Iluka Resources has reported a sharply decrease first-half internet revenue of $203.8 million, down 44.7 per cent, and slashed its dividend.
The mineral sands producer additionally introduced on Wednesday a manufacturing shutdown at a significant kiln as international financial uncertainty hits demand for some mineral commodities, together with high-grade titanium feedstocks.
Managing director Tom O’Leary stated Iluka delivered elevated costs and robust margins within the first half in opposition to a backdrop of evolving market dynamics.
The four-month manufacturing pause from October at artificial rutile kiln 1 (SR1) in Capel, Western Australia, will coincide with deliberate upkeep on the adjoining SR2 kiln, with each to restart on the finish of January 2024.
Mr O’Leary stated the price surroundings in WA was presenting challenges for initiatives all through the business as increased gasoline, consumables, and labour prices impression on operations.
But work continued in any respect phases of Iluka’s growth pipeline, with these initiatives at the moment in execute section – Balranald in NSW and Eneabba in WA – a selected focus, he stated.
Engineering and procurement are beneath method at Balranald, a essential minerals growth positioned within the Riverina district of NSW.
Australia’s first totally built-in refinery for the manufacturing of separated uncommon earth oxides is being developed at Eneabba, supported by a $1.25 billion federal mortgage.
The firm’s offtake plans are targeted on attaining recognition of sturdy environmental, social and governance (ESG) credentials and prospects with the ability to hint the supply and sustainability requirements of merchandise to be refined at Eneabba.
Iluka stated main contractor Fluor Australia anticipated to finish the entrance finish engineering design (FEED) by the top of the yr.
“We have also announced the commencement of a feasibility study into rare earth metallisation,” Mr O’Leary stated.
Metallisation, at the moment dominated by China, is the subsequent stage of processing that provides worth after the manufacturing of uncommon earth oxides.
“This capability would broaden Iluka’s potential customer base and further enhance our marketability as a sustainable producer of light and heavy rare earths with traceable product provenance,” he stated.
Iluka declared a completely franked interim dividend of three cents per share, down from 25 cents a yr earlier.
The troubled Sierra Rutile arm of the business was demerged from the group in August 2022.
Source: www.perthnow.com.au
