Mineral sands miner Iluka has lifted full-year revenue almost 40 per cent due to surging sales and higher prices for its products but impairments have weighed on the bottom line.
Iluka’s revenue for the year to December 31 was $1.08 billion, up 39 per cent on the previous year, with sales of ziron, rutile and synthetic rutile up 27 per cent in the year accompanied by significant price increases.
The company posted a statutory net loss of $171.6 million as a result of $136 million in previously announced impairments on its Hamilton plant in Victoria, and its stake in UK metal technology company Metalysis.
Despite the hits the bottom line figure improved from a $224 million loss a year earlier.
Underlying earnings jumped to $361 million, from $151 million previously, and the company used the improved cashflow to cut debt by 64 per cent to $183 million.
The company says it is entering 2018 with strong market conditions and Iluka managing director Tom O’Leary said he expected supply to remain tight in 2018.
Mineral sands are an essential input in the manufacture of a broad range of products, from metals and fibre optic cables through to paints and ceramic goods.
“Our reported loss is disappointing but the underlying financial performance is encouraging,” Mr O’Leary said in a statement.
Iluka shares were up 4.9 per cent to $10.675 at 1238 AEDT, their highest level since October, 2013.
The company has declared a final dividend of 25 cents per share, fully franked, after declaring no final dividend in 2016.
ILUKA DIGS DEEP FOR BUMPER FULL YEAR
* Net full-year loss of $171.6m, improved from $224m loss in 2016
* Revenue of $1.08bn, up 39.2pct
* Final dividend of 25 cents, fully franked. No final dividend in 2016.