Bell Potter

Reported net loss $20.9m (lower income received from the Mining Area C iron ore royalty down $18.2 million period-on-period, and higher first half non production cash costs associated in particular with a significant investment in trialling an innovative mineral sands mining technique. Other factors included lower USD prices (mainly for zircon), lower ilmenite sales and sales mix factors which were offset by: lower unit cost of goods sold; higher zircon/rutile/synthetic rutile (Z/R/SR) volumes; and favourable exchange rate movements. | Total sales volumes (including Ilmenite) down 23.3% to 334.1kt | Z/R/SR production up 20.8% to 334.4kt and sales up14.7% to 316.4kt - relative to 1H 2015 reflecting a full half of kiln operation (restarted March 2015) | Cash production costs of $140.7 million were $34.8 million or 19.8% lower than the first half of 2015, reflecting the cessation of US operations (in December 2015) | Net Debt $124.1 million vs $80.2 million as at 30 June 2015. gearing 8.7% as compared to 5.4% at June 2015.


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