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Iluka Resources Consider Formation of a Royalty Based Company via IPO

Iluka Resources Ltd has narrowed its first half loss from $43.6 million last year to $6.6 million this year. Iluka, the world’s largest zircon producer, expects even higher earnings in the second half.

An increased demand from China and India is fueling its recovery from the global financial crisis which sent it plummeting into losses.

The revenue for the company has more than doubled to $424.1 million and earnings before interest, tax, depreciation and amortisation rose by a drastic 93.6% to $ 115.4 million. The fourfold increase in zircon sales has contributed to this fact.

The Managing Director of Iluka Resources David Robb said that a challenging major capital expenditure period for the company was now behind it. He hopes that the positive trend will probably continue and lead to free cashflow generation and lower debt in the second half of the year.

The Perth based company said that it was exploring options to better capture value from its royalty stream from BHP’s Mining Area C tenements in Western Australia as well. The formation of a royalty based company via an IPO and an in specie distribution to shareholders are both being considered by Iluka Resources as of now.

Joel Scanlon

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Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

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