Shares in Australian mineral sands producer Iluka Resources Ltd. were down 10.56% by ASX trading close Aug. 21 after it announced zircon sales volumes in the second half were expected to be at the lower end of expectations amid difficult market conditions and would be similar to first half volumes.
Iluka booked an 8.8% yearly rise in first half profit to A$137.2 million due to higher prices and increased royalty revenue from the Area C iron ore operation in Western Australia, slightly offset by lower sales volumes.
Underlying EBITDA dropped 1.7% to A$273.9 million, according to an Aug. 21 release.
Mineral sands revenue fell 10.1% to A$545.6 million due to reduced zircon sales, partially offset by strong price growth across all major products.
The company declared an interim dividend of 5 Australian cents, down from 10 cents in the corresponding period in 2018.
The company expects lower capital expenditures for the full year, guiding A$260 million instead of A$330 million previously, mainly due to a delay beyond the current year for the Sembehun early works at the Sierra Rutile project in Sierra Leone.
