Iluka issued
its September Quarter Production Report this morning.
Key elements
include:
�
quarterly zircon production of 156.8kt; YTD 433.5kt; full year guidance
(July disclosure) ~550kt
�
quarterly rutile production of 78.6kt; YTD
215.5kt; full year guidance (July) 275kt
�
quarterly synthetic rutile production of 64kt;
YTD 217kt; full year guidance (July) 260kt
�
mineral sands sales revenue of $532.5 million for the September quarter;
YTD of $1102.7 million
�
while cash cost data is not provided with the March
and September quarters, unit cash cost trends, on a year-to-date basis, are
in line with, or slightly better than, the 2011 guidance [A$560/t of
Z/R/SR]
�
Iluka does not provide sales figures at the March or
September quarters, but:
- reaffirms its indicative full year sales volume commentary, as
provided in the 14 July ASX announcement, Key Physical and Financial Parameters
Iluka 2011.[Z ~520kt; R ~ 230-235kt; SR ~245kt]
- rutile and zircon sales volumes in the September quarter were firm,
reflecting a catch up in volumes held over at the end of June associated with
port issues plus Iluka’s ability to increase volumes to meet customer demand
following higher than planned production in the first half
- zircon sales in the month of September represented the highest zircon sales
for any month to date in 2011
�
the arrangements for the Eneabba re-start are progressing well and
on schedule for 1st quarter of 2012
�
the SR kiln 3 is undergoing a major maintenance
outage
�
the kiln will be utilised, once reactivated, for production of Iluka’s
new SR85 product, as well as other SR products. The feed source for the
kiln will comprise Murray Basin ilmenite as well as Eneabba ilmenite
�
higher zircon and rutile production, as well as
product prices support a decision to extend the Douglas mining operation
until April 2012 - a positive outcomes in the context of maximising HMC
feedstock and finished product to cover a planned 3 month production
dislocation in the Murray Basin as a mine move occurs from Kulwin to the
Woornack, Rownack, Pirro group of deposits in Q1 2012
�
market conditions commentary provided - refer above reference to reaffirming expectation that sales
guidance for 2011 will be met
�
SR plant trials to produce a new SR product - an acid
soluble synthetic rutile (ASSR) product were conducted. These trials provided valuable processing conditions, operational data
and samples for the commercialisation of this product. Future plant trials on
ASSR may be scheduled for 2012, dependent on kiln availability
�
mine planning drilling at the Murray Basin Worrnack,
Rownack and Pirro deposits continued with a view to reoptimising
the pit (extend economic life), reflecting influence of higher prices.
Iluka issued a
zircon pricing announcement yesterday (click
to view Zircon Pricing Outcomes �� Fourth Quarter
2011).
Iluka has also updated several of its Mineral Sands
Briefing Papers:
� Iluka's Customer Base
� Indicative Industry Pricing for Mineral Sands Products
� Historical Sales By Region for Iluka's Mineral Sands Products
� Mineral Sands Products: Attributes and Applications
Available
under Mineral Sands Briefing Papers (www.iluka.com)
Please let me,
or Ingrid Thompson (email: ingrid.thompson@iluka.com ph. 08 9360 4785), know if you have any follow up questions. I
shall be travelling during the day and will respond as soon as practicable.
Regards
Rob
Robert Porter | General Manager Investor Relations
Iluka Resources Limited | Suite 1-2, Level 9, 118 Queen Street |
Melbourne VIC 3000
Mobile
+61 (0) 407 391 829
Perth Corporate + 61 8 9360 4700
robert.porter@iluka.com