Iluka Shines On Zircon Recovery

Iluka Resources (ILU), the world’s largest producer of zircon, surprised many brokers with substantially increased zircon sales in the June quarter. Production for the quarter was 33% lower. Overall, mineral sand production was down 29% for the first half of 2013. So, what has happened? Iluka has made inroads into zircon inventory to increase sales, with a stock drawdown in the quarter of around 92,000 tonnes. Mineral sands revenue was down 42% on the prior corresponding half. That decline was largely because of lower realised prices and weak sales volumes for the high grade titanium dioxide business, the whitener feedstock used in paint and paper manufacture.

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