Iluka (ASX:ILU) share price on watch as interim dividend returns

Shares in the Aussie resources group are in focus today.

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The Iluka Resources Ltd (ASX: ILU) share price is one to watch this morning after the Aussie miner reinstated its interim dividend in its latest half-year results release.

Iluka's dividend announcement

Key highlights from this morning's half-year results to 30 June 2021 (1H21) include:

What happened in FY21 for Iluka?

A significant increase in sales volumes was a key driver of the latest result with demand returning to pre-pandemic levels. Mineral sands sales volumes surged to 177 kilotonnes (kt) in the first half with weighted average prices edging higher.

Chinese tile production returned to pre-pandemic levels while demand from the photovoltaic (solar) industry maintained the push for fused zirconia. Titanium sales were also strong despite supply concerns persisting.

Investors will be watching the Iluka share price following this morning's result. Iluka reported that Australian operations returned to maximum settings during the year after a period of inventory management as the company continues to progress its development pipeline of projects.

What did management say?

Iluka CEO and managing director Tom O'Leary had the following to say this morning:

Iluka commenced 2021 in a strong position and we have built on that platform to deliver an excellent first half result.

The company demonstrated discipline during 2002, including our initial response to the COVID-19 pandemic. That discipline continues to underpin our broader approach, albeit now in different and evolving circumstances.

As we look to the second half and beyond, Iluka is positioned to lead in the response to market and industry conditions by deploying its operations, product suite and development pipeline.

What's next for the Iluka share price?

There was no full-year guidance noted in today's half-year results update from the Aussie resources company. The focus remains on inventory and balance sheet management as well as progressing key projects on schedule.

The Iluka share price is up 37.5% in 2021, well ahead of the S&P/ASX 200 Index (ASX: XJO).

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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