Mineral sands miner Iluka Resources Ltd
(ASX:ILU) says mineral sands sales revenue for the nine months to September 30 came to $348.7 million, markedly lower than the same period last year.
The company says the result reflects the significant adverse affect in demand for mineral sands products in the first half of 2009 associated with the global financial crisis.
However the company says sales recovered in the September quarter with sales revenue 30 per cent higher than the June quarter.
Iluka says higher September quarter revenues resulted from higher sales across all products, with overall sales for the year to date trending in line with the company’s expectations.
Iluka says in response to the global economic crisis, physical production levels across all products have reduced to better match lower short term demand.
As a result of this response, combined sales for zircon, rutile and synthetic rutile in the September quarter exceeded production in that quarter, allowing finished goods inventory to be drawn down.
The company says based on achievement of full year sales expectations, Iluka expects to finish the 2009 year with minimal if any inventory of high grade titanium dioxide products.
Iluka Resources profits have been increasing after posting a loss in 2005.
