From QAV 545 (Nov 2022):
Cameron 56:46
Last question is from Ben: “am I missing something with IMA, Image Resources. It’s at the top end of the buy list and we’ve owned it for a while now. Even with the positive rises in most of the market lately, all it keeps doing is hovering near our rule one. I can’t find anything in particular that should be holding it back. Cheers.” And in fact, Ben, I sold IMA and rule oned it from one of our Light portfolios just this morning. Yeah. What’s going on with IMA, Tony, you got any insights? I couldn’t find anything about it.
Tony 57:16
Yeah, a couple of things that I had a look at yesterday. We talked about this stock maybe six months ago. So, there was some kind of funny corporate activity going on with a company called Murray Zircon, which has a large shareholding in the stock, and Murray Zircon were trying to force a spill of the board, or at least to replace some of the directors with their directors. And that went nowhere, I think. I did read recently, the current board of IMA have come to what’s called a standstill agreement with Murray Zircon, so there’s some kind of corporate intrigue going on in the background which may be affecting the share price. People might be worried about what’s going to happen with Murray Zircon and what its plans are for Image Resources, and what Image Resources can do about that. But that’s the only insight I’ve got into that side of things. I did try and look at the commodity charts for Image Resources, which is a sands miner, a mineral sands miner, and I have found it very hard to land on a square as to which charts we should be using. There’re two main commodities, I guess. One is zircon sand, which is often called ZR (Hf) 02 65% minimum. That’s kind of complex, but that’s the mineral that they’re selling. I couldn’t find a good chart for that. I did find one and it looks like it may be a sell, but I wasn’t comfortable with the chart, and I haven’t found a second one. The other oxide is titanium oxide, that’s the other commodity for this company. Trading Economics had a graph which showed it had declined a lot and was getting close to a sell. So, I did a bit of googling last night, couldn’t find any reliable sources for zircon sand, but I know in the past we have had listeners who are more expert on mineral sands than I am. So, if someone can point us towards a five-year monthly chart for zircon sands, ZR (Hf) O2 65% minimum, I’d be grateful. I would just want to confirm that’s a sell. I’m guessing that mineral sands is going the way of coal and it’s in decline at the moment.