REPORTING SEASON: Iluka Resources (ILU)
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Figure 1: Iluka Resources 12 month chart
Iluka Resources (ILU), Australia’s largest mineral sands miner & the world’s biggest zircon producer, reported a worse than expected $34.3m 1H13 (Jan-Jun) profit.
The result was around 20% lower than consensus & an 87.5% slump on 1H12.
Prices have dropped significantly for its two major products – zircon (used to glaze/coat tiles) & rutile (mineral used in paints & plastics to provide bright white colours).
China, the world’s biggest consumer of zircon, has recently lost its appetite for the mineral, due to cheaper alternatives.
ILU shares are up 18% since Jan 2013.