It wasn't a great week for Metals and Mining companies in the S&P/ASX200 Index (ASX: XJO) with three prominent Aussie resources group's featuring as last week's worst-performing share prices.
But what caused the Iluka Resources Ltd (ASX: ILU), Regis Resources Ltd (ASX: RRL) and Syrah Resources Ltd (ASX: SYR) share prices to sink lower in last week's trade?
Why the Iluka Resources share price was hammered lower this week
The Iluka Resources share price closed the week 14.7% lower at $9.28 per share after a weak quarterly update from the group saw its share price hammered lower.
Iluka's quarterly results reported first half 2019 revenue per tonne up 30% year-on-year (YoY) but several other numbers failed to impress investors.
Iluka reported first half zircon/rutile/synthetic rutile (Z/RISR) sales of 302kt, compared to 2018 sales of 439kt as volumes fell across each major product.
Iluka reported that zircon sales were affected by trade and geopolitical tensions impacting sentiment in key markets, while rutile and synthetic rutile sales fell due to available production and a tightening of market conditions.
What about the Syrah and Regis share prices?
The Regis share price performed nearly as poorly last week as it closed 13.48% lower at $5.52 per share on Friday afternoon.
While a number of Aussie mining share prices fell throughout the week, the Regis Resources share price was hammered on Tuesday with broker notes from UBS and Macquarie Group Ltd (ASX: MQG) appearing to be the major catalyst.
According to the note from Macquarie, its equities analysts at Macquarie have downgraded Regis Resources' shares to an 'underperform' rating from 'neutral' and cut its price target to $5.10 per share.
On 31 July, the Aussie gold miner released its Q4 quarterly update and despite solid production numbers, Regis' all-in sustaining cost (AISC) rose higher than expected to $982 per ounce – 9% higher than its average AISC over the last 12 months.
Meanwhile, the Syrah Resources share price fell 6.86% during the week to close at $0.95 per share despite the Aussie graphite miner releasing no specific news.
In my view, the Syrah Resources share price was caught in the general downturn within the Resources sector as quarterly results have painted a mixed picture of what to expect from the ASX August reporting season.
