PERTH (miningweekly.com) – Mineral sands miner Iluka has reported an 80% increase in the underlying group earnings before interest, tax, depreciation and amortisation (Ebitda) for the half-year to June.
Underlying Ebitda reached A$278.5-million in the interim period, compared with the A$154.6-million in the previous corresponding period, as sales revenue from mineral sands increased by 20.5%, to A$606.9-million.
Net profit after tax for the six months under review, was reported at A$126.1-million, compared with a net loss after tax of A$81.5-milion in the same period in 2017.
Free cash flow for the period increased from A$180-million to A$225.5-million.
“We are pleased to see continued strength in mineral sands markets. Iluka has delivered a strong financial performance in the first half. While our balance sheet is in a strong position, disciplined capital allocation remains foremost in our thinking as we move forwards with the execution of the Cataby mine development in Western Australia, and the Lanti and Gangama expansions in Siera Leone, as well as the definitive feasibility studies at Jacinth-Ambrosia, Sembehun and other projects in Sierra Leone to support production of additional tonnages,” said Iluka MD Tom O’Leary.
“Operationally. We have seen a disappointing production performance from Sierra Rutile over the past six months, with commissioning issues on the in-pit mining unit and age-related failures of equipment at the dredge.”
O’Leary noted that this was accompanied by increased costs in addressing the operational issues encountered.
Iluka’s Australian assets performed well, with mining completed, as planned at the Tutunup South mine, in advanced of the commissioning of the Cataby development, scheduled for early 2019, and following a successful restart in December, Jacinth-Ambrosia has produced more heavy mineral concentrate than expected.
“We are also focused on maintaining a sustainable pricing environment for our core products of zircon, rutile and synthetic rutile and have announced a 14% increase in rutile prices for the second half and a 12% increase in the zircon reference price, effective from October 1, for a six-month period.”
O’Leary said to ease potential zircon shortfalls, Iluka was panning to sell additional zircon concentrate, with the company increasing zircon production guidance from 300 000 t to 330 000 t.