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Mineral sands miner Iluka has reported an
increase in revenue and net profits after tax for the 2021 financial year, on
the back of increased demand.
Mineral sands revenue for the full year
ending December was up 57% on 2020, to $1.4-billion, while underlying net
profits after tax increased by 108%, from $151-million to $315-million.
Mineral sands earnings before interest,
taxes, depreciation and amortisation (Ebitda) for the full year were up 85%,
from $342-million to $634-million, while group Ebitda was up 54%, from
$423-million to $652-million.
Iluka on Thursday told shareholders that
the results in 2021 were underpinned by strong operating performance,
increasing demand and observable supply-side challenges across the mineral
sands industry.
MD and CEO Tom O’Leary said during a
conference call that the financial year had highlighted the company’s
flexibility, and demonstrated Iluka’s ability to respond to market conditions.
“In Australia, we returned to maximum
operational settings in April with both the Narngulu mineral separation plant
and Synthetic Rutile Kiln 2 at Capel running at full capacity.
“In Sierra Leone last month, we withdrew
our notice to suspend operations on the back of improved production performance
delivered over the second half and parliamentary ratification of amendments to
Sierra’s Rutile’s fiscal regime,” O’Leary said.
“The team has been resilient in the face of
the threat of ongoing disruptions presented by the pandemic and while we can
expect that resilience to be further tested over the coming year, particularly
in Western Australia, we do so with some confidence given our achievements
today.”
O’Leary noted that Iluka’s performance in
2021 included significant progress on its project pipeline, with the projects
being core in delivering the company’s response to the challenge of declining
industry production both in the nearer and longer term and across Iluka’s
products suite of zircon, high-grade titanium feedstock and rare earths.
“Last year, we took decisions to restart
Synthetic Rutile Kiln 1 at Capel, which will be on the line at the end of the
year, commenced a definitive feasibility study for Balranald in New South Wales
and announced a resource estimate for Wimmera in Victoria. The latter two
decisions reflect our sustained focus on mineral sands technical development in
Australian jurisdiction, with each of these projects and their technologies
having the potential to transform our industry,” he added.
In its rare earths business, Iluka made its
final shipment of Eneabba Phase 1 material in December, completing its sales
obligations under this initial phase. Construction is well advanced for Phase 2
and, despite supply chain challenges, the company remains on track for
completion in the first half of 2022.
Iluka’s feasibility study for Phase 3, a
fully integrated rare earths refinery, has been undertaken in parallel and will
be finalised in the first quarter of 2022. The key environmental approvals have
been received and discussions with the Australian government in relation to
risk-sharing arrangements are ongoing.
“Iluka is positioned to lead in the
response to industry and market conditions both near and longer term through
our operations development pipeline, financial strength, marketing approach and
products suite and this was demonstrated, I think, by the excellent results we
achieved in 2021,” said O’Leary.