Iluka Resources Limited (AU:ILU)
ASX:ILU
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Iluka Resources Limited
(Sydney:ILU)
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Rating:49Neutral
Price Target:
AU$6.50
▲(0.93% Upside)
Action:ReiteratedDate:03/26/26
The score is held back primarily by a sharp 2025 financial downshift—losses, higher leverage, and negative operating/free cash flow. The latest earnings call provides partial offset via reduced 2026 cash spend, solid liquidity/hedging, and project execution progress, but offtake and market-demand uncertainty remain key risks. Technicals are only mildly supportive, and valuation is constrained by negative earnings and a low dividend yield.
Positive Factors
Rare-earth refinery progress
Eneabba nearing completion materially reduces remaining engineering risk and sets a clear timetable for commissioning and multi-year ramp. As a near-term tangible asset, the refinery should diversify revenues into higher-value rare-earth oxides and strengthen Iluka’s long-term strategic position outside predominant Chinese capacity.
Negative Factors
Cash flow deterioration
A shift from sustained positive free cash flow in prior years to deeply negative operating and free cash flow in 2025 is a structural concern: it increases reliance on external funding, constrains capital allocation choices, and heightens vulnerability to project delays or slower sales, reducing the company’s margin for execution missteps.
Read all positive and negative factors
Positive Factors
Negative Factors
Rare-earth refinery progress
Eneabba nearing completion materially reduces remaining engineering risk and sets a clear timetable for commissioning and multi-year ramp. As a near-term tangible asset, the refinery should diversify revenues into higher-value rare-earth oxides and strengthen Iluka’s long-term strategic position outside predominant Chinese capacity.
Read all positive factors
Iluka Resources Limited (ILU) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$2.77B
Dividend Yield1.04%
Average Volume (3M)3.47M
Price to Earnings (P/E)―
Beta (1Y)1.93
Revenue Growth-4.84%
EPS Growth-30.61%
CountryAU
Employees1,000
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)-0.03
Shares Outstanding431,153,900
10 Day Avg. Volume4,199,919
30 Day Avg. Volume3,471,630
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)1.20
Price to Sales (P/S)2.45
P/FCF Ratio-2.77
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$6.37Price Target Upside-1.15% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)-0.31
Revenue Forecast (FY)AU$803.89M
Iluka Resources Limited Business Overview & Revenue Model
Company Description
Iluka 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 State...
How the Company Makes Money
Iluka makes money primarily by producing and selling mineral sands commodities. Its core revenue streams come from: (1) Zircon sales: zircon is sold to customers (often under contracts and spot sales) primarily for use in ceramics (e.g., tiles and...
Iluka Resources Limited Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 25, 2026
Earnings Call Sentiment Positive
The call conveyed measurable operational and financial progress: Balranald is ramping on schedule, Eneabba shows strong engineering and committed spend with commissioning in mid‑2027, a significant near‑term reduction in cash deployment was announced, liquidity/hedging positions are solid, and inventory/contracted sales provide flexibility. Key risks include market timing for zircon/TiO2 recovery, lack of signed rare‑earth offtakes (funding dependency), elevated finished goods inventory that must be drawn down, and the usual execution/commissioning risks for a major refinery project. Overall, the positives (project progress, reduced cash deployment, liquidity and hedging, inventory cushion) outweigh the outstanding risks, but successful execution and offtake finalization remain important near‑term value drivers.Positive Updates
Project progress — Eneabba refinery
Eneabba construction >95% engineering complete, ~60% of CapEx spent or committed, peak construction expected in H2 2026/early 2027, commissioning targeted mid‑2027 and full ramp to commercial rates expected over ~2 years from commissioning. Capital range reiterated at ~$1.7–$1.8 billion with a remaining contingency of $235 million.
Negative Updates
Offtake and revenue certainty for Eneabba not finalized
While offtake discussions are advanced and the company expects contracts in 2026, no binding offtakes or pricing details have been disclosed yet. The government loan second tranche requires 'satisfactory' offtake to the government’s standard but sets no specific volume, price or duration, leaving some funding uncertainty until agreements are signed.
Read all updates
Q4-2025 Updates
Positive
Negative
Project progress — Eneabba refinery
Eneabba construction >95% engineering complete, ~60% of CapEx spent or committed, peak construction expected in H2 2026/early 2027, commissioning targeted mid‑2027 and full ramp to commercial rates expected over ~2 years from commissioning. Capital range reiterated at ~$1.7–$1.8 billion with a remaining contingency of $235 million.
Read all positive updates
Company Guidance
Management guided that Iluka enters 2026 with a A$1.1bn inventory position and finished-product inventories of ~379,000 t (including ~150,000 t of SR), with 110,000 t of sales guided for 2026 and Q1 contracted sales of 41,000 t sand and 11,000 t zircon-in-concentrate. Mineral Sands net debt was ~A$420m at end‑January, receivables ~A$300m, payables ~A$270m, a current tax asset of ~A$52m (H1 refund expected) and ~A$250m of undrawn facilities; FX hedges of US$200m for 2026 are in place as collars (A$0.63 floor / A$0.685 cap) and management cites ~A$2m impact per A$0.01 move. Capital guidance shows a >A$600m step‑down in 2026 spend versus 2025; Balranald mining started with one rig in January, a second rig in February, investment‑case production targeted mid‑year and first finished products expected in H2; Eneabba engineering is >95% complete with ~60% of CapEx spent/committed, a project capex range of ~A$1.7–1.8bn, contingencies of A$235m, peak construction in 2H26/early‑27 and commissioning mid‑2027 with a multi‑year (≈2‑year) ramp to full production.Iluka Resources Limited Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
57
Neutral
Cash Flow
24
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.02B | 1.17B | 1.29B | 1.61B | 1.32B |
| Gross Profit | 82.70M | 478.30M | 643.80M | 968.80M | 920.20M |
| EBITDA | 144.80M | 503.50M | 647.10M | 867.00M | 682.40M |
| Net Income | -288.40M | 231.30M | 342.60M | 584.50M | 365.80M |
Balance Sheet | |||||
| Total Assets | 4.23B | 3.74B | 3.33B | 3.20B | 2.80B |
| Cash, Cash Equivalents and Short-Term Investments | 45.70M | 136.00M | 364.90M | 521.70M | 294.80M |
| Total Debt | 1.16B | 291.30M | 163.70M | 62.50M | 35.90M |
| Total Liabilities | 2.16B | 1.38B | 1.17B | 1.30B | 1.21B |
| Stockholders Equity | 2.07B | 2.36B | 2.16B | 1.89B | 1.59B |
Cash Flow | |||||
| Free Cash Flow | -896.30M | -310.60M | -191.80M | 484.60M | 316.10M |
| Operating Cash Flow | -34.20M | 123.30M | 89.60M | 637.20M | 369.70M |
| Investing Cash Flow | -842.10M | -402.90M | -240.80M | -172.50M | -51.70M |
| Financing Cash Flow | 785.10M | 52.60M | -5.40M | -134.10M | -112.90M |
Iluka Resources Limited Technical Analysis
Positive
6.44
Price Trends
6.04
Positive
6.14
Positive
5.94
Positive
Market Momentum
0.07
Positive
54.58
Neutral
32.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ILU, the sentiment is Positive. The current price of 6.44 is above the 20-day moving average (MA) of 6.37, above the 50-day MA of 6.04, and above the 200-day MA of 5.94, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 54.58 is Neutral, neither overbought nor oversold. The STOCH value of 32.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ILU.
Iluka Resources Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
52 Neutral | AU$456.09M | -10.44 | -63.51% | ― | ― | -98.20% | |
49 Neutral | AU$2.77B | -8.61 | -12.75% | 1.04% | -4.84% | -30.61% | |
47 Neutral | AU$49.81M | -2.33 | -13.41% | ― | ― | ― | |
43 Neutral | AU$1.16B | -8.87 | -35.30% | ― | ― | -20.85% |
* Basic Materials Sector Average
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Iluka Resources Limited Corporate Events
Iluka Updates Dividend Notice With DRP Pricing for 2025 Final Period
Mar 25, 2026
Iluka Resources Limited has updated its earlier dividend notification for holders of its ordinary fully paid shares, confirming details of a distribution relating to the six-month period ended 31 December 2025. The company’s latest filing, d...
Iluka Sets Physical-Only 2026 AGM in Perth, Urges Early Proxy Voting
Mar 20, 2026
Iluka Resources has released documentation for its 2026 Annual General Meeting, which will be held as a physical-only event at 9:30 a.m. AWST on 30 April 2026 at the Theatrette, Mezzanine Level, 240 St Georges Terrace in Perth. The company has lod...
Iluka refreshes board as Audit and Risk chair retires
Mar 12, 2026
Iluka Resources has announced upcoming changes to its board, with non-executive director Lynne Saint set to retire at the company’s annual general meeting on 30 April 2026. Saint, who joined the board in 2019 and has chaired the Audit and Ri...
Iluka Updates Managing Director’s Shareholdings After Incentive Allocations and Trust Transfer
Mar 9, 2026
Iluka Resources has disclosed changes to managing director Thomas O’Leary’s interests in the company’s shares, reflecting allocations under executive incentive plans and an internal transfer of holdings. The adjustments consolida...
Iluka Reports Lapse of 391,992 Conditional Rights to Securities
Mar 6, 2026
Iluka Resources has notified the market of the cessation of 391,992 conditional rights to securities, recorded under ASX security code ILUAA. The rights lapsed on 2 March 2026 after the stipulated conditions were not met or became incapable of bei...
Iluka Resources Issues 207,558 New Shares on Option Conversion
Mar 6, 2026
Iluka Resources has issued 207,558 new ordinary fully paid shares following the conversion or exercise of previously unquoted options or other convertible securities. The issuance, dated 2 March 2026 and disclosed via an Appendix 3G filing, modest...
Iluka Seeks ASX Quotation for 1.45 Million New Shares Under Employee Scheme
Feb 25, 2026
Iluka Resources Limited has applied to the ASX for quotation of 1,450,000 ordinary fully paid shares, to be issued on 25 February 2026. The new securities are being issued under an employee incentive scheme, signalling ongoing use of equity-based ...
Perpetual exits substantial holder position in Iluka Resources
Feb 25, 2026
Perpetual Limited and its related entities have notified Iluka Resources that they have ceased to be a substantial holder in the company as of 23 February 2026. The change, lodged under Australia’s Corporations Act disclosure rules, indicate...
JPMorgan Ceases to Be Substantial Holder in Iluka Resources
Feb 5, 2026
JPMorgan Chase Co. and its affiliates have notified Iluka Resources that they have ceased to be a substantial holder in the company as of 3 February 2026, following a series of transactions including securities lending, investment management acti...
Iluka Lifts WIM100 Mineral Resource, Bolstering Future Rare Earths Supply
Jan 28, 2026
Iluka Resources has reported a significant upgrade to the Mineral Resource estimate for its WIM100 heavy mineral deposit in western Victoria, the initial focus of its Wimmera project. The updated estimate now stands at 540 million tonnes grading 4...
Iluka takes A$565m hit on mineral sands impairment and inventory write-down
Jan 28, 2026
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 in...
Iluka Beats Production Guidance, Accelerates Rare Earths Spend as Balranald Ramps Up
Jan 28, 2026
Iluka Resources reported full-year 2025 zircon, rutile and synthetic rutile production of 559,000 tonnes, above guidance, driven by strong zircon-in-concentrate output from optimised processing across its separation facilities. While mineral sands...
Iluka Resources Announces Lapse of 19,461 Conditional Rights
Jan 13, 2026
Iluka Resources has notified the market that 19,461 conditional rights (ILUAA) have lapsed as of 8 December 2025 because the conditions attached to those rights were not met or have become incapable of being satisfied. The cessation of these secur...
Iluka Issues Additional Unquoted Rights Under Employee Incentive Scheme
Jan 13, 2026
Iluka Resources Limited has notified the market of the issue of additional unquoted equity securities under its employee incentive scheme, comprising a total of 194,035 rights (ILUAA) granted on 11 November 2025 and 29 December 2025. The move refl...
Iluka Resources to Issue 468,457 New Shares Following Conversion of Unquoted Securities
Jan 13, 2026
Iluka Resources has notified the market of the conversion of unquoted securities into a total of 468,457 fully paid ordinary shares, to be issued on two dates in October 2025. The move modestly increases Iluka’s share capital base and reflec...
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.