Iluka takes A$565m hit on mineral sands impairment and inventory write-down

The latest announcement is out from Iluka Resources Limited ( (AU:ILU) ).

Iluka Resources will book around A$565 million in pre-tax exceptional charges in its 2025 financial year, driven by a roughly A$350 million non-cash impairment to its Mineral Sands business and a A$215 million net realisable value write-down on inventory amid subdued demand, particularly from the pigment sector. The impairment largely affects the Cataby mine and synthetic rutile kilns in Western Australia and coincides with a 35% reduction in Cataby’s Ore Reserve, cutting group reserves by about 7% and shortening Cataby’s mine life to four years from any restart, while the inventory write-down reduces the carrying value of work-in-progress and ore stocks but leaves total inventory at about A$1.1 billion; despite the hit to earnings, Iluka expects underlying mineral sands EBITDA of around A$300 million and says it will manage inventory drawdown carefully while remaining positioned to benefit from any market recovery.

The most recent analyst rating on (AU:ILU) stock is a Hold with a A$7.50 price target. To see the full list of analyst forecasts on Iluka Resources Limited stock, see the AU:ILU Stock Forecast page.

More about Iluka Resources Limited

Iluka Resources Limited is an Australian-based producer of mineral sands, including zircon and titanium feedstocks such as synthetic rutile, supplying global markets tied to pigment and other downstream products. The company operates mining and processing facilities in Western Australia and manages significant ore reserves and inventory positions within the mineral sands sector.

Average Trading Volume: 3,582,051

Technical Sentiment Signal: Buy

Current Market Cap: A$2.99B

For a thorough assessment of ILU stock, go to TipRanks’ Stock Analysis page.