(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).
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