Iluka Resources was the second-best performer on the share market on Wednesday after giving shareholders an upbeat view of the long-depressed mineral sands market.

Iluka expects total sales of its zircon, rutile and synthetic rutile products in 2014 to exceed production and be above last year’s sales levels of 580,000 tonnes.

Production volumes are expected to be in line with guidance, managing director David Robb told the company’s AGM.

That can be regarded as a win given the company’s actions in recent years, including a dramatic downgrade of sales forecasts and production in July 2012 that led to a 24 per cent one day fall in the share price.

Mr Robb said cash and non-cash costs and capital expenditure were trending at, or better than, guidance numbers for calendar 2014.

Iluka shares closed 52 cents, or 6.1 per cent, higher at $9.08, making it the second best performer of the market’s top 100 and 200 stocks.

“It is evident that more favourable demand dynamics are emerging in the pigment sector (the major end use sector for titanium dioxide) which, if sustained, should lead to improved sales opportunities for both rutile and synthetic rutile,” Mr Robb said.

“In the near term, this does, however, remain dependent on paint and pigment demand over the Northern Hemisphere summer season.”