Good news about the takeover offer of 51% of Consolidated Rutile, more head room for business if it goes through. Agree with previous poster there has been a huge downgrade on ILU recently and price is very much out of whack with future growth...
by James Bridie 16 April 2009 11:37 Iluka 1Q09 sales slide 77%
Iluka Resources Limited (ILU) said mineral sands sales revenue for the three months to 31 March was down 77% to $44.5 million from the previous corresponding period. The company said the decline was on the back of a 23% drop in production.
The miner said the decline in production was attributable to a number of factors. This included the exhaustion of the heavy metal concentrate stockpile at the Douglas project in Victoria, lower production in Virginia, following equipment constraints, and lower mining grade ore for zircon and rutile.
Looking ahead, the company reaffirmed its 7 April announcement confirming a cut-back in production for the three months to 30 June. The company said it would reduce zircon production by up to 20% and rutile by 10%.
Iluka said capital expenditure in the first quarter of the year was $118.6 million, with 83% of this being for the Murray Basin Stage 2 and Jacinth-Ambrosia projects. The group said FY09 estimated capital expenditure was $500 million and would also be spent on these two developments.
The company noted also the Jacinth-Ambrosia zircon project in the Eucla Basin in South Australia was up to six months ahead of schedule, with the first concentrate produced there possibly in early 2010.
During the three months, Iluka said the Brink development, in Virginia, USA, was completed after successful commissioning and had produced first concentrate and final product in April. Iluka said this would extend the economic life of the Virginia operations until at least 2015.
ILU Price at posting:
$3.10 Sentiment: None Disclosure: Not Held
