Mr Robb, who has led Iluka for ten years, told the company’s annual general meeting (AGM) there had been a recovery in demand for zircon in recent months.
“The good news is that our marketing team has observed over April and into May a recovery in demand from March with total zircon sales in April recovering the ground lost in March and putting us back on track for the full year,” Mr Robb told the company’s AGM in Perth on Wednesday.
Mr Robb also painted a bright picture of the rutile market and said it appeared pigment demand was strengthening and pigment prices were increasing.
“This is good news and in fact we are seeing the most positive combination of factors for the pigment sector we have seen since 2012,” he said.
Iluka produces zircon and rutile which is used in paints, ceramics and other products.
Mr Robb added that demand for rutile in smaller niche markets had improved, allowing Iluka to sell small quantities at a premium.
While lower zircon and rutile prices had eroded unit revenue per tonne of zircon, rutile and synthetic rutile, Iluka said it expected to generate free cash flow for the full year.
Mr Robb is scheduled to step down mid-year.
Chairman Greg Martin said the Iluka board was looking at internal and external candidates for the top job, and expects to be in a position to make an announcement on Mr Robb’s replacement in the “not too distant future”.
“This process is nearing its conclusion,” he said.
Iluka shares closed five cents, or 0.84 per cent, lower at $5.93.
Source: NEWS.com.au
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