The Iluka Resources Limited (ASX: ILU) share price is one to watch this morning after the Aussie miner's half-year earnings report. At the time of writing, just after today's market open, the Iluka share price has edged 0.3% higher.
What did Iluka report this morning?
Total sales volumes fell 17.6% lower to 384.7 kilotonnes (kt). Zircon sales plummeted 41.2% to 78.4kt while rutile sales were down 9.9% to 74.7kt. The group's synthetic rutile sales volumes jumped 3.4% to 88.5kt.
The Aussie miner reported a 16.3% drop in half-year mineral sands revenue to $456.6 million as revenue per tonne sold edged 0.5% higher to $1,689.
Mineral sands earnings before interest, tax, depreciation and amortisation (EBITDA) fell 23.9% to $177.0 million.
Underlying mineral sands EBITDA margin expanded by 16.5% to 48.0% during the half-year.
Underlying Group EBITDA slumped 17.8% lower to $225.1 million while profit was also down 17.5% to $113.2 million.
Receipts from Iluka's Mining Area C royalty increased by 16% during the last six months to $48 million. That included an 11% increase in Aussie dollar-denominated iron ore prices while sales volumes climbed 3% higher.
Positively, Iluka turned a -$65.2 million free cash flow (FCF) in 1H 2019 into a $46.2 million FCF for the half-year.
Iluka management decided not to pay an interim dividend compared to a 5 cents per share payment in 1H 2019.
The group maintained a net cash position of $62.1 million despite net tangible assets per share slumping 19.8% lower to $1.82 per share.
Iluka did provide an update on its planned demerger, creating a new royalty business called Deterra Royalties. The shareholder vote is to be held in October 2020 with Iluka to retain a 20% stake in the new business.
COVID-19 update
The Aussie miner has implemented a number of health and safety measures in response to the coronavirus pandemic.
There were no major updates outside of Iluka's focus on operational flexibility during the period.
The miner's focus is on maintaining a strong financial position, aided by the $6 million received from the JobKeeper subsidy. Iluka has also deferred its $99 million final tax payment to the second half of the year.
How has the Iluka share price performed in 2020?
Shares in the Aussie miner fell 48.2% lower in just one month amid the March bear market.
Despite the market volatility, the Iluke share price has managed to climb 5.1% higher in 2020.
That's a strong outperformance over the S&P/ASX 200 Index (ASX: XJO) which has slumped 9.0% lower this year.
