Iluka Resources $363.2m Profit FY2012

Mineral sands mining company, Iluka Resources (ASX:ILU) have announced its full year profit results to shareholders.

• Iluka Resources Net Profit for the full year was $363.2 million, down from 2011 where profit was $541.8 million.
• Iluka revenue was $1.2 billion, down from $1.6 billion.
• Iluka Managing director David Robb said, "As part of the measures outlined, approximately 200 positions within Australian operations will be made redundant, with additional actions in train to reduce costs in corporate, support and contracting areas. The actions to curtail production are being implemented as a consequence of the weak market conditions which prevailed in 2012 and resulted in Iluka production volumes exceeding sales for the year. While measures were taken to curtail production in 2012, prudent planning for a gradual recovery in demand through 2013 means that further actions to reduce production and lower costs are necessary."
• Eneabba operations north of Perth will be mothballed – losing 65 jobs.
• Iluka Resources produces zircon and rutile which are used in ceramics and paint pigments. The demand for these resources are linked to China and other emerging economies.
• Iluka Resources have declared a final dividend of 10 cents per share, fully-franked, from 55 cents per share.