Mineral sands miner Iluka Resources has announced a net loss for 2009, and projected a similar outcome for 2010.
The miner reported a net loss of $ 108.6 million for 2009, which followed a profit of $77.5 million for the previous corresponding period.
The loss was due to impairments, which included a $67.6 million slide in the value of certain ore bodies as well as a loss of $57.8 million due to restructuring and plant down times.
However Iluka did see an upside, recording income of $22.9 million before tax from the sale of its stake in Consolidated Rutile.
Iluka reported overall revenue of $586 million, a drop of nearly 37% from the previous year.
The miner still “expects 2010 to be a stronger year in terms of sales volumes if demand is maintained in China and continues to recover elsewhere, albeit slowly in some key markets,” Iluka stated.
However, “potential risks to Iluka’s financial performance and balance sheet continue in the short term given that many global economies remain fragile, particularly as economic stimulus packages are curtailed and policies designed to repair national balance sheets are introduced.”
It expects lower margins in the first half of 2010, with another loss predicted for the first half to June.