Image lands first production at WA Atlas heavy | Australian Markets

Picture Assets has landed its first manufacturing of heavy mineral focus (HMC) on the company’s Atlas mineral sands project, 170 kilometres north of Perth, marking a vital step within the company’s strategy to broaden its mineral sands footprint and obtain a deliberate return to income growth from mid-2025.

The primary HMC manufacturing at Atlas was delivered as half of the early-stage commissioning course of, which started two weeks in the past. Regardless of delays as a result of of bushfires late final yr, the company was capable of catch up on construction work by way of December and January to convey the project in step with earlier timetable forecasts.

With construction practically full, the main target has now shifted to ratcheting up processing to get to nameplate capability, anticipated by June. Picture expects to maneuver its first full HMC cargo within the second quarter of the calendar yr, which can kickstart receipt of the project’s long-awaited first income.

Attaining first manufacturing of HMC at Atlas marks a vital milestone for the company, on the heels of the profitable construction and early-stage commissioning of our second mineral sands project. Over the following few months, we’ll concentrate on ramping up to call plate capability, and producing a constant, high-quality HMC product to maximise income.

When the company initially drew up the Atlas processing flowsheet, it determined to make use of cutting-edge technology, together with the primary business utility of Mineral Applied sciences’ CT-1 spiral technology that’s designed to pay attention industrial minerals in slurry kind.

By integrating the latest feed systems with CT1 compact spirals, Atlas expects to realize profitable mineral separation at feed densities of more than 60 per cent solids and slash its water demand by practically two-thirds.

Based on the makers, the dramatic discount in water utilization minimises the quantity despatched to tailings dams and considerably cuts energy consumption for tailings systems.

Picture says the groundbreaking innovation has the potential to revolutionise mine effectivity and sustainability, establishing Atlas as a chief in accountable mineral sands processing.

After practically two years of unfavorable cashflow following the decommissioning of its extremely profitable Boonanarring project, Picture is more likely to be reassured that the Atlas manufacturing timeline is now locked-in and a income movement is about to re-start.

Aside from an uber-low 1:1 strip ratio, the shallow, high-grade HMC deposit hosts 5.5 million tonnes of ore reserves grading 9.2pc complete heavy minerals, together with 11.9pc zircon, 7.9pc rutile and an spectacular 61pc titanium dioxide in ilmenite.

Atlas is forecast to course of 2.6 million tonnes each year for 446,000tpa of HMC and spit out a pre-tax project cashflow of $62 million over the mine’s two-year life.

Commissioning of the Atlas project, dubbed chapter one, displays Picture’s broader strategic concentrate on mineral sands. The company already has larger plans in practice together with setting up a number of mines, diversifying product strains past HMC and accessing a broader world market.

Chapter two moved a step nearer in 2022 after the company put its foot on the 60mt Yandanooka HMC deposit and the huge 3.6-billion-tonne McCalls HMC project, 30km east of its current 123mt Bindaminna prospect.

With these two game-changing tenements within the Eneabba area now below its belt, cashflow from Atlas can be used to begin initial groundwork at Yandanooka.

Twelve months in the past, Picture handed down an eyebrow-raising prefeasibility research for Yandanooka that forecast an 8.2-year mine life to provide 130,000 tonnes each year of HMC for a life-of-mine EBITDA of $277 million. With a capital payback period of 15 months, the upfront capital expenditure is anticipated to peak at $50m.

Moreover, in what could possibly be a good worth add for the company’s future manufacturing profile, Picture is investigating an progressive, lower-emission course of for upgrading ilmenite to artificial rutile, which must be validated by 2026.

Picture stays in a robust money place regardless of practically two years of decreased money movement and having borne the commissioning prices of Atlas, which is now largely accomplished. With $20m within the bank as on the finish of December and a lean company burn fee of simply over $1.7m per quarter, the company may have extra capital to see it by way of to the restart of full manufacturing in June.

As Atlas shifts gears from construction to full manufacturing, Picture Assets seems primed for the rising world demand for mineral sands, with costs of ilmenite – probably the most common sort of titanium dioxide – now reaching upwards from US$300 (A$472) per tonne.

With a recent income stream simply across the nook, Picture is more likely to be respiration simpler because it appears to be like to show to chapter two and units its sights on turning into a key participant within the market.

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