Much to the relief of its shareholders, the Iluka Resources Limited (ASX: ILU) share price is finally heading in the right direction.
After a month of steady declines, the shares of the mineral sands company are up almost 2% to $8.16 today.
Why is it higher?
As well as getting a boost from the market rebound today, Iluka’s shares were given a lift from the release of its Australian operations update.
According to today’s release, Iluka has announced plans to restart production at its Jacinth-Ambrosia site thanks to improved supply and demand fundamentals.
Mining and concentrating activities were suspended in April 2016 to allow heavy mineral concentrate inventory to be drawn down during a time of subdued market demand.
In light of this restart, Iluka expects total group zircon production to be approximately 300kt in 2018.
If you’re looking for investment ideas in the resources sector, have a read of this article.
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Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.