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Iluka Resources Limited
(Sydney:ILU)
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Rating:48Neutral
Price Target:
AU$6.50
▼(-15.47% Downside)
Action:Reiterated
Date:06/24/26
The score is held down primarily by weakened 2025 fundamentals—losses, higher leverage, and especially negative operating/free cash flow. Technicals are mixed with some medium-term support but near-term softness. Earnings-call updates provide a partial offset via lower projected 2026 cash spend and continued project progress, but offtake and execution risks remain, and valuation is constrained by negative earnings.
Positive Factors
Eneabba engineering progress
Near-complete engineering and majority committed capex materially reduce scope uncertainty and support a clear timetable to commissioning mid‑2027. This strengthens Iluka's multi-year strategy to become a rare-earth refinery outside China, creating a durable potential revenue and strategic advantage once ramped.
Negative Factors
Weak cash generation
The 2025 reversal to negative operating and deeply negative free cash flow materially weakens internal funding capacity. Persistently weak cash generation increases reliance on debt or facilities, heightens refinancing and liquidity risk, and constrains reinvestment or ability to absorb project setbacks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Eneabba engineering progress
Near-complete engineering and majority committed capex materially reduce scope uncertainty and support a clear timetable to commissioning mid‑2027. This strengthens Iluka's multi-year strategy to become a rare-earth refinery outside China, creating a durable potential revenue and strategic advantage once ramped.
Read all positive factors
Iluka Resources Limited (ILU) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$2.88B
Dividend Yield1.04%
Average Volume (3M)3.47M
Price to Earnings (P/E)―
Beta (1Y)1.95
Revenue Growth-13.24%
EPS Growth-223.96%
CountryAU
Employees1,000
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)-0.67
Shares Outstanding431,195,000
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$7.49Price Target Upside-2.58% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)-0.27
Revenue Forecast (FY)AU$818.82M
Iluka Resources Limited Business Overview & Revenue Model
Company Description
Headquartered in Perth, Australia, and established in 1954, Iluka Resources Limited is deeply involved in all facets of the mineral sands industry. This encompasses the exploration, development, extraction, processing, marketing, and subsequent re...
How the Company Makes Money
Iluka primarily makes money by producing and selling mineral sands products—most notably zircon and titanium dioxide feedstocks (rutile and synthetic rutile)—to global customers. Revenue is generated when Iluka mines heavy mineral sands ore, proce...
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 | 1.14B | 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
Negative
7.69
Price Trends
7.65
Negative
7.20
Negative
6.82
Negative
Market Momentum
-0.29
Positive
39.13
Neutral
25.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ILU, the sentiment is Negative. The current price of 7.69 is above the 20-day moving average (MA) of 7.22, above the 50-day MA of 7.65, and above the 200-day MA of 6.82, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 39.13 is Neutral, neither overbought nor oversold. The STOCH value of 25.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$354.22M | -11.46 | -63.51% | ― | ― | 12.13% | |
48 Neutral | AU$2.88B | -9.99 | -12.75% | 1.04% | -13.24% | -223.96% | |
43 Neutral | AU$1.30B | -14.56 | -35.30% | ― | ― | -50.75% | |
41 Neutral | AU$26.76M | -0.32 | -158.13% | ― | ― | -777.65% |
* Basic Materials Sector Average
AU:ILU
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Iluka Resources Limited Corporate Events
Iluka updates market on cessation of ILUAA rights securities
Jul 9, 2026
Iluka Resources Limited has notified the market of the cessation of certain rights securities, identified under the ASX code ILUAA. The announcement details that a total of 57,904 rights have lapsed or otherwise ceased on 23 June and 30 June 2026,...
Iluka issues new unquoted rights under employee incentive scheme
Jul 9, 2026
Iluka Resources has issued additional unquoted equity securities under its employee incentive scheme, allocating a total of 98,425 rights in two tranches dated 24 April and 26 June 2026. The move underscores the company’s ongoing use of equi...
Iluka Issues 126,943 New Shares on Conversion of Unquoted Securities
Jul 9, 2026
Iluka Resources Limited has issued 126,943 fully paid ordinary shares following the exercise or conversion of unquoted equity securities. The new shares were issued on 23 June 2026, and the company notified the ASX of this change on 9 July 2026.Th...
Iluka seals first rare earths offtake with global auto group
Jun 22, 2026
Iluka Resources has signed a binding, multi-year take-or-pay offtake agreement to supply magnet rare earth oxides, including neodymium, praseodymium, dysprosium and terbium, to a major global automotive manufacturer starting in 2028. The contract,...
Iluka CEO Increases Indirect Stake Through Incentive Share Allocation
May 6, 2026
Iluka Resources has reported a change in the relevant interests of managing director Thomas O’Leary, reflecting an increase in his indirect shareholding via the company’s employee Share Plan Trust and confirming his existing stake thro...
Iluka Issues 1.26 Million Unquoted Rights Under Employee Incentive Scheme
May 6, 2026
Iluka Resources has notified the market of the issue of 1,260,914 unquoted rights under its employee incentive scheme, effective 1 May 2026. The new rights, which are not intended to be quoted on the ASX, reflect the company’s continued use ...
Iluka Issues New Unquoted Rights Under Employee Incentive Scheme
May 6, 2026
Iluka Resources Limited has notified the market of the issue of 488,855 unquoted rights under its employee incentive scheme, recorded as ASX security code ILUAA, with an issue date of 1 May 2026. The additional rights, which are not intended to be...
Iluka Highlights Risk Factors and Outlook at Macquarie Australia Conference
May 6, 2026
Iluka Resources used the Macquarie Australia Conference to reiterate its outlook and strategic positioning, while cautioning investors that its presentation contains forward-looking statements subject to significant risks and uncertainties. The co...
Iluka Director Lynne Saint Steps Down, Final Interests Disclosed
Apr 30, 2026
Iluka Resources has announced that non-executive director Lynne Dianne Saint ceased to be a director of the company effective 30 April 2026. A final director’s interest notice lodged with the ASX shows she holds no shares directly, but has a...
Iluka Shareholders Back Board, Pay Resolutions at 2026 AGM
Apr 30, 2026
Iluka Resources reported that all resolutions put to shareholders at its 2026 Annual General Meeting were passed on a poll, confirming strong overall support for the company’s governance and board composition. Shareholders re-elected directo...
Iluka AGM Highlights Rare Earths Strategy, Safety Gains and Environmental Progress
Apr 30, 2026
Iluka Resources held its 71st Annual General Meeting, where shareholders were scheduled to vote on director elections, the remuneration report, and equity grants to the managing director. The meeting also marked the first AGM address by the new ch...
Iluka Cuts Output but Secures Higher Zircon Prices as Eneabba Spend Nears $1bn
Apr 21, 2026
Iluka Resources reported sharply lower mineral sands production in the March 2026 quarter as the Cataby mine and both synthetic rutile kilns remained idled, leaving Jacinth-Ambrosia as the main source of finished goods while Balranald ramps up hea...
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.