Iluka Resources Limited (ASX:ILU) says its full year profit will be stripped down by asset write downs. The minerals sands producer expects to report a net profit of about $18 million for the 2013 calendar year, down from $363 million the year before.
Iluka’s anticipated result includes a write down in value of equipment currently idle by $28 million and provisions for the rehabilitation of mines not in use totallalling $13 million.
The company advises the idle asset value adjustments relate to old equipment across its Western Australian operations. Last month Iluka reported a 40 per cent fall in revenue per tonne of mineral sands sold against the impact of lower prices for its main products.
Shares in Iluka Resources rose 2.23 per cent to close at $9.15 before the announcement was made yesterday.
Iluka Resources reported a net profit of $34.3 million in the first half of the 2013 calendar year.
