Iluka lifts dividend despite big loss

Iluka Resources has suffered due to a weak mineral sands market, but says its fundamentals remain sound.

Mineral sands miner Iluka Resources has sunk to a $62.5 million full year loss but insists it is in sound financial health.

Prices for Iluka's zircon and titanium dioxide products - used in products ranging from ceramics to televisions to industrial metals - fell significantly in 2014, offsetting the benefits of higher sales.

Iluka's loss for the year to December compares to a profit of $18.5 million in 2013, with the fall primarily a result of a $86.5 million impairment charge related to its US operations.

Managing director David Robb said the loss was not satisfactory, but the company remained financially strong.

Free cash flow was healthy, debt was low and costs had been lowered, he said.

Iluka also more than tripled its final dividend.

Mr Robb said production would increase in 2015, and sales may also rise.

Iluka shares gained 42 cents, or 5.7 per cent, to $7.77.

ILUKA LIFTS DIVIDEND DESPITE LARGE LOSS

* Net loss of $62.5m, down from $18.5m profit in 2013

* Revenue down five pct to $725m

* Final dividend of 13 cents, up from four cents


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Source: AAP


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