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Highlights

  • Operating cash flow surged 37.7% YoY to AUD347 million in FY24.
  • Q4 2024 production of 129kt of Z/R/SR, with full-year production hitting 496kt, exceeding 455kt guidance.
  • ILU expects cost savings of AUD20 million in 2025.

Iluka Resources Ltd (ASX:ILU), an Australian-based mineral sands company, is engaged in the project development, exploration, processing, mining and marketing of zircon and titanium dioxide feedstocks.

Financial Performance in FY24

Iluka reported significant rise in operating cash flow and capital expenditure in the financial year 2024 (FY24):

  • Operating cash flow: AUD347 million, marking a 37.7% YoY increase from AUD252 million in FY23.
  • Capital expenditure: AUD434 million, a 54.45% YoY rise, reflecting investments in key projects such as Balranald and Eneabba.
  • Net cash position: AUD225 million, compared to a net debt of AUD115 million in FY23.

Additionally, the company’s minerals sands business generated AUD252 million in operating cash flow, while AUD31 million in dividends from Deterra was allocated to shareholders.

Q4 2024 Production Performance

Iluka reported the production of 129kt of zircon, rutile, and synthetic rutile (Z/R/SR) in Q4 2024, including:

  • 45kt of zircon sand
  • 15kt of zircon-in-concentrate (ZIC)
  • 58kt of synthetic rutile

For the full year, total production reached 496kt, exceeding guidance of 455kt, driven by strong ZIC and synthetic rutile performance.

Iluka also confirmed that its Balranald project remains on track for H2 2025 commissioning, and its Eneabba rare earths refinery is now fully funded following an agreement with the Australian Government in December 2024.

Outlook

In Q4 2024, Iluka undertook a cost review to align its operational goals with project delivery, resulting in the elimination of approximately 130 roles across operations and support functions. This initiative is expected to generate cost savings of around AUD20 million in 2025.

Iluka’s production strategy for 2025 focuses on optimising its synthetic rutile kiln operations. The company expects the larger kiln, SR2, to remain operational while the smaller SR1 kiln may be restarted depending on market conditions. If reactivated, SR1 could contribute an additional 110ktpa of synthetic rutile production.

The company anticipates a rise in cash production costs, primarily driven by AUD25 million allocated for heavy mineral concentrate (HMC) production from the Balranald project in H2 2025.

Share performance of ILU

ILU shares closed 0.87% lower at AUD 4.55 per share on 29 January 2025. Over the past year, the share price has decreased by almost 37.41% and in three months, it has dropped by almost 23.79%.

52-week high of ILU is AUD 8.31, recorded on 8 May 2024 and 52-week low is AUD 4.52, recorded on 29 January 2025.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 29 January 2025. The reference data in this report has been partly sourced from EODHD/Others.