Resource Capital Research has released an updated research report on IMX Resources Limited here.

According to the report while current focus is on renegotiating sales contracts at its Cairn Hill iron ore operations the potentially large scale Nachingwea Ni-Cu project in Tanzania is considered to emerge as the jewel in IXR’s crown.

Investment Points

1. Flagship project is 51% Cairn Hill
Magnetite and copper DSO. Cairn Hill Phase 1 now operating at 1.7 million tonnes per annum and targeting AUD 79 per tonne opex.

2. Cairn Hill Phase 2 targets ~60% Fe upgraded product to maintain ~1.7mtpa after Phase 1.

3. Snaefell Project
Goal is 5 million tonnes per annum operation in 3 to 5 years. Resource 110 million tonnes @ 30.1%Fe potential >200 million tonnes

4. Nachingwea Ni-Cu
Near surface resource 181kt contained Ni, scoping study indicates USD 207 million NPV, low opex full feasibility study to progress in 2012.

5. Nachingwea resource upgrade is imminent after main high grade zone extended with recent drilling.

6. Major drilling program on Mt Woods JV funded by OZL on six priority IOCG targets.

7. Assessed NAV is AUD 0.62/share Value of Nachingwea seems to be ignored. Expected Nachingwea newsflow 1H12 and improved iron ore sentiment supports our AUD 0.45/share six month target.