Iluka today released its financial results for the 6 months to 30 June 2011.

- Iluka Half Year Results to 30 June 2011
- 2011 4D Financial Commentary
- 2011 Half Year Results Presentation Slide Pack
 

The key features are:

�                Mineral Sands Revenue of $570.2 million (up 50.6% from $378.6 million) – includes $45.2m of ilmenite and other material compared with $31.1m in the pcp

�                Mineral Sands EBITDA of $286.7 million (up 200.8% from $95.3 million)

�                Mineral Sands EBITDA/revenue ratio of 50.3% (pcp 25.2%)

�                Group EBITDA of $319.2 million (up 176.6% from $115.4 million)

�                NPAT of $145.9 million (loss of $6.6 million in pcp)

�                Free cash flow of $167.7 million (negative $47.3 million cash flow in pcp)

�                Net debt of $171 million (net debt subsequently declined as at end of July 2011 to $82 million)

�                Gearing (net debt/net debt + equity) at 30 June of 12.2%

�                EPS 35.0 cents (compared with (1.6 cents in pcp)

�                Free cash flow per share 40 cents compared with (11.3) cents in pcp

�                Return on capital of (annualised) of 32.4% vs 6.1% (2010)

�                Return on equity (annualised) of 25.3% (-0.6% in 2010)

�                Interim unfranked dividend of 20 cents per share (418.7 million shares on issue); 57% payout ratio, 50% of free cash flow

Other features:

�                Total cash costs of production of $311.8 million; or unit cash cost per tonne of zircon/rutile/synthetic rutile of $550/t. This unit cash cost of production is below the 2011 full year guidance of $560/t provided on 14 July - ASX Release - Key Physical and Financial Parameters Iluka 2011 (July update)

�                Unit revenue per tonne of zircon/rutile/synthetic rutile of $1165/tonne

�                Inventory movement of $65.6 million associated with decision to maintain  concentrate levels in the Murray Basin in advance of a planned mine move in 2012, so as to maintain supply continuity; as well as weather and port issues which caused some volumes planned to be shipped in the first half to be shipped in the second half.

�                AUD:USD average for the half of 103.3 cents compared with 89.4 cents in the pcp

For guidance commentary on full year 2011 physicals and financial parameters, refer to the ASX Release referred to above.

As already disclosed, both zircon and high grade titanium dioxide pricing (rutile and synthetic rutile) are appreciably high in the second half (refer ASX Release, Mineral Sands Pricing Outcomes, 6 June 2011).

Iluka's half year results teleconference is being held at 10.15am AEST today. Dial in details:

Australia 1800 123 296

International +61 2 8314 8370

Please note - I will be in Perth on Thursday so please call me on my mobile if you have any questions; or leave a message with Ingrid Thompson on 08 9360 4785.

Regards

Rob

Robert Porter | General Manager Investor Relations
Iluka Resources Limited | Suite 1-2, Level 9, 118 Queen Street | Melbourne VIC 3000
Phone +61 3 96000807 | Mobile +61 (0) 407 391 829
Perth Corporate + 61 8 9360 4700

robert.porter@iluka.com