The Iluka Resources Limited (ASX: ILU) share price fell 7% or 70 cents to $9.29 today after losing 9% yesterday on the back of a trading update for the six months to June 20 2019 that shocked investors.
Yesterday the company reported that total mineral sands production was down 20.2% on the prior corresponding half year period, with synthetic rutile mineral sands down 24.2%. The fall was partly due to the decommissioning of a mine in Sierra Leone and lower than expected production at the Lanti mine in the west African country.
The lower production translated into a 24.2% sales drop which has disappointed investors who had bid the stock up around 25% over just the course of calendar year 2019 prior to the update.
The mineral sands miner has a net cash position of $2 million and net debt of $142 million when including a $79 million final dividend payment.
