iluka posts improved production

Iluka posts improved production
20/04/2006 11:34:36 AM

Mineral sands miner Iluka Resources Ltd increased production of a number of its key products in the first quarter of 2006 and said demand for zircon remained very robust.

Total sales revenue was up 8.2 per cent to $214.1 million, despite a 26.3 per cent drop in sales volumes.

Volumes were lower reflecting shipment timings due to port congestion and lower stock levels.

"Sales volumes are expected to be made up in subsequent quarters," Iluka said.

Production of zircon, rutile and ilmenite all increased in the first quarter compared to the first quarter of last year while synthetic rutile was stable.

Leucoxene and Hyti production, which account for a small part of the mineral sands production, were softer in the first quarter.

Iluka said zircon output was up 10.5 per cent, underpinned by higher production from the Mid West operations in Western Australia and Consolidated Rutile Limited.

"Demand for zircon remains very robust and, as in 2005, current sales are constrained by production," Iluka said.

Zircon sales were substantially higher because of higher prices and volumes.

Iluka said development of the Douglas project in the Murray Basin of Victoria was continuing and it expected the mineral separation plant would be complete by September 2006.

Shares in Iluka slipped eight cents to $7.90 by 1121 AEST on Thursday.