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Iluka Q3 revenue plunges

Iluka Q3 revenue plunges

Photo by Bloombeg

16th October 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Mineral sands miner Iluka has reported a 21% quarter-on-quarter drop in revenue to A$185.9-million for the three months to September 30, despite having lifted zircon, rutile and synthetic rutile output by nearly 5% to 198 000 t, compared with the 189 300 t produced in the June quarter.

Iluka said the lower third-quarter revenue was owing to a number of factors, including the deferral of some 15 000 t of zircon volume contracted and scheduled to be shipped from the third quarter to the fourth quarter, in order to optimise logistics costs by combining cargoes, and a higher proportion of standard rather than premium zircon production in the sales mix.

Revenue was also impacted by the planned sales of low-revenue zircon in concentrate during the quarter, as well as by the second-half contracted high-grade titanium dioxide shipment timing being weighted to the fourth quarter.

Mineral sands production reached 693 200 t for the nine months to September 30, generating revenue of A$491-million. Zircon, rutile and synthetic rutile production reached 392 600 t, with ilmenite production making up the balance.

Iluka has maintained its production and sales guidance for the full year, despite more challenging global economic conditions.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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