Shares in mineral sands producer Iluka Resources (ILU) jumped ore than 11% yesterday after it reported sharp rises in output and revenue for the March quarter, thanks to the full inclusion of its recently completed takeover of Sierra Rutile.
The shares closed up 81 cents at $8.15, the highest they have closed since late June 2015. During trading they jumped 13% to a high of $8.32.
Yesterday’s gain means the mineral sands producer has seen its shares rise a massive 45% in the last six months as investors punted on the turnaround in the wake of the takeover of Sierra Rutile.
Iluka reported revenue of $218.5 million for the three months to March 31, up from $102.1 million a year ago, reflecting higher sales volumes.
Production for the quarter also jumped 45% to 336,900 tonnes, from 233,200 tonnes a year ago
This strong financial performance allowed Iluka to reduce its debt substantially during the quarter. Net debt now stands at $403 million, down from $505 million at the end of December.
