Iluka sees strong demand for zircon January 19, 2011 - 10:53AM .Mineral sands producer Iluka Resources says it increased full-year sales revenue by 63.4 per cent in 2010, reflecting higher sales volumes and higher average prices for zircon.
Iluka says mineral sands sales revenue, after hedging, for the December quarter was $295 million, and $897.8 million for the 12 months to December 31.
Stock rose 18 cents, or 2 per cent, to $9 even in early trade.
Advertisement: Story continues below Iluka reported sales revenue in calendar 2009 of $549.7 million.
Iluka says it could not fully meet strong customer demand for zircon products in 2010, despite increasing sales to 240 tonnes from 138.7 tonnes in 2009.
Total zircon production rose to 412,900 tonnes in 2010, up from 263,100 tonnes in 2009, ahead of earlier guidance of around 400,000 tonnes.
Rutile production for the 12 months was 250,100 tonnes, after 141,400 tonnes in 2009, in line with guidance of 250,000 tonnes.
Zircon sales in calendar 2010 were 478,700, after 222,600 tonnes in 2009.
Sales were higher than production, reflecting a draw down in lower-margin Western Australian sourced inventory, predominantly in the first half of the year, Iluka said.
"Iluka finished the year in the position of being unable to satisfy fully strong customer demand for zircon products."
Full year rutile sales were 240,000 tonnes, up from 138,700 tonnes in 2009.
Synthetic rutile sales were 362,500 tonnes, from 396,700 tonnes the year before.
"The increase in year-on-year production volumes reflects a recovery in global demand for Iluka's products, following appreciably lower demand in 2009 associated with global economic conditions...", the company said in a statement.
Wet weather in Victoria in early 2011 has disrupted Iluka's Murray Basin mining and concentrating operations.
The wet weather conditions were not expected to adversely affect budgeted production and despatch of finished product in the first quarter of 2011, the company said.
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