Iluka invests in new technology
UPDATE 1.55pm: Iluka Resources will pay ₤12.2 million ($A22.5 million) for an 18.3 per cent stake in a UK-based company focused on developing new technology for metal powder production.
Iluka said Metalysis had demonstrated that it was able to produce titanium powder directly from Iluka's main high-grade titanium feedstock products of rutile.
Managing director David Robb Iluka's involvement as a major shareholder and funding partner provided shareholders with access to a new, potentially disruptive technology which was close to commercialisation, and the potential benefits of a new source of high grade titanium dioxide feedstock demand, as well as a commercial involvement in a potential new growth pathway for high value metals and alloys and new manufacturing processes such as 3D printing.
"The successful commercialisation of the Metalysis process could create significant value, and potentially result in a material increase in demand for Iuka's high grade chloride feedstocks," he said.
"This investment represents an opportunity for Iluka to utilise its understanding of the titanium industry, specifically the high grade and very high grade titanium dioxide feedstock sectors, and its strength in product development, to help bring a potentially game-changing technology to market."
"This early stage positioning investment is representative of a number of such opportunities Iluka is evaluating."
The company made the announcement as it posted a 94.9 per cent slump in full-year profit to $18.5 million, mainly because of weak demand and prices for its mineral sands products.
The result came on a 25.8 per cent fall in revenue to $853.2 million.
Iluka declared a fully franked final dividend of four cents a share, bringing its full year dividend to nine cents a share.
Shares in Iluka closed up 15 cents, or 1.63 per cent, at $9.37.
