Iluka (ASX:ILU) share price slumps 6% on FY21 results

Shares in the Aussie resources group have been smashed on Wednesday morning

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The Iluka Resources Ltd (ASX: ILU) share price has fallen more than 6% in early trade. Today's slump comes after the Aussie resources company's latest results release.

Iluka share price slumps 6% on half-year results

Iluka provided its operational and financial results for the half-year ended 30 June 2021 (1H21). This morning's release was punctuated by a number of headline growth figures, including:

It's worth noting that Iluka had already provided a second-quarter update on 22 July. The Iluka share price leapt 4.5% following that announcement which contained many of the key production and earnings figures included in the half-year result.

The Aussie resources company did have several supply and demand concerns in the latest result.

Already strong demand for high-grade titanium dioxide feedstock was "amplified" by increased concerns around future supply and the settlement of a contract dispute with a major customer.

There was also a "significantly reduced" earnings contribution from the group's Mining Area C royalty after its recent demerger. Iluka retains a 20 per cent stake in the ASX-listed Deterra Royalties Ltd (ASX: DRR) business.

There was also lower production at Iluka's Jacinth-Ambrosia, South Australia and Cataby, Western Australia sites during the half.

However, Iluka still managed to boost volumes and more than offset foreign exchange impacts on earnings. It wasn't enough for investors though as the Iluka share price remains under pressure on Wednesday.

Foolish takeaway

The Iluka share price slumped more than 6% early on Wednesday following its latest update. At the time of writing, it had pulled back to $8.66 a share, down 4.42%.

However, Iluka's share price remains up 33% in 2021. That's well ahead of the S&P/ASX 200 Index (ASX: XJO)'s year to date return of 12.8%.

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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