Mineral sands miner Iluka Resources says it expects higher earnings in the second half of 2010 year as global demand shows signs of recovery.
Iluka on Thursday booked a net loss for the first half of its 2010 financial year of $6.6 million, compared to a loss of $43.6 million in the prior corresponding period.
Shares of Iluka were down in early trading, losing 12 cents, or 2.3 per cent, to $5.13.
Iluka said the first half loss reflected the continued influence of sales from lower margin inventory and production.
Iluka said it had advised at its 2009 full year results that it expected to report a loss in the first half of 2010.
"Relative to company expectations at that time, financial performance has been positively impacted by stronger sales volumes, lower total and unit cash costs of production, and - a higher Mining Area C iron ore royalty contribution," the company said.
Mineral sands earnings before interest, tax, depreciation and amortisation (EBITDA) for the half were $95.3 million, a 43.7 per cent increase from the first half of 2009.
Group EBITDA were $115.4 million for the half, up 93.6 per cent on the previous corresponding period.
"The first half of 2010 has seen a partial recovery in global demand and in the company's financial performance, and Iluka looks forward to a continuation of these positive trends in the second half and into 2011," Iluka said in a statement.
"In the second half of 2010, this should be reflected in significantly higher EBITDA, free cash flow generation and lower debt."
Iluka's revenue from continuing operations for the half year to June 30, 2010, rose 110.8 per cent to $424.1 million.
The company did not declare an interim dividend.
Iluka's financial year ends on December 31.
AAP