Iluka Resources Limited (ILU) AI Stock Analysis

• Market Cap: AU$2.77B
• Dividend Yield: 0.96%
• Average Volume (3M): 3.89M
• Price to Earnings (P/E): 14.6
• Beta (1Y): 1.47
• Revenue Growth: -4.84%
• EPS Growth: -30.61%
• Country: AU
• Employees: 1,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.21
• Shares Outstanding: 429,703,920
• 10 Day Avg. Volume: 3,464,924
• 30 Day Avg. Volume: 3,887,179
• PEG Ratio: -0.29
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 1.86
• P/FCF Ratio: -7.02
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$6.91
• Price Target Upside: 10.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.18
• Revenue Forecast (FY): AU$972.16M

• Rating: 68 Neutral
• Price Target: AU$7.50 ▲(20.39% 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.

Positive Factors

Strong Equity Position

A strong equity position indicates financial stability, providing a solid foundation for future growth and resilience against market fluctuations.

Efficient Cost Management

High gross profit margins reflect efficient cost management, allowing the company to maintain profitability even in challenging market conditions.

Low Debt Levels

Low debt levels reduce financial risk and interest obligations, enhancing the company's ability to invest in growth opportunities.

Negative Factors

Declining Revenue

A decline in revenue suggests challenges in maintaining sales growth, which could impact long-term profitability and market position.

Negative Free Cash Flow

Negative free cash flow indicates insufficient cash generation to cover expenses, potentially limiting future investment and operational flexibility.

Decreasing Profit Margins

Decreasing profit margins reflect reduced profitability, which may affect the company's ability to sustain competitive advantages and shareholder returns.

Iluka Resources Limited Business Overview & Revenue Model

Company Description

Iluka Resources Limited (ILU) is an Australian mineral sands company engaged in the exploration, mining, production, and sale of mineral sands products, including zircon, titanium dioxide, and iron ore. The company operates primarily in the resource sector, focusing on high-value mineral sands used in various industrial applications, including ceramics, paints, and plastics. Iluka's operations are centered in Australia and the United States, with a commitment to sustainable practices and responsible resource management.

How the Company Makes Money

Iluka 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 and efficient cost management, but faces challenges with declining profitability margins and negative free cash flow, raising concerns about liquidity and operational efficiency.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.10B	1.17B	1.29B	1.61B	1.32B	990.00M
Gross Profit	534.50M	478.30M	643.80M	968.80M	920.20M	635.10M
EBITDA	477.90M	503.50M	647.10M	867.00M	682.40M	370.80M
Net Income	189.60M	231.30M	342.60M	584.50M	365.80M	2.41B
Balance Sheet
Total Assets	4.36B	3.74B	3.33B	3.20B	2.80B	2.53B
Cash, Cash Equivalents and Short-Term Investments	191.00M	136.00M	364.90M	521.70M	294.80M	87.10M
Total Debt	730.30M	291.30M	163.70M	62.50M	35.90M	60.20M
Total Liabilities	1.90B	1.38B	1.17B	1.30B	1.21B	1.23B
Stockholders Equity	2.46B	2.36B	2.16B	1.89B	1.59B	1.29B
Cash Flow
Free Cash Flow	-601.30M	-310.60M	-191.80M	484.60M	316.10M	40.50M
Operating Cash Flow	62.00M	123.30M	89.60M	637.20M	369.70M	111.70M
Investing Cash Flow	-662.30M	-402.90M	-240.80M	-172.50M	-51.70M	-66.10M
Financing Cash Flow	484.40M	52.60M	-5.40M	-134.10M	-112.90M	-51.30M

Iluka Resources Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 6.23 is below the 20-day moving average (MA) of 6.58, below the 50-day MA of 6.98, and above the 200-day MA of 5.21, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 42.60 is Neutral, neither overbought nor oversold. The STOCH value of 11.14 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ILU	68 Neutral	AU$2.77B	14.56	7.84%	0.96%	-4.84%	-30.61%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
LOT	48 Neutral	AU$489.09M	-27.27	-7.50%	―	―	51.47%
AGE	46 Neutral	AU$124.24M	-20.00	-8.25%	―	―	-55.56%
A4N	45 Neutral	AU$852.95M	-26.22	-13.97%	―	620.73%	-21.19%
IPX	38 Underperform	AU$2.11B	-34.02	-50.19%	―	―	-20.85%

Iluka Resources Limited Corporate Events

Iluka Resources Announces Change in Substantial Holder Status

Iluka Resources Limited has announced a change in the status of its substantial holder, Aware Super Pty Ltd, which ceased to be a substantial holder as of November 27, 2025. This change in substantial holding could impact the company’s voting securities and influence within the market, potentially affecting its strategic decisions and stakeholder interests.

JPMorgan Ceases to be Substantial Holder in Iluka Resources

Iluka Resources Limited has announced that JPMorgan Chase & Co. and its affiliates have ceased to be substantial holders in the company. This change reflects a shift in the voting securities held by JPMorgan entities, impacting the company’s shareholder structure and potentially influencing its market dynamics.

Iluka Resources Reports Q3 Production and Strategic Adjustments Amid Market Challenges

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.

Iluka Resources Withdraws Synthetic Rutile Sales Guidance Amid Market Uncertainties

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.

Iluka Resources Issues New Equity Securities

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.

Iluka Resources Announces 2025 Interim Dividend Reinvestment Plan Details

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.

Iluka Resources Expands Capital with New Securities Issuance

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.

Iluka Resources Updates Dividend Distribution Details

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.

Iluka Resources Suspends Production at Cataby and SR2 Amidst Demand Uncertainty

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.