Iluka Resources, the world's biggest zircon producer, expects strong sales this quarter after delivering a drop in production during the third quarter.
Shares in the company fell 20 cents, or 5.18%, to $3.66 in early trade.
Total mineral sands output dropped 9.2%, during the three months to September 30, to 646,609 tonnes due to power supply disruptions and planned maintenance in Western Australia.
Iluka was forced to shutdown some operations in WA after a pipeline rupture and fire at the Apache Energy-operated Varanus Island gas processing facility in June.
Sales revenue climbed 2.8% during the third quarter to $249.6 million, up from $242.7 million during the previous corresponding quarter in 2007.
Iluka said year-to-date zircon sales volumes had exceeded production by about 30%, with the company forecasting a ''strong fourth quarter sales profile'' for its products.
The mineral sands miner yesterday upgraded its profit outlook by 150% for the full year following a fall in the Australian dollar and higher zircon prices in the second half of 2008.
Iluka has increased its net profit forecast to about $50 million for calendar 2008, up from the $20 million estimated in August.
The company operates mineral sands operations to the north and south of Perth in WA and in the Murray Basin of Victoria and New South Wales.
AAP
