The Iluka Resources Limited (ASX: ILU) share price is rising slightly higher today after the company conducted its 2021 AGM, releasing its 2021 AGM chairman's and managing director's addresses to the market afterwards.
Iluka shares have responded modestly, up 1.97% to $7.76 per share at the time of writing.
Iluka is an international mining company with a focus on exploration, project development, mining operations, processing, and marketing. It works primarily with mineral sands, which are ore deposits that contain heavy minerals like titanium and tungsten. Let's see what its AGM revealed.
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Highlights from the Iluka AGM
Iluka chair Greg Martin highlighted the company's international sustainability and safety programs.
Iluka had a 20% reduction in serious potential safety incidents in the past 12 months, rehabilitated 584 hectares of disturbed land in Sierra Leone, and increased indigenous employment at its Jacinth-Ambrosia operation to almost 30% of its workforce.
Iluka told the AGM it contended with a significant drop in demand for the mineral zircon during the COVID-19 pandemic, but protected its profit margins by cutting supply.
The company also re-entered the rare earths market through its "strategic stockpile" at Eneabba. Rare earth minerals are hot property in international trade, given their use in renewable energy technology.
The company also de-merged one of the mining royalty arms of the business, creating "Australia's largest listed royalty company", Deterra Royalties, in which Iluka has retained a 20% stake.
Comments from the chair
Given the impact of the international economic recession on Iluka's business, Martin took the chance to signpost the company's future strengths.
Iluka's disciplined performance in the face of external uncertainty reflects a resilience we have talked about for some time but which, on any objective measure, was on display and well demonstrated last year in dealing with a good number of curve balls.
This is a vital organisational capability as we look to meet the continuing challenges to the many parts of the global economy where COVID-19 remains a very large and present threat to lives and livelihoods.
The objective we've set ourselves at Iluka is to deliver sustainable value and, while we pursue that objective diligently and talk about it at every opportunity, it's often observed that actions speak louder than words.
Iluka share price snapshot
Despite the company's talk of COVID-19 challenges, the Iluka share price has been on a tear the past 12 months and more than doubled in value since May last year. It's up 113% in that timeframe.
