IMA

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.