Iluka share price rises after quarterly review

The Iluka Resources Limited (ASX: ILU) share price has risen today, following the release of the company's quarterly review for the second quarter of 2020.

| More on:

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

This morning, the Iluka Resources Limited (ASX: ILU) share price rose 1.24% to $9.42 following the release of the company's quarterly review. The Iluka share price has since retreated slightly to sit at $9.35 per share at the time of writing, up 0.54% on yesterday's close

What was in the announcement?

Illuka reported total zircon, rutile and synthetic rutile production of 135,000 tonnes in the quarter ended June 2020. Iluka's Zircon production was down 16% compared to the first quarter of the year, as the company intentionally reduced production due to economic uncertainty.

The company's rutile production was down 29% compared to the first quarter of the year, due to lower run time and throughput at the company's Sierra rutile asset. Synthetic rutile production was up 10%, which the company attributed to higher ilmenite quality and plant upgrades.

Iluka sold 242,000 tonnes of zircon, rutile and synthetic rutile during the first half of 2020, a reduction of 19.87% compared to the first half of 2019 when the company sold 302,000 tonnes of the same materials.

The company sold 53,000 tonnes of zircon in the second quarter of 2020 compared to 25,000 tonnes in the first quarter of the year, however, sales were affected by the impacts of the coronavirus pandemic on Chinese and European markets. 

Iluka sold 66,000 tonnes of titanium in the second quarter of 2020, compared to 98,000 tonnes in the first quarter. The company announced that rutile prices were up 7% since the first half of 2019. It also announced that Zircon prices fell 6% in the first half of 2020.

Iluka also announced that it had completed commissioning of its Eneabba operation during the quarter, with 9,000 tonnes of monazite-zircon concentrate material shipped ahead of schedule.

The company had net cash of $62 million at 30 June 2020. It had free cash flow of $46 million in the first half of 2020, and invested $50 million into capital expenditure. 

Iluka also announced that all mining and processing sites were operational in the current environment.

About the Iluka share price

Iluka is an Australian-based resources company that explores and develops mineral sands assets. The company is the world's largest producer of zircon, titanium-based rutile and synthetic rutile.

In June, Iluka announced that one of its customers had defaulted on its obligation to take and pay for 20,000 tonnes of synthetic rutile. Proceedings have since been made by Iluka in the Supreme Court in the state of New York.

The Iluka share price is up 63.46% since its 52-week low of $5.72. It has risen 1.52% since the beginning of the year. The Iluka share price is down 1.3% since this time last year.

Motley Fool contributor Chris Chitty 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 Share Market News

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »

Father in the ocean with his daughters, symbolising passive income.
Dividend Investing

I'd spend $8k on these ASX 200 shares today to target a $6,102 annual passive income

I believe these ASX 200 shares will continue rewarding passive income investors for years to come.

Read more »

Three businesspeople leap high with the CBD in the background.
Share Market News

Boom! ASX 200 blasts to new record highs

ASX 200 investors just sent the benchmark index into uncharted territory.

Read more »