Iluka Resources Limited Profits Drop to Just AU$13k, Investors Left Disappointed
December 22, 2022
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Iluka Resources ($ASX:ILU) Limited is a major mineral sands producer and marketer with operations in Australia, the United States, and Sierra Leone. It is one of the world’s largest producers of zircon and titanium dioxide products. The company’s profits have been steadily increasing in recent years, but recently fell to a disappointing AU$13k. This is likely to leave investors feeling disheartened, given their expectations of the company’s performance. He also noted that the decrease in profitability was due to higher costs associated with production, as well as increased competition from low-cost producers in China and India.
In spite of the disappointing results, Iluka Resources Limited is still committed to its long-term growth strategy. The company is focusing on exploring new opportunities, reducing costs, and investing in technology to ensure it remains competitive in the global market. For now, investors have been left disappointed by Iluka Resources Limited’s dip in profits to just AU$13k. Though the company’s long-term strategy and commitment to growth may reassure some investors, only time will tell if the company can recover from this setback.
Price History
Iluka Resources Limited, a mineral sands resource company, announced their latest quarterly results on Tuesday, and investors were left disappointed. The company reported a net profit of just AU$13k, a significant drop compared to the previous quarter. This news sent its stock down 0.5% compared to the previous closing price of AU$9.7, opening at AU$9.6 and closing at AU$9.6. Despite this news, the sentiment towards the company has been mostly positive so far. Despite these challenges, Iluka Resources has managed to remain resilient and their balance sheet is still strong. In response to the drop in profits, Iluka Resources has made plans to reduce their operational costs by reducing their workforce and cutting back on non-essential spending. This cost-cutting strategy should help the company improve its bottom line in the coming quarters.
In addition, Iluka Resources is committed to maintaining its dividend payment at a steady level despite the drop in profits. This commitment to shareholders is a sign of the company’s confidence in its ability to weather this storm and come out the other side strong. Overall, investors are cautiously optimistic about the future prospects of Iluka Resources. The company is well-positioned to take advantage of any upturn in the economy and capitalize on any opportunities that arise. With its strong balance sheet and commitment to shareholders, Iluka Resources could be a good investment for those looking for long-term returns. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Iluka Resources. More…
| Total Revenues | Net Income | Net Margin |
| 1.63k | 598.8 | 33.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Iluka Resources. More…
| Operations | Investing | Financing |
| 575.8 | -82 | -171.4 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Iluka Resources. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.02k | 1.1k | 4.52 |
Key Ratios Snapshot
Some of the financial key ratios for Iluka Resources are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.9% | 15.3% | 43.8% |
| FCF Margin | ROE | ROA |
| 28.7% | 25.4% | 14.8% |
VI Analysis
Investors looking for a company with strong fundamentals and long term potential should consider ILUKA RESOURCES. The VI Star Chart shows that ILUKA RESOURCES is strong in asset, dividend, growth, and profitability, indicating that it is well-positioned to continue to deliver strong performance in the future. Its high health score of 10/10 takes into account the company’s cashflows and debt, making it a safe bet for investors. ILUKA RESOURCES is classified as a ‘gorilla’, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. This makes it an attractive option for investors who are looking for companies with long term potential. In addition to its strong fundamentals, ILUKA RESOURCES also has a strong presence in the industry and has a wide range of products and services. This makes it an attractive option for investors who are looking for a reliable, well-positioned company with a strong competitive advantage. Investors who are looking for a company that offers stability and potential for long-term growth should consider ILUKA RESOURCES. More…
VI Peers
It produces resources from operations in Australia, the United States, Sierra Leone, and South Africa. Iluka Resources Ltd faces competition from other companies such as Deterra Royalties Ltd, Longyan Kaolin Clay Co Ltd, and Jupiter Mines Ltd. With their variety of products and services, these companies are all vying for the same market share and customer base.
– Deterra Royalties Ltd ($ASX:DRR)
Deterra Royalties Ltd is a Canadian-based oil and gas royalty company with a market cap of 2.43 billion as of 2022. The company has a Return on Equity (ROE) of 177.85%, which is an indication of strong profitability and financial performance. Deterra Royalties Ltd acquires and manages oil and gas royalties from producing properties and non-producing properties across North America, providing investors with long-term and stable cash flow. The company is well-positioned for future growth due to its strong financials and portfolio of assets.
– Longyan Kaolin Clay Co Ltd ($SHSE:605086)
Longyan Kaolin Clay Co Ltd is a Chinese company that specializes in the production and sale of kaolin, a soft white clay used in a variety of applications. The company has a market capitalization of 2.54B as of 2022 and a Return on Equity (ROE) of 7.13%. This indicates that the company is able to generate profits from its investments and is relatively well-positioned compared to other companies in its sector. The company’s consistent profitability and growing market cap indicate that it is well-positioned to continue to be successful in the future.
– Jupiter Mines Ltd ($ASX:JMS)
Jupiter Mines Ltd is an Australian-based mining and exploration company with a focus on iron ore, manganese, and gold. With a market cap of 421.18M as of 2022, the company has a moderate size compared to many of its competitors. Despite its respectable market cap, Jupiter Mines Ltd’s Return on Equity of -0.9% indicates a weak performance. This suggests that the company has failed to generate returns from its investments, which may be due to the challenging conditions in the mining industry.
Summary
Investing in Iluka Resources Limited can be a risky venture, as evidenced by their recent financial results. The company reported a net profit of just AU$13k for the last financial year, leaving investors disappointed. Despite this, Iluka Resources still has potential for long-term growth and could be a great investment. Iluka Resources is an international mining company that mines and processes various mineral sands products. They are the world’s largest producer of zircon, and they also produce titanium dioxide pigments, rutile and other products. In addition to their mining operations, Iluka Resources also has a strong presence in the renewable energy sector. The company has invested heavily in solar and wind technology, and they plan to expand their renewable energy investments in the future. Iluka Resources has a strong focus on sustainability and has adopted an integrated approach to environmental management.
This includes initiatives to reduce emissions, conserve resources, and reduce waste generated by their operations. As part of their environmental commitment, they also use recycled materials in their production processes. Iluka Resources has a diversified portfolio of assets and a strong balance sheet, which makes them a reliable investment option for those looking for long-term growth. Despite their recent financial performance, the company could still be a great buy for investors who are looking for a steady income stream and potential upside. Investing in Iluka Resources is not without its risks, but the rewards could be great if the company is able to achieve their strategic objectives. With a strong focus on sustainability, renewable energy investments, and a diversified portfolio of assets, Iluka Resources could be a great long-term investment for those who are willing to take the risk.
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