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Iluka Resources Limited (AU:ILU)
ASX:ILU
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Iluka Resources Limited (ILU) AI Stock Analysis

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AU:ILU

Iluka Resources Limited

(Sydney:ILU)

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Neutral 68 (OpenAI - 4o)
Rating:68Neutral
Price Target:
AU$7.50
▲(10.13% Upside)
Iluka Resources Limited's overall stock score reflects its stable financial position and long-term bullish technical indicators. However, challenges with declining profitability and negative free cash flow weigh on the score. The moderate valuation and lack of significant earnings call or corporate events data suggest a cautious outlook.

Iluka Resources Limited (ILU) vs. iShares MSCI Australia ETF (EWA)

Iluka Resources Limited Business Overview & Revenue Model

Company DescriptionIluka Resources Limited engages in the exploration, project development, mining, processing, marketing, and rehabilitation of mineral sands. The company operates through Jacinth-Ambrosia/Mid West, Cataby/South West, Sierra Rutile, and United States/Murray Basin segments. It produces zircon; titanium dioxide products of rutile and synthetic rutile; and ilmenite, as well as activated carbon and iron concentrate products. The company also engages in the exploration of rare earths elements, such as monazite and xenotime. Its products are used in technology, construction, medical, lifestyle and industrial applications. It has operations in Australia, China, rest of Asia, Europe, the Americas, and internationally. The company was formerly known as Westralian Sands Limited and changed its name to Iluka Resources Limited in May 1999. Iluka Resources Limited was incorporated in 1954 and is headquartered in Perth, Australia.
How the Company Makes MoneyIluka Resources generates revenue primarily through the sale of mineral sands products, specifically zircon and titanium dioxide. The company operates a vertically integrated model, which includes mining, processing, and marketing of its products, allowing it to capture value throughout the supply chain. Key revenue streams include sales of zircon, which is utilized in ceramics and other high-value applications, and titanium dioxide products, which are essential for pigments and other industrial uses. Additionally, Iluka benefits from strategic partnerships and agreements with other companies in the supply chain, which can enhance its market reach and pricing power. The company's earnings are influenced by global demand for its products, pricing fluctuations in the mineral sands market, and its operational efficiency in mining and processing activities.

Iluka Resources Limited Financial Statement Overview

Summary
Iluka Resources Limited shows strong equity positions and efficient cost management with a gross profit margin of 64.45%. However, challenges are evident with a decrease in net profit margin to 19.76% and a 9.37% revenue decline. The absence of EBIT and negative free cash flow raise concerns about liquidity and operational efficiency.
Income Statement
75
Positive
Iluka Resources Limited demonstrates a commendable gross profit margin of 64.45% for 2024, indicating efficient cost management. However, the net profit margin has decreased to 19.76% from 26.55% in 2023, indicating declining profitability. The revenue has decreased by 9.37% year-over-year from 2023 to 2024, suggesting challenges in maintaining sales growth. EBIT is notably absent in 2024, which could indicate operational challenges. Despite this, EBITDA margin remains strong at 45.04%, which signals solid operational cash flow generation ability.
Balance Sheet
82
Very Positive
The company maintains a strong equity position, with an equity ratio of 63.08% in 2024, highlighting financial stability. The debt-to-equity ratio is low at 0.12, reflecting prudent leverage management. However, the return on equity (ROE) dropped to 9.80% in 2024 from 15.88% in 2023, indicating a reduced ability to generate returns on equity investments. Overall, the balance sheet suggests financial stability with room for improved profitability.
Cash Flow
60
Neutral
Iluka Resources faced a challenging cash flow situation in 2024, with negative free cash flow of -310.6 million AUD. The absence of operating cash flow data makes it difficult to assess the company's operational efficiency. The free cash flow to net income ratio is negative, indicating insufficient cash generation to cover net income. This is a potential concern for liquidity and future investment capabilities.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.17B1.29B1.61B1.32B990.00M
Gross Profit478.30M643.80M968.80M920.20M635.10M
EBITDA503.50M647.10M867.00M682.40M370.80M
Net Income231.30M342.60M584.50M365.80M2.41B
Balance Sheet
Total Assets3.74B3.33B3.20B2.80B2.53B
Cash, Cash Equivalents and Short-Term Investments136.00M364.90M521.70M294.80M87.10M
Total Debt291.30M163.70M62.50M35.90M60.20M
Total Liabilities1.38B1.17B1.30B1.21B1.23B
Stockholders Equity2.36B2.16B1.89B1.59B1.29B
Cash Flow
Free Cash Flow-310.60M-191.80M484.60M316.10M40.50M
Operating Cash Flow123.30M89.60M637.20M369.70M111.70M
Investing Cash Flow-402.90M-240.80M-172.50M-51.70M-66.10M
Financing Cash Flow52.60M-5.40M-134.10M-112.90M-51.30M

Iluka Resources Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price6.81
Price Trends
50DMA
6.75
Positive
100DMA
5.74
Positive
200DMA
4.94
Positive
Market Momentum
MACD
0.21
Positive
RSI
43.54
Neutral
STOCH
15.30
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ILU, the sentiment is Neutral. The current price of 6.81 is below the 20-day moving average (MA) of 7.62, above the 50-day MA of 6.75, and above the 200-day MA of 4.94, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 43.54 is Neutral, neither overbought nor oversold. The STOCH value of 15.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:ILU.

Iluka Resources Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$2.92B15.377.84%0.88%-4.84%-30.61%
$10.43B7.12-0.05%2.87%2.86%-36.73%
AU$570.24M-7.50%51.47%
AU$106.49M-17.14-8.25%-55.56%
AU$887.07M-13.97%620.73%-21.19%
AU$2.61B-50.19%-20.85%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ILU
Iluka Resources Limited
6.81
0.92
15.52%
AU:AGE
Alligator Energy Ltd
0.02
-0.03
-60.00%
AU:IPX
Iperionx Limited
6.93
3.81
122.12%
AU:LOT
Lotus Resources Limited
0.18
-0.08
-30.77%
AU:A4N
Alpha HPA Limited
0.78
-0.24
-23.53%

Iluka Resources Limited Corporate Events

Iluka Resources Reports Q3 Production and Strategic Adjustments Amid Market Challenges
Oct 17, 2025

Iluka Resources Limited reported a production of 124kt of zircon/rutile/synthetic rutile in Q3 2025, with significant sales of zircon and synthetic rutile. However, due to market uncertainties, sales guidance for synthetic rutile has been withdrawn. The company is advancing its Balranald project and Eneabba rare earths refinery, while also planning to suspend production at its SR2 processing facility and Cataby mine due to subdued market demand. This suspension is expected to result in a net cash cost reduction of $150 million in 2026. Despite challenging macroeconomic conditions, Iluka remains well-positioned to respond to potential improvements in demand.

The most recent analyst rating on (AU:ILU) stock is a Hold with a A$7.10 price target. To see the full list of analyst forecasts on Iluka Resources Limited stock, see the AU:ILU Stock Forecast page.

Iluka Resources Withdraws Synthetic Rutile Sales Guidance Amid Market Uncertainties
Oct 17, 2025

Iluka Resources Limited has withdrawn its guidance for synthetic rutile sales due to uncertainties following LB Group’s agreement to purchase Venator’s titanium dioxide manufacturing site, which may remain idled. Despite having contracts with Venator and other Western pigment producers, Iluka is addressing potential impacts on its operations by discussing customer obligations and safeguarding its contractual rights, aiming to ensure security of supply for its titanium feedstock products.

The most recent analyst rating on (AU:ILU) stock is a Hold with a A$7.10 price target. To see the full list of analyst forecasts on Iluka Resources Limited stock, see the AU:ILU Stock Forecast page.

Iluka Resources Issues New Equity Securities
Oct 13, 2025

Iluka Resources Limited has announced the issuance and conversion of unquoted equity securities, with a total of 329,589 ordinary fully paid shares being issued. This move reflects the company’s ongoing efforts to manage its capital structure and potentially enhance its market positioning, impacting stakeholders by possibly increasing shareholder value and liquidity.

The most recent analyst rating on (AU:ILU) stock is a Buy with a A$8.60 price target. To see the full list of analyst forecasts on Iluka Resources Limited stock, see the AU:ILU Stock Forecast page.

Iluka Resources Announces 2025 Interim Dividend Reinvestment Plan Details
Sep 25, 2025

Iluka Resources Limited has announced the allocation price for shares issued through its Dividend Reinvestment Plan (DRP) for the 2025 Interim Dividend, set at $6.0274. This price was determined based on the average daily volume-weighted average price of Iluka shares over a specified period. With 10.31% of shareholders participating, a total of 41,852 shares were issued under the DRP, representing 2.98% of the total shares on issue. This move reflects Iluka’s ongoing efforts to engage shareholders and optimize capital allocation.

The most recent analyst rating on (AU:ILU) stock is a Buy with a A$6.50 price target. To see the full list of analyst forecasts on Iluka Resources Limited stock, see the AU:ILU Stock Forecast page.

Iluka Resources Expands Capital with New Securities Issuance
Sep 25, 2025

Iluka Resources Limited has announced the issuance of 41,852 ordinary fully paid securities, which will be quoted on the Australian Securities Exchange as of September 25, 2025. This move is part of a dividend or distribution plan, potentially impacting the company’s market position by increasing its capital base and providing value to its stakeholders.

The most recent analyst rating on (AU:ILU) stock is a Buy with a A$6.50 price target. To see the full list of analyst forecasts on Iluka Resources Limited stock, see the AU:ILU Stock Forecast page.

Iluka Resources Updates Dividend Distribution Details
Sep 22, 2025

Iluka Resources Limited announced an update to its previous dividend distribution notification, specifically adjusting the Dividend Reinvestment Plan (DRP) price. This update pertains to the dividend for the six-month period ending June 30, 2025, and reflects the company’s ongoing financial management and shareholder engagement strategies.

The most recent analyst rating on (AU:ILU) stock is a Buy with a A$6.50 price target. To see the full list of analyst forecasts on Iluka Resources Limited stock, see the AU:ILU Stock Forecast page.

Iluka Resources Suspends Production at Cataby and SR2 Amidst Demand Uncertainty
Sep 9, 2025

Iluka Resources Limited has announced the suspension of production activities at its Cataby mine and Synthetic Rutile Kiln 2 (SR2) in Western Australia, effective 1 December 2025, due to subdued demand for mineral sands and associated products like pigment. This strategic decision aims to manage inventory, reduce costs, and maintain financial stability, with plans to resume operations when market conditions improve. Meanwhile, production continues at the Jacinth Ambrosia mine, and commissioning is underway at the new Balranald mine, indicating Iluka’s readiness to adapt to changing market demands.

The most recent analyst rating on (AU:ILU) stock is a Buy with a A$6.40 price target. To see the full list of analyst forecasts on Iluka Resources Limited stock, see the AU:ILU Stock Forecast page.

Iluka Resources Updates Director’s Securities Interests
Sep 3, 2025

Iluka Resources Limited has announced a change in the interests of its Managing Director, Thomas O’Leary, in the company’s securities. The change involves the allocation of fully paid ordinary shares through the Iluka Resources Limited Employee Share Plan Trust as part of the 2024 Short-Term Incentive Award. This adjustment reflects the company’s ongoing commitment to aligning executive interests with shareholder value, as approved in the 2025 Annual General Meeting. The update is part of a broader executive incentive framework, including Performance Rights and Restricted Rights under various Executive Incentive Plans and Long-Term Incentive Plans, aimed at enhancing the company’s competitive positioning and rewarding leadership performance.

The most recent analyst rating on (AU:ILU) stock is a Buy with a A$6.40 price target. To see the full list of analyst forecasts on Iluka Resources Limited stock, see the AU:ILU Stock Forecast page.

Iluka Resources Reports Decline in Half-Year Profit
Aug 20, 2025

Iluka Resources Limited is a leading Australian company specializing in the exploration, mining, processing, and marketing of mineral sands and rare earths, with a significant stake in Deterra Royalties Limited. In its latest interim earnings report for the half-year ending June 30, 2025, Iluka Resources reported a decrease in revenue and profit, with revenue from ordinary activities down by 8% to $577.8 million and net profit after tax declining by 31% to $92 million. The company declared an interim dividend of 2 cents per share, reflecting a reduction from the previous year’s interim dividend. Key financial metrics revealed a challenging period for Iluka, with a significant free cash outflow of $361 million, leading to an increase in net debt to $502 million. Despite these challenges, the company maintained a robust EBITDA margin of 39%, supported by cost control measures and increased zircon sales volumes. Looking ahead, Iluka Resources remains focused on its strategic projects, including the development of the Eneabba Rare Earths Refinery and the Balranald mining project, which are expected to drive future growth and strengthen its position in the mineral sands and rare earths markets.

Iluka Resources Releases 2025 Half-Year Results Amid Industry Challenges
Aug 19, 2025

Iluka Resources Limited, a company listed on the Australian Securities Exchange (ASX:ILU), has released its half-year results for 2025. The company, based in Eneabba, Western Australia, has provided insights into its current expectations and performance metrics, while cautioning stakeholders about the inherent risks and uncertainties that could affect its future outcomes. The announcement highlights the company’s focus on transparency and the challenges it faces in the dynamic mining sector.

The most recent analyst rating on (AU:ILU) stock is a Buy with a A$5.55 price target. To see the full list of analyst forecasts on Iluka Resources Limited stock, see the AU:ILU Stock Forecast page.

Iluka Resources Reports Resilient H1 2025 Amid Global Challenges
Aug 19, 2025

Iluka Resources Limited reported a resilient performance in the first half of 2025, with a 39% EBITDA margin despite global economic challenges affecting the mineral sands market. The company is advancing its Balranald project and Eneabba rare earths refinery, aiming to strengthen its position in critical minerals and rare earths supply chains. These developments are crucial as Iluka navigates shifting trade patterns and geopolitical tensions, emphasizing the need for diversified supply and independent pricing mechanisms.

The most recent analyst rating on (AU:ILU) stock is a Buy with a A$5.55 price target. To see the full list of analyst forecasts on Iluka Resources Limited stock, see the AU:ILU Stock Forecast page.

Iluka Resources Announces Dividend Distribution for June 2025 Period
Aug 19, 2025

Iluka Resources Limited has announced a dividend distribution of AUD 0.02 per share for the period ending June 30, 2025. The dividend will be paid on September 25, 2025, with a record date of September 3, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders and may influence investor sentiment positively.

The most recent analyst rating on (AU:ILU) stock is a Buy with a A$5.55 price target. To see the full list of analyst forecasts on Iluka Resources Limited stock, see the AU:ILU Stock Forecast page.

Iluka Resources Limited Releases Interim Report for H1 2025
Aug 19, 2025

Iluka Resources Limited has released its interim report for the half-year ending 30 June 2025. The report provides insights into the company’s financial performance and operations during this period. The announcement is crucial for stakeholders as it outlines the company’s current financial health and strategic direction, impacting its market positioning and future growth prospects.

The most recent analyst rating on (AU:ILU) stock is a Buy with a A$5.55 price target. To see the full list of analyst forecasts on Iluka Resources Limited stock, see the AU:ILU Stock Forecast page.

Lindian Resources Partners with Iluka for Strategic Growth in Rare Earths
Aug 6, 2025

Lindian Resources Limited, a company focused on rare earth projects, has entered into a strategic partnership with Iluka Resources. This partnership includes a US$20 million construction term loan and a 15-year offtake agreement for rare earth monazite concentrate from Lindian’s Kangankunde project. This agreement strengthens Lindian’s position in the rare earth industry by securing long-term revenue and aligning with Western Australia’s strategic hub for rare-earth processing. The partnership also includes a right of first refusal for Iluka on future production expansions, providing a foundation for further growth.

The most recent analyst rating on (AU:ILU) stock is a Buy with a A$4.65 price target. To see the full list of analyst forecasts on Iluka Resources Limited stock, see the AU:ILU Stock Forecast page.

Iluka Resources Secures Rare Earth Supply with Lindian Agreement
Aug 5, 2025

Iluka Resources Limited has entered into a long-term agreement with Lindian Resources for the supply of rare earth concentrate from the Kangankunde mine in Malawi. This agreement will provide 6ktpa of concentrate for 15 years, representing about 10% of the capacity of Iluka’s Eneabba refinery, which is under construction and scheduled for commissioning in 2027. The partnership includes a US$20 million loan facility to support Lindian’s mine development. This strategic move is part of Iluka’s efforts to secure diverse feedstock sources and strengthen its position in the global rare earths market, contributing to a more sustainable industry.

The most recent analyst rating on (AU:ILU) stock is a Buy with a A$4.65 price target. To see the full list of analyst forecasts on Iluka Resources Limited stock, see the AU:ILU Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 29, 2025