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ILUKA RESOURCES LIMITED — Earnings Release 2007
Jul 17, 2007
65116_rns_2007-07-17_d3b70906-95f3-4edb-90f2-a1bf3e8ad40f.pdf
Earnings Release
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Notice to the Australian Stock Exchange
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18 July 2007
REVISED 2007 FULL YEAR EARNINGS GUIDANCE
Iluka Resources Limited (“Iluka”) today advised that based on its current estimate for the half year earnings to be released on 23 August and an updated forecast of full year business performance, it has revised its full year earnings guidance.
Iluka’s originally advised earnings guidance was for a full year 2007 NPAT of $90 million to $100 million based on an average A$/US$ exchange rate of 0.75 cents. The currency sensitivity advised was approximately +/-$8 million NPAT for every one cent movement in the average spot rate over the course of the year.
First half earnings, based on an average exchange rate of 0.81 cents, are expected to be approximately $40 million. This result includes approximately $20 million of the estimated $27 million full year EBIT contribution from the close out of currency hedging positions
Assuming an average exchange rate of 0.87 cents for the second half, Iluka estimates that its 2007 full year reported NPAT will be in the range of $55 million to $65 million.
David Robb, Iluka’s Managing Director said: “Iluka has been able to mitigate some part of the adverse earnings impact of the significantly higher than budgeted A$/U$ exchange rate mainly through increased production of higher value products, reduced operating and overhead costs and a lower effective tax rate (approximately 24.5 per cent).”
“I am also pleased with the progress on capital efficiency goals and, as reported in the June Quarter Production Report, 2007 forecast capital expenditure has been reduced from $230 million to $180 million. Good progress is being made on the various work streams outlined at the beginning of the year, more information about which will be provided with the half year results,” Mr Robb said.
Investment Market & Media Enquiries: Dr Robert Porter General Manager, Investor Relations and Corporate Affairs Phone: + 61 8 9360 4751 Mobile: 0407 391 829 Email: [email protected]
Iluka Resources Limited • ABN 34 008 675 018 • Level 23 140 St Georges Terrace Perth WA 6000 GPO Box U1988 Perth WA 6845 • T: +61 8 9360 4700 • F: +61 8 9360 4777 • www.iluka.com