The Image Resources NL (ASX: IMA) share price is one to watch this morning after the company reported its second-quarter results highlighted by higher unit margins and an impending full-year earnings guidance upgrade.
What were the quarterly highlights for Image Resources?
Image Resources reported that its overall results exceeded budget expectations including higher ore grade, which facilitated higher heavy mineral concentrate (HMC) production and higher HMC sales.
Despite reporting lower than expected revenue, driven by a weaker market price for standard grade zircon, significantly lower project operating costs resulted in substantially lower unit costs and higher unit margins.
Some of the key highlights from Image Resources results included:
- Earnings before interest, tax, depreciation and amortisation (EBITDA) (Project) of $20.2 million, at 95% of budget.
- Net profit after tax (NPAT) of 5.7 million, at 65% of budget.
- HMC production of 69.0 dry metric tonnes, at 117% of budget.
- Revenue of 42.5% of budget, at 85% of budget.
- Revenue, per dry metric tonne of HMC of $623 , at 88% of budget.
- Cash of $25.7 million, at 94% of budget.
Image Resources also noted the favourable AUD–USD exchange rate, which ended the quarter below 0.70 cents per dollar as another factor in its solid result, which also saw Image adjust its guidance upwards for calendar 2019.
The company said that adjusted guidance will be announced separately following the release of its quarterly report, which I'd be waiting to see before buying the stock.
How has the Image Resources share price performed this year?
The Image Resources share price has been a top performer on the local market this year with its share price surging 163% since the start of the year, as at the time of writing.
The company's share price is currently trading at $0.29 per share, which translates to a market cap of $282 million for the Aussie zircon miner.
While many of the ASX mining stocks have performed well in 2019 as the domestic market has lifted and commodities prices remain high, Image Resources remains an outperformer with strong cost controls and steady operational expansion.
Other big names in the sector also performing well include the likes of Fortescue Metals Group Limited (ASX: FMG), which has seen its share price more than double so far this year on a solid half-year result and a favourable pricing environment.
