Company Reports

Iluka is a mineral sands miner. Major mines are Jacinth-Ambrosia in South Australia and Cataby in Western Australia, and production from its Balranald mine in New South Wales started in 2025. Relatively low operating costs for zircon are supported by Jacinth-Ambrosia, but its reserve life is less than a decade. Like the industry, Iluka is facing a declining grade profile at its mines, but a constrained outlook for supply should support prices.

Iluka's first-half 2026 loss after tax of AUD 24 million, or AUD 0.06, is materially down from last year's NPAT of AUD 90 million, driven by lower mineral sands prices and higher unit costs at lower volumes. It declared an AUD 0.03 fully franked interim dividend, its share of dividends from Deterra.

Iluka agreed to an offtake with a 'globally recognized automotive company' for light and heavy rare earth oxides to be produced at its refinery, being built at Eneabba. The offtake is initially for four years starting in 2028 with minimum prices for each product. 90% of volumes are take-or-pay.

Iluka is a mineral sands miner. Major mines are Jacinth-Ambrosia in South Australia and Cataby in Western Australia, and production from its Balranald mine in New South Wales started in 2025. Relatively low operating costs for zircon are supported by Jacinth-Ambrosia, but its reserve life is less than a decade. Like the industry, Iluka is facing a declining grade profile at its mines, but a constrained outlook for supply should support prices.

Lynas shares closed up 16% on March 11 on news that the group has extended its rare-earth supply deal with Japan Australia Rare Earths to 2038. It now includes an offtake agreement for a minimum of 5,000 metric tons of neodymium-praseodymium oxide at a price floor of USD 110 per kilogram.

Iluka is a mineral sands miner. Major mines are Jacinth-Ambrosia in South Australia and Cataby in Western Australia, and production from its Balranald mine in New South Wales started in 2025. Relatively low operating costs for zircon are supported by Jacinth-Ambrosia, but its reserve life is less than a decade. Like the industry, Iluka is facing a declining grade profile at its mines, but a constrained outlook for supply should support prices.

Iluka's 2025 adjusted NPAT of AUD 78 million, or AUD 18 cps, is 66% down on last year due to falling mineral sands prices and higher unit costs on stable volumes. It declared a AUD 3 cps fully franked final dividend, for AUD 5 cps total in 2025, being its share of dividends from Deterra Royalties.

Iluka is a mineral sands miner. Major mines are Jacinth-Ambrosia in South Australia and Cataby in Western Australia, and production from its Balranald mine in New South Wales started in 2025. Relatively low operating costs for zircon are supported by Jacinth-Ambrosia, but its reserve life is less than a decade. Like the industry, Iluka is facing a declining grade profile at its mines, but a constrained outlook for supply should support prices.

Base metals prices have risen strongly since last quarter, with copper and aluminum driven by supply concerns and optimism over rising demand for use in decarbonization and electrification. Metallurgical coal and rare earths prices are also higher, but thermal coal and minerals sands are weaker.

Iluka is a global mineral sands miner. Major mines are Jacinth-Ambrosia in South Australia and Cataby in Western Australia. Relatively low operating costs for zircon are supported by Jacinth-Ambrosia, but its reserve life is less than a decade. Like the industry, Iluka is facing a declining grade profile at its mines, but a constrained outlook for supply should support prices.

Iluka is withdrawing its synthetic rutile sales volume guidance because of weak demand that has seen Venator, a key customer, halt operations at a pigment plant and other customers seek to renegotiate take-or-pay contracts.

Iluka is a global mineral sands miner. Major mines are Jacinth-Ambrosia in South Australia and Cataby in Western Australia. Relatively low operating costs for zircon are supported by Jacinth-Ambrosia, but its reserve life is less than a decade. Like the industry, Iluka is facing a declining grade profile at its mines, but a constrained outlook for supply should support prices.

The iron ore price has shrugged off re-escalation of the trade war between the United States and China, though copper is down moderately in response. Both are up about 10% since the last quarterly update of our assumed commodity prices.

With mineral sands and, in particular, titanium dioxide feedstock, demand remaining subdued, Iluka intends to put its Cataby mine in Western Australia on care and maintenance for a year from December 2025. Synthetic rutile kiln 2, principally supplied by Cataby, will join it for six months.

Iluka is a global mineral sands miner. Major mines are Jacinth-Ambrosia in South Australia and Cataby in Western Australia. Relatively low operating costs for zircon are supported by Jacinth-Ambrosia, but its reserve life is less than a decade. Like the industry, Iluka is facing a declining grade profile at its mines, but a constrained outlook for supply should support prices.

Lower prices drove the one-third fall in Iluka's first-half 2025 NPAT to AUD 91 million, or AUD 0.21 per share, on 2024. With its mineral sands business cash flow-negative again due to its Balranald project investment, the AUD 0.02 per share interim dividend is solely its share of Deterra dividends.

Iluka is a global mineral sands miner. Major mines are Jacinth-Ambrosia in South Australia and Cataby in Western Australia. Relatively low operating costs for zircon are supported by Jacinth-Ambrosia, but its reserve life is less than a decade. Like the industry, Iluka is facing a declining grade profile at its mines, but a constrained outlook for supply should support prices.

Shares of our iron ore, base metals, coal, and mineral sands miners have risen on last quarter after the shock of April 2, 2025 tariffs. With China driving demand for most commodities, investors appear to have concluded that tariffs wont materially weaken growth and commodity demand.

Demand from China has been the main driver of rising commodity prices in the past two decades. More recently, gold is close to historical highs on safe-haven demand. However, driven by weak China steel end-user demand and slower global growth, most other commodity prices have fallen.

Gold is higher in the March quarter as worries over tariffs affecting economic growth see a flight to safety. Despite likely slower global growth, copper is up as investors try to get ahead of potential tariffs on US copper imports. Iron ore is flat, while metallurgical and thermal coal are down.