The Motley Fool

Why the Iluka Resources share price jumped 8% this morning

The Iluka Resources Limited (ASX: ILU) share price jumped 8.79% this morning after the company announced stronger-than-expected quarterly and full-year results for the period ending 31 December 2018.

For the full-year 2018, Iluka produced 348,600 tonnes of zircon, an 11.6% increase on 2017. The company had previously provided guidance of 330,000 tonnes, so the results were a well-received surprise.

2018 rutile production was down 46%, diminished by the cessation of operations at Murray Basin and incidents of strike action. The company had already revised down its rutile production estimates for 2018 after worker strikes at the Sierra Rutile project in Sierra Leone.

Revenue for 2018 was up 22%, driven primarily by a 41% increase in the weighted average price of zircon. Sales volumes were down 7% as a result of previously mentioned production constraints.

Additionally, this morning the company provided its first mineral resource estimate of rutile mineralisation at the Pejebu Deposit. Iluka estimates the deposit consists of 23.4Mt material at 0.95% in situ rutile. This works out to 0.22Mt of zircon, which is in line with previous estimates.

The Iluka Resources share price has fallen 15.7% in the last 12 months, compared to the S&P/ASX 200 which has dropped 2.31% in the period.

Top 3 ASX Blue Chips To Buy For 2019

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2019."

Each one pays a fully franked dividend. The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Cale Kalinowski 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.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.