PERTH (miningweekly.com) – A noncash impairment charge of A$86.5-million during the year ended December tumbled mineral sands miner Iluka into a full-year loss of A$62.5-million.

This was compared with a net profit of A$18.5-million in the previous financial year.

About A$82-million of impairment related to the company’s US operations, reflecting a complete write-off of all plant, property, and equipment in Virginia.

In 2013, Iluka reported a A$40-million impairment on the company’s Western Australian assets, which would likely remain idle as a result of changes to the mine plan, and successful technical developments.

Meanwhile, mineral sands revenue for the full year also declined by 5%, to A$724.9-million, while group earnings before interest, taxes, depreciation and amortisation declined by 12.9% to A$257-million.

Iluka told shareholders on Tuesday that the decline in revenue was recorded despite a 5.4% increase in the sales volumes of zircon, rutile and synthetic rutile, which was offset by lower weighted average received prices, especially for the high-grade titanium oxide products.

Total sales volumes reached 932 800 t during the full year, with zircon making up the major share at 352 200 t, while some 182 000 t of rutile  and 82 000 t of synthetic rutile were shipped.

“2014 was a year in which the financial health of the company was preserved and in which foundations were laid for recovery in the existing business and new options were secured for future growth,” Iluka MD David Robb said.

He noted that while the reported profit was not satisfactory, a free cash flow of A$196-million, low gearing, significant available funding headroom, a reduction in unit cash costs of production and the ability to pay an increased dividend all highlighted the financial strength of the company.

Robb said that the company was not in a position to give guidance on 2015 production or finances, but said that this reluctance did not stem from any merger or acquisition activity.