IMX Resources additional sales of Cairn Hill ore to new customers

IMX Resources (ASX: IXR) has now secured an additional two shipments of Cairn Hill ore for delivery in the next two months, which is in addition to the four shipments announced in July.

The company said these sales, together with an anticipated additional six cargoes over the next four months, will be sold as trial shipments with the anticipation that one of these customers will then enter into a long term supply contract, thereby diversifying the risk of a single customer.

The shipments have been at prices averaging approximately US$100 per tonne FOB.

IMX Resources said that the company anticipates that the six additional cargoes are expected to be sold for similar prices, which is around 30% per tonne lower than pricing under Termite Resources (owned by IMX 51% and Taifeng Yuanchuang 49%) long term contract with Taifeng.

Duncan McBain, IMX Resources managing director, said “While we are disappointed about this development, the benefit has been to allow the introduction of other customers to Cairn Hill's iron ore.

"The development of long term relationships takes time and the project will benefit from a more diversified customer base.”

The Cairn Hill mine has now ramped up to full production of around 140,000 tonnes per month being produced and shipped.

Cash costs FOB, including royalties and administration, are now running at around $75 per tonne and additional project optimisation is expected to reduce costs further.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/18435/imx-resources-additional-sales-of-cairn-hill-ore-to-new-customers-18435.html