Shares in Iluka Resources, the world's biggest zircon producer, soared in morning trade after the company announced significant profit growth - and despite it declaring investors would received no dividend.
Shares rose 12%, or 48 cents, to $4.41 for the day.
Net profit during the 12 months to December 31 rose 51.7% on the previous corresponding period to $77.5 million, underpinned by the $30 million sale of its Narama coal operation in NSW.
Iluka has decided not to pay a final dividend in light of the capital requirements to develop its Jacinth-Ambrosia and Murray Basin Stage 2 projects and uncertainty associated with global economic conditions.
The company said it would not provide earnings guidance for the 2009 calendar year due to "greater than normal uncertainties" with the effects of the global economic crisis on industry demand.
Iluka delivered a 14.4% increase in revenue to $1.052 billion due to higher sales volumes and commodity prices in the second half of the year.
''Current global economic conditions are expected to exacerbate supply shortfalls in the medium term by further forestalling potential new production where development or operational funding is not secure,'' managing director David Robb said in a statement.
AAP
