Highlights

  • Combined zircon, rutile and synthetic rutile production reached 76.1 thousand tonnes, up from 58.0 thousand tonnes in the June quarter.
  • Sales totalled 115.2 thousand tonnes, well above production, while Mineral Sands net debt fell to A$249 million from A$273 million.
  • Eneabba rare earths refinery construction is 65 per cent complete, and the A$1.7 billion to A$1.8 billion capital estimate stands.
  • Iluka expects a fourth-quarter zircon sand price of US$1,825 per tonne, reflecting contract increases averaging US$80 per tonne.

Both kilns at Cataby remain idle, yet quarterly output still climbed. Iluka Resources Limited (ASX:ILU) said in its review to 30 September 2026 that combined zircon, rutile and synthetic rutile production was 76.1 thousand tonnes, up from 58.0 thousand tonnes in the June quarter but below the 123.8 thousand tonnes produced in the third quarter of 2025. Year-to-date production of 181.7 thousand tonnes was 55.0 per cent lower than a year earlier.

Production and sales

Zircon sand production was 25.6 thousand tonnes, zircon in concentrate 29.3 thousand tonnes and rutile 21.2 thousand tonnes. Synthetic rutile output was nil because the Cataby kilns are idle.

Sales outran production. Total zircon, rutile and synthetic rutile sales of 115.2 thousand tonnes comprised 47.5 thousand tonnes of zircon sand, 29.6 thousand tonnes of zircon in concentrate, 22.1 thousand tonnes of rutile and 16.0 thousand tonnes of synthetic rutile. Year-to-date synthetic rutile sales were 52.5 thousand tonnes against a full-year contracted volume of 110 thousand tonnes, which leaves about 58 thousand tonnes to sell in the fourth quarter.

Revenue, costs and prices

Mineral sands revenue was A$219 million for the quarter and A$651 million year to date. Unit revenue was A$1,722 per tonne for the quarter and A$1,713 year to date. Year-to-date unit cost of goods sold was A$1,311 per tonne, excluding net realisable value adjustments.

Iluka realised US$1,685 per tonne free on board for zircon sand, while volumes contracted in the quarter averaged US$1,768. Synthetic rutile fetched US$1,136 per tonne, and rutile, excluding the lower-value HyTi product, US$1,246.

Fourth-quarter outlook

Iluka expects zircon sand sales of about 35 thousand tonnes, of which about 30 thousand tonnes is contracted and the remainder has been delayed by shipping. It also expects zircon in concentrate sales of about 30 thousand tonnes. These are expectations, not results.

Eneabba and the project pipeline

At the Eneabba rare earths refinery in Western Australia, A$1,237 million of capital expenditure had accrued by 30 September. Dysprosium and terbium metal has been produced to specification, and equipment has been bought for 200 tonnes a year of capacity. The light rare earth workstream continues.

At Balranald, one mining rig has reached targeted extraction rates, and the same enhancements reach the second rig in November. The Wimmera definitive feasibility study goes to board consideration in the first half of 2027. At Typhoon in South Australia, the feasibility study is due in the first quarter of 2027, and a mining lease application is targeted for the fourth quarter of 2026.

Definitions to note

Iluka recognises zircon in concentrate production on sale, and its sales include small amounts of lower-grade zircon processed by third parties. Rutile figures include HyTi, which carries 70 to 90 per cent titanium dioxide against about 95 per cent for standard rutile.