Key Highlights

  • Iluka Resources (ASX:ILU) reported H1 2026 mineral sands Revenue of $433 million, down 22% from $558 million, while underlying mineral sands EBITDA fell 81% to $41 million.
  • Mineral sands Operating Cash Flow increased 115% to $247 million, while mineral sands free cash flow improved to $200 million from a negative $192 million.
  • Mineral sands net Debt declined to $273 million from $473 million at 31 December 2025, despite group net debt increasing to $1.15 billion.
  • Balranald has been commissioned and is ramping up, while construction of the Eneabba rare earths refinery reached 60% completion and remains targeted for commissioning in 2027.

Iluka Resources (ASX:ILU) shares are up 23.33% over the past month, trading at AUD 7.19, even as the company reported a sharp fall in first-half mineral sands revenue and earnings.

What's Driving the Move

Mineral sands revenue for H1 2026 fell 22% to $433 million from $558 million, with underlying EBITDA down 81% to $41 million and the EBITDA Margin falling to 9% from 39%. Group EBIT moved to a $10 million loss and NPAT to a $24 million loss.

Despite the Earnings decline, mineral sands operating cash flow rose 115% to $247 million, and free cash flow improved to $200 million from -$192 million a year earlier, supported by zircon sales volumes and pricing. Mineral sands net debt fell to $273 million from $473 million, though rare earths net debt rose to $877 million, pushing group net debt to $1.15 billion.

Project Progress

Balranald has been commissioned, with both Mining rigs operational and concentrate produced to specification; first final product is expected in H2 2026. The Eneabba rare earths refinery reached 60% construction completion, on schedule and budget, with the first offtake agreement executed for magnet rare earth oxides.

Is ILU Worth Watching?

Iluka declared an Interim Dividend of 3 cents per share, fully franked — a 50% increase from 2 cents in H1 2025, despite the group's move to a statutory loss.