Iluka Resources stand out A$146m profit, driven by higher volumes and margins
Thursday, August 25, 2011 by John Phillips
proactiveinvestors.com.au
Iluka Resources (ASX: ILU) has delivered a bumper profit for the half year to 30 June 2011 of $145.9 million, compared with a net loss after tax of $6.6 million for the previous corresponding period.
Iluka said the profit was driven higher by increased sales volumes, higher product pricing and a full-half contribution from the company's new, higher margin operations - which were commissioned in the previous corresponding period.
The action was in mineral sands, with overall production volumes of zircon, rutile synthetic rutile (Z/R/SR) 116,100 tonnes, or 25.8% higher than in the corresponding period.
In addition to higher Z/R/SR overall tonnes, the increased proportion of zircon (49% compared to 36% in the previous corresponding period) reflects the transition to new production sources during 2010.
Mineral sands revenue increased by over 50% to $191.6 million, due to significantly higher prices for all Z/R/SR products, together with an increase in the proportion of zircon in the Z/R/SR sales mix.
Iluka said the higher product prices more than offset the effects of an increase in the average AUD:USD exchange rate to 103.3 cents from 89.4 cents in previous corresponding period.
Mineral sands revenue includes sales of ilmenite and other material, such as zircon rich tailings concentrate, of $45.2 million compared to $31.1 million in the previous corresponding period.
Iluka declared an unfranked $0.20 dividend payable on 5 October 2011, with a record date of 9 September 2011. |
