Iluka released its full year results this morning. The company has issued detailed information including 4E and investment slides.

�          Iluka's 2009 result was adversely affected by the significant reduction in demand for global mineral sands products (with signs of recovery in the second half), as well as measures taken by the company to match supply with short term demand reduction, as well as accelerate the reconfiguration of the portfolio

�          Iluka's focus was three-fold during the year:
-     curtail lower margin production in matching supply with lower sales - Iluka achieved this with a significant reduction in WA production and ended the year with minimal inventories
-     reduce costs - total cash costs of production were down 19.6% or $110.7 million from 2008

      -     protect delivery of new long life, high quality asset base - the Jacinth-Ambrosia and Murray Basin Stage 2 developments were delivered during 2009

�          Global economic conditions and consequential impact on product demand reduced revenues by 35.6%, due to:
- a 54% reduction in zircon sales - despite higher prices in 2009 vs 2008
- a 15% reduction in rutile sales and a 13% reduction in synthetic rutile sales (despite higher prices)

�          Reported result was a loss after tax of $108.6 million

�          Backing out from the Loss from Continuing Operations of $131.7million, the restructuring costs below, provides an underlying loss of $21.0 million

      The $158.2 million of "one-off" items before tax:
- non cash impairment charge for ore deposits which will no longer be mined – write-off of $67.6 million before tax (announced at the half)
- cash restructuring and idle capacity costs of $57.8 million (of which $41.7 million in 2nd half) - mainly associated with the restructuring of the Western Australian operations and reduction in overall workforce by nearly 30% (from 1,400 to 1,000 positions)
- idle capacity D&A costs of $32.8 million

�          Corporate and other costs of $26.0 million (2008: $25.1 million) but 2009 includes $7.7 million in restructuring and other one-off costs

�          Net debt at 31 December of $382.1 million (gearing of 25.9%)

�          Cash capital expenditure of $521.6 million (peak capex reached with completion of two major projects).

David Robb, Managing Director, stated: