Shares of Iluka Resources (ASX:ILU) have plunged as much as 12.8% to A$8.13, marking the largest intraday percentage loss since March 23, 2020.

This slump in shares comes after the mineral sands miner reported a significant decline in its half-year net profit after tax, which stood at A$203.8 million, a sharp drop from A$368.5 million the previous year.

The company’s revenue from regular operations also fell 10.8% to A$745.4 million.

Additionally, the company declared an interim dividend of 3 Australian cents per share, disappointingly lower than the Visible Alpha consensus estimate of 5 Australian cents.

Iluka Resources has also announced that the current cost environment in Western Australia is posing challenges to industry projects.

This has led the company to reduce its synthetic rutile production guidance for 2023 to 255 kt from the earlier projection of 305,000 kt.

The company’s stock has touched its lowest level since July 18, 2022, and it has slipped 2.2% this year, until the last close.

Iluka Resources (ASX:ILU) is a mining company that focuses on the extraction and production of mineral sands.