Iluka announced today temporary (at this stage) C&M of two of its mineral sands sites. Minerals used in pigment manufacturing. It seems there is enough colour in the world - back to black and white (It was a simpler time back then!)

Sold down 14.22% today. Given they can sell down inventory, and dramatically reduce operating costs, I wonder if its an overly anxious reaction.

Chinese suppliers reducing price of Zircon to market as buyers slow down restocking inventory.

20th Aug mid year results (market reaction down 7.12%):

1H Ebitda A$218M Vs. A$252M, underlying Ebitda A$233M Vs. A$264M, A$502M Net Debt at June 30 Vs. A$115M at Dec 31, 1H Net A$92M, Down 31% on Year, 1H Rev A$577.8M, Down 8% on Year, Cuts Dividend to A$0.02 Vs. A$0.04

Rare Earths refinery progressing construction at Eneabba, forecast delayed commissioning from 2026 to 2027, having spent $570M (projected cost $1.7 to $1.8B) so far and implementing plant equipment currently. Federal government has provided $1.65B loan facility in support. Will use their produced mineral sands as feedstock but signing up external suppliers also, including Lindian in August representing 10% of refinery capacity for 15 years. Rare earth oxides produced at Eneabba will include neodymium, praseodymium, dysprosium, and terbium.

Today's announcement:

SYDNEY--Iluka Resources said it would suspend production activities at its Cataby mine and Synthetic Rutile Kiln 2 operation in Western Australia, citing subdued demand for mineral sands.

Iluka said output at Cataby would likely be halted for around 12 months, with the SR2 kiln offline for around six months. It would look to restart both operations when market conditions improve.

Managing Director Tom O'Leary said the decision is prudent given uncertainty around mineral sands demand. A world-wide economic slowdown has made customers leery about buying the commodity and is hurting their ability to forecast with certainty.

"The suspension will enable inventory and cash liberation, cost savings and the preservation of balance sheet strength," he said.

Iluka believes it has enough synthetic rutile and chloride ilmenite available to meet demand from its customers.

Disclosure - held in RL and SM