Iluka Resources shares have risen seven per cent after the company reported a sharp increase in quarterly sales revenue.

Revenue lifted 28 per cent to $234.3 million in the three months to December, up from $182.5 million in the previous quarter.

However, the miners’ 2013 full year sales revenue fell 28.7 per cent to $763 million.

Iluka said a reduction in prices for zircon and high grade titanium dioxide products adversely affected mineral sands revenue year-on-year.

“Variable demand patterns through the year and across zircon and titanium dioxide markets continued to reflect fragile business confidence levels and business caution,” the company said in a statement.

Iluka said zircon demand recovered in 2013, but the recovery was uneven across geographical markets.

The company’s total 2013 production was 471.1 thousand tonnes, a 42 per cent fall from 2012.

Illuka said its Victorian operations were near full capacity and South Australian operations were operating as normal.

But the West Australian mine in the state’s south-west remains idle while the United States mine in Virginia continued normally.

“In 2014, the company does not expect that there will be a material change in the mine production settings,” the company said.

Iluka is still pressing ahead with growth plans at potential new mine sites, including a pre-feasibility study for its Sri Lankan project.

And if two deposits in the northern Murray Basin in NSW are approved, they have the potential to provide around eight years of rutile, zircon and associated ilmenite products.

Iluka has also entered an exploration joint venture agreement with a third party in Brazil to explore the RJ Project near Campos, north-east of Rio de Janeiro.

At the close of trade Iluka shares were 63 cents, or 7.6 per cent, higher at $8.89.