Iluka Resources Limited (ASX:ILU) shares up as debt drops and revenue rises

Shares in Iluka Resources Limited (ASX: ILU) are up 1.2% to $11.25 in early morning trade after the release of a quarterly report.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares in Iluka Resources Limited (ASX: ILU) are up 1.2% to $11.25 in early morning trade after the release of a quarterly report.

The mineral sands explorer today announced revenue from zircon and rutile will lift 21%, despite lower sales volumes and reduced FY18 production guidance.

Iluka's Sierra Leone operations experienced "operational difficulties" in the first half that saw annual production guidance for rutile reduce from 200 thousand tonnes to 185.

Earlier this month Citi analysts upgraded Iluka's shares to a buy rating with a price target of $13.70 off the back of improvements in pricing.

Iluka has also reduced net debt to $34 million from $183 million at December 31, 2017, with strong free cash flow of $226 million in the first half and a $69 million final dividend payment for 2017.

Fellow mineral sands miner Base Resources Limited (ASX: BSE) is gaining plenty of attention for its growth potential but BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) still hold the title for best buy and hold resources stocks.

Motley Fool contributor Carin Pickworth has no position in any of the 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 Scott Phillips.

More on Resources Shares

A happy construction worker or miner holds a fistfull of Australian money, indicating a dividends windfall
Dividend Investing

Everything you need to know about the Rio Tinto dividend

Shareholders are getting a big dividend.

Read more »

A miner in a hardhat makes a sale on his tablet in the field.
Resources Shares

Buy this ASX stock for 'the best lithium mine in the world'

The experts at Blackwattle reckon the battery material will come back into vogue soon, and these are the shares to…

Read more »

Miner looking at a tablet.
Resources Shares

The Fortescue share price is down almost 10% in February, time to buy?

Is this an opportunistic time to buy the miner?

Read more »

Two miners standing together.
Resources Shares

2 battered ASX mining shares to buy for cheap right now

The global economy is set to improve in the coming year. That's why one expert is seeing a huge 58%…

Read more »

A happy miner pointing.
Resources Shares

Will Fortescue stock be worth more than CBA by 2026?

The resources giant has done a wonderful job of growing. Can it keep going?

Read more »

a woman wearing a sparkly strapless dress leans on a neat stack of six gold bars as she smiles and looks to the side as though she is very happy and protective of her stash. She also has gold fingernails and gold glitter pieces affixed to her cheeks.
Resources Shares

This ASX gold stock just fell 31%. It's time to buy

The global market for the precious metal remains strong, so Blackwattle analysts advise looking past the recent sell-off of these…

Read more »

A girl holding a globe shouts into a green megaphone about climate change.
Resources Shares

ASX mining shares up amid Labor plan to spend multibillions on renewables revolution

Prime Minister Anthony Albanese will deliver a speech in Newcastle tonight.

Read more »

Miner looking at a tablet.
Earnings Results

South32 share price lifts off as ASX 200 miner greenlights US$2.2 billion project

ASX 200 investors appear optimistic about South32’s major US project approval.

Read more »