Iluka Resources (ASX:ILU) 1H sales jumps 89%

Company News

by Melissa Darmawan

Zircon and titanium player Iluka Resources (ASX:ILU) celebrates a 40 per cent jump in mineral sands production in the second quarter.

The minerals explorer reported growth across their zircon, rutile and synthetic rutile production of 175,300 tonnes, a rise of 40 per cent after operations resumed to full capacity.

Sales across the three minerals operations are 89 per cent higher from first half of 2021 as demand continues to strengthen.

Gains across their minerals operations in Q2

Rutile output was ahead of expectations, up 20 per cent to 44 kilo tonnes. The increased production followed higher assemblage and recovery of heavy mineral concentrate at their Sierra Rutile operations on the southwest coast of West Africa.

The news comes after the company recently gave six months’ notice to put a pause on mining operations in Sierra Leone in the fourth quarter due to business and financial challenges. The plan to suspend could reduce feedstock supply situation by around 5 per cent.

Synthetic rutile production soared 201 per cent higher at its SR2 operations, which appeared to make up for the planned suspension in the first quarter, which dropped 67 per cent compared to the prior quarter.

Zircon production rose 2.4 per cent at 72 kilo tonnes with the Narngulu mineral separation plant operating at full capacity.

Shares in Iluka Resources (ASX:ILU) are trading 6.8 per cent higher at $9.29.

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