ASX 200 | A B C D E F G H I J L M N O P Q R S T U V W X
TO MAKE THE WORLD SMARTER, HAPPIER, AND RICHER.
Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
Iluka share holders are in for a dividend boost.
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
The Iluka Resources Ltd (ASX: ILU) share price is rocketing after the company released its half-year earnings results today.
The company’s share price is currently swapping hands at $10.07, a 6.56% gain. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.65% at the time of writing.
Let’s take a look at what the ASX mineral explorer reported to the market.
Highlights of Iluka’s H122 financial presentation for the six months to 30 June 2022 include:
Iluka advised that mineral sands revenue lifted 29.8% to $954.9 million, and EBITDA surged 68.9% to $505.4 million. The EBITDA margin for mineral sands lifted from 40.7% in H121 to 52.9% in H122.
The company said the revenue boost reflected high prices spanning all of its products. Zircon prices lifted 40%, while rutile prices soared 23%. The lower US dollar also had a positive impact on Iluka’s revenue.
Iluka’s interim dividend soared 108.3%, from 12 cents per share in H121 to 25 cents per share in H122.
The company completed the demerger of Sierra Rutile in the first half of 2022. The explorer also made a final investment decision on the Eneabba rare earths refinery in Western Australia.
Commenting on the results, Iluka managing director Tom O’Leary said:
Iluka delivered strong outcomes in the first half, both in terms of financial performance and progress on our strategic priorities.
In a macroeconomic environment characterised by inflation and uncertainty, we increased margins and strengthened our balance sheet. This was the result of strong demand for Iluka’s products, industry supply constraints and resultant pricing traction.
Iluka said demand for its products remained strong and supply was tight. European tile production was robust, while Chinese tile production faced challenges in the property market along with COVID-19 restrictions. The company added that demand from the ceramics industry in Brazil and Mexico was higher, and foundry and fused zirconia demand remained elevated in the United States.
Iluka’s zircon sales for the third quarter of the calendar year 2022 are fully contracted amid tight supplies.
Iluka highlighted only minimal spot volumes of its high-grade titanium feedstocks were up for grabs in the second half of FY22. Demand is high in North America, with supply security a priority for customers amid the Ukraine war and other global challenges.
Iluka said there was strong customer interest in its remaining uncontracted tonnages from 2023.
O’Leary said Iluka was “well placed” as customers prioritise security of supply. Looking ahead, he added:
Our Australian operations are configured at maximum settings and sales over the second half are likely to continue to be constrained by production. Furthermore, the second half will see first production from the restart of Synthetic Rutile Kiln 1 at Capel.
Other approaching development milestones include the commencement of ground works for the Eneabba rare earths refinery; the completion of the definitive feasibility study for the Balranald project; and the completion of preliminary feasibility studies for the Wimmera and Atacama project
The Iluka share price has surged more than 13% in the past 12 months, while it has gained 1.4% in the year to date. Iluka shares have climbed 4.5% in the past month.
Iluka has a market capitalisation of more than $4.2 billion based on the current share price.
Motley Fool contributor Monica O'Shea 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 Scott Phillips.
These mining shares are buys according to brokers...
ASX lithium shares have been among the top performers in 2022. But not today.
Shares still remain up in triple-digits this year to date.
Here's what the lithium explorer announced to the market today...
The share has reversed from 52-week highs earlier this week.
Could Galileo keep storming higher?
Leo Lithium’s Mali based project is forecast to eventually produce more than 830,000 tonnes of spodumene concentrate per year.
Why are these explorers doing so well today?
In this FREE STOCK REPORT, Scott Phillips, and his team at Motley Fool’s Share Advisor have released a special free report, detailing 5 ASX stocks that they think could be fantastic stocks to own as investors prepare for their retirement.
Sign Up for Take Stock Investment news, stock ideas, and more, straight to your inbox.
Get Started Investing You can do it. Learn about investing with our Investing Education hub.
Win at Retirement Our latest articles and strategies for the post-work life you want.
Listen to Our Podcast Hear our experts take on shares, the market & how to invest.
Join Our Premium Community Join our flagship membership service, Share Advisor.
To make the world Smarter, Happier, And Richer
Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show and premium investing services. The Motley Fool launched its Australian presence in 2011, and since then has grown to reach over 1 million Australians.
Read more about us >
This Service provides only general, and not personalised financial advice, and has not taken your personal circumstances into account. The Motley Fool Australia operates under AFSL 400691. For more information please see our Financial Services Guide. Please remember that investments can go up and down. Past performance is not necessarily indicative of future returns. The Motley Fool Australia does not guarantee the performance of, or returns on any investment.
© 2010 - 2021 The Motley Fool Australia Pty Ltd. All rights reserved.
Australian Financial Services Licence (AFSL): 400691
The Motley Fool Australia, PO Box 104, Isle of Capri, Qld 4217
Contact Details: Phone: (03) 8592 4841 Email: [email protected] Our friendly customer service team will happily get back to you as soon as they can.