Dividend lift pushes Iluka Resources shares higher
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The news: Shares in Iluka Resources gained on the ASX after the mineral sands miner lifted its interim dividend amid 'subdued activity' which dented first-half earnings.
The numbers: Iluka shares were up 1.5% to $5.77 by 2:35pm AEST, having fallen nearly 40% in the last 12 months.
Iluka reported half-year net profit after tax of $134 million, down 34% compared to the prior corresponding period. Mineral sands revenue dropped 15% to $606 million, while mineral sands EBITA fell 39% to $252 million.
However, Iluka declared a fully franked dividend of 4 cents per share, up from 3 cents a year ago.
The context: Iluka noted that global macroeconomic uncertainty drove subdued activity in the construction and real estate sectors in the first half of the year. The ongoing trend is affecting customer buying behaviour in both the titanium and zircon markets, the company said.
However, Iluka said that prices for its zircon products are "relatively strong and stable", while in titanium feedstocks, the long term contracts Iluka has in place for synthetic rutile offtake provide the company with "a high degree of revenue certainty".
The source: ASX announcement
