- Image Resources (IMA) is now debt free after paying off its outstanding balance earlier than expected
- The company repaid US$13.8 million (around A$18 million) three months earlier than planned
- The early repayment has allowed Image’s Board to consider an inaugural dividend to shareholders
- At the end of December, the company’s cash balance was $51 million
- On market close, Image us up 1.47 per cent and is trading at 17.3 cents per share
Image Resources (IMA) is now debt free after paying off its outstanding balance early.
The company made its final repayment three months earlier than originally planned.
Following the repayment, Image’s Board is considering an inaugural dividend to shareholders.
At the end of December, the company’s cash balance was $51 million, while its remaining debt, including interest was just US$13.8 million (A$18 million). Given the net cash position of $32 million the company made the decision to pay off the loan ahead of schedule.
Managing Director Patrick Mutz is extremely pleased to be able to retire the outstanding debt earlier than originally planned.
“This was possible in large part due to successful operational performance and cost control measures,” he said.
“Early retirement of the debt not only places the Board in a strong position to consider the payment of an inaugural dividend to shareholders, but it also allows the company to consider potential investment in growth opportunities which were restricted under the loan agreement documents,” he added.
“We very much look forward to the broader opportunities available to a debt-free, cash-generating mining company,” he concluded.
On market close, Image us up 1.47 per cent and is trading at 17.3 cents per share.