Iluka Resources managing director David Robb says he expects mineral sands sales to rebound after the company's earnings nosedived in 2013.
Iluka Resources managing director David Robb says he expects mineral sands sales to rebound after the company's earnings nosedived in 2013.
Iluka's net profit after tax slumped from $363.2 million in 2012 to just $18.5 million in 2013 on the back of low demand for the company's zircon products and titanium dioxide feedstocks.
However the mineral sands miner is tipping zircon, rutile and synthetic rutile sales in 2014 to outpace production and exceed 2013 sales levels.
Speaking at Iluka's annual general meeting in Perth, Mr Robb acknowledged that the company had delivered poor shareholder returns in 2013 but said he believed conditions were improving.
"We believe the industry is emerging from a cyclical downturn and that Iluka sales volumes will be restored progressively through 2014 and into 2015, depending of course on global economic conditions," he told shareholders.
"In turn, our ability will increase to direct the cash associated with improving returns on capital which is not needed to sustain and grow the business, to shareholders. This we have done consistently in the past and will do so in the future."
Mr Robb said Iluka remained confident in medium to long-term demand for zircon, driven by urbanisation in emerging markets.
The bulk of the company's zircon sales in 2013 were in China and were primarily for the ceramic market.
Iluka has scaled-back its synthetic rutile production capacity in response to an erosion of its average received price, but Mr Robb said it had been encouraged by recent "market dynamics" which could support a re-start of some operations later this year or in early 2015.
Iluka chairman Greg Martin, meanwhile, revealed the company had shed more than 220 jobs since the beginning of 2013.
He said the company's board had elected not to increase executive remuneration in 2014, and had not awarded the profitability component of short-term executive incentives in 2013.
Mr Martin said Iluka retained a robust balance sheet, with the company's gearing ratio reduced to 10 per cent by the end of April.
Iluka shares gained 56 cents to $9.12 at 12:17pm WST.