On November 28, 2018, Iluka Resources (ASX: ILU) with the help of press release has provided an update in regard to the unlawful strike action. This strike action has been conducted at Sierra Rutile operations which are situated in Sierra Leone. The meetings have been conducted recently between United Mineworkers’ Union, Sierra Rutile Limited, as well as the government of Sierra Leone and, in the meeting, the Vice President, President, Chief Minister as well as several senior level ministers, were also present. The President came up with the task force which would help in resolving the issues as well as problems between Sierra Rutile Limited and the Union.
The press release also mentioned the points which were advised by the government of Sierra Leone. The government has clearly stated that all the mining workers need to comply with the rule of law and they also need to respect the fellow workers. There needs to be the positive level of engagement between The United Mineworkers’ Union as well as all the mining companies. Also, the government stated that they need to dialogue as well as consult with each other and that too in a respectful way. The primary focus of all the mining companies needs to be towards discipline so that the efficiency, as well as safety with respect to the production of minerals, can be ensured. Additionally, the government of Sierra Leone stated that all the mining companies need to observe as well as follow the rules which have been placed in the CBA or Collective Bargaining Agreement. They also need to maintain their focus towards the provisions which handles the disciplinary processes.
The proceedings with regards to the restart of the operations have already been initiated, and Iluka Resources stated that they believe operations related to the mining would commence within the few days. As per the recent presentation, Iluka Resources has witnessed a reduction in regard to the net debt and the presentation also says that the company has managed to maintain a strong balance sheet. Thus, the strengthened balance sheet enables the company to remain flexible.
Not so long ago, Iluka Resources also reported the quarterly reports for the three months ended on September 30, 2018. The company stated that the market conditions related to the high-grade titanium dioxide products as well as zircon were favorable in the September 2018 quarter.
The stock price of Iluka Resources ended the session on November 28, 2018 on the negative note. The stock price settled at A$7.760 per share which implies that the stock price has witnessed a decline of A$0.050 per share or 0.64%. The market capitalization of Iluka Resources amounted to around $3.3 billion, and the company’s stock price has been trading towards the lower range. The annual dividend yield of Iluka Resources stood at 4.48%.
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