Mineral sands producer Iluka says its H122 profit up 186% to A$369 million on rising commodity prices

Kitco Media
By Vladimir Basov
Published
Updated
Kitco News
The Leading News Source in Precious Metals

Kitco NEWS has a diverse team of journalists reporting on the economy, stock markets, commodities, cryptocurrencies, mining and metals with accuracy and objectivity. Our goal is to help people make informed market decisions through in-depth reporting, daily market roundups, interviews with prominent industry figures, comprehensive coverage (often exclusive) of important industry events and analyses of market-affecting developments.

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Australia-based international mineral sands company Iluka (ASX: ILU) announced Thursday that in H1 2022, its revenue was up 30% y-o-y to A$955 million, reflecting higher prices across all of Iluka's products, while EBITDA was up 69% to A$505 million.

The company's profit for the period was A$369 million, up 186% compared to H1 2021 (A$129 million); and net cash position was A$600 million at 30 June 2022, up from A$295 million at 31 December 2021.

Iluka said it delivered strong outcomes in the first half, both in terms of financial performance and progress on its strategic priorities.

"In a macroeconomic environment characterized by inflation and uncertainty, we increased margins and strengthened our balance sheet. This was the result of strong demand for Iluka's products, industry supply constraints and resultant pricing traction," the company commented.

Iluka pointed out that supply-side dynamics remained the dominant feature of mineral sands markets.

"For both zircon and high grade titanium feedstocks, scarcity has been exacerbated by the war in Ukraine and challenges in South Africa, with little by way of new production coming online. Global inventories of these products are low. In these circumstances, customers are prioritizing security of supply; and Iluka is well placed," the company said.

Iluka added it completed the demerger of Sierra Rutile, which enables the company to focus on delivering its rare earths diversification and broader mineral sands project pipeline in Australia.

The company also announced that its Board declared an interim dividend of 25 cents per share, to be paid in September 2022.

Iluka is an Australian based mineral sands company with expertise in exploration, development, mining, processing, marketing and rehabilitation.

With over 70 years' industry experience, Iluka is a leading producer of zircon and the high grade titanium dioxide feedstocks rutile and synthetic rutile. Additionally, Iluka has also established a significant position in rare earth elements (rare earths).


Marathon announces completion of federal enviro assessment for Valentine gold project

Kitco Media

Vladimir Basov

Vladimir (PhD, MEng in Mining) is a professional mining engineer, scientist and analyst that has more than 20 years of practical in-field and research experience. He is particularly interested in collecting, processing baseline data and writing insightful data-driven mining industry analytics, articles, statistical and research reports.

Mdi Earth Logo

Share

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.