ILUKA RESOURCES LIMITED (ILU.AU) surged 6.86% in early trading on Tuesday, as investors reacted to the company's half-year financial and production update released before the market open.

The company reported a mixed set of figures, with H1 adjusted mineral sands EBITDA coming in at AUD 40 million, while net income showed a loss of AUD 25 million. On the production front, Iluka confirmed that full-year zircon production volumes remain in line with its guidance of near 180kt. However, it also flagged that final product volumes from the Balranald project are now expected to be lower than previously included in the group's February production guidance.

The sharp rally suggests the market focused on the positive EBITDA performance and the maintained zircon guidance, shrugging off the net loss and the Balranald downgrade.