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Highlights

  • ILU’s FY24 mineral sands revenue declined by 8.87% YoY to AUD 1,128.50 million.
  • The company invested AUD 434 million in FY24 to advance Balranald and Eneabba projects.
  • Iluka expects FY25 zircon production to reach 165 kt and forecasts capex at AUD 190 million.

Iluka Resources Ltd (ASX:ILU) is an Australia-based international mineral sands company engaged in the exploration, development, mining, processing, and marketing of zircon and titanium dioxide feedstocks which are used in ceramics, paints, plastics, and paper. The company is also expanding into rare earths to support electric vehicles, wind energy, and defense applications.

In the financial year 2024 (FY24), the company’s mineral sands revenue declined by 8.87% YoY to AUD 1,128.50 million due to lower production and sales volumes as well as softer pricing in some product segments. The underlying mineral sands EBITDA declined by 17.96 % YoY to AUD 477.30 million in FY24 due to increased operating costs and a less favourable market environment.

Group capital expenditure for the period rose to AUD 434 million driven by ongoing investments in the Balranald and Eneabba growth project.  The company maintained its dividend framework, declaring a fully franked total dividend of 8 cents per share for FY24.

During the first quarter of the financial year 2025 (Q1 FY25), ILU reported that production of zircon, rutile, and synthetic rutile increased, with zircon sand sales growing 116% quarter-on-quarter and prices remaining stable at around USD 1,698/t.

Business Update

Through an ASX update dated 2 May 2025, the company informed that the Balranald project came online, and construction is underway at the Eneabba rare earths refinery. In FY24, the company advanced the Balranald and Eneabba projects with AUD 434 million in capital expenditure, despite lower mineral sands volumes, and retained a 20% stake in Deterra Royalties as of 2 May 2025.

First Sentier Investors Holdings and its affiliates, including MUFG, became substantial shareholders in Iluka Resources as of 12 June 2025.

Company Outlook

For 2025, Iluka expects zircon sand production to increase modestly to around 165 kilotonnes, while total zircon/rutile/synthetic rutile (Z/R/SR) production is expected to remain broadly in line with the prior year. Capital expenditure remains significant, with approximately AUD 190 million allocated to the Balranald project continuing into FY25 as these projects progress toward commissioning.

The company plans to operate only the larger synthetic rutile kiln (SR2) in 2025 but retains the flexibility to restart the smaller kiln (SR1), which could add up to 110 ktpa of synthetic rutile production if market conditions improve.

Share performance of ILU

Iluka shares ended at AUD 3.770 on 18 June 2025, registering a daily drop of 0.79%. The stock has slipped 1.82% in the past month and 11.08% over the last three months. ILU’s stock has posted a 40.82% decline over the past year.

ILU hit its 52-week high of AUD 7.200 on 30 September 2024 and a 52-week low of AUD 3.140 on 9 April 2025.

Support and Resistance Summary

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 18 June 2025. The reference data in this report has been partly sourced from EODHD/Others.

 

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.