Mineral sands play Iluka Resources (ASX: ILU) has reported a profit after tax for the year ended 31 December 2012 of $363.2 million, compared with $541.8 million for the previous corresponding period.
The return on shareholders’ equity for 2012 was 23.2 per cent (2011: 42.5 per cent); Mineral Sands EBITDA for the year was $726.0 million (2011: $925.9 million); and Mineral Sands EBIT was $523.3 million (2011: $737.3 million), a decline of 29.0 per cent, with an EBIT margin of 48.9 per cent (2011: 48.0 per cent).
Iluka said that lower mineral sands profitability reflected significantly lower sales volumes year-on-year, with combined zircon, rutile and synthetic rutile (Z/R/SR) sales volumes down 52.9 per cent to 488.9 thousand tonnes compared to 1,038.1 thousand tonnes in 2011.
The company has commented upon on previous occasions, that lower sales volumes were influenced by a combination of external factors, including: low demand associated with weak global economic conditions and fragile business confidence levels; inventory de-stocking; and lower levels of zircon usage in tile manufacturing in China.
Other financials include; Group EBITDA, including Mining Area C revenue, was $748.8 million (2011: $979.3 million), with a Group EBITDA margin of 70.0 per cent (2011: 63.7 per cent); and Group EBIT was $545.7 million (2011: $790.3 million) with a Group EBIT margin of 51.0 per cent (2011: 51.4 per cent).
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