Iluka's June Quarter Production Report was released this morning.
The key elements are summarised below. Please note, as I am on leave, you should call me on my mobile (+61 (0) 407391829) if you have any questions.
Also - there is an accompanying release which you will receive separately, which updates 2011 guidance based on expected higher production and sales volume levels than the February guidance provided.
Key points for the QPR:
� Total production 6 months to date: zircon - 276.6kt; rutile - 136.8kt; synthetic rutile - 153kt; saleable ilmenite - 228.9kt - all running ahead of initial production guidance.
� Sales volumes for the half of: 243.4kt of zircon; 107.8kt of rutile; 138.3kt of SR - adverse weather conditions and port delays meant ~35kt of Z/R/SR combined delayed into 3rd quarter (see page 2).
� Mineral sands revenues of $570.2 million for the half.
� Revenue per tonne (of Z/R/SR sold) for the half of A$1,164/t.
� Cash costs of production (of Z/R/SR produced) for the first half of A$549/t.
� Market conditions remain favourable (see page 3) notwithstanding volatility in global confidence levels regarding macro-economic issue - pricing information is provided but as disclosed by the company on 6 June.
� Synthetic rutile kiln 3 to run longer - throughout the third quarter.
� Test samples of synthetic rutile product produced from 100% Murray Basin ilmenite dispatched to customers during the quarter and trial parcels planned to major customers in the third quarter. Feedback to date from customers on the quality of this product has been favourable.
� Testing of Murray Basin ilmenite to produce a potential high grade sulphate pigment feedstock is planned to commence in July.
� Development work for next Murray Basin deposit (WRP) progressed as did PFS for Balranald deposit in Murray Basin.
� Completion of the data acquisition phase and the commencement of modelling and interpretation associated with a 8,200 square kilometre radiometric/aeromagnetic survey in Eucla Basin and 7,200 square kilometre survey in Murray Basin, designed to provide high quality data to assist in the identification of prospective areas of mineralisation.
Regards
Rob
Robert Porter | General Manager Investor Relations
Iluka Resources Limited | Suite 1-2, Level 9, 118 Queen Street | Melbourne VIC 3000
Mobile +61 (0) 407 391 829
Perth Corporate + 61 8 9360 4700
robert.porter@iluka.com