Jan. 19, 2011 - Iluka Resources Ltd., the world s biggest zircon producer, reported a 63.4% lift in revenue for 2010 on its quarterly report.
Mineral sand sales revenue after hedging for the December quarter was $295.0 million and $897.8 million for the full 12 months compared with $549.7 million in 2009, reflecting higher sales volumes and higher average zircon prices.
Total zircon output in Q4 was 123,500 tonnes and 412,900 tonnes for the whole year of 2010 up from 263,100 tonnes in 2009, ahead of Iluka s full year guidance of approximately 400 thousand tonnes.
The increase in YoY production volumes reflects a recovery in global demand for Iluka s products, following appreciably lower demand in 2009, associated with global economic conditions, as well as Iluka s decision in the prior period to match production to demand.
In addition, zircon sale volumes for 2010 reached to 478.7 thousand tonntes from 222.6 thousand tonnes in 2009, with sales higher than production reflecting a draw down in lower margin western Australian sourced inventory, predominantly in H1 2010. Iluka finished the year in the position of being unable to satisfy fully strong customers demand for zircon products.
Since the beginning of 2010 regular and industry wide price for zircon was increasing, this meant that Iluka s average received zircon price exited 2010 above US$1000/t FOB, nearly 30% higher than the zircon price at the beginning of the year.
However, Victoria s wet weather has disrupted Iluka s Murray Basin mining and concentrating operations. An official of Iluka said the flooding of roads had been the biggest impediment.
"We expect to resume normal production over the next week or so, he said.
Iluka intends to provide more details on market conditions and outlook as part of the company s full year results announcement on 25 February.
Mineral sand sales revenue after hedging for the December quarter was $295.0 million and $897.8 million for the full 12 months compared with $549.7 million in 2009, reflecting higher sales volumes and higher average zircon prices.
Total zircon output in Q4 was 123,500 tonnes and 412,900 tonnes for the whole year of 2010 up from 263,100 tonnes in 2009, ahead of Iluka s full year guidance of approximately 400 thousand tonnes.
The increase in YoY production volumes reflects a recovery in global demand for Iluka s products, following appreciably lower demand in 2009, associated with global economic conditions, as well as Iluka s decision in the prior period to match production to demand.
In addition, zircon sale volumes for 2010 reached to 478.7 thousand tonntes from 222.6 thousand tonnes in 2009, with sales higher than production reflecting a draw down in lower margin western Australian sourced inventory, predominantly in H1 2010. Iluka finished the year in the position of being unable to satisfy fully strong customers demand for zircon products.
Since the beginning of 2010 regular and industry wide price for zircon was increasing, this meant that Iluka s average received zircon price exited 2010 above US$1000/t FOB, nearly 30% higher than the zircon price at the beginning of the year.
However, Victoria s wet weather has disrupted Iluka s Murray Basin mining and concentrating operations. An official of Iluka said the flooding of roads had been the biggest impediment.
"We expect to resume normal production over the next week or so, he said.
Iluka intends to provide more details on market conditions and outlook as part of the company s full year results announcement on 25 February.
