Iluka Resources has widened its first-half loss to $81.5 million, from a $20.9 million loss in the prior corresponding period, dragged down by a $165 million hit in impairment and redundancy costs.
The mineral sands miner in June flagged plans to place its Hamilton mineral separation plant in Victoria on care and maintenance, resulting in a $150 million pre-tax impairment charge.
It also forecast $14 million in redundancy and restructure costs, with the plant expected to suspend operations in October, 2017.
On Wednesday, the company said notwithstanding the impairment and restructuring charges, its underlying earnings before interest, tax, depreciation and amortisation more than doubled to $154.6 million, while revenue from ordinary activities rose 48.8 per cent to $535.1 million.
Driving the rise was a boost in mineral sands revenue, up $165.2 million, on the back of increased sales volumes in the first quarter of 2017.
Total zircon, rutile and synthetic rutile production rose 35.5 per cent to 453.1 thousand tonnes, bringing its total mineral sands production to 681.2 thousand tonnes, an increase of 36.6 per cent.
Iluka said strengthening market conditions for zircon and titanium dioxide products produced free cash flow of $180 million, allowing it to reduce net debt by 40 per cent to $305 million.
It increased its full-year production guidance to 795 thousand tonnes, compared to 720 thousand tonnes previously stated, but reduced its capital expenditure guidance to $135 million from the $260 million announced in January.
WRITEDOWNS WEIGH ON ILUKA'S FIRST HALF
* H117 net loss of $81.5 million, up from $20.9m loss
* Revenue up 48.8pct to $535.1m
* Interim dividend six cents per share, fully-franked, up from 3 cents
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