
6.5
3.3
IMAGE RESOURCES NL | ANNUAL REPORT 2024 23
MINERAL RESOURCES
There have only been minor changes to The Company’s Mineral Resources estimates since 31 December 2023. The Company holds a 100%
interest in 23 separate heavy mineral sands deposits across the North Perth Basin, each with a supporting Mineral Resources estimate in
accordance with the JORC Code 2012. The only change to the Company’s Mineral Resources estimates was the update to Yandanooka.
The Yandanooka model was updated with additional drill hole data and composite mineral assemblage data. There was also a quantitative
investigation of in situ dry density carried out to validate estimated tonnages. The updated Mineral Resource Estimate contains slightly less
material tonnes at a slightly higher HM grade for the same HM tonnes. The updated model also has as a slightly higher zircon grade in the mineral
assemblage.
The total combined Mineral Resources estimates as at 31 December 2024 were 6.4Bt @ 1.6% HM for 101Mt of contained HM (Table 3).
TABLE 3: Mineral Resources – Dry and Dredge Mining Deposits; in accordance with the JORC Code (2012) - as at 31 December 2024
Deposit
Mineral
Resource
Category
Cut-off
(total
HM%)
Tonnes
(million)
In-situ HM
Tonnes
(millions)
Total HM
grade
(%)
HM Assemblage (% of total HM)
Slimes
(%)
Oversize
(%)
Zircon
Rutile
Leuc.
Ilmenite Monazite
Dry Mining
Atlas *
Measured
2.0
7.1
0.6
9.0
10.7
7.5
5.1
51
0.9
15
4.6
Indicated
2.0
5.0
0.2
3.5
7.0
4.7
5.1
42
1.0
16
4.6
Inferred
2.0
5.2
0.2
3.3
9.1
4.4
4.8
54
1.6
14
2.7
Meas Ind
and Inf
2.0
17.3
1.0
5.7
9.8
6.5
5.1
49
1.1
15
4.0
Boonanarring
North West
Indicated
2.0
3.1
0.2
5.1
9.6
6.8
30
35
11
1.2
Inferred
2.0
1.2
0.1
5.0
8.3
7.4
36
27
10
0.8
Ind and Inf
2.0
4.3
0.2
5.1
9.2
6.9
32
33
11
1.1
Boonanarring
North
Extension
Indicated
2.0
2.5
0.3
11.8
16.4
2.7
11.5
41
17
7.1
Inferred
2.0
0.2
0.0
4.7
16.0
2.5
10.7
39
17
8.4
Ind and Inf
2.0
2.7
0.3
11.2
16.4
2.7
11.5
41
17
7.2
Gingin South
Measured
2.5
1.5
0.1
4.4
7.8
5.6
15.3
51
7
0.0
Indicated
2.5
5.8
0.4
6.5
8.1
5.1
9.8
68
7
11.0
Inferred
2.5
0.7
0.0
6.5
10.9
5.8
7.5
67
8
8.7
Meas Ind
and Inf
2.5
8.1
0.5
6.1
8.3
5.2
10.3
65
7
8.7
Regans Ford
Indicated
4.0
9.0
0.9
9.9
10.0
4.3
10.0
70
17
0.0
Inferred
4.0
0.9
0.1
6.5
10.1
4.4
7.7
68
19
0.0
Ind and Inf
4.0
9.9
1.0
9.6
10.0
4.3
9.8
70
17
0.0
Red Gully
Indicated
2.5
3.4
0.3
7.8
12.4
3.1
8.3
66
12
1.1
Inferred
2.5
2.6
0.2
7.5
12.4
3.1
8.3
66
11
1.1
Ind and Inf
2.5
6.0
0.5
7.7
12.4
3.1
8.3
66
11
1.1
Gingin North
Indicated
2.0
6.6
0.3
4.7
7.2
4.5
14.8
50
16
4.5
Inferred
2.0
2.0
0.1
4.7
5.5
5.4
23.2
41
13
5.3
Ind and Inf
2.0
8.7
0.4
4.7
6.8
4.7
16.8
48
15
4.7
Helene
Indicated
2.0
12.1
0.6
4.9
7.4
5.1
14.4
47
18
1.4
Inferred
2.0
1.0
0.0
4.0
7.5
5.7
16.1
45
15
1.1
Ind and Inf
2.0
13.1
0.6
4.8
7.4
5.2
14.5
47
18
1.4
Hyperion
Indicated
2.0
3.6
0.3
8.3
8.0
6.7
8.1
36
19
2.6
Inferred
2.0
0.0
0.0
5.9
7.3
5.0
4.9
31
17
4.3
Ind and Inf
2.0
3.6
0.3
8.3
8.0
6.7
8.1
36
19
2.6
24 IMAGE RESOURCES NL | ANNUAL REPORT 2024
TABLE 3: Mineral Resources – Dry and Dredge Mining Deposits; in accordance with the JORC Code (2012) - as at 31 December 2024
Deposit
Mineral
Resource
Category
Cut-off
(total
HM%)
Tonnes
(million)
In-situ HM
Tonnes
(millions)
Total HM
grade
(%)
HM Assemblage (% of total HM)
Slimes
(%)
Oversize
(%)
Zircon
Rutile
Leuc.
Ilmenite Monazite
Dry Mining
Drummond
Crossing
Indicated
1.4
35.5
0.8
2.4
14.1
10.3
3.4
53
14
7.7
Inferred
1.4
3.3
0.1
2.3
11.2
9.0
2.7
56
12
7.2
Ind and Inf
1.4
38.8
0.9
2.4
13.9
10.2
3.4
54
14
7.7
Durack
Indicated
1.4
20.7
0.6
2.9
13.7
2.9
3.7
71
14
14.7
Inferred
1.4
5.6
0.1
2.6
14.2
2.6
7.4
64
16
18.3
Ind and Inf
1.4
26.3
0.7
2.8
13.8
2.9
4.4
70
14
15.5
Ellengail
Indicated
2.0
6.5
0.3
5.3
10.0
8.0
10.4
66
15
3.2
Inferred
2.0
5.3
0.2
4.1
9.9
8.2
8.4
62
15
2.5
Ind and Inf
2.0
11.8
0.6
4.8
9.9
8.1
9.6
64
15
2.9
Robbs Cross
Indicated
1.4
14.0
0.3
1.9
14.7
12.7
5.0
47
6
6.2
Inferred
1.4
3.8
0.1
2.0
14.5
10.9
4.1
50
6
8.1
Ind and Inf
1.4
17.8
0.3
1.9
14.7
12.3
4.8
48
6
6.6
Thomson
Inferred
1.4
25.7
0.5
2.0
18.8
13.8
5.4
42
18
6.9
Inf
1.4
25.7
0.5
2.0
18.8
13.8
5.4
42
18
6.9
Yandanooka *
Indicated
1.4
50.0
1.7
3.3
14.0
3.3
27.0
46
15
14.0
Inferred
1.4
7.0
0.1
1.8
15.0
4.0
44.0
33
11
9.0
Ind and Inf
1.4
57.0
1.8
3.1
14.0
3.4
28.0
45
14
14.0
Corridor
Inferred
2.0
18.1
0.6
3.1
6.7
5.5
0.4
47
14
4.8
Inf
2.0
18.1
0.6
3.1
6.7
5.5
0.4
47
14
4.8
West Mine
North
Indicated
2.0
10.2
0.7
7.3
5.8
6.5
1.8
48
11
2.3
Inferred
2.0
1.8
0.0
2.7
9.4
8.6
2.1
50
17
3.0
Ind and Inf
2.0
12.0
0.8
6.6
6.0
6.6
1.8
48
12
2.4
McCalls
Indicated
1.1
1,630
23
1.4
5.2
3.3
2.8
77
21
1.1
Inferred
1.1
1,980
24
1.2
5.0
3.8
3.2
81
26
1.1
1.1
3,610
48
1.3
5.1
3.6
3.0
79
24
1.1
Mindarra
Springs
Inferred
1.1
2,200
36
1.6
4.2
0.9
3.1
80
20
5.1
Inf
1.1
2,200
36
1.6
4.2
0.9
3.1
80
20
5.1
Total Dry
Mining
Total Measured Dry
9
1
8.1
10.4
7.3
6.1
51
12
3.8
Total Indicated Dry
1,818
31
1.7
6.7
3.8
5.2
71
20
1.8
Total Inferred Dry
4,265
63
1.4
4.8
2.3
3.3
79
23
3.3
Sub Total Dry
6,091
95
1.5
5.5
2.8
4.0
76
22
2.8
IMAGE RESOURCES NL | ANNUAL REPORT 2024 25
TABLE 3: Mineral Resources – Dry and Dredge Mining Deposits; in accordance with the JORC Code (2012) - as at 31 December 2024
Deposit
Mineral
Resource
Category
Cut-off
(total
HM%)
Tonnes
(million)
In-situ HM
Tonnes
(millions)
Total HM
grade
(%)
HM Assemblage (% of total HM)
Slimes
(%)
Oversize
(%)
Zircon
Rutile
Leuc.
Ilmenite Monazite
Dredge Mining
Bidaminna *
Measured
0.5
86.0
2.4
2.8
4.9
4.0
12.0
72
0.3
4
3.2
Indicated
0.5
13.0
0.3
2.1
4.9
4.2
13.0
71
0.3
5
2.3
Inferred
0.5
10.0
0.1
0.7
4.6
5.6
17.0
66
0.2
3
1.8
Meas Ind
and Inf
0.5
109.0
2.7
2.5
4.9
4.0
12.2
72
0.3
4
3.0
Titan
Indicated
1.0
21.2
0.4
1.8
9.5
3.1
1.5
72
22
-
Inferred
1.0
115.4
2.2
1.9
9.5
3.1
1.5
72
19
-
Ind and Inf
1.0
136.6
2.6
1.9
9.5
3.1
1.5
72
19
-
Telesto
Indicated
1.0
3.5
0.1
3.8
9.5
5.6
0.7
67
17
-
Ind
1.0
3.5
0.1
3.8
9.5
5.6
0.7
67
17
-
Calypso
Inferred
1.0
51.5
0.9
1.7
10.8
5.1
1.6
68
14
-
Inf
1.0
51.5
0.9
1.7
10.8
5.1
1.6
68
14
-
Total Dredge
Mining
Total Measured
86
2.4
2.8
4.9
4.0
12.0
72
4
Total Indicated
38
0.8
2.1
7.9
3.9
5.4
71
16
Total Inferred Dredge
177
3.1
1.8
9.7
3.7
1.9
71
17
Sub Total Dredge
301
6.3
2.1
7.7
3.8
6.1
71
13
Total Combined
Mineral Resources
Total Measured
95
3
8.1
10.4
7.3
6.1
51
12
3.8
Total Indicated
1,856
32
1.7
6.7
3.8
5.2
71
20
1.8
Total Inferred
4,441
66
1.5
5.0
2.3
3.3
79
22
3.1
Grand Total
6,392
101
1.6
5.7
3.0
4.0
76
22
2.8
* Includes Ore Reserves Reported separately under JORC Code 2012
TABLE 4: Comparative Mineral Resources (for those estimates that changed) – Dry Mining Deposits – in accordance with the JORC Code (2012)
Project /
Deposit
Cut-off
(total
HM%)
Tonnes
(million)
In-situ HM
Tonnes
(millions)
Total HM
grade
(%)
HM Assemblage (% of total HM)
Slimes
(%)
Oversize
(%)
Zircon
Rutile
Leuc.
Ilmenite Monazite
As at 31 Dec 2023
Yandanooka
Meas Ind
and Inf
1.4
60.8
1.8
3.0
12.1
3.5
3.6
69.5
15.2
11.5
Sub Total
60.8
1.8
3.0
12.1
3.5
3.6
69.5
15.2
11.5
As at 31 Dec 2024
Yandanooka
Ind and Inf
1.4
57.0
1.8
3.1
14.0
3.4
28.0
45.0
14.0
14.0
Total Mineral Resources
57.0
1.8
3.1
14.0
3.4
28.0
45.0
14.0
14.0
26 IMAGE RESOURCES NL | ANNUAL REPORT 2024
GOVERNANCE CONTROLS
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 overall compliance with the
JORC Code. 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
for the activity they are undertaking.
COMPETENT PERSON STATEMENTS
AND PREVIOUSLY REPORTED
INFORMATION
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. Mr 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’. Mr 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 Atlas Ore Reserves estimate is based
on and fairly represents, information which
has been prepared by Mr Per Scrimshaw,
Member of the Australasian Institute of Mining
and Metallurgy (AusIMM). Mr Scrimshaw is a
full-time employee of Entech Pty Ltd and has
sufficient experience which is relevant to the
style of mineralisation and type of deposit
under consideration and to the activity which
he is undertaking to qualify as a Competent
Person as defined 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 Bidaminna Ore Reserves estimate is
based on, and fairly represents, information
which has been prepared by Mr Greg
Jones, an employee if IHC Mining, who is a
Fellow of the Australian Institute of Mining
and Metallurgy. Mr Jones has sufficient
experience in Ore Reserve estimation
relevant to the style of mineralisation and
type of deposit under consideration 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’.
Mr Jones confirms there is no potential for a
conflict of interest in acting as a Competent
Person and has provided his written consent
to the inclusion in the report of the matters
based on his information in the form a context
in which it appears.
The information in this report that relates to
the 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 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 Snowden Optiro
Pty Ltd (Snowden Optiro) and has sufficient
experience which is relevant to the style of
mineralisation and type of deposit under
consideration and to the activity which she
is undertaking to qualify as a Competent
Person as defined in the 2012 Edition of
the ‘Australasian Code for Reporting of
Exploration Results, Mineral Resources and
Ore Reserves’.
The information in this report that relates
to the Titan, Telesto and Calypso Mineral
Resource estimates is based on and fairly
represents, information which has been
prepared by Mr Lynn Widenbar BSc, MSc,
DIC MAusIMM MAIG employed by Widenbar
& Associates who is a consultant to the
Company. Lynn Widenbar has sufficient
experience which is relevant to the style of
mineralisation and type of deposit under
consideration and to the activity which he
is undertaking to qualify as a Competent
Person as defined 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 Gingin South, Red Gully and Regans
Ford Mineral Resource estimates is based
on and fairly represents, information which
has been prepared by Mr Damien Addison,
who is a Member of the Australian Institute of
Geoscientists (AIG). Mr Addison is a full-time
employee of Image Resources NL 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’.
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:
• Yandanooka Mineral Resource:
19 April 2024 “Strong Feasibility Result -
Yandanooka Project”
• Gingin South, Red Gully and Regans Ford
Mineral Resources: 15 December 2023
“Mineral Resource Updates Gingin South,
Red Gully and Regans Ford”
• Bidaminna Ore Reserve: 27 June 2023
“Pre-feasibility Study Results, Bidaminna
Mineral Sand Project”
• 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 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 2024 27
CLEAN AIR
Nano-TiO2 breaks down pollutants in
UV light - applied in air purification.
IMAGE IS
ADVANCING
STUDIES ON
ITS OTHER
100%-OWNED
PROJECTS UNDER
ITS CHAPTER 2
AMBITIONS
FINANCIAL
REPORT
CONTENTS
Directors’ Report
28
Remuneration Report
33
Auditor’s Independence Declaration
62
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
63
Consolidated Statement of Financial Position
64
Consolidated Statement of Changes in Equity
65
Consolidated Statement of Cash Flows
66
Notes to the Consolidated Financial Statements
67
Consolidated Entity Disclosure Statement
92
Directors’ Declaration
93
Independent Auditor’s Report
94
27 IMAGE RESOURCES NL | ANNUAL REPORT 2024
DIRECTORS' REPORT
28 IMAGE RESOURCES NL | ANNUAL REPORT 2024
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 2024 compared with the financial year ended 31
December 2023.
DIRECTORS
The following persons were directors of Image Resources NL (“Image”) during the year and up to the date of this report, unless
stated otherwise:
Robert Besley
Patrick Mutz
Aaron Chong Veoy Soo
Peter Thomas
Ran Xu
Winston Lee
PRINCIPAL ACTIVITIES
The principal activities of the Group during the year involved obtaining the approvals required to commence construction of the
100%-owned, high-grade, zircon-rich Atlas mineral sands project located 170km north of Perth in WA, and completing a pre-
feasibility study for its 100% owned Yandanooka minerals sands project.
RESULTS FROM OPERATIONS
During the year, the Group recorded an operating loss of $9,414,000 (for the year to 31 December 2023: operating loss of
$4,707,000). Basic loss per share for the year was 0.85 cents (year to 31 December 2023: loss of 0.43 cents). Diluted loss per
share for the year was 0.83 cents (year to 31 December 2023: loss of 0.47 cents).
DIVIDENDS PAID OR RECOMMENDED
No amounts have been paid or declared by way of a dividend by the Company since the end of the previous financial year
(CY2023) and the directors do not recommend the payment of any dividend.
Dividend Policy
The Company’s dividend policy provides for the Board of Directors, as soon as practicable after the end of a Group financial
year, and to the extent permitted by law, to distribute to Shareholders as a dividend, all Excess Cash held at the end of that
Financial Year; with Excess Cash defined as cash held by the Group, other than cash that the Board considers is necessary or
desirable to be retained by the Group for the Group’s existing liabilities and future activities.
REVIEW OF OPERATIONS
A review of operations is covered elsewhere in this Annual 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
The remaining US$15 million of funds available under the HMC Offtake Prepayment Facility were received in early January 2025.
In February 2025, the Company commenced the commissioning of the Atlas project and produced first HMC. In March, the
Company commenced trucking of HMC to Geraldton port in preparation for an expected April shipment.
Other than the events stated above, there has not been any other matter or circumstance that has arisen after the balance date
that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations or the
state of affairs of the Group in future periods.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
The Review of Operations set out on pages 10 to 17 of this Annual Financial Report, provide an indication of the Group’s likely
development and expected results. In the opinion of the Directors, disclosure of any further information about these matters and
the impact on Group operations could result in unreasonable prejudice to the Group and has not been included in this report.
IMAGE RESOURCES NL | ANNUAL REPORT 2024 29
DIRECTORS' REPORT (cont.)
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 Senior Site
Executives are responsible for monitoring and reporting on compliance with all environmental regulations. During or
since the financial year there have been no known significant breaches of these regulations.
INFORMATION ON DIRECTORS AND COMPANY SECRETARIES
Robert Besley
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 Minerals Council. He holds
a BSc (Hons) in Economic Geology from the University of Adelaide and is a Member of the
Australian Institute of Geoscientists. He managed the creation, listing and operation of two
successful mining companies; CBH Resources Limited which he led as Managing Director from a
small exploration company to Australia’s 4th largest zinc producer; and Australmin Holdings
Limited (acquired by Newcrest) which brought into production a gold mine in WA and mineral
sands mine in NSW. 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 & risk,
remuneration & nomination, and hedge committees. Mr Besley has not been a director of any
other listed public companies in the past 3 years.
Patrick Mutz
Managing Director
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 experience in open cut, underground, and in-
situ mining, and related processing, on projects in the USA, Germany, Africa and Australia. Since
his arrival in Australia from the USA in 1998, he has served as CEO / Managing Director of a
number of publicly listed and private mining companies based in South Australia, Victoria and
Western Australia, primarily involved with project development and company transitioning from
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.
Peter Thomas
Non-Executive Director
Mr Thomas, having served on ASX listed company boards for over 30 years, has been a non-
executive director of Image Resources NL since 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 & risk and remuneration & nomination committees. During the past 3 years he has served
as a director of the following other listed companies:
Emu NL – appointed August 2007,
continuing.
Middle Island Resources Limited –
appointed March 2010, continuing.
30 IMAGE RESOURCES NL | ANNUAL REPORT 2024
DIRECTORS' REPORT (cont.)
Aaron Chong Veoy Soo
Non-Executive Director
Mr Soo has been a long-term supporter and shareholder in Image Resources. Mr Soo is an
advocate & solicitor practising in West Malaysia with 22 years of experience in legal practice and
currently a partner in Stanley Ponniah, Ng & Soo, Advocates & Solicitors. He also serves on the
Company’s audit & risk committee. Mr Soo has not been a director of any other listed public
companies in the past 3 years.
Ran Xu
Non-Executive Director
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. Ms Xu has not been a director of any other listed companies in the past 3 years.
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. He serves on the
Company’s remuneration & nomination committee. Mr Lee has not been a director of any other
listed public companies in the past 3 years.
Dennis Wilkins
Joint Company Secretary
Mr Wilkins is the founder and Principal of DWCorporate Pty Ltd, a corporate advisory firm
servicing the resources industry. He is a highly experienced company secretary with a strong
background in mining and exploration. As Principal, Mr Wilkins has been providing commercial,
strategic, and corporate governance services to international exchange listed entities for 21
years.
IMAGE RESOURCES NL | ANNUAL REPORT 2024 31
DIRECTORS' REPORT (cont.)
John McEvoy
Joint Company Secretary and Chief Financial Officer
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 & RISK COMMITTEE
During the financial year the members of the Company’s Audit & Risk Committee comprised Messrs Thomas (Chair),
Besley and Soo. During the year, the committee held two meetings. All members attended these meetings.
REMUNERATION & NOMINATION COMMITTEE
During the financial year the members of the Remuneration & Nomination Committee comprised Messrs Besley (Chair),
Thomas and Lee. During the year, the committee held ten meetings. All members attended these meetings.
HEDGE COMMITTEE
During the financial year the members of the Hedge Committee comprised Messrs Besley (Chair), Mutz and McEvoy.
During the financial year, the committee held six meetings. Mr Mutz attended 5 meetings. Messrs Besley and McEvoy
attended all meetings.
MEETINGS OF DIRECTORS
During the financial year ended 31 December 2024, there were six meetings of directors held. Attendances by each
director during the 2024 year on Board and committee meetings is detailed below.
Board
Meetings
Audit & Risk
Committee
Remuneration &
Nomination
Committee
Hedge
Committee
Number
eligible to
attend
Number
attended
Number
eligible to
attend
Number
attended
Number
eligible to
attend
Number
attended
Number
eligible to
attend
Number
attended
Robert Besley
7
7
2
2
7
7
1
1
Patrick Mutz
7
7
-
-
-
-
1
1
Peter Thomas
7
7
2
1
7
7
-
-
Aaron Chong Veoy
Soo
7
7
2
2
-
-
-
-
Ran Xu
7
7
-
-
-
-
-
-
Winston Lee
7
7
-
-
7
7
1
1
32 IMAGE RESOURCES NL | ANNUAL REPORT 2024
DIRECTORS' REPORT (cont.)
PERFORMANCE RIGHTS AND OPTIONS
At the date of this report there was the following performance rights on issue to acquire a maximum of one fully paid
ordinary shares for each right issued.
Number
Vesting Date
Expiry Date
403,224
30 June 2024
30 June 2026
8,918,644
30 June 2025
30 June 2026
12,326,228
30 June 2025
30 June 2027
12,696,012
30 June 2026
30 June 2028
34,344,108
During the financial year there were no options.
During the financial year 26,756,504 performance rights were issued to acquire a maximum of one fully paid ordinary
shares for each right issued. Since the end of the financial year, as at the date of this report, an additional 4,772,339
performance rights were issued to acquire a maximum of one fully paid ordinary shares for each right issued.
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
Image has paid premiums to insure the Directors and Officers of Image.
The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought
against the Officers in their capacity as Officers of Image, and any other payments arising from liabilities incurred by the
Officers in connection with such proceedings, other than where such liabilities that arise out of conduct involving a wilful
breach of duty by the Officers or the improper use by the Officers of their position or of information to gain advantage
for themselves or someone else or to cause detriment to Image.
It’s not possible to apportion the premium between amounts relating to the insurance against legal costs and those
relating to other liabilities. Conditions of the policy also preclude disclosure to third parties of the amount paid for the
policy.
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.
IMAGE RESOURCES NL | ANNUAL REPORT 2024 33
REMUNERATION REPORT
MESSAGE FROM THE CHAIR OF THE REMUNERATION AND NOMINATION COMMITTEE
Dear Shareholder
On behalf of the Board of Directors of Image Resources NL I am pleased to present our Remuneration Report for the
calendar year ending 31 December 2024 (CY2024)
The Remuneration and Nomination Committee (RNC) has evaluated our compensation strategies to determine whether
they align with our short-term and long-term goals and shareholder interests while also serving to attract, retain, and
appropriately reward team members.
FY24 EXECUTIVE REMUNERATION OUTCOMES AND FY25 CHANGES
STI outcomes for the performance year ending 30 June 2024 were assessed at 60% of maximum for executive KMP. No
LTI awards were tested during the year. There were no increases to fixed remuneration for executive KMP during the
year.
The RNC has reviewed the executive remuneration framework and has resolved to introduce a new STI and LTI
framework for FY25. A key change to the framework is to align performance periods with our financial year, as previously
they did not coincide.
In transitioning to the new framework, the RNC resolved to implement a 6-month STI for executive KMP for the second
half of 2024 during a critical period for the company. Performance requirements for this period were based on financial
management and key operational targets related to the Atlas project. Outcomes for this transitional STI were assessed
at 60% of maximum for executive KMP.
The RNC considered the scorecard outcomes for the PY2024 STI and the transitional STI against the background of
another challenging year for shareholders. On balance, the outcomes for executive KMP were considered appropriate in
the context of operational achievements during the year and in setting up Image for resumed production and return to
profitability in 2025. The RNC also resolved to defer payments to executive KMP for these STI awards to a date to be
determined following receipt of first revenue from Atlas, to preserve cash while production from Atlas is ramping up.
Additional details of the new incentive framework that will apply for FY25 will be provided in the notice of meeting for
the 2025 AGM and in next year’s remuneration report.
ROBERT BESLEY
CHAIR - Remuneration and Nomination Committee
PERTH
Dated this 28 March 2025
34 IMAGE RESOURCES NL | ANNUAL REPORT 2024
REMUNERATION REPORT - AUDITED (cont.)
1.
INTRODUCTION
The Remuneration Report outlines the remuneration arrangements for Image Resources NL for the financial year ending
31 December 2024.
The Board, guided by the RNC, will assess the remuneration structure on a continuing basis to ensure it stays current
and relevant.
It is crucial that we maintain a team of loyal and motivated executives who are fairly rewarded for their efforts to deliver
shareholder value in a safe and environmentally sensitive workplace. Consistent with the advice of various remuneration
consultants over time, the RNC has determined that its objective is to align its remuneration outcomes with the 50th
percentile when measured against a ‘basket’ of Image’s peers. A recent review by independent remuneration consultants
Guerdon indicates that Image’s current executive salaries exceed this target. The RNC will use insights from this
independent review when setting future reward levels.
In this financial year, the company has re-aligned its remuneration performance assessment period to bring it into line
with the financial year. This process is discussed in detail in Section 3 of the remuneration report. Relating to this report
and the change noted the Company provides the following glossary:
PY2023 means the remuneration period of 12 months ending 30 June 2023
PY2024 means the remuneration period of 12 months ending 30 June 2024
2H PY 2024 means the remuneration period of 6 months ending 31 December 2024
STI period – in this report, typically 12 months ending 30 June (transitioning to 31 December)
LTI period – in this report, typically 36 months ending 30 June (transitioning to 31 December)
2.
SNAPSHOT OF FY24 COMPANY PERFORMANCE AND KMP REWARD
2.1
FY24 REALISED REWARD (REMUNERATION RECEIVED)
The remuneration shown in the tables in this section are provided as supplementary non-statutory information to help
shareholders to understand the total value of remuneration realised and received by Executive KMP in the current and
previous financial years.
Importantly, the value ascribed to equity in this section is calculated differently from the statutory disclosure in section
12 of this Remuneration Report, as detailed in the footnotes below the table. This approach illustrates the value of the
award to the Executives during aligned remuneration and financial periods.
IMAGE RESOURCES NL | ANNUAL REPORT 2024 35
REMUNERATION REPORT - AUDITED (cont.)
The rewards Image provides to its executive KMP comprised of a fixed component and an at-risk component. (Refer to
Section 8.3 for more details).
Name
Year
Fixed Rem 1
(Incl SGC)
Other Rem 2
Cash awarded/
to be awarded
under STI 3
Subtotal
Value of
deferred
STI vested
during the
year 4
Total
P Mutz
2024
$626,854
$131,232
7 $181,397
$939,483
$22,408
$961,891
2023
$625,179
5 $84,758
8 $191,776
$901,713
-
$901,713
J McEvoy
2024
$437,091
$41,200
7 $117,140
$595,431
$14,471
$609,902
2023
$430,725
-
8 $110,473
$541,198
-
$541,198
T Colton
2024
$483,770
$45,600
7 $129,650
$659,020
$16,016
$675,036
2023
$476,725
-
8 $120,482
$597,207
-
$597,207
G Sakalidis
2024
-
-
-
-
-
-
2023
$36,004
9 $160,473
-
$186,477
-
$186,477
Totals
2024
$1,547,715
$218,032
$428,188
$2,193,935
$52,895
$2,246,830
2023
$1,568,633
$245,231
$422,731
$2,226,595
-
$2,226,595
Notes
1.
The total fixed remuneration (TFR) was last adjusted in effective 1 July 2023. (PM $676,854, TFR allocated between fixed salary
and allowances)
2.
Other remuneration includes allowances paid for travel and accommodation during the financial year and a car fringe benefit
(2024: P Mutz $44,540 and $22,892 respectively). In 2024, other remuneration includes a one-off retention bonus paid to
executives (vested 31 December 2023 and paid in January 2024) totalling $150,600 (P Mutz $63,800; J McEvoy $41,200; T
Colton $45,600).
3.
STI for PY2024 awards have been made, but settlement has been deferred. The amounts shown here are the amounts that will
be paid out on the date determined following the achievement of the first revenue from Atlas.
4.
One third of STI rights awarded in respect of PY 2023 vested 30/06/2024.The remaining two thirds will vest 30/06/2025, subject
to continued employment. The value shown here is one third of the value of the STI assigned to performance rights. The number
of performance rights that vested were calculated based on this value divided by the 20-day VWAP at 30/06/2023 ($0.0915).
The performance criteria for the measurement of the 2023 STI award are disclosed in detail in section 10
5.
LTIs to vest will be determined as at 30 June 2025 for PY 2023 and 30 June 2026 for PY 2024.The performance conditions and
weightings are disclosed in section 10
6.
Includes $43,889 annual leave paid out.
7.
This includes an award for the six-month period 1 July 2024 to 31 December 2024 reflecting the realignment of the performance
assessment period with the fiscal year. – refer section 2. Payment of this cash award has been deferred.
8.
STI paid in CY2023 comprised an STI for PY2023 and an outstanding STI award from PY2022.
9.
Long service leave and annual leave paid out on resignation on 14 March 2023.
36 IMAGE RESOURCES NL | ANNUAL REPORT 2024
REMUNERATION REPORT - AUDITED (cont.)
2.2
AT RISK REMUNERATION
The table below shows the value of potential long-term incentive (LTI) and short-term incentive (STI) values based on
Total Fixed Remuneration as defined in detail in section 8.3. The Committee provides this table to clarify potential and
actual incentives awarded to KMPs on an annual basis. The STI and LTI awards are based on a set percentage of total
fixed annual remuneration and are measured for award against KPIs.
Financial
Year (FY)
Award
Year (PY)
Annual
Incentive
Category
Mechanism of
payment
FY
31/12/2023
FY
31/12/2024
FY
31/12/2025
FY
31/12/2026
FY
31/12/2027
PY 2023
STI (maximum
opportunity)
2/3 cash 1/3 equity
$519,645
$85,315
$170,630
PY 2023 1
STI (actual
award) (2/3)
Cash
$322,181
PY 2023 3
STI (actual
award) (1/3)
Performance rights
$52,895
$105,790
PY 2023
LTI (Maximum
opportunity)
Performance rights
$1,127,850
PY 2024
STI (maximum
opportunity)
2/3 cash 1/3 equity
$535,235
$ 87,874
$175,749
PY 2024 2
STI (actual
award) (2/3)
Cash
$267,617
PY 2024,2,3
STI (actual
award) (1/3)
Performance rights
$43,937
$87,874
PY 2024
LTI (Potential)
Performance rights
$1,161,685
HY 2024
STI (maximum
opportunity)
2/3 cash 1/3 equity
$267,671
$43,937
$87,874
HY 2024 4
STI (actual
award) (2/3)
Cash
$160,570
HY 2024 3,4
STI (actual
award) (1/3)
Performance rights
$26,362
$52,725
HY 2024
LTI (Maximum
opportunity)
Performance rights
PY&FY2025
STI (maximum
opportunity
Cash
$532,572
$88,762
$177,524
PY &FY
2025
LTI (Maximum
opportunity)
Performance rights
$1,198,286
To Date
Total Actual
Incentive
Delivered
$322,181
$428,188
$TBD
$TBD
$TBD
Notes
1.
2023 STI assessed at 62% of maximum opportunity achieved against KPIs. See section 12 for detail of how this was determined
2.
2024 STI assessed at 50% of maximum opportunity achieved against KPIs. See section 12 for detail of how this was determined
3.
All STI Performance rights are subject to a further vesting hurdle (1/3 on continuing employment one year after measurement
date and 2/3s on continuing employment for two years after measurement date
4.
2H 2024 6-month STI assessed at 60% of maximum opportunity achieved against KPIs. See section 12 for detail of how this was
determined
IMAGE RESOURCES NL | ANNUAL REPORT 2024 37
REMUNERATION REPORT - AUDITED (cont.)
2.3
FY2024 COMPANY PERFORMANCE (CALENDAR YEARS)
2020
2021
2022
2023
2024
Share Price at 31 December
0.185
0.205
0.135
0.063
0.093
Change in Share price from prior year
0.065
.02
(0.070)
(0.072)
0.03
Market capitalisation
$183.54m
$207.59m
$146.36m
$68.12m
$103.59m
Long Term – 3 Year TSR 1 to 31 December
48%
86.36%
(28.57%)
(44.32%)
(44.88%)
Profit / (Loss) After tax
$24.78m
19.384m
$15.168m
($4.707m)
($9.414m)
Cash at Bank
$50.761m
$79.840m
$53.455m
$46.197m
$19.9m
Note
1.
TSR = Total Shareholder Returns = Change in Share Price over three years plus dividends.
At 30 June 2025, the long term performance of the KMPs for the period 1 July 2022 to 30 June 2025 will be assessed
against company performance and shareholder returns (a snapshot of which has been tabulated above) and other
measures relating to growth and both operational and environmental sustainability of the company as approved by
shareholders. This assessment relates to the PY 23 LTIs issued.
2.4
UNREALISED EXECUTIVE AWARDS
The table below displays the equity incentives that have been issued or granted to executives and remain unvested as
of the date of this report. These incentives will be subject to assessment against predetermined key performance criteria
or further vesting conditions. The figures detailed in the table represent the maximum number of incentives that could
potentially be awarded (maximum opportunity), if 100% of all key performance indicators were to be met in full. The
target achievement is 60% of maximum opportunity.
Unvested STI Performance Rights
Unvested LTI Performance Rights
(maximum opportunity; target is 60% of
maximum)
PY2023
1/7/2022 to
30/6/2023
PY2024
1/7/2023 to
30/6/2024
HY 2024
1/7/24 to
31/12/24
PY2023
1/7/22 to 30/6/25
PY2024
1/7/23 to 30/6/26
Condition to
Vesting
Employment 1
Employment 2
Employment 3
See Section 11
P Mutz
489,203
701,514
362,993
6,463,672
6,657,580
J McEvoy
316,297
453,015
234,410
2,782,688
2,866,170
T Colton
350,077
501,394
259,443
3,079,868
3,172,262
Note
1.
The remaining 2/3 of STI performance rights granted for PY 2023 will vest subject to employment at 30 June 2025.
2.
PY 2024 STI performance rights will vest subject to employment at 30 June 2025 (1/3) and 30 June 2026 (2/3).
3.
HY 2024 STI performance rights will vest subject to employment at 31 December 2025 (1/3) and 31 December 2026 (2/3).
38 IMAGE RESOURCES NL | ANNUAL REPORT 2024
REMUNERATION REPORT - AUDITED (cont.)
3.
ADJUSTMENTS TO EXECUTIVE KMP FRAMEWORK FOR 2H PY 2024 (INCLUDING LONG TERM
ALIGNMENT OF PY (PERFORMANCE YEAR OF THE COMPANY AS ADOPTED EFFECTIVE 25 JULY 2024)
WITH FY (FINANCIAL YEAR OF THE COMPANY)
The Board has instituted the following changes:
The performance year will align with the calendar year and the Company’s financial year, resulting in a one-off 6-month
STI performance period ending on 31 December 2024, and a 30-month LTI performance period ending on 31 December
2026.
STI performance measures have been simplified and narrowed down to two key metrics (Financial (45%) and Growth and
development (55%), with keys hurdles within each.
LTI performance measures will be linked 100% to comparative shareholder returns. This approach is directed at ensuring
executives apply a balanced focus upon long-term financial outcomes for shareholders.
4.
ADJUSTMENTS NON-EXECUTIVE DIRECTOR FEE FRAMEWORK
Following a benchmarking exercise conducted by the Company’s former remuneration consultant, BDO Reward WA Pty
Limited (BDO), in 2022, it was resolved to implement BDO's recommendation that non-executive director fees be
allocated two-thirds in cash and one-third in equity. The Company will adopt this approach as of 1 January 2025, pending
shareholder approval intended to be (but not, for reasons of logistics) sought at the 2025 AGM. Delivering a portion of
the fees in this manner, rather than entirely in cash, is directed at better aligning the directors' rewards with those of the
shareholders. Please refer to Section 13 for further information on non-executive director remuneration.
5
KEY MANAGEMENT PERSONNEL COVERED IN THIS REPORT
This report outlines the remuneration arrangements for KMP, defined by the Australian Accounting Standards as those
individuals with authority and responsibility for planning, directing, and controlling the activities of an entity, either
directly or indirectly. This definition includes the entity's directors.
Name
Position
Term
Non-Executive Directors
Robert Besley
Non-Executive Chair
Full Year
Peter Thomas
Non-Executive Director
Full Year
Aaron Soo
Non-Executive Director
Full Year
Ran Xu
Non-Executive Director
Full Year
Winston Lee
Non-Executive Director
Full Year
Executive Director
Patrick Mutz
Managing Director & CEO
Full Year
Executive Officers
John McEvoy
Chief Financial Officer
Full Year
Todd Colton
Chief Operating Officer
Full Year
There are no changes to KMP subsequent to year end.
IMAGE RESOURCES NL | ANNUAL REPORT 2024 39
REMUNERATION REPORT - AUDITED (cont.)
6.
REMUNERATION GOVERNANCE
6.1
ROLE OF THE BOARD
The Board is responsible for evaluating the performance and reviewing the remuneration of the Managing Director,
Company Secretary, and other senior executives. The Board has constituted the RNC to assist it in fulfilling its corporate
governance responsibilities regarding remuneration and overseeing the Company’s remuneration framework.
6.2
ROLE OF THE REMUNERATION (& NOMINATION) COMMITTEE
The complete role and responsibilities of the RNC are outlined in the Image Resources Corporate Governance & Key
Policies Compliance Manual (IMA Corporate Governance and Policies Manual).
The Committee consists of three directors and is chaired by Mr. Besley, who is regarded as an independent director.
The Company’s policy for determining the nature and amount of emoluments for Key Management Personnel (KMP) is
detailed in Section 8 for Executive KMP and Section 13 for non-executive directors.
6.3
RNC AND KMP REMUNERATION AND INCENTIVE POLICIES
The RNC is responsible for the Group’s remuneration policy. The committee engages an external, independent
remuneration advisor (refer to the Use of Remuneration Consultants section below) to assist in providing
recommendations to the Board regarding remuneration strategies, policies, contracts, and packages for directors and
executives, as well as reviewing annual compensation arrangements.
The RNC’s mandate regarding remuneration is to recommend to the Board appropriate and competitive remuneration
and incentive policies (including the criteria for awarding and the amount of any bonuses) for KMP and others as deemed
suitable, which:
encourages them to support the Group’s growth and success within an appropriate control framework.
aligns the key leadership’s interests with those of the Company’s shareholders.
are paid within any limits imposed by the Constitution and provide recommendations to the Board regarding
the necessity for increases to such amounts 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.
6.4
RNC AND INCENTIVE PLANS AND BENEFITS PROGRAMS
The RNC’s responsibility, inter alia, is to:
Review and make recommendations regarding long-term incentive compensation plans, such as equity-based
plans. Unless otherwise delegated by the Board, the committee will act on behalf of the Board to manage equity-
based and employee benefit plans and will, therefore, fulfill any responsibilities under those plans, including
making and authorising grants, in accordance with their terms.
Ensure that, when feasible, incentive plans are structured around appropriate and achievable performance
targets that evaluate relative performance and offer remuneration upon their attainment, and
Review and, if necessary, provide suggestions to improve any existing employee benefit programs.
6.5
RNC AND NON-EXECUTIVE DIRECTORS
The committee will ensure that non-executive directors receive no retirement benefits apart from statutory
superannuation entitlements.
To the extent that the Company adopts a remuneration structure for its non-executive directors other than cash and
superannuation, it will disclose this to shareholders and obtain approvals as required by law and the ASX listing rules
(Listing Rules).
6.6
SECURITIES TRADING POLICY
All KMP and employees, including long-term consultants and contractors, are subject to the Company’s Securities
Trading Policy, which outlines the governance, policies, and controls on trading in the Company’s securities. A copy of
the policy is available at [insert web link]
40 IMAGE RESOURCES NL | ANNUAL REPORT 2024
REMUNERATION REPORT - AUDITED (cont.)
6.7
USE OF REMUNERATION CONSULTANTS
The RNC is authorised to seek independent professional advice from outsiders with relevant experience and expertise.
The committee will seek such advice if it considers this necessary to fulfil its responsibilities to:
assess the market to ensure senior executives are rewarded commensurate with their roles and duties;
obtain expert advice in setting and reviewing salary levels; and
make recommendations on incentive schemes.
The Remuneration Committee engaged Guerdon Associates during the year. No remuneration recommendations as
defined in the Corporations Act were provided.
7.
EMPLOYEE INCENTIVE SCHEMES
The Image Employee Share Plan (ESP) was implemented following shareholder approval at the general meeting held on
13 February 2018 and was last approved (with amendments) by shareholders at the annual general meeting on 30 May
2023. No securities were issued under the ESP during the reporting period. A summary of the ESP and financial
assistance under the ESP is disclosed in section 7.2.
From April 2023, the Company decided to cease the utilisation of the ESP and, instead, to implement a simpler and
significantly more efficient Incentive Awards Plan (IAP).
Shareholders approved the IAP at the annual general meeting on 30 May 2023, and since then, it has been the tool for
offering equity incentives to executive KMPs and employees.
7.1
INCENTIVE AWARDS PLAN (IAP)
The IAP provides the Company with greater flexibility to motivate and incentivise employees, enhance employee
retention, and align incentive awards more effectively with longer-term shareholder returns. It was adopted because the
previous ESP is restricted to the matter of loan-funded shares the administration of which involved a significant degree
of work to limited advantage to the Company.
The IAP aims to standardise equity awards that better reward the group’s directors and employees for their dedicated
and ongoing commitment and effort and acknowledge their contributions. It grants employees conditionally convertible
(performance) rights to receive fully paid ordinary shares, subject to terms and conditions set by the Company’s
directors.
The principal provisions of the IAP include.
The plan is accessible to all directors (subject to prior shareholder approval of each issue) and employees of
the Group.
The Company may, at any time and in its absolute discretion, extend an offer to an eligible director (subject
to the ASX listing rules) or employee.
The number and conditions of convertible securities issued to an eligible employee are determined by the
Company’s directors.
An eligible participant may nominate a nominee to receive the convertible securities.
The Board may determine an option exercise price (if any).
Any convertible security may be made subject to vesting conditions as determined by the Board at its
discretion.
A share acquired in accordance with the IAP may be subject to a restriction condition.
IMAGE RESOURCES NL | ANNUAL REPORT 2024 41
REMUNERATION REPORT - AUDITED (cont.)
7.2
EMPLOYEE SHARE PLAN (NOW REDUNDANT)
During the financial year (FY 24), no ESP shares were issued, and 22,493,776 ESP shares were repurchased according
to the terms of the ESP (2,951,516 FY2023).
The principal provisions of the ESP include:
The ESP is available to all executive Directors and employees of the Group.
The Company may, at any time and in its absolute discretion, extend an offer to an eligible employee.
The number of ESP 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 ESP shares.
The ESP 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.
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 ESP shares,
and
Application will be made as soon as practicable after the allotment, for ESP shares to be listed for quotation
on ASX.
The principal provisions of the loan agreement include:
The amount lent will be an advance equal to the issue price of the ESP shares multiplied by the number of
ESP shares issued.
The repayment date is the date falling 3 years after the issue date.
The loan can be repaid at any time, but a Participant must pay any outstanding amount on the date the
employee ceases to be an employee of Image (or such late date as Image determines at its discretion). All
dividends declared and paid on the ESP 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 ESP shares until the loan is fully repaid.
8
EXECUTIVE KMP REMUNERATION FOR FY2024
8.1
POLICY AND APPROACH
The underlying principle to our remuneration framework is to remunerate with a relevant, appropriate and market
comparable mix of total fixed remuneration (TFR) and incentives (at-risk remuneration), both long-term and short-term,
to achieve:
A positive culture in which high calibre employees are motivated to achieve Company objectives
Employees are appropriately remunerated for their role and at a level comparable to the market to maximise
retention of key staff
A remuneration structure that is appropriate and consistent with the Company values and policies and aligns
employee and shareholder interests by rewarding performance that creates long-term value for shareholders.
8.2
GUARANTEED RATE INCREASES
There are no guaranteed rate increases fixed in the contracts of any of the key management personnel.
42 IMAGE RESOURCES NL | ANNUAL REPORT 2024
REMUNERATION REPORT - AUDITED (cont.)
8.3
OVERVIEW OF EXECUTIVE REMUNERATION FRAMEWORK
This policy results in a framework for remuneration of executives that provides for a mix of fixed and variable
remuneration. The Managing Director has a greater proportion of at-risk remuneration relative to TFR when compared to
the ratios applicable to other KMPs. Variable remuneration is provided through short - and long-term incentives.
The elements of the Executive KMP remuneration are as follows:
Remuneration Component
Definition and time frame
Purpose
Fixed
Short-term
Total Fixed Remuneration (TFR) comprises
base salary, superannuation, and allowances
One year time frame
- provide a benchmarked, competitive cash salary
- appropriate salaries ensure attraction and retention of
key talent
At Risk
Short Term Incentives (STI)
Once measured, to be paid 2/3 in cash and 1/3
in performance rights, the latter awarded
subject
to
further
continuing
employment
conditions for 12 and 24 months
- reward performance over the short term
- measured against achievement of one-year strategic
objectives
Long Term
Long Term Incentives (LTI)
Performance Rights conditionally vesting over a
three-year performance period
- reward longer term performance
- achievement of strategic objectives
- retention of key staff
8.4
TOTAL FIXED REMUNERATION
Total Fixed Remuneration (TFR) includes base cash salary, allowances and statutory superannuation. TFR for executives
is reviewed at least annually by the Remuneration Committee and any changes must first be approved by the Board after
considering Remuneration Committee recommendations. The level of TFR is set with the need to attract and retain talent,
having regard to the mix of fixed and variable remuneration appropriate for the role. Remuneration changes for other
employees are set having regard to recommendations from management. The group seeks to position TFR to be at or
near the 50th market percentile of salaries for comparable positions/companies within the mining industry. The target
TFR is based on information provided by independent remuneration consultants.
8.5
AT RISK REMUNERATION: INCENTIVES
The current incentive plan includes provision for equity remuneration ba10sed on the Incentive Award Plan outlined in
section 7.1 above.
The STI portion of at-risk remuneration is paid as a combination of cash (two-thirds) and equity in the form of performance
rights (one-third), while the LTIs are paid solely upon the conversion of performance rights. Furthermore, one-third of
STI performance rights are subject to a one-year continuation of employment condition, while two-thirds are subject to a
two-year continuation of employment condition.
The remuneration mix, based on maximum incentive opportunity, being a set % of Total Fixed Remuneration (TFR), for
executives for each performance year are shown in the following table:
Key Executive
Maximum STI opportunity (% of TFR)
Maximum LTI
opportunity
(% of TFR)
Maximum STI and LTI
Incentive Opportunity (%
TFR)
Patrick Mutz
50% (33.5% cash & 16.5% equity performance rights)
90%
140%
John McEvoy
50% (33.5% cash & 16.5% equity performance rights)
60%
110%
Todd Colton
50% (33.5% cash & 16.5% equity performance rights)
60%
110%
IMAGE RESOURCES NL | ANNUAL REPORT 2024 43
The maximum number of performance rights to be offered to Key Executives is calculated by dividing the maximum
opportunity value for each Key Executive by the volume weighted average share price as determined by the board.
For the performance year ending 30 June 2024, using $0.0915 (20-day VWAP 30 June 2023) for LTIs and 0.796 (20-
day VWAP 30 June 2024) for STIs, the following Performance Rights and cash awards have been/ will be issued:
Disclosures by Value ($) of Maximum Opportunity for PY 2024 (1 July 23 to 30 June 24)
Executive
TFR
($)
Max
Opportunity
STI 50%
TFR 1
($)
2/3 of
STI Cash
($)
1/3 of
STI Rights
($)
Max
Opportunity
LTI ($) 2
Max
Opportunity At
Risk
Remuneration
($)
Max
Opportunity
TFR + At
Risk with
vesting
hurdles
over 3 years
($)
Actual STI1
(50% of Max
opportunity)
($)
Actual
LTI 3
TFR +
incentive
(if STI
award
fully
vested
across
next 2
years) ($)
Mr Mutz
676,854
338,427
226,746
111,681
609,169
947,596
1,624,450
169,214
TBD
846,068
Mr McEvoy 437,091
218.546
146,425
72,120
262,255
480,800
917,891
109,273
TBD
546,364
Mr Colton
483,770
241,885
162,063
79,822
290,262
532,147
1,015,917
120,943
TBD
604,713
Note
1
The Board determined the performance score for STI cash and performance rights for the PY ended 30 June 2024 at 50%. For
further disclosures on this measurement of actual STI rights awarded see section 3.5.7.
2
Max LTI is set at 90% of TFR for the MD and 60% for the CFO and COO.
3
The Board will determine each Key Executive’s performance against LTI KPIs shortly after 30 June 2026 and will use that LTI
performance score to determine the percentage of the maximum LTI opportunity achieved (Percentage LTI Achieved). The
number of LTI performance rights that vest after 30 June 2026 will be determined by multiplying the Percentage LTI Achieved
times the maximum number of LTI performance rights issued.
Disclosures by Number of performance rights for PY 2024 1 July 23 to 30 June 24 (PRs)
Executive
LTI PRs (#)
maximum
opportunity
STI PRs (#)
maximum
opportunity
Total STI
and LTI
maximum
opportunity
PRs
STI PRs Not
awarded
STI PRs
Awarded
(subject to 12-
month and 24-
month
continuity of
employment
condition)
Max
Opportunity
LTIs with
3-year
performance
measures at
30/06/26
Mr Mutz
6,657,580 1
1,403,027
8,064,141
701,512
701,514
6,657,580
Mr McEvoy
2,866,170
906,030
5,207,568
453,016
453,015
2,866,170
Mr Colton
3,172,262
1,002,790
5,763,709
501,395
501,395
3,172,262
12,696,013
1,655,923
12,696,013
Note
1.
Approval for the issue of these LTI performance rights to Mr Mutz was obtained under listing rule 10.14 at the
Company’s AGM held 30 May 2024.
REMUNERATION REPORT - AUDITED (cont.)
44 IMAGE RESOURCES NL | ANNUAL REPORT 2024
9
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
TFR - $676,854 per annum inclusive of superannuation, and allowances.
Performance bonus – participates in a Group-wide executive performance incentive scheme, including both
short-term and long-term incentives.
Allowances – from 1 July 2024, an allowance of up to $50,000 per 12-month period or proportion is deducted
from the TFR whilst IMA is located in Perth for accommodation and airfares for travel between Adelaide and
Perth.
The Group also 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.
John McEvoy – Chief Financial Officer
TFR - $437,091 per annum (from 1 July 2024) inclusive of superannuation.
Performance bonus – participates in a Group-wide executive performance incentive scheme, including short-
term and long-term incentives.
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.
Todd Colton – Chief Operating Officer
TFR - $483,770 per annum (from 1 July 2024) inclusive of superannuation.
Performance bonus – participates in a Group-wide executive performance incentive scheme, including both
short-term and long-term incentives.
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.
10
KEY QUESTIONS AND ANSWERS ON HOW THE INCENTIVES WORK
10.1
SHORT TERM INCENTIVE PLAN (STIP)
WHAT IS STIP?
This is the plan that governs the component of at-risk remuneration annually relating to the achievement of the Board-
approved short-term performance measures. These measures are linked to operational and financial targets and relate
to the Company’s short-term strategic objectives. These targets are identified in detail below.
HOW IS STIP REMUNERATION PAID?
The portion of the STIP that becomes payable (subject to the fulfilment of conditions) is settled two thirds as a cash
component and one third as performance rights. 1/3 of the PRs vest 12-months following the end of the performance
period with continuing employment and 2/3s vesting after 24-months following the end of the performance period with
continuing employment.
WHY DOES THE BOARD CONSIDER STIP IS APPROPRIATE?
The Group’s STIP is designed to link any short-term incentive payments with the Group’s achievement of overall
performance targets that are aligned to the Group’s short term strategic objectives as laid out by management and
endorsed by the Board at beginning of the relevant PY. This serves to strengthen the link between executives’
remuneration and the delivery of annual targets and priorities.
Further, a reward structure that provides a portion of total remuneration as at-risk is considered necessary to provide
competitive and up-to-date remuneration packages relative to market.
REMUNERATION REPORT - AUDITED (cont.)
IMAGE RESOURCES NL | ANNUAL REPORT 2024 45
DOES STIP TAKE INTO ACCOUNT ACHIEVEMENT AGAINST OBJECTIVES?
Yes. The STI performance targets are established at the start of the financial year. Outcomes relative to these targets
are reviewed at the end of the financial year and award of STIs are made dependent on performance achieving the
specific KPI targets set at the start of the year subject to the overriding discretion of the Board. The quantum awarded
will vary depending on percentage achievement against the performance criteria set at the beginning of the year. The
target performance is 60% of maximum opportunity.
HOW MUCH DO THE KMPS EARN FROM STIP?
The maximum STI opportunity for each executive is 50% of TFR per annum.
The STIP is designed with an indicative 5% chance of achieving 100% of maximum opportunity: an indicative 50% chance
of achieving a target award of 60% of maximum opportunity; and an indicative 95% chance of achieving the threshold
award of 30% of maximum. This structure was adopted based on the advice of independent remuneration consultant
Remsmart Consulting Services (Remsmart) (formerly BDO Reward WA Pty Ltd)
WHAT DID KMPS EARN FROM THE STIP FOR PY2024
The Remuneration Committee assessed the performance outcomes against the STI PY2024 KPIs and calculated the
overall percentage of STIs achieved. For PY 2024 the Board determined that 50% of the possible maximum opportunity
STI was to be awarded to KMPs based on the performance measures set in July 2023. This is lower than the target of
60%.
This translated to cash and performance rights awards as shown in the following table:
WHAT WERE THE PERFORMANCE CRITERIA AND HOW WAS THE 50% ACHIEVEMENT AGAINST SHORT TERM
PERFORMANCE MEASURES FOR PY24 DETERMINED?
Note
1.
The cash payment has been deferred
2.
One third of the STI performance rights issued are subject to a vesting condition that the Key Executive
remains an employee of the Company until 30 June 2025, with the remaining STI performance rights subject
to a vesting condition that the Key Executive remains an employee of the Company until 30 June 2026
3.
Approval for issue of the STI performance rights to Mr Mutz was given under Listing Rule 10.14 at the
Company’s annual general meeting held in May 2024
Objective
KPI
Purpose
Weighting
Awarded
Operational
Achievement of budgeted sales
tonnes and negotiation of pricing
model for Atlas
Maintaining operations (production
levels
and
budgeted
costs)
in
accordance with the operating plan
and approved budget
10%
7.5%
Actual HMC sales of 140kt substantially exceeded the target KPI Budget of 106kt. Target KPI of negotiating HMC
pricing model for Atlas was not achieved.
Financial
Achievement of target cash
balances and debts facilities.
Investment
targets
and
insurance coverage.
Cash management is paramount
during the revenue gap between
Boonanarring and Atlas.
35%
30.6%
Name
Maximum STI
opportunity
(50% of TFR)
Actual STI
Awarded (50% of
maximum
opportunity)
STI Portion
to be
awarded as
cash 1
STI Portion to
be awarded as
Performance
Rights($)
Number of Performance
Rights (based on 20-day
VWAP to 30 June 2024)
to be issued May 2025 2
Patrick Mutz
$338,427
$169,214
$113,373
$55,840
701,514 3
John McEvoy
$218,546
$109,273
$73,213
$36,060
453,015
Todd Colton
$241,885
$120,943
$81,031
$39,911
501,395
$798,858
$399,429
$267,617
$131,811
1,655,923
REMUNERATION REPORT - AUDITED (cont.)
46 IMAGE RESOURCES NL | ANNUAL REPORT 2024
Objective
KPI
Purpose
Weighting
Awarded
Stretch targets on cash and
debt facilities were identified
Minimum cash balances held at 30 June 24 exceeded target KPI and the stretch goal.
The KPI on securing US$20 million debt for Atlas working capital was not achieved as contemplated, due to nil interest
from debt providers for such a short term project as Atlas. However, a financial model and data pack for Atlas and
Yandanooka was built, and several potential debt providers for the Yandanooka Project were identified. In addition, the
Management Team re-generated HMC off taker Natfort's interest in potentially providing a Prepayment facility to support
Atlas. A US$20 million prepayment facility was secured towards end of FY 2024. Consequently, partial credit was
awarded.
Growth
Delivery of a bankable feasibility
study on Bidaminna by June 24,
PFS on mineral separation plant
and securing access to McCalls
for
geotechnical
studies
were
target KPIs and stretch targets
included early commencement of
construction at Atlas, strong BFS
results
on
Bidaminna
and
completing a BFS on Yandanooka.
Growth is critical. The importance of
accelerating
the
project
development timelines to move the
Company
toward
multi-project
operating status advancing studies
and/or development of longer life
projects
and
evaluating
opportunities to move into mineral
separation, product upgrading and
expanding into global markets, will
be critical to the future of the
business.
45%
31.5%
The Company went into cash conservation mode as a result of permitting delays for the Atlas Project. The Yandanooka
PFS was completed as a target KPI, however the stretch goal of completing a BFS was not achieved as work was delayed
for cash conservation purposes. The target KPI for a PFS on a mineral separation plant was also achieved. Partial credit
was awarded for the progress made on the development of plans for the design and plans for a demo plant for SR
production and seeking of Government grant support for demo plant.
ESG
&
Sustainability
Zero fatalities, TRIFR <3 at 30 June
24,
environmental
and
supplier
compliance
with
sustainability
targets.
Ensuring that all appropriate steps
are taken to ensure the health, safety
and well-being of all stakeholders;
that
the
environment
is
duly
protected;
that
community
and
stakeholder relations are positively
maintained; and that the Company's
governance policies are aligned to
the
applicable
United
Nations
Sustainable Development Goals key
to retaining the Company's social
licence to operate and having access
to lower cost investment capital for
new projects.
10%
13%
achievement
of all targets
and stretch
KPIs
All target KPIs and stretch KPIs successfully achieved. TRIFR of 1.6 at 30 June 2024 exceeded target and stretch KPIs.
Stretch goal of zero LTIs achieved. Also, more than 80% of suppliers surveyed use modern slavery audit software.
REMUNERATION REPORT - AUDITED (cont.)
IMAGE RESOURCES NL | ANNUAL REPORT 2024 47
WHAT ABOUT THE BRIDGING 6-MONTH GAP TO ALIGN THE CALENDAR AND PERFORMANCE YEARS?
For the financial year ended 31 December 2024, the board adopted a one-off short-term performance period of 6 months,
as previously outlined, as a bridging measure to bring the performance year into line with the financial year. The value
of the resulting cash and performance rights awards are detailed in the following table.
Name
Maximum
STI
opportunity
6 months
(25% of TFR)
Actual STI
Awarded
(60% of
maximum
opportunity)
Portion
awarded as
cash (2/3s
of STI
award)
Portion awarded as
Performance Rights (1/3
of STI award). These are
subject to a 12-month and
24-month continuing
employment vesting
condition
Number of Performance
Rights (based on 20-day
VWAP to 31 Dec 2024
$0.0923) to be issued May
2025 1
Patrick Mutz
$169,213
$101,528
$68,024
$33,504
362,993
John McEvoy
$109,273
$65,563
$43,928
$21,636
234,410
Todd Colton
$120,943
$72,565
$48,619
$23,946
259,443
$399,429
$239,656
$160,570
$79,087
856,846
Note
1.
Approval for issue of the STI performance rights to Mr Mutz will be requested given under Listing Rule 10.14 at
the Company’s annual general meeting to be held in May 2025.
WHAT WERE THE PERFORMANCE CRITERIA FOR THIS PERIOD AND HOW WAS THE 60% ACHIEVEMENT
AGAINST 6-MONTH KPIS TO 31 DECEMBER 2024 MEASURED?
Objective
KPI
Weighting
Awarded
Financial
Cash balances and debts facilities; construction of Atlas within
budget and insurance coverage; budgeted funding secured
45%
26%
While there were delays in the drawdown on the funding due to external factors, funding requirements were resolved in
December 2024, with favourable terms. Minimum cash buffers and insurance coverages were achieved, along with rapid
progression of Atlas construction within budget. The stretch KPI of maintaining a A$10m minimum cash buffer was achieved.
Stretch KPIs for completing construction at Atlas by 31 Dec and finalising debt funding for Yandanooka were not achieved.
Growth
&
Developments
Primary focus for KPIs were Atlas project permitting, development
and construction; including adherence to timelines and no
reportable environmental and regulatory infractions.
55%
34%
Approvals for Atlas were received as per ASX announcement 9 August 2024 and construction of Atlas progressed in line with
budgeted timelines. Safety, regulatory and environmental targets were met. The target KPI of securing a minimum $1m
Government grant for SR demonstration plant was not achieved. Due to cash conservation protocols, the stretch goal of
completing a BFS on Yandanooka was not achieved. Also, the stretch goal of completing Atlas construction by the end of
December was not achieved.
REMUNERATION REPORT - AUDITED (cont.)
48 IMAGE RESOURCES NL | ANNUAL REPORT 2024
WHAT DID THE KMPS EARN FROM STIS IN THE PRIOR YEAR, PY 2023 AND HOW WAS THIS ASSESSED?
The summary of the performance scoring for Key Executives for the STI PY2023 KPIs equated to a percentage STI
achieved of 62%, compared to a target score of 60%.
Resulting value of STI cash and performance rights awards as shown in the following tables:
Approval for issue of the STI performance rights to Mr Mutz was obtained under Listing Rule 10.14 at the Company’s
annual general meeting held on 30 May 2023.
One third of the STI performance rights issued were subject to a vesting condition that the Key Executive remains an
employee of the Company until 30 June 2024, with the remaining STI performance rights subject to a vesting condition
that the Key Executive remains an employee of the Company until 30 June 2025.
WHAT WERE THE PERFORMANCE CRITERIA AND WHAT IS THE BREAKDOWN OF THE BOARD’S
MEASUREMENT OF THE 62% AWARD AGAINST TARGET?
Objective
KPI
Purpose
Max Weighting
%
Awarded
% of
Operational
Processing, production and sale
targets.
Finalise schedule and plan to
implement rehabilitation
Deliver
all
Atlas
project
approvals
and
plans
for
construction
Stretch targets processing and
production at Boonanarring
Maintaining
operations
(production levels and at
budgeted
costs)
in
accordance
with
the
operating
plan
that
is
supported by an approved
budget is a key driver to
success.
30%
17%
Processing, production, and sales targets exceeded. Rehabilitation schedule finalised. Completed all equipment and
infrastructure planning for Atlas development. Boonanarring ore processing extended.
Financial
Overall EBITDA bonus trigger
exceeded.
NPAT as per approved budget.
Cash, investment, insurance and
compliance targets achieved.
Stretch targets Company EBITDA
and NPAT and potential options
for
financing
capital
requirements for Bidaminna by
30 June 2023 achieved.
Clearly the overall financial
performance
of
the
Company is the most critical
element
of
success.
Therefore this area of the
business
(EBITDA
with
appropriate
adjustments)
serves as the 'trigger' for
paying out any bonuses. To
be clear, if the company
does not meet the 'trigger'
financial 'minimum target',
no bonuses are paid, unless
approved by the Board on a
justifiable exception basis.
30%
26%
Bonus trigger was achieved and exceeded and all financial and stretch targets achieved apart from Bidaminna
financing. This was due to BFS being delayed and downgraded to a PFS. .
Name
Maximum STI
opportunity
(50% of TFR)
Actual STI
Awarded
(62%of
maximum
opportunity)
Portion
awarded as
cash (2/3rds)
Portion
awarded as
Performance
Rights ($)
(1/3rd)
Number of Performance
Rights (based on 20-day
VWAP to 30 June 2023) issued
Feb 24
Patrick Mutz
$328,570
$203,713
$136,488
$67,225
734,703
John McEvoy
$212,180
$131,552
$88,140
$43,412
474,445
Todd Colton
$234,840
$145,601
$97,553
$48,048
525,116
$775,590
$480,866
$322,181
$158,686
1,734,270
REMUNERATION REPORT - AUDITED (cont.)
IMAGE RESOURCES NL | ANNUAL REPORT 2024 49
Objective
KPI
Purpose
Max Weighting
%
Awarded
% of
Growth
Target KPIs to complete PFS on
Bidaminna,
scoping
studies
on
Eneabba
Tenements
(esp.
Yandanooka) and mineral separation
plant, scoping study on McCalls,
Mineral Resources estimate for gold
tenements and establish credible SR
production
testing
program
for
ilmenite from Bidaminna and McCalls.
Stretch KPIs to finalise investment
case (internally) for proceeding with
Bidaminna development expenditures
by 30 June 2023, including approval
to commission Bidaminna BFS, and by
30
June
2023,
develop
credible
preliminary
development
plan
to
achieve
3
mineral
sands
mining
projects operating in parallel, with >8
years mine life each, and including
conceptual capital funding plan.
Effectively achieving KPIs
established
to
move
the
Company
towards
multi-
project
operating
status,
advancing
studies
and/or
development of longer life
projects
and
evaluating
opportunities to move into
mineral separation, product
upgrading and expanding
into global markets, will be
critical to the future of the
business.
20%
13%
All target KPIs except McCalls concept study were achieved and both stretch targets were largely
achieved.
ESG
Establish and publish inaugural,
formal
ESG
Framework
and
Sustainability
Report
for
publication in conjunction with
CY2022 Annual Report.
Zero fatalities for PY2023.
12-month rolling TRIFR less than
10 (per million hours worked) as
at 30 June 2023.
Environmental
Management
System fully operational, and no
significant regulatory breaches
Develop
detailed
plan
for
treatment on rehabilitation area
at Boonanarring by 31 March
2023.
Enhanced community relations
protocols
expanded
to
all
exploration
and
development
sites to maintain Image's social
licence to operate, as measured
by training logs.
Stretch targets - Formal, Board
approved
ESG
policies
and
protocols developed in line with
ICMM
standards
and
communicated to all stakeholder
Ensuring that all appropriate
steps are taken to ensure
the health, safety and well-
being
of
employees,
contractors,
local
landowners, visitors and the
general
public;
that
the
environment
is
duly
protected; that community
and stakeholder
relations
are positively maintained;
and
that
the
Company's
overall governance policies
are
aligned
to
the
appropriate and applicable
United Nations Sustainable
Development Goals, will be
key
to
retaining
the
Company's social licence to
operate and having access
to lower cost investment
capital required for new
projects development
20%
6%
REMUNERATION REPORT - AUDITED (cont.)
50 IMAGE RESOURCES NL | ANNUAL REPORT 2024
Objective
KPI
Purpose
Max Weighting
%
Awarded
% of
groups by 30 June 2023. Zero
lost-time
incidents.
12-month
rolling TRIFR less than 5.0 per
million hours worked as at 30
June
2023.
Large-scale
treatment on rehabilitation area
at Boonanarring by 30 June 2023
There were no fatalities, the plan for application of clay and mulch on rehabilitation land was completed and
development of a formal ESG framework was partially achieved. No stretch KPIs were achieved.
10.2
LONG TERM INCENTIVE PLAN (LTIP)
WHY DOES THE BOARD CONSIDER A LTIP APPROPRIATE?
An effective LTIP that is aligned to the strategic objectives of the Company, can motivate executives to drive performance
and optimise long term shareholder value. It links a significant proportion of potential reward to the Company’s
achievement of operational milestones and growth in share price and returns to shareholders. An effective LTIP is a key
part of the remuneration framework to attract and retain talented executives given the prevailing remunerative practices
landscape.
HOW IS THE LTI PAID?
The LTI awards are to be delivered as performance rights granted to Executive KMPs in accordance with the Company's
Incentive Award Plan (Plan). Each performance right, subject to conditions, may convert into an ordinary fully paid share
for nil consideration. Long term awards are issued annually at the discretion of the Board and remained unvested until
the end of the three-year performance period. The LTI KPI performance measures, as set by the Board, are scored at
the end of the performance period, and performance rights vest at the level of scoring of performance, with a target of
60% of maximum LTI opportunity and the threshold score is 30% of maximum opportunity. Any performance rights that
does not vest based on performance scoring are forfeited and no ordinary shares will be issued for these rights. There
is also a trigger KPI of no fatalities during the 3rd year of each LTI grant, which if not achieved, will result in zero
performance rights vesting for that year
WHO CAN PARTICIPATE IN THE LTIP?
Eligible participants are executive and non-executive directors and any associated body corporate of the Company and
any full, part time or casual employees of individual service providers of any group Company. Company policy does not
allow the award of performance rights to non-executive directors.
HOW MANY PERFORMANCE RIGHTS ARE ISSUED?
The maximum opportunity value of an award is determined by the Board at its discretion, in accordance with applicable
law and stock exchange rules. The dollar value of the maximum opportunity award is calculated as a percentage of the
TFR, that percentage varying according to the Executive KMPs’ positions and roles in the Company. For PY 2024 the MD
was allocated a maximum opportunity value at 90% of TFR and the CFO and COO at 60% of TFR. The number of
performance rights to be issued is the Executive KMPs LTI maximum opportunity value divided by the volume weighed
average price prior to the first trading day of the measurement period.
The percentage level of vesting is determined based on performance scoring against LTI KPIs following the end of the
performance period.
WHAT IS THE PERFORMANCE PERIOD?
The LTI performance period is 3 years. Note, as already discussed in section , the LTI measurement period for the PY
2025 will be an exceptional, one off, 30 months (in lieu of 36 months). This shortened has been adopted as part of the
transition to bring the performance year (PY) into line with the financial year (FY).
REMUNERATION REPORT - AUDITED (cont.)
IMAGE RESOURCES NL | ANNUAL REPORT 2024 51
HOW IS PERFORMANCE MEASURED FOR THE DETERMINATION OF AN LTI AWARD?
Long-term KPIs are developed by the RNC and approved by the Board. The targets are developed to align with the
Company’s strategic plan and deliverables. The performance targets are a disclosed weighted mix of measures relating
to long-term operational strategy and shareholder return. These are disclosed in detail for PY24in the paragraphs that
follow.
At the end of the measurement period, the Board with the RNC, assesses achievement against objectives to determine
if and at what level performance measures were me, as a % achievement including provision for any discretionary
adjustment the Board sees fit.
WHAT IS THE EXPIRY DATE OF THE PERFORMANCE RIGHTS?
ASX Guidance Note 19 currently provides that ASX policy is for performance rights to have a maximum 5-year expiry
date. The Company policy is to set a three year expiry date.
WHAT IS USED TO MEASURE PERFORMANCE FOR THE LTIP?
For PY24 1 July 2023 to 30 June 2026 Refer to Section 11
FROM PY2024 ONE OF THE KPIS IS SHAREHOLDER PERFORMANCE SCORE – HOW IS THIS MEASURED?
Shareholder performance score is a simple average of the Absolute Shareholder Performance Score and the Relative
Shareholder Performance Score. For PY24 the score achieved from this calculation will be applied to the weighting of
40% assigned to shareholder performance to calculate the number of performance rights that would be awarded against
this measure.
Absolute Shareholder Performance (ASP) Score
ASP calculates Shareholder return for the performance period. The absolute shareholder return (ASR) is calculated
based on the change in capital value (share price and dividends) over the performance period (opening value over
closing value across the 3-year LTI period).
If ASR is less than +20%, a score of 0 will be assigned to the ASP portion of the shareholder performance score average
calculation.
If ASR is greater than +20%, a score of twice the calculated shareholder returns will be assigned to the ASP portion of
the shareholder performance score average calculation.
Relative Shareholder Performance (RSP) Score
This score ranks the shareholder returns relative to the returns of peer group companies selected with the approval of
the independent remuneration consultant for the PY2024 performance period but excluding any who are determined by
the board at the end of the measurement period to have ceased to be peers in any objectively meaningful sense.
If the Company ranks in the bottom half of the peer group ranking, a score of 0 will be assigned to the RSP portion of
the shareholder performance score average calculation.
If the peer group ranking is in the top half, a score equal to that ranking percent will be assigned to the RSP portion of
the shareholder performance score average calculation.
WHY IS THE PEER GROUP AN APPROPRIATE MEASURE FOR RELATIVE SHAREHOLDER RETURN FOR PY24
The selected peer group consists of the same basket of companies used for executive TFR benchmarking by Remsmart
in 2022. The peer group companies are selected as facing similar risks and market conditions as the Company, sharing
common value drivers such as commodity prices, wages, and funding costs.
WHAT HAPPENS TO THE PERFORMANCE RIGHTS IF A KMP IS NO LONGER EMPLOYED BY THE COMPANY?
If the employee ceases employment with the Company, all unvested performance rights will lapse except if the Company
exercises its discretion to override that result.
WHAT HAPPENS IN A CHANGE OF CONTROL EVENT
If such an event occurs, any vesting conditions will be deemed to be automatically waived, pro-rated to reflect time
elapsed and performance as determined by the Board acting reasonably, with any residual/ unvested rights lapsing.
IS THERE A DEFERRAL MECHANISM?
Not in the terms of grant of the performance rights albeit a deferral might be imposed as a condition of an award.
REMUNERATION REPORT - AUDITED (cont.)
52 IMAGE RESOURCES NL | ANNUAL REPORT 2024
ARE THEIR MISCONDUCT OR CLAWBACK PROVISIONS?
Where the board has determined that an employee has acted fraudulently or dishonestly or with gross negligence, the
board may deem any unvested or any vested but unexercised rights to have lapsed.
CAN THE BOARD USE ITS DISCRETION TO VARY THE MAXIMUM WEIGHTINGS?
Where it sees fit, the Board may, acting in good faith, use its discretion to vary the maximum weightings, allocate
weightings to alternative milestones or impose conditions to awards.
11
LTI PERFORMANCE RIGHTS PY 2024 (1 JULY 2023 TO 30 JUNE 2026)
Summary of Terms
Financial Year of Issue
31 December 2024 (issued 29 May 2024)
Performance period
3 years: 1 July 23 – 30 June 26
Award opportunity
90% of TFR for MD and 60% for CFO and COO
Status
To be reviewed for vesting award after 30/06/26
Period
Name
Maximum # of
rights 1,2
Measurement Date
Expiry Date 3
PY 2024
Patrick Mutz
6,657,580
30 June 2026
30 June 2028
John McEvoy
2,866,170
30 June 2026
30 June 2028
Todd Colton
3,172,262
30 June 2026
30 June 2028
Note
1.
Number of rights calculated by dividing the maximum LTI opportunity for each executive by the 20-day VWAP at 30 June 2023,
being $0.0915
2
Approval for the LTI performance rights to Mr Mutz was obtained at the Company’s annual general meeting held 28 May 2024.
They were issued 29 May 2024.
3
Any unvested performance rights or vested performance rights not exercised before the expiry date will automatically lapse on
the expiry date.
REMUNERATION REPORT - AUDITED (cont.)
IMAGE RESOURCES NL | ANNUAL REPORT 2024 53
PERFORMANCE CONDITIONS AND WEIGHTINGS
There is an overriding HSE hurdle of no fatalities during the final 12-months of the measurement period.
For LTI performance rights issued related to the performance period 1 July 2023 to 30 June 2026 the following weightings
of the performance conditions in deciding the level of attainment of LTI performance goals apply:
Performance
hurdle
Weighting
Performance
Condition
Level of Vesting
0%
Minimum
Target
Stretch Target
Total Shareholder
Return
40%
Calculated based on
changes
in
capital
value as measured by
Share
Price
and
dividends across the
3-year
LTI
performance period.
Average of Relative Performance Score and Absolute
Performance Score
Relative Performance
Score:
shareholder
returns
relative
to
peer
group
companies.
< 50% in the
peer
group
ranking, score is
0
>= 50% in peer group rankings, then
% score is equal to that ranking
percent
Absolute
Performance Score
< 20%, score is
0
>=20% absolute shareholder returns,
then % score is equal to two times the
absolute Shareholder returns
Ore Reserves
20%
<500
million
tonnes
500
million
tonnes
of
new
Ore
Reserves
(from
30
June
2023)
then
a
score of 20% is
earned
500
million
tonnes
of
additional
new
Ore
Reserves
(above Minimum
Target) then an
ADDITIONAL
20% is earned
Growth
&
Sustainability
20%
Positive
feasibility
study
on
McCalls
and/or Mindarra
Springs or other
projects with 20+
years of mine life
in
a
single
project, a score
of 20%
Positive
feasibility
study
on
McCalls
and/or
Mindarra
Springs or other
projects with 40+
years of mine life
in a single project
or two projects
with 20+ years of
mine life each an
ADDITIONAL
20% is earned
20%
Positive
feasibility
study
on
synthetic
rutile production
facility a score of
20%
Final Investment
Decision
on
synthetic
rutile
production
facility
an
ADDITIONAL
20% is earned
REMUNERATION REPORT - AUDITED (cont.)
54 IMAGE RESOURCES NL | ANNUAL REPORT 2024
12.
STATUTORY KEY MANAGEMENT PERSONNEL REMUNERATION DISCLOSURE
The remuneration table below has been prepared in accordance with accounting standards as required by the
Corporations Act 2001.
The accounting standards require the disclosure of the expense to the Company in the financial years presented, which
may result in only a portion of total awarded remuneration being disclosure where payments are deferred. Additionally,
accounting standards require share-based payments expenses to be calculated using the grant date fair value (rather
than current market prices).
Remuneration for the years ended 31 December 2024 and 31 December 2023
Short-term benefits
Long term
benefits
Share-
based
Payments
Name
Financial Year
Salary 1
($)
STI Cash Bonus 2
($)
Non-monetary
benefits 3 ($)
Other
($)
Long Service Leave 4
Superannuation
($)
Performance rights 9
($)
Total
($)
Performce related % 5
Executive Directors
Patrick
Mutz
(MD
&
CEO)
2024
605,534
-
44,540
-
14,652
28,884
192,569
886,179
22%
2023
597,776
255,576
40,869
6 43,889
24,565
27,403
-
990,078
Executive Officers
John
McEvoy
(CFO)
2024
408,244
-
-
-
9,578
28,847
90,130
536,799
17%
2023
403,259
151,673
-
-
9,832
27,466
-
592,230
Todd
Colton
(COO)
2024
454,912
-
-
-
10,841
28,858
99,756
594,367
16%
2023
449,225
166,082
-
-
25,874
27,500
-
668,681
George
Sakalidis
2024
-
-
-
-
-
-
2023
32,583
-
-
7 160,473
3,421
-
196,477
2024
1,468,690
-
44,540
-
35,071
86,589
382,455
2,017,345
2023
1,482,843
573,331
40,869
204,362
60,271
85,790
-
2,447,466
Notes
1.
Excludes payments made under the compulsory superannuation guarantee
2.
The cash component of the STI earned, paid following assessment of performance for the year.
3.
Non-monetary benefits include allowances paid for travel and accommodation during the financial year.
4.
Accrual in long service leave over the year.
5.
Reflects the percentage of total remuneration that is performance-related (short-term cash settled STI and shared-based
payments relating to the STI and LTI Plans).
6.
Annual leave paid out.
7.
Long service leave and annual leave paid out on resignation on 14 March 2023
8.
The values used for share-based payments are based on accounting estimates as disclosed in detail in Note 20 to the financial
statements.
REMUNERATION REPORT - AUDITED (cont.)
IMAGE RESOURCES NL | ANNUAL REPORT 2024 55
EQUITY HOLDINGS OF KEY MANAGEMENT PERSONNEL
OPTIONS
No options were held by KMPs at 31 December 2024 and no options were granted, forfeited or lapsed during the year
ended 31 December 2024.
PERFORMANCE RIGHTS AUTHORISED FOR ISSUE UNDER INCENTIVE AWARD PLAN
Details of performance rights issued during the reporting period are as follows:
Note
1.
One third of PY 23 STIs vested subject to continued employment at 30 June 2024 and two-thirds continued employment at 30 June
2025
2.
Against future measurement of performance against approved metrics
Name
Balance
01/01/24
STIs
Issued
16/2/24
(PY 23)
Exercised
by Holder
LTIs Issued
16/2/24
(PY23)
LTIs Issued
29/5/24
(PY 24)
Balance
31/12/24
Vested to
31/12/24 1
Number of
rights
available
for vesting 2
Patrick Mutz
-
734,703
6,463,672
6,657,580
13,855,957
244,901
13,611,056
John McEvoy
-
474,448
2,782,688
2,866,170
6,123,306
158,148
5,965,158
Todd Colton
-
525,118
(174,864)
3,079,868
3,172,262
6,602,384
175,039
6,602,209
Total
-
1,734,270
(174,864)
12,326,228
12,696,013
26,581,647
578,088
26,178,423
REMUNERATION REPORT - AUDITED (cont.)
56 IMAGE RESOURCES NL | ANNUAL REPORT 2024
Details of valuations of performance rights issued as compensation to KMPs. during the reporting period
Performance Rights Exercised by Key Management Personnel
174,864 fully paid ordinary shares were issued on the exercise of 174,864 performance rights by KMPs during the year
as disclosed in the table below.
Name
Balance
01/01/24
Issue Date
Fair value at
issue date
Weighted
average fair
value per
right
Expiry date
Measurement
date
Expensed
FY
31/12/24
Patrick Mutz
STI
734,703
16/02/24
$44,082
$0.06
30/06/26
30/06/23
$33,396
LTI
maximum
opportunity
PY23
6,463,672
16/02/24
$271,474
$0.04
30/06/27
30/06/25
$113,525
LTI
maximum
opportunity
PY24
6,657,580
29/05/24
$220,221
$0.03
30/06/28
30/06/26
$45,738
John McEvoy
STI
474,448
16/02/24
$28,467
$0.06
30/06/26
30/06/23
$21,566
LTI
maximum
opportunity
PY23
2,782,688
16/02/24
$116,873
$0.04
30/06/27
30/06/25
$48,874
LTI
maximum
opportunity
PY24
2,866,170
29/05/24
$94,807
$0.03
30/06/28
30/06/26
$19,691
Todd Colton
STI
525,118
16/02/24
$31,507
$0.06
30/06/26
30/06/23
$23,868
LTI maximum
opportunity
PY24
3,079,868
16/02/24
$129,354
$0.04
30/06/27
30/06/25
$54,094
LTI maximum
opportunity
PY24
3,172,262
29/05/24
$104,932
$0.03
30/06/28
30/06/26
$21,793
Total
$382,455
REMUNERATION REPORT - AUDITED (cont.)
IMAGE RESOURCES NL | ANNUAL REPORT 2024 57
Shareholdings of 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:
Name
Balance at
Beginning
of Year
Purchased
During the
Year (on
Market)
Expired
during the
Year 1
Performance
Rights
Exercised
Balance at
End of Year
Executive Directors
Patrick Mutz
5,040,358
3,035,000
(1,309,478)
-
6,765,880
Executive Officers
John McEvoy
2,604,148
-
(860,903)
-
1,743,245
Todd Colton
2,178,770
-
(962,319)
(174,864)
1,391,315
Total
9,823,276
3,035,000
(3,132,700)
(174,864)
9,900,440
Note
1.
Employee share plan shares that expired on 08/10/2024. The employee had no legal right to the shares after this date, even
though they were still registered in their name. These shares were bought back by the Company on 02/12/2024.
Loans to KMP and/or their Related Parties
The following interest-free and fee-free limited recourse loans were outstanding at 31 December 2024, relating to the
Employee Share Plan.
KMP
Balance at
01/01/2024
Expired during
Period
Balance at
31/12/2024
Loan for Employee Share Plan shares issued 08/10/21. Repayable by 08/10/24. Interest free
Patrick Mutz
$212,135
($212,135)
-
John McEvoy
$139,466
($139,466)
-
Todd Colton
$155,896
($155,896)
-
Loan for Employee Share Plan shares issued 12/09/22. Repayable by 12/09/25. Interest free
Patrick Mutz
$215,373
-
$215,373
John McEvoy
$145,000
-
$145,000
Todd Colton
$148,867
-
$148,867
REMUNERATION REPORT - AUDITED (cont.)
58 IMAGE RESOURCES NL | ANNUAL REPORT 2024
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.
13.
NON-EXECUTIVE DIRECTOR REMUNERATION
13.1
NON-EXECUTIVE DIRECTOR REMUNERATION FRAMEWORK
Fees paid to non-executive Directors are recommended by the Remuneration Committee and approved by the Board. As
per the Company’s constitution and ASX Listing Rules, the maximum aggregate fees paid to non-executive directors
should be determined by the shareholders at a general meeting. On 30 May 2023 under Clause 13 (9) of the Company’s
Constitution, shareholders approved the maximum aggregate fees to be paid to Directors to be $700,000 per annum.
No fee increases have been granted during the 2024 financial year.
The following table summarises the fees received for each non-executive director and their roles on the board.
Director
Annual Directors Fees
Committee Fees
Mr R Besley (Non-Executive Chair)
$171,000
(inclusive of super)
-
Mr P Thomas (Non-Executive Director)
$100,500
(inclusive of super)
$16,000
(inclusive of super)
Mr A Soo (Non-Executive Director)
$88,000
$6,000 1
Mrs R Xu (Non-Executive Director)
$80,000
-
Mr W Lee (Non-Executive Director)
$80,000
$6,000 1
Note
1.
No super is required to be paid as the Directors are permanent foreign residents
13.2
CHANGES TO THE NON-EXECUTIVE DIRECTOR REMUNERATION FRAMEWORK
Until 1 October 2024, the non-executive directors received a fixed remuneration package that included a cash fee and,
for Australian resident directors, statutory superannuation contributions. Directors also receive additional fees for serving
as committee members and chairs. The fees reflect the demands placed on them and their responsibilities.
In CY 2023 the RNC engaged BDO Remuneration and Reward (BDO) to benchmark executive remuneration and non-
executive director fees and to review the remuneration framework with respect to fixed remuneration, short term and
long-term incentives with the objective of recommending changes to ensure remuneration remained appropriate, market
competitive and aligned with shareholder expectations. In their report received in CY 2023 “Non-Executive Director
Remuneration Report”, one of the recommendations of BDO was that up to 33% of NED salaries be paid in equity with
the purpose of:
ensuring a strong alignment between the board and the shareholder interests; and
having the advantage of preservation of operational cashflow.
To put effect to the recommendation as of 1 October 2024, the Company has withheld payment of 30% of director fees.
These are accrued and will be settled with equity instruments following approval by shareholders at the next general
meeting. Amounts accrued for settlement in this manner are disclosed in Table of non-executive director fees in 16.5
below
REMUNERATION REPORT - AUDITED (cont.)
IMAGE RESOURCES NL | ANNUAL REPORT 2024 59
13.3
RETIREMENT AND SUPERANNUATION PAYMENTS
Prescribed benefits were provided by the Company to directors by way of superannuation contributions to externally
managed complying superannuation funds during the year. These benefits were paid as superannuation contributions to
satisfy the requirements of the Superannuation Contribution Guarantee Act and in satisfaction of any salary sacrifice
requests. All contributions were made to accumulation type funds selected by the director and accordingly actuarial
assessments were not required.
13.4
NON-EXECUTIVE DIRECTOR OPTIONS
No Non-Executive Director (NED) options were issued during the year ended 31 December 2024 or the year ended 31
December 2023.
On 27 May 2023, 8,000,000 (NED) options expired. These options had been issued on 27 May 2021 to NEDs at an
exercise price of $0.32 per share with an expiry date of 27 May 2023.
No options were held by directors at 31 December 2024.
The number of options held by Non-Executive Directors during the year ended 31 December 2023 is set out below:
Name
Balance
01/01/2023
Exercised
Lapsed
Balance
31/12/2023
Robert Besley
2,000,000
-
-
(2,000,000)
-
Chaodian Chen
2,000,000
-
-
(2,000,000)
-
Aaron Chong Veoy Soo
2,000,000
-
-
(2,000,000)
-
Peter Thomas
2,000,000
-
-
(2,000,000)
-
8,000,000
-
-
(8,000,000)
-
REMUNERATION REPORT - AUDITED (cont.)
60 IMAGE RESOURCES NL | ANNUAL REPORT 2024
13.5
SUMMARY OF NON-EXECUTIVE DIRECTOR FEES
Each Non-Executive Director’s actual remuneration for the year ended 31 December 2024 and the year to 31 December
2023 is shown below. Each Non-Executive Director has an unspecified term of appointment, which is subject to the
Company’s Constitution. Conditions are reviewed at least annually by the Remuneration Committee. There are no
termination benefits for any Non-Executive Director.
Non-Executive Director fees for the years ended 31 December 2024 and 31 December 2023 were as follows:
FY
Base Fees
per annum
Audit
Committee
Fee
Remuneration
Committee
Fee
Post
employment
Superannuation
Total
Portion
not paid
in CY2024
1
$
$
$
$
$
$
Robert Besley
2024
2 171,000
-
-
-
171,000
9,833
2023
167,883
-
-
5,784
173,667
-
Peter Thomas
2024
91,763
3 10,000
6,000
8,737
116,500
8,737
2023
88,954
10,000
6,000
11,383
116,337
-
Aaron Soo
2024
88,000
6,000
-
-
94,000
7,051
2023
88,000
6,000
-
-
94.000
-
Ran Xu
2024
80,000
-
-
-
80,000
6,000
2023
80,000
-
-
-
80,000
-
Winston Lee
2024
80,000
6,000
-
-
86,000
6,450
2023
80,000
4 8,548
-
-
88,548
-
Former non-executive directors
Chaodian Chen 5
2023
25,000
-
-
-
25,000
-
2024
510,763
22,000
6,000
8,737
547,500
38,071
2023
529,837
24,548
6,000
17,167
577,552
-
Fees are inclusive of superannuation where required.
Note
1.
Portion to be paid on a date to be agreed following receipt of first revenue from Atlas.
2.
Includes committee fees.
3.
Chair of Audit & Risk Committee.
4.
Winston Lee committee fees in 2023 covers period of 29/07/2022 to 31/12/2023.
5.
Chaodian Chen retired as a director on 30 May 2023.
REMUNERATION REPORT - AUDITED (cont.)
IMAGE RESOURCES NL | ANNUAL REPORT 2024 61
13.6
SHARES HELD BY NON-EXECUTIVE DIRECTORS
Name
Balance
01/01/2024
Purchased
during the Year
Other
Balance
31/12/ 2024
Non-Executive Directors
Robert Besley
666,667
-
-
666,667
Peter Thomas
2,104,306
-
-
2,104,306
Aaron Soo
15,000,000
-
-
15,000,000
Winston Lee
151,515,494
-
-
151,515,494
Ran Xu
-
31,000,000
221,530,369
1 252,530,369
Total
169,286,467
31,000,000
221,530,369
179,012,043
Note
1.
Ms Ran Xu on 5 August 2024 through inheritance under a will became the holder in shares of the Company through the
investments of Murray Zircon Pty Ltd and Orient Zirconic Resources (Australia) Pty Ltd in the Company. Murray Zircon acquired
a further 31,000,000 shares on market on 2 December 2024
14
OTHER DISCLOSURES
14.1
CONSULTANT AGREEMENTS
DW Corporate 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.
END OF REMUNERATION REPORT
The Remuneration Report forms part of the Directors’ Report and has been audited in accordance with section 300A of
the Corporations Act 2011 (Cth).
This Report of Directors, incorporating the Remuneration Report, is signed in accordance with a resolution of the
directors.
ROBERT BESLEY
CHAIR
Perth, 28 March 2025
REMUNERATION REPORT - AUDITED (cont.)
62 IMAGE RESOURCES NL | ANNUAL REPORT 2024
Auditor's Independence Declaration
As the auditor for the audit of Image Resources NL for the year ended 31
December 2024, I declare that, to the best of my knowledge and belief, there
have been:
I)
no contraventions of the independence requirements of the
Corporations Act 2001 in relation to the audit; and
II)
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
Sajjad Cheema
Director
28th March 2025
Perth
AUDITOR'S INDEPENDENCE DECLARATION
IMAGE RESOURCES NL | ANNUAL REPORT 2024 63
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the Year Ended 31 December 2024
Notes
Year to
31 Dec
2024
($000)
Year to
31 Dec
2023
($000)
Continuing operations
Operating sales revenue
3
-
119,133
Cost of sales
3
-
(94,225)
Gross profit
-
24,908
Government royalties
-
(5,649)
Shipping and other selling costs
-
(6,742)
Corporate expenses
(6,739)
(7,683)
Exploration and evaluation expenses
(1,568)
(4,173)
Impairment – Property, Plant & Equipment
-
(2,230)
Rehabilitation costs – closed sites
(4,066)
(685)
Other income and expense
89
46
Foreign currency gain / (loss)
3
605
(141)
Operating loss
(11,679)
(2,349)
Finance income
3
1,478
1,048
Financing costs
3
(3,271)
(3,317)
Loss before income tax
(13,472)
(4,618)
Income tax expense / (benefit)
6
4,058
(89)
Loss for the year from continuing operations
(9,414)
(4,707)
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
6
(5)
Items that will not be reclassified to profit or loss
Hedging gain / (loss)
-
(405)
Total other comprehensive income / (loss)
6
(410)
Total comprehensive loss for the year
(9,408)
(5,117)
Net profit loss attributable to owners of Image Resources NL
(9,414)
(4,707)
Total comprehensive income / (loss) attributable to owners of
Image Resources NL
(9,408)
(5,117)
Notes
Cents
Cents
Earnings per share
Basic earnings / (loss) per share
5
(0.85)
(0.43)
Diluted earnings / (loss) per share
5
(0.83)
(0.47)
The accompanying notes form part of these financial statements.
64 IMAGE RESOURCES NL | ANNUAL REPORT 2024
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2024
Notes
31 Dec
2024
($000)
31 Dec
2023
($000)
Current assets
Cash and cash equivalents
7
19,946
46,197
Trade and other receivables
8
2,556
2,654
Inventory
11
2,060
2,077
Other financial assets
9
1,532
2,862
Total current assets
26,094
53,790
Non-current assets
Property, plant and equipment
10
141,168
99,116
Other financial assets
9
27
2,364
Deferred tax assets
6
10,918
10,395
Total non-current assets
152,113
111,875
Total assets
178,207
165,665
Current liabilities
Trade and other payables
12
11,817
4,680
Provisions
13
1,203
4,356
Borrowings
14
8,864
111
Total current liabilities
21,884
9,147
Non-current liabilities
Provisions
13
57,223
45,798
Borrowings
14
1,020
-
Total non-current liabilities
58,243
45,798
Total liabilities
80,127
54,945
Net assets
98,080
110,720
Equity
Issued capital
15
123,235
126,893
Reserves
16
18,494
18,062
Accumulated losses
16
(43,649)
(34,235)
Total equity
98,080
110,720
The accompanying notes form part of these financial statements.
IMAGE RESOURCES NL | ANNUAL REPORT 2024 65
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Year Ended 31 December 2024
Issued
Capital
Profit
Reserve
Account
Other
Reserves
Accum’d
Losses
Total
($000)
($000)
($000)
($000)
($000)
Balance at 1 January 2023
127,331
18,682
31
(29,847)
116,197
Comprehensive profit
Operating profit for the year
-
-
-
(4,707)
(4,707)
Other comprehensive income
-
-
(410)
-
(410)
Transfer to profit reserve – dividend
-
-
78
-
78
Total comprehensive profit for the year
-
-
(332)
(4,707)
(5,039)
Transactions with owners in their capacity as
owners
Warrants cancelled during the year
-
-
(265)
265
-
Shares cancelled during the year
(438)
-
-
-
(438)
Options cancelled during the year
-
-
(54)
54
-
Cost of share issue
-
-
-
-
-
Total transactions with owners in their capacity
as owners
(438)
-
(319)
319
(182)
Balance at 31 December 2023
126,893
18,682
(620)
(34,235)
110,720
Issued
Capital
Profit
Reserve
Account
Other
Reserves
Accum’d
Losses
Total
($000)
($000)
($000)
($000)
($000)
Balance at 1 January 2024
126,893
18,682
(620)
(34,235)
110,720
Comprehensive profit
Operating loss for the year
-
-
-
(9,414)
(9,414)
Other comprehensive income
-
-
6
-
6
Other comprehensive income – tax affect
-
-
(76)
-
(76)
Total comprehensive profit for the year
-
-
(70)
(9,414)
(9,484)
Transactions with owners in their capacity as
owners
Shares cancelled during the year
(3,674)
-
-
-
(3,674)
Shares issued - performance rights conversion
16
-
-
-
16
Share based payment
-
-
502
-
502
Total transactions with owners in their capacity
as owners
(3,658)
-
502
-
(3,156)
Balance at 31 December 2024
123,235
18,682
(188)
(43,649)
98,080
The accompanying notes form part of these financial statements.
66 IMAGE RESOURCES NL | ANNUAL REPORT 2024
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Year Ended 31 December 2024
Notes
Year to
31 Dec
2024
($000)
Year to
31 Dec
2023
($000)
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
-
118,171
Payments to suppliers and contractors
(12,431)
(87,626)
Interest received
1,590
913
Interest paid
(329)
(1,616)
Other income
92
46
Income tax (paid) / refund
4,775
(15,809)
Net cash from / (used in) operating activities
7
(6,303)
14,079
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for security deposits
(206)
-
Purchase of property, plant and equipment
(22,697)
(11,297)
Payments for exploration and evaluation
(5,416)
(8,581)
Net cash used in investing activities
(28,319)
(19,878)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
8,016
-
Borrowing repayments
(282)
-
Dividends paid
-
(980)
Net cash used in financing activities
7,734
(980)
Net increase / (decrease) in cash held
(26,888)
(6,779)
Cash at beginning of the year
46,197
53,455
Effect of exchange fluctuations on cash held
637
(479)
Cash and cash equivalents at the end of the year
7
19,946
46,197
The accompanying notes form part of these financial statements.
IMAGE RESOURCES NL | ANNUAL REPORT 2024 67
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 31 December 2024
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 28 March 2025.
These general-purpose financial statements have been prepared in accordance with Australian Accounting Standards,
Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board
(AASB) and the Corporations Act 2001.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial
report containing relevant and reliable information about transactions, events and conditions. Compliance with Australian
Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting
Standards (IFRSs). Material accounting policies adopted in the preparation of this financial report are presented below
and have been consistently applied unless otherwise stated.
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
Note 6
Property, Plant and Equipment
Note 10
Provisions
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
68 IMAGE RESOURCES NL | ANNUAL REPORT 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 31 December 2024
Note 2 Operating Segments
Segment Information
Identification of reportable segments
The Group has identified that it operates in only one segment based on the internal reports that are reviewed and used by the
Board of directors (chief operating decision makers) in assessing performance and determining the allocation of resources. The
Group is a minerals sands production and exploration Group. Currently all the Group’s mineral sands tenements and resources
are located in Western Australia.
Revenue and assets by geographical region
The Group's revenue is derived from sources and assets located wholly within Australia.
Major customers
The Group currently provides products to one off-taker plus one other buyer outside the primary offtake agreement.
Financial information
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.
Year to
31 Dec
2024
($000)
Year to
31 Dec
2023
($000)
Note 3
Revenue and Expenses
Sales Revenue
Concentrate sales
-
119,133
Operating Expenses
Mine operating costs
-
(46,247)
Depreciation and amortisation
-
(19,631)
Amortisation of capitalised borrowing costs
-
(2,460)
Inventory movement
-
(25,887)
Cost of sales
-
(94,225)
Gross Profit
-
24,908
Foreign Currency Gain / (Loss)
Realised foreign currency loss
(36)
(63)
Unrealised foreign currency gain / (loss)
641
(78)
605
(141)
Finance Income
Interest income
1.478
1,048
Finance Costs
Interest expense
(359)
(1,364)
Financing costs
(97)
(10)
Unwinding of rehabilitation discount
(2,815)
(1,943)
(3,271)
(3,317)
IMAGE RESOURCES NL | ANNUAL REPORT 2024 69
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 31 December 2024
Note 3
Revenue and Expenses (Cont’d)
Accounting Policy
Revenue Recognition
The Group recognises revenue as follows:
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the Group is expected to be entitled in exchange
for transferring goods or services to a customer. For each contract with a customer, the Group: identifies the contract with a
customer; identifies the performance obligations in the contract; determines the transaction price which takes into account
estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance
obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognises
revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods
or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts,
rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates are
determined using either the 'expected value' or 'most likely amount' method. The measurement of variable consideration is
subject to a constraining principle whereby revenue will only be recognised to the 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.
Year to
31 Dec
2024
($000)
Year to
31 Dec
2023
($000)
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)
58
57
70 IMAGE RESOURCES NL | ANNUAL REPORT 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 31 December 2024
Year to
31 Dec
2024
(Cents)
Year to
31 Dec
2023
(Cents)
Note 5
Earnings Per Share
Basic loss per share
(0.85)
(0.43)
Diluted loss per share
(0.83)
(0.47)
($000)
($000)
Reconciliation of loss used in calculating earnings per share
Loss attributable to ordinary equity holders of the Company used in calculating basic
and diluted loss per share
(9,414)
(4,707)
Number of
shares
Number of
shares
Weighted average number of ordinary shares used in the calculation of basic loss
per share
1,105,078,643
1,082,978,494
Weighted average number of ordinary shares used in the calculation of diluted loss
per share
Weighted average number of ordinary shares (basic)
1,105,078,643
1,082,978,494
Effects of dilution from:
-
Warrants
-
1,285,353
Options
-
3,221,918
Performance rights
23,512,296
-
Weighted average number of ordinary shares (diluted)
1,128,590,939
1,087,485,765
The Company had no options (2023: Nil) over fully paid ordinary shares on issue at balance date.
Accounting Policy
(i)
Basic Loss per Share – Basic loss 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.
(ii)
Diluted Loss per Share – Options that are considered to be dilutive are taken into consideration when calculating the diluted
loss per share.
Year to
31 Dec
2024
($000)
Year to
31 Dec
2023
($000)
Note 6
Income Tax
The major components of income tax expense for the years ended 31 December 2024
and 2023 are:
Current income tax
Current income tax charge
-
4,961
Adjustments in respect of current income tax of previous years
(3,461)
912
Deferred income tax
Relating to origination and reversal of temporary differences
(4,033)
(4,884)
Adjustments in respect of deferred tax of previous years
3,436
(900)
Income tax expense in the statement of profit or loss
(4,058)
89
IMAGE RESOURCES NL | ANNUAL REPORT 2024 71
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 31 December 2024
Year to
31 Dec
2024
($000)
Year to
31 Dec
2023
($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 loss before tax
(13,473)
(4,618)
Prima facie tax on operating loss at statutory rate of 30% (2022: 30%)
(4,042)
(1,385)
Share based payments expense
155
-
Non-deductible expenses
10
124
Other assessable income
98
99
Derecognition of previously recognised capital losses
-
1
Under provision in prior year
(26)
-
Capital raising costs charged to equity
(5)
(12)
Adjustments in respect of current income tax of previous years
(3,461)
912
Adjustments in respect of deferred tax of previous years
3,461
(900)
Non-assessable income
(180)
-
Movement in unrecognised temporary differences
(68)
1,250
Income tax expense
(4,058)
89
The Corporate tax rate payable by the Company if the Company was required to pay income tax in the year ended 31
December 2024 was 30% (31 December 2023: 30%). The deferred tax asset held on the balance sheet is calculated at the
30% income tax rate.
Deferred tax assets
10,918
15,196
Deferred tax liabilities
-
(4,801)
Net deferred tax assets / (liabilities)
10,918
10,395
Composition of and movements in deferred tax assets and liabilities during the year
Assets
Liabilities
Net
2024
($000)
2023
($000)
2024
($000)
2023
($000)
2024
($000)
2023
($000)
Property, plant and equipment
-
-
(4,032)
(3,609)
(4,032)
(3,609)
Financial derivatives
-
68
-
-
-
68
Provisions and accruals
397
439
-
-
397
439
Capital raising costs
6
11
-
-
6
11
Income tax losses
4,499
-
-
-
4,499
-
Mine rehabilitation
15,521
14,676
-
-
15,521
14,676
Unrealised foreign exchange gains
17
-
-
-
17
-
Other deferred tax assets
13
2
-
-
13
2
Borrowing costs
-
-
-
-
-
-
Receivables
-
-
-
(40)
-
(40)
Prepayments
-
-
(232)
(28)
(232)
(28)
Consumables
-
-
(617)
(623)
(617)
(623)
Inventories
-
-
-
-
-
-
Exploration & mine properties
-
-
(4,650)
(499)
(4,650)
(499)
Financial derivatives
-
-
-
-
-
-
Investments
-
-
(4)
(2)
(4)
(2)
Net deferred tax assets /
(liabilities)
20,453
15,196
(9,535)
(4,801)
10,918
10,395
72 IMAGE RESOURCES NL | ANNUAL REPORT 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 31 December 2024
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 provisions, but these are not expected to have
any material impact on the amounts as reported.
IMAGE RESOURCES NL | ANNUAL REPORT 2024 73
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 31 December 2024
31 Dec
2024
($000)
31 Dec
2023
($000)
Note 7
Cash and Cash Equivalents
Cash at bank
12,724
22,181
Deposits at call
7,222
24,016
19,946
46,197
Cash flows from operating activities reconciliation
Operating profit / (loss) after income tax:
(9,414)
(4,707)
Effect of non-cash items
Income tax expense
716
(15,720)
Depreciation and amortisation expense
203
24,632
Exploration and evaluation expense
1,587
4,170
Profit on sale of property, plant and equipment
3
1
Realised foreign currency loss
34
401
Share based payments
518
-
Unrealised foreign currency (gain) / loss
(641)
78
Changes in operating assets and liabilities:
Decrease in trade and other receivables relating to operating activities
(533)
631
Decrease in prepayments
39
48
(Increase) / Decrease in inventory
17
25,873
Increase / (Decrease) in trade and other payables relating to operating activities
(1,618)
(16,065)
Decrease in provisions
2,786
(5,263)
Cash flow from operations
(6,303)
14,079
Recognition and Measurement
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 refundable
1,339
191
Income tax refundable
-
1,314
Restricted cash – security for guarantees
348
142
Prepayments
814
852
Other receivables
55
155
2,556
2,654
Note 9
Other Financial Assets
Current
Loans to employees – (Employee share plan)
1,023
646
Loans to Key Management Personnel – (Employee share plan)
509
2,216
1,532
2,862
Non-Current
Loans to Employees – (Employee Share Plan)
-
1,834
Loans to Key Management Personnel (Employee Share Plan)
-
509
Equity investments at fair value – shares in listed corporations
27
21
27
2,364
74 IMAGE RESOURCES NL | ANNUAL REPORT 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 31 December 2024
Note 10 Property, Plant and Equipment
Plant and
Equipment
($000)
Land and
Buildings
($000)
Mine
Development
($000)
Borrowing
Costs
($000)
Exploration
($000)
Total
($000)
Year ended 31 December 2023
Balance at 1 January 2023
16,140
26,068
23,644
2,460
38,733
107,045
Additions
8,752
3
2,099
-
4,340
15,194
Mine closure and rehabilitation
asset
-
-
1,526
-
-
1,526
Asset Transfer
2,962
(2,000)
(962)
-
Disposals
(1)
-
-
-
-
(1)
Impairment
-
(2,230)
-
-
-
(2,230)
Depreciation
(2,045)
-
(17,913)
(2,460)
-
(22,418)
Closing Net Book Value
25,808
21,841
8,394
-
43,073
99,116
At 31 December 2023
Cost
79,368
21,841
88,401
21,968
43,073
254,651
Accumulated Depreciation
(53,560)
-
(80,007)
(21,968)
-
(155,535)
Closing Net Book Value
25,808
21,841
8,394
-
43,073
99,116
Year ended 31 December 2024
Balance at 1 January 2024
25,808
21,841
8,394
-
43,073
99,116
Additions
24,332
6
9,590
3,124
37,052
Mine closure and rehabilitation
asset
-
-
5,487
,
,
5,487
Disposals
(3)
-
-
-
(3)
Depreciation
(484)
-
-
-
(484)
Closing Net Book Value
49,653
21,847
23,471
-
46,197
141,168
At 31 December 2024
Cost
76,671
21,847
84,326
-
46,197
229,041
Accumulated Depreciation
(27,018)
-
(60,855)
-
-
(87,873)
Closing Net Book Value
49,653
21,847
23,471
-
46,197
141,168
Property, plant and equipment includes construction and development costs for the Atlas heavy mineral sands 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.
Approval for the Atlas mineral sands mine was received in August 2024 and construction commenced. The accommodation camp
was completed in September 2024 and dismantling of the Boonanarring wet concentration plant was completed in October 2024,
for transport to the Atlas project site. At year end the Company was on track to commence commissioning and for first heavy
mineral concentrate production to occur in Q1 2025.
Land represents farm lots at Boonanarring and Atlas which the Group has acquired for future operations. One farm lot has been
impaired down to fair value as this is no longer required and will be sold.
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.
Exploration expenditure associated with the acquisition of tenements and expenditure incurred on those tenements is capitalised
if it is considered that the expenditure incurred will be recouped through the successful development and exploitation of the
area of interest.
IMAGE RESOURCES NL | ANNUAL REPORT 2024 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 31 December 2024
Leases
The Group has lease contracts for motor vehicles and office equipment used in its operations. The leases have lease terms
between 3 and 5 years. The Group’s obligations under its leases are secured by the lessor’s title to the leased assets. The right
of use assets is included in Plant and Equipment above as their values are too immaterial to state separately.
Set out below are the leased assets carrying amounts recognised and the movements during the period.
Office
Lease
Motor
Vehicles
Equipment
Leases
Total
($000)
($000)
($000)
($000)
Year ended 31 December 2023
Balance at 1 January 2023
158
51
-
209
Additions
-
168
-
168
Depreciation
(118)
(140)
-
(258)
Closing Net Book
40
79
-
119
Year ended 31 December 2024
Balance at 1 January 2024
40
79
-
119
Additions
1,050
22
364
1,436
Disposals
-
-
-
-
Depreciation
(203)
(85)
(46)
(334)
Closing Net Book
887
16
318
1,221
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.
Mine development costs are capitalised to property, plant and equipment only once a decision to mine is made and the
development is fully funded. Mine development expenditure represents the cost incurred in preparing mines for commissioning
and production, and also includes other attributable costs incurred before production commences. These costs are capitalised
to the extent they are expected to be recouped through successful exploitation of the related mining project. Once production
commences, these costs are amortised over the estimated economic life of the mine on a units of production basis. Mine
development costs are written off if the mine property is abandoned. Development costs incurred to maintain production are
expensed as incurred against the related production.
At each reporting date, the entity assesses whether there is any indication that an asset may be impaired. Where an indicator of
impairment exists, the entity makes a formal assessment of recoverable amount. Where the carrying amount of an asset exceeds
its recoverable amount the asset is considered impaired and is written down to its 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.
76 IMAGE RESOURCES NL | ANNUAL REPORT 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 31 December 2024
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.
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
Code.
There are numerous uncertainties inherent in estimating mineral resources and ore reserves and assumptions that are valid at
the time of estimation may change significantly when new information becomes available. Changes in the forecast prices of
commodities, exchange rates, production costs or recovery rates may change the economic status of reserves and may ultimately
result in the reserves being restated.
31 Dec
2024
($000)
31 Dec
2023
($000)
Note 11 Inventory
Current
Stores and consumables
2,060
2,077
Accounting Policy
Inventories of consumable supplies and spare parts to be used in production are valued at weighted average cost.
IMAGE RESOURCES NL | ANNUAL REPORT 2024 77
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 31 December 2024
Note 12 Trade and Other Payables
31 Dec
2024
($000)
31 Dec
2023
($000)
Current
Trade creditors
7,611
2,688
Accruals
4,082
1,400
Dividends payable
102
102
Other payables
22
490
11,817
4,680
Trade creditors, accruals, GST and tax payables and other payables are normally settled on 30 Day terms.
These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which are
unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months from the
reporting date.
Note 13 Provisions
Current
Employee leave benefits
1,203
1,232
Mine closure and rehabilitation
-
3,124
1,203
4,356
Non-Current
Mine closure and rehabilitation
57,223
45,798
57,223
45,798
Movement in mine closure and rehabilitation
Balance at the beginning of the year
48,922
52,503
Increase in rehabilitation estimate – (property, plant & equipment)
-
1,526
Increase in rehabilitation estimate – closed site – (profit and loss)
-
685
Rehabilitation estimate - Atlas
5,486
-
Rehabilitation activities
-
(7,735)
Unwinding of discount
2,815
1,943
57,223
48,922
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
Company now has rehabilitation obligations for the closed Boonanarring mine site and now also the Atlas mine site where
construction and the initial pre strip of the mining pit has commenced.
Boonanarring Mine
The mine closure and rehabilitation provision is recorded as a liability at a discounted fair value, assuming a risk-free discount
rate equivalent to the 5 year Australian US Government bond rate of 4.0% as at 31 December 2024 (31 December 2023: 4.0%)
and an inflation factor of 3.28% (31 December 2023: 3.28%). Although the ultimate amount to be incurred is uncertain,
management has, at 31 December 2024, estimated the asset retirement cost of work completed to date with a total undiscounted
estimated cash flow has remained unchanged of $53,000,000 (31 December 2023: $53,000,000). 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 2024.
Atlas Mine
The mine closure and rehabilitation provision is recorded as a liability at a discounted fair value, assuming a risk-free discount
rate equivalent to the 5 year Australian US Government bond rate of 4.0% as at 31 December 2024 and an inflation factor of
2.5%. Although the ultimate amount to be incurred is uncertain, management has, at 31 December 2024, estimated the asset
retirement cost of work completed to date with a total undiscounted estimated cash flow of $5,487,000.
78 IMAGE RESOURCES NL | ANNUAL REPORT 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 31 December 2024
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 considering the significant judgements and estimates involved and are dealt with on a
prospective basis as they arise.
Employee Benefits
Provision is made for the Group’s liability for employee benefits arising from services rendered by non-casual employees to
balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected
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.
Interest
Rate
31 Dec
2024
($000)
31 Dec
2023
($000)
Note 14 Borrowings
Current
Lease liabilities
(8%)
205
111
Insurance premium funding
(9%)
612
-
HMC Prepayment Facility
(10%)
8,047
-
8,864
111
Non-Current
Lease liabilities
(8%)
1,020
-
1,020
-
During the year the Company entered into a US$20M Offtake Prepayment Facility with a key Chinese offtake partner. The facility
is unsecured with a 12 month term. The Facility funds are provided to support working capital requirements for the development
of the 100% owned Atlas mineral sands project. The facility and interest is to be repaid by the delivery of market priced heavy
mineral concentrate (HMC) from Atlas.
The facility was with Shantou Natfort Zirconium and Titanium Co.,Ltd (Natfort). Natfort has been the Company’s key offtake
customer for HMC previously produced at the Company’s Boonanarring project. After the execution of the US$20M Offtake
Prepayment Facility arrangement that was executed in October 2024, Image and Natfort agreed to allow Natfort to share the
provision of the funding under the facility to minimise the risk to Image of a single funding provider. As such, 50% of the $US20M
funding obligation under the Prepayment Facility was shifted to Billion Sunny Investment Limited, which is an independent third-
IMAGE RESOURCES NL | ANNUAL REPORT 2024 79
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 31 December 2024
party financing entity incorporated in Cayman Islands. The shared participation in the Facility was approved on the basis that it
was on the same terms and conditions as the Natfort Prepayment Facility.
US$5M was drawn down during December 2024 and US$15M drawn down in January 2025. Nominally 25% of each shipment of
Atlas HMC will be delivered free of charge to repay the Facility. The value of the repayment is based on a market based HMC
pricing model operating under the HMC Offtake Agreement. The interest rate charged is 10% compounded monthly.
31 Dec
2024
($000)
31 Dec
2023
($000)
Lease Liabilities Movement
Balance at the beginning of the year
111
197
Additions
1,436
168
Accretion of interest
16
18
Payments
(338)
(272)
Balance at the end of the year
1,225
111
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.
Leases
As a lessee, the Group recognises a right-of-use asset, representing its right to use the underlying asset and a corresponding
lease liability, on the statement of financial position, for leases (other than short term and low value lease). The right-of-use
asset is amortised on a straight-line basis over its lease term.
The Group recognises the right-of-use asset and the lease liability at the lease commencement date. The right-of-use asset is
initially measured at cost (at the present value of future lease payments), and subsequently at cost less accumulated
depreciation, any impairment losses and adjustments for remeasurement of the lease liability. The lease liability is initially
measured at the present value of the lease payments expected to be paid over the lease term, discounted using the interest rate
implicit in the lease or, if the rate cannot be readily determined, then the Groups’ incremental borrowing rate or, where not
available, a market rate alternative. The lease liability is further remeasured if the estimated future lease payments change.
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.
Year to 31 Dec 2024
Year to 31 Dec 2023
No.
($000)
No.
($000)
Note 15 Issued Capital
Contributed Equity – Ordinary Shares
At the beginning of the period
1,081,242,100
126,893
1,084,193,616
127,331
Employee shares cancelled
(22,493,776)
(3,674)
(2,951,516)
(438)
Conversion of employee performance rights
174,864
16
-
-
At the market subscription deed shares
55,000,000
-
-
-
Balance at the end of the period
1,113,923,188
123,235
1,081,242,100
126,893
80 IMAGE RESOURCES NL | ANNUAL REPORT 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 31 December 2024
Terms and Conditions of Contributed Equity
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
2024
($000)
31 Dec
2023
($000)
Note 16
Reserves and Accumulated Losses
Reserves
Profit Reserve – Dividend
18,682
18,682
Other Reserves
Fair value reserve of financial assets
10
5
Share based payments reserve
502
-
Other comprehensive income
(702)
(625)
Other comprehensive income – tax effect
2
-
(188)
(620)
Closing balance
18,494
18,062
Profit Reserve Account
Balance at the beginning of the year
18,682
18,682
Balance at the end of the year
18,682
18,682
Fair Value Reserve of Financial Assets
Balance at the beginning of the year
5
10
Changes in the fair value of equity investments
5
(5)
Balance at the end of the year
10
5
Reserve – Warrants
Balance at the beginning of the year
-
265
Exercise of warrants
-
(265)
Balance at the end of the year
-
-
Share Based Payments Reserve
Balance at the beginning of the period
-
54
Cancellation of director options
-
(54)
Performance rights expense
518
-
Conversion of performance rights to shares
(16)
-
Balance at the end of the period
502
-
Other Comprehensive Income Reserve
Balance at the beginning of the period
(625)
(298)
Other comprehensive income
-
(405)
Other comprehensive income – tax effect
(77)
78
Balance at the end of the period
(702)
(625)
IMAGE RESOURCES NL | ANNUAL REPORT 2024 81
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 31 December 2024
Note 16
Reserves and Accumulated Losses (Cont’d)
31 Dec
2024
($000)
31 Dec
2023
($000)
Other Comprehensive Income – Tax Effect Reserves
Balance at the beginning of the period
-
-
Other comprehensive income
(77)
-
Other comprehensive income – tax effect
75
-
Balance at the end of the period
(2)
-
Profit Reserve Account
The profits from the prior years ended 31 December 2020 to 31 December 2022 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.
Accumulated Losses
Opening balance
(34,235)
(29,847)
Profit / (loss) for the year
(9,414)
(4,707)
Transfer to profit reserve account
-
Cancellation of warrants – share based payment reversal
-
265
Cancellation of director option – share based payment reversal
-
54
43,649
(34,235)
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.
Number
2024
WAEP
2024
Number
2023
WAEP
2023
Outstanding at 1 January
-
-
3,351,099
0.1365
Exercised during the year
-
-
-
-
Expired during the year
-
-
(3,351,099)
0.1365
Outstanding at 31 December
-
-
-
-
Exercisable at 31 December
-
-
-
-
b)
Weighted average remaining contractual life
The weighted average remaining contractual life for the warrants outstanding as at 31 December 2024 is 0 years, (31 December
2023: 0 years).
c)
Range of exercise price
The range of exercise prices for warrants outstanding at the end of the year was $0 to $0 (31 December 2023: $0).
d)
Weighted average fair value
The weighted average fair value of warrants granted during the year was Nil (31 December 2023: Nil).
82 IMAGE RESOURCES NL | ANNUAL REPORT 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 31 December 2024
Note 16
Reserves and Accumulated Losses (Cont’d)
e)
Warrants pricing model
The fair value of warrants previously granted was estimated as at the date of grant using a Black-Scholes option pricing model
taking into account the terms and conditions upon which the warrants were granted.
The following table lists the inputs to the model used for the year ended 31 December 2018.
31 Dec
2018
31 Dec
2018
Tranche A
Tranche B
Dividend yield (%)
Nil
Nil
Expected volatility (%)
85%
85%
Risk-free interest rate (%)
2.50%
2.47%
Expected life of warrants (years)
5.02
4.95
Warrant exercise prices ($)
$0.091
$0.79
Weighted average share price at grant
date ($)
$0.13
$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 $2,108,887.
Application for exemption from all or some of the prescribed expenditure conditions will be made from time to time 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
such freehold land. Unless it already has secured such rights, there can be no assurance that the Group will secure rights to
access those portions of the Tenements encroaching freehold land.
Note 19 Significant Events Subsequent to Reporting Date
The remaining US$15 million of funds available under the HMC Offtake Prepayment Facility were received in early January 2025.
In February 2025, the Company commenced the commissioning of the Atlas project and produced first HMC. In March, the
Company commenced trucking of HMC to Geraldton port in preparation for an expected April shipment.
Other than the events stated above, there has not been any other matter or circumstance that has arisen after the balance date
that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations or the
state of affairs of the Group in future periods.
IMAGE RESOURCES NL | ANNUAL REPORT 2024 83
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 31 December 2024
Note 20 Employee Benefits
Employee Share Plan
Under the terms of the Image Share Plan (“ESP”), as approved by shareholders, Image may, in its absolute discretion, make an
offer of ordinary fully paid shares in Image to any Eligible Employee, to be funded by a limited recourse interest free loan granted
by the Company.
The issue price is determined by the Directors and is not to be less than the volume weighted average price of shares in the 5
trading days prior to the Issue Date. Eligible Employees use the abovementioned loan to acquire the plan shares. The loan
amount per share may in certain circumstances be more than the issue price where shareholder approval is required for the
issue and the share price is more than the issue price. The shares may be sold 12 months after their issue date generally only
if the employee is currently employed.
The following table illustrates the number, weighted average share loan prices (WASLP) and weighted average share issue price
(WASIP), and movements in plan shares during the year.
Number
2024
WASIP
2024
WASLP
2024
Number
2023
WASIP
2023
WASLP
2023
Outstanding at 1 January
34,132,436
0.153
0.153
37,083,952
0.152
0.152
Released to employee
(1,071,753)
-
-
-
-
-
Cancelled during the year
(22,493,776)
0.163
0.163
(2,951,516)
0.148
0.148
Outstanding at 31 December
10,566,907
0.145
0.145
34,132,436
0.153
0.153
Exercisable at 31 December
10,566,907
0.145
0.145
23,194,785
0.145
0.145
Incentive Awards Plan
The Incentive Award Plan (IAP) was approved by shareholders at the Annual Shareholder General Meeting held on 30 May 2023.
The IAP was adopted to give the Company more flexibility to motivate and incentivise employees, improve employee retention,
and to better align incentive awards with longer term shareholder returns. This IAP was adopted as the existing Employee Share
Plan (ESP) is limited to the issue of shares.
Under the terms of the IAP, Image may, in its absolute discretion, make an offer of shares, options or performance rights as
incentives to Directors of the Company, employees or individual contractors. The Directors may specify the various terms and
conditions of the offer.
On 6 February 2024 and on 29 May 2024 a total of 26,756,504 performance rights were issued to key management personnel of
the Company in the form of short term and long term incentives.
Incentive Awards Plan - Performance Rights Issue
(a) General terms of the Performance Rights Issue
There is no consideration for the issue of the Rights.
One right entitles the holder to one share. The ratio of shares issued may be reduced if a satisfactory performance rating is not
attained.
The holder is entitled to convert the rights to shares at the end of a vesting period. Any unvested rights and vested rights not
exercised will expire after a defined period. If the employee ceases employment with the Company, all unvested performance
rights will lapse except if the Company exercises its discretion.
The performance rights were issued for nil cash consideration. The amount payable upon exercise of each performance right is
nil.
(b) Recognised share-based payment expense
The share-based payment expense is allocated over the balance of the vesting period.
84 IMAGE RESOURCES NL | ANNUAL REPORT 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 31 December 2024
Summary of performance rights granted.
Number
2024
Number
2023
Outstanding at 1 January
3,761,066
-
Issued during the year
26,756,504
3,761,066
Converted to shares during the year
(174,864)
Lapsed during the year
-
-
Outstanding at 31 December
30,342,706
3,761,066
Convertible at 31 December
403,224
-
(c) Weighted average remaining contractual life
The weighted average remaining contractual life for the performance rights outstanding as at 31 December 2024 is between 3
and 4 years. (31 December 2023: Between 3 and 4 years).
(d) Weighted average fair value
Weighted average fair value of performance rights granted during the year was $0.071 per share (2023: $0.068 per share).
(e) Performance rights pricing model
The fair value of the equity-settled performance rights granted under the incentive awards plan is estimated as at the date of
grant using a Black-Scholes model taking into account the terms and conditions upon which the rights were granted.
The following table lists the inputs to the model used for the year ended 31 December 2024:
16/02/2024
Issue
29/05/2024
Issue
Dividend yield (%)
0%
0%
Expected volatility (%)
114.17%
111.5%
Risk-free interest rate (%)
3.84%
4.11%
Expected life of performance rights (years)
3.4 years
4.1 Years
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. These options expired on 27 May 2023.
(a) General terms of Option Plan
There is no consideration paid for the issue of the Options.
There is no vesting period required for the exercise of the options to shares.
Unexercised options will lapse prior to the expiry date if a Directors ceases to be an officer or employee of the Company.
(b) Recognised share-based payment expense
The share-based payment expense for the year ended 31 December 2024 in relation the non-executive director option plan
charged to profit and loss was Nil. (31 December 2023: Nil).
(c) Summary of options granted
Number
2024
WAEP
2024
Number
2023
WAEP
2023
Outstanding at 1 January
-
-
8,000,000
0.32
Lapsed during the year
-
-
(8,000,000)
0.32
Outstanding at 31 December
-
-
-
-
Exercisable at 31 December
-
-
-
-
(d) Weighted average remaining contractual life
The weighted average remaining contractual life for the share options outstanding as at 31 December 2024 is Nil as the options
have expired. (31 December 2023: Nil).
IMAGE RESOURCES NL | ANNUAL REPORT 2024 85
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 31 December 2024
(e) Range of exercise price
The range of exercise price for options outstanding at the end of the year was $0 (2023: $0).
(f)
Weighted average fair value
Weighted average fair value of options granted during the year was $0 (2023: $0).
(g) Option pricing model
The fair value of the equity-settled share options granted under the option plan is estimated as at the date of grant using a Black-
Scholes model taking into account the terms and conditions upon which the options were granted.
The following table lists the inputs to the model used for the year ended 31 December 2021:
2021
Dividend yield (%)
12.12%
Expected volatility (%)
50.33%
Risk-free interest rate (%)
0.015%
Expected life of options (years)
2 years
Option exercise price
$0.3200
Weighted average share price at grant date ($)
$0.1689
NOTE 21 RELATED PARTY AND RELATED ENTITY TRANSACTIONS
31 Dec
2024
($000)
31 Dec
2023
($000)
Key Management Personnel Compensation
Short-term employee benefits
1,580
2,301
Post-employment benefits
122
146
Equity-settled share-based payments
382
-
2,084
2,447
Short-term employee benefits
These amounts include fees and benefits paid to non-executive Chair and non-executive directors as well as all salary and paid
leave benefits awarded to executive directors and other KMP.
Post-employment benefits
These amounts are the costs of superannuation contributions payable for the period.
Equity-settled share-based payments
This amount is calculated as the fair value of the performance rights 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.
86 IMAGE RESOURCES NL | ANNUAL REPORT 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 31 December 2024
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
2024
($000)
Year to
31 Dec
2023
($000)
Expenses
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)
(4)
(3)
(4)
Total amounts owing to directors and/or director-related parties and related entities at 31 December 2024 were Nil (31 December
2023: $Nil). All transactions were incurred on normal commercial terms and were arm’s length transactions.
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.
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 future
change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments.
Liquidity Risk
The Group manages liquidity risk by monitoring forecast cash flows, cash reserves, liquid investments, receivables, financial
liabilities, and commitments.
Capital Risk
Management controls the capital of the Group in order to maintain the appropriate working capital position to ensure that the
Group can fund its operation, continue as a going concern and continue to provide returns for shareholders and benefits for
other stakeholders. Capital is managed by assessing the Group’s financial risks and adjusting its capital structure in response
to changes in these risks and in the market.
IMAGE RESOURCES NL | ANNUAL REPORT 2024 87
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 31 December 2024
The working capital position of the Group at 31 December 2024 and 31 December 2023 was as follows:
31 Dec
2024
($000)
31 Dec
2023
($000)
Cash and cash equivalents
19,946
46,057
Restricted cash
346
140
Trade and other receivables
2,209
2,910
Inventory
2,060
2,077
Trade and other payables and provisions
(13,020)
(9,036)
Borrowings
(8,864)
(111)
Working capital position
2,677
42,037
Credit Risk
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 $346,004 (2023: $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:
31 Dec
2024
($000)
31 Dec
2023
($000)
AA- rated
13,722
31,312
A+ rated
6,430
14,885
Financial Instrument composition and maturity analysis
The table below reflects the undiscounted contractual settlement terms for financial instruments.
31 December 2024
Weighted
Average
Effective
Interest
Rate %
Fixed
Interest
Rate
($000)
Floating
Interest
Rate
($000)
Non-
Interest
Bearing
($000)
Total
($000)
Financial Assets:
Cash and cash equivalents
-
19,946
-
19,946
Restricted cash
-
346
-
346
Trade and other receivables
-
-
2,210
2,210
Equity investments at fair value
-
-
27
27
Total Financial Assets
1.82%
-
20,292
2,237
22,529
Financial Liabilities:
Trade and other payables
-
-
11,817
11,817
Borrowings
9,884
-
-
9,884
Total Financial Liabilities
9.7%
9,884
-
11,817
21.701
Net Financial Assets
(9,884)
20,292
(9,580)
828
88 IMAGE RESOURCES NL | ANNUAL REPORT 2024
31 December 2023
Weighted
Average
Effective
Interest
Rate %
Fixed
Interest
Rate
($000)
Floating
Interest
Rate
($000)
Non-
Interest
Bearing
($000)
Total
($000)
Financial Assets:
Cash and cash equivalents
-
46,180
-
46,180
Restricted cash
-
156
-
156
Trade and other receivables
-
-
2,771
2,771
Equity investments at fair value
-
-
21
21
Total Financial Assets
2.59%
-
46,336
2,792
49,128
Financial Liabilities:
Trade and other payables
-
-
4,680
4,680
Borrowings
111
-
-
111
Total Financial Liabilities
8%
111
-
4,680
4,791
Net Financial Assets
(111)
46,336
(1,888)
44,337
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:
Less than
3 months
($000)
3 to 12
Months
($000)
1 to 5
years
($000)
Total
($000)
31 December 2024
Trade and other payables
11,815
11,815
Borrowings
348
8,518
1,020
9,886
12,163
8,518
1,020
21,701
31 December 2023
Trade and other payables
4,225
455
-
4,680
Borrowings
45
48
18
111
4,270
503
18
4,791
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 2024
Financial Assets:
Financial assets at fair value through profit or loss:
Equity investments at fair value:
-
Listed investments
27
-
-
27
21
-
-
21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 31 December 2024
IMAGE RESOURCES NL | ANNUAL REPORT 2024 89
31 December 2023
Financial Assets:
Financial assets at fair value through profit or loss:
Equity investments at fair value:
-
Listed investments
21
-
-
21
21
-
-
21
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:
Year to
31 Dec
2024
($000)
Year to
31 Dec
2023
($000)
Change in loss – increase/(decrease):
-
Increase in interest rate by 2%
(405)
(927)
-
Decrease in interest rate by 2%
405
927
Change in equity – increase/(decrease):
-
Increase in interest rate by 2%
405
927
-
Decrease in interest rate by 2%
(405)
(927)
NOTE 24 CONTROLLED ENTITIES
The consolidated financial statements incorporate the following subsidiaries:
Controlled Entities
Country of
Incorporation
2024
2023
Image Resources NL (Parent Company)
Australia
Craton Resources Pty Ltd
Australia
100%
100%
Titon Resources Pty Ltd
Australia
100%
100%
Titan-DR Resources Pty Ltd
Australia
100%
100%
Titan-SR Resources Pty Ltd
Australia
100%
100%
MSU Technologies Pty Ltd
Australia
100%
-
Further details are provided in the Controlled Entity Disclosure Statement.
NOTE 25 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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 31 December 2024
90 IMAGE RESOURCES NL | ANNUAL REPORT 2024
Accounting for exploration and evaluation expenditure is assessed separately for each ‘area of interest’. An ‘area of interest’ is
an individual geological area which is considered to constitute a favourable environment for the presence of a mineral deposit
or has been proved to contain such a deposit.
Once a development decision is made, all past exploration and expenditure in respect of an area of interest that has been
capitalised is transferred to mine properties where it is amortised over the life of the area of interest to which it relates on a unit
of production basis. No amortisation is charged during the exploration and evaluation phase.
The application of the above accounting policy requires to make certain estimates and assumptions as to future events and
circumstances, in particular, the assessment of whether economic quantities of reserves will be found. Any such estimates and
assumptions may change as new information becomes available, which may require 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 of acquisition of the asset or as part of the expense item as applicable. Receivables and payables in the Statement of
Financial Position are shown inclusive of GST.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in
the Statement of Financial Position.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and
financing activities, which are disclosed as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial
measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either
amortised cost or fair value depending on their classification. Classification is determined based on both the business model
within which such assets are held and the contractual cash flow characteristics of the financial asset unless, an accounting
mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the Group
has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part
or all of a financial asset, its 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.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the Group intends to hold
for the foreseeable future and has irrevocably elected to classify them as such upon initial recognition.
Impairment of financial assets
The Group recognises a loss allowance for expected 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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 31 December 2024
IMAGE RESOURCES NL | ANNUAL REPORT 2024 91
Fair Value
Fair value is determined based on closing market prices for all quoted investments. Valuation techniques are applied to
determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments
and option pricing models. The expression “fair value” – and derivatives thereof – wherever used in this report bears the meaning
ascribed to that expression by the Australian Accounting Standards Board.
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 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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 31 December 2024
92 IMAGE RESOURCES NL | ANNUAL REPORT 2024
Basis of Preparation
The consolidated entity disclosure statement has been prepared in accordance with subsection 295(A) of the Corporations Act
2001. The entities list in the statement are Image Resources NL and all its consolidated entities in accordance with AASB 10
Consolidated Financial Statements.
Name of Entity
Type of entity
Place of
Incorporation
or Formation
Percentage
of Issued
Capital Held
Australian Tax
Resident or
Foreign Tax
Resident
Place of
Foreign
Resident if
Applicable
Image Resources NL
Body Corporate
Australia
N/A
Australia
N/A
Controlled Entities of Image Resources NL
Craton Resources Pty Ltd
Body corporate
Australia
100%
Yes
N/A
Titon Resources Pty Ltd
Body corporate
Australia
100%
Yes
N/A
Titan-DR Resources Pty Ltd
Body corporate
Australia
100%
Yes
N/A
Titan-SR Resources Pty Ltd
Body corporate
Australia
100%
Yes
N/A
MSU Technologies Pty Ltd
Body corporate
Australia
100%
Yes
N/A
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
IMAGE RESOURCES NL | ANNUAL REPORT 2024 93
DIRECTORS' DECLARATION
The directors of the Company declare that:
1.
the accompanying financial statements and notes are in accordance with the Corporations Act 2001 and:
(a)
comply with Accounting Standards and the Corporations Act 2001;
(b)
give a true and fair view of the financial position as at 31 December 2024 and performance for the year ended
on that date of the Group;
2.
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 2024;
3.
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;
4.
in the directors’ opinion, the Consolidated Entity Disclosure Statement is true and correct; and
5.
the directors have included in the notes to the financial statements an explicit and unreserved statement of
compliance with International Financial Reporting Standards.
This declaration is made in accordance with a resolution of the Board of Directors.
ROBERT BESLEY
CHAIR
PERTH
Dated this 28 March 2025
94 IMAGE RESOURCES NL | ANNUAL REPORT 2024
INDEPENDENT AUDITOR’S REPORT
Independent Audit Report to the members of Image Resources NL
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Image Resources NL (“the Company”) and its subsidiaries (“the Group”), which
comprises the consolidated statement of financial position as at 31 December 2024, 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, the consolidated entity disclosure statement 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 2024 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.
.
IMAGE RESOURCES NL | ANNUAL REPORT 2024 95
Provision for Rehabilitation
Refer to Note 13
Key Audit Matter
How our audit addressed the key audit matter
As at 31 December 2024, the Group has a
provision of $57.2 million relating to the
estimated
cost
of
rehabilitation,
decommissioning and restoration relating to
areas
disturbed
during
operation
in
Boonanarring and Atlas mines but not yet
rehabilitated.
The provision is based upon current cost
estimates and has been determined on a
discounted basis with reference to current
legal requirements and technology. At each
reporting date the rehabilitation liability is
reviewed
and
re-measured
in
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.
This area is a key audit matter as the
determination
of
the
restoration
liability
involves use of assumptions and significant
management judgement.
Our audit work included, but was not restricted to, the
following:
Obtaining an Independent expert valuation report and
external underlying documentation for their determination
of future required activities, their timing and associated
cost estimations.
Assessing the competence, scope and objectivity of the
Group’s external experts used in determination of the
provisions estimate.
Testing
the
accuracy
of
historical
restoration
and
rehabilitation provisions by comparing actual expenditure.
Enquired management about delays in rehabilitation work
and its impact on Group’s obligations
For Atlas mine, we obtained estimation prepared by
internal experts and assessed the competence and
experience of the internal experts. We enquired about any
review done by an external consultant and assessed
reasonableness of key assumptions by comparing with
available external data.
Assessing the planned timing of environmental restoration
and rehabilitation provision through comparison to mine
plans and reserves.
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.
Deferred Exploration and Evaluation Costs
Refer to Note 10
Key Audit Matter
How our audit addressed the key audit matter
At 31 December 2024, the Group has significant
exploration and evaluation expenditure of $46.2
million which has been capitalised. As the carrying
value of exploration and evaluation expenditures
represents a significant asset of the Group, we
considered it necessary to assess whether facts
and circumstances existed to suggest that the
carrying amount of this asset may exceed its
recoverable amount.
The
Group
capitalises
exploration
and
evaluation expenditure in line with AASB 6
Exploration for and Evaluation of Mineral
Resources. The assessment of each asset’s
future viability requires significant judgement.
There is a risk that amounts are capitalised
Our audit work included, but was not restricted to, the
following:
We obtained evidence that the Group has valid rights to
explore in the areas represented by the capitalised
exploration and evaluation expenditures by obtaining valid
contracts giving the Group rights to explore, for a sample
of capitalised exploration costs.
We enquired with management and reviewed budgets to
ensure that substantive expenditure on further exploration
for and evaluation of the mineral resources in the Group’s
area of interest were planned.
We enquired with management, reviewed announcements
made and reviewed minutes of directors’ meetings to
ensure that the company had not decided to discontinue
INDEPENDENT AUDITOR’S REPORT
96 IMAGE RESOURCES NL | ANNUAL REPORT 2024
Provision for Rehabilitation
Refer to Note 13
Key Audit Matter
How our audit addressed the key audit matter
which no longer meet the recognition criteria
of AASB 6.
activities in any of its areas of interest; and
We enquired with management to ensure that the Group
had not decided to proceed with the development of a
specific area of interest, yet the carrying amount of the
exploration and evaluation asset was unlikely to be
recovered in full from successful development or sale.
Impairment of PPE including Land and Mine Development Costs
Refer to Note 10
Key Audit Matter
How our audit addressed the key audit matter
As at 31 December 2024, the Group has
property, plant and equipment including land
and Atlas mine development costs amounting
to $94.9 million.
The assessment of the recoverable amount
requires significant judgment, in particular
relating to estimated cash flow projections
and discount rates.
Due
to
the
level
of
judgment,
market
environment and significance to the Group’s
financial statements, this is considered to be
a key audit matter.
Our audit work included, but was not restricted to, the
following:
Reviewed the management’s impairment assessment in
accordance with AASB 136 Impairment of Assets. This
included examining the assumptions underlying the
projections
and
comparing
them
with
historical
performance and external market data.
We held discussions with management, reviewed board
minutes and ASX announcements to understand future and
use of existing land, plant and associated infrastructure.
This
helped
us
assess
whether
the
Group
had
appropriately accounted for future development plans and
the financial viability of these assets.
We reviewed an independent expert’s report on residual
value for Boonanarring wet concentrator plant and
associate infrastructure. This provided an objective
assessment of the fair value of the assets, which we
considered in conjunction with management’s impairment
testing.
Ensured that mine development costs related to area over
which Group has mining rights and estimated value in use
is higher than carrying value.
Reviewed adequacy of the related disclosures in the
financial statements.
Other Information
The directors are responsible for the other information. The other information comprises the information included in the
Group’s annual report for the year ended 31 December 2024 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
INDEPENDENT AUDITOR’S REPORT
IMAGE RESOURCES NL | ANNUAL REPORT 2024 97
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 the 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.
INDEPENDENT AUDITOR’S REPORT
98 IMAGE RESOURCES NL | ANNUAL REPORT 2024
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 33 to 61 of the directors’ report for the year ended 31
December 2024.
In our opinion, the Remuneration Report of Image Resources NL for the year ended 31 December 2024 complies with
section 300A of the Corporations Act 2001.
Responsibilities
The directors of the 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
Sajjad Cheema
Director
28th March 2025
INDEPENDENT AUDITOR’S REPORT
IMAGE RESOURCES NL | ANNUAL REPORT 2024 99
Image Resources NL (ASX: IMA) provides the following information as required by the ASX Listing Rules. The information is current
as at 31 March 2025.
Ordinary Shares
Distribution of Shareholdings
Range
Total Holders
Units
% Units
1 – 1000
267
112,374
0.01%
1,001 – 5,000
466
1,435,059
0.13%
5,001 – 10,000
368
2,859,056
0.26%
10,001 – 100,000
1,001
38,711,525
3.48%
100,001 and over
447
1,070,330,307
96.13%
2,549
1,113,448,321
100.00%
Unmarketable Parcels
There were 737 holders of unmarketable parcels comprising a total of 1,567,719 shares amounting to 0.14% of issued capital.
Twenty Largest Shareholders:
The names of the twenty largest holders of quoted ordinary shares are:
Rank
Name
Units
% Units
1
MURRAY ZIRCON PTY LTD
167,077,026
15.14%
2
VESTPRO INTERNATIONAL LIMITED
137,936,921
12.50%
3
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
79,238,458
7.18%
4
ACUITY CAPITAL INVESTMENT MANAGEMENT PTY LTD
55,000,000
4.98%
5
ORIENT ZIRCONIC RESOURCES (AUSTRALIA) PTY LTD
54,453,343
4.94%
6
BNP PARIBAS NOMINEES PTY LTD
40,122,243
3.64%
7
CITICORP NOMINEES PTY LIMITED
36,884,687
3.34%
8
BNP PARIBAS NOMINEES PTY LTD
31,327,145
2.84%
9
MURRAY ZIRCON PTY LTD
31,000,000
2.81%
10
LUMINOUS PARTNERING PTY LTD
30,828,885
2.79%
11
BNP PARIBAS NOMS PTY LTD
21,988,440
1.99%
12
MR ZONGLIN CAI
18,821,541
1.71%
13
AVA CARTEL SDN BHD
18,000,000
1.63%
14
MISS CHOY FUAN KU
15,000,000
1.36%
15
BRAZIL FARMING PTY LTD
12,722,326
1.15%
16
PONTIAN ORICO PLANTATIONS SDN BHD
11,539,728
1.05%
17
MR LIM PANG SOO
10,760,103
0.98%
18
MRS SHUMEI CHEN
10,517,638
0.95%
19
MR BIN ZHANG
10,309,868
0.93%
20
RIBTON SUPERANNUATION FUND PTY LTD
10,200,000
0.92%
803,728,352
72.83%
ASX ADDITIONAL INFORMATION
100 IMAGE RESOURCES NL | ANNUAL REPORT 2024
Substantial Shareholders:
The names of substantial shareholders who have notified the Company in accordance with section 671B of the Corporations Act
2001 are:
Shareholders
Units
Murray Zircon Pty Ltd together with Orient Zirconic Resources (Australia) Pty Ltd
221,530,369
Li Huang Cheng and Vestpro International Limited
137,936,921
Paradice Investment Management Pty Ltd
64,183,760
Voting Rights
The voting rights attaching to ordinary shares are governed by the Constitution. On a show of hands every person presents who
is a member or representative of a member shall have one vote, and on a poll, every member present in person or by proxy or
by attorney or duly authorised representative shall have one vote for each fully paid ordinary share held. None of the options
have any voting rights.
Unquoted Securities
Class
Number of
Holders
Units
Performance Rights
26
34,344,108
Schedule of Tenements
Areas of Interest
Tenements
Economic
Entity’ Interest
Western Australia
- Atlas Project
E70/2636, E70/2898, E70/3997, E70/4244, E70/4663,
E70/5034, E70/5268, E70/5552, M70/1305, P70/1756,
R70/051, R70/062, L70/242, L70/243
100%
- Boonanarring Project
E70/3032, E70/3041, E70/3100, E70/3720, E70/4946,
E70/5646, M70/448, M70/1192, M70/1194, M70/1311,
G70/0250
100%
- Bidaminna Project
E70/2844, E70/3298, E70/4779, E70/4794, E70/4919,
E70/5763, E70/5776, E70/5777,
100%
- Erayinia Project
E28/1895, E28/2742
100%
- King Project
P28/1320, P28/1321
100% 2% net
smelter royalty
payable to
former owners
- Eneabba Project
E70/3814, E70/4190, E70/4719, E7/4747, M70/0872,
M70/0965, M70/1153, M70/1419, R70/0035
100%
- Yandanooka Project
E70/3762, E70/3813, E70/6549
100%
- McCalls Project
E70/3929, E70/3967, E70/4584, E70/4922, E70/6631
100%
E = Exploration Licence, L = Miscellaneous Licence, M = Mining Lease, P = Prospecting Licence, R = Retention Licence, G = General
Purpose Licence
ASX ADDITIONAL INFORMATION (cont.)
DIRECTORS
Mr Robert Besley
Non-Executive Chair
Mr Patrick Mutz
Managing Director and CEO
Mr Aaron Chong Veoy Soo
Non-Executive Director
Ms Ran Xu
Non-Executive Director
Mr Winston Lee
Non-Executive Director
Mr Peter Thomas
Non-Executive Director
COMPANY SECRETARY
Mr Dennis Wilkins (DWCorporate Pty Ltd)
Mr John McEvoy (Chief Financial Officer, Image Resources)
PRINCIPAL PLACE OF BUSINESS & REGISTERED OFFICE
Level 2, 1 Walker Avenue
West Perth WA 6005
CONTACT DETAILS
T:
+61 8 9485 2410
E:
info@imageres.com.au
W:
www.imageres.com.au
AUSTRALIAN BUSINESS NUMBER
ABN: 57 063 977 579
SHARE REGISTRY
AUTOMIC PTY LTD
Level 5
126 Phillip Street,
Sydney NSW 2000
T:
1300 288 664 (within Australia)
T:
+61 (0) 2 9698 5414 (International)
E:
hello@automic.com.au
W:
www.automicgroup.com.au
AUDITORS
ELDERTON AUDIT PTY LTD
Level 2
267 St Georges Terrace
Perth WA 6000
T:
+61 8 6324 2900
STOCK EXCHANGE
AUSTRALIAN SECURITIES EXCHANGE (ASX)
ASX Code - IMA (Fully paid shares)
ISSUED CAPITAL
1,113,448,321 fully paid ordinary shares
CORPORATE DIRECTORY
IMAGE RESOURCES NL | ANNUAL REPORT 2024 101
IMAGERES.COM.AU