Highlights

• Mineral sands revenue reached AU$433 million, while operating cash flow increased to AU$247 million.
• The Eneabba rare earths refinery is 60% complete, with its AU$1.70–AU$1.80 billion capital estimate maintained.
• Iluka set its H1 2026 interim dividend at 3 cents per share, with the distribution carrying full franking credits.

Iluka Reports H1 2026 Performance

Iluka Resources Limited (ASX: ILU) announced its 2026 Half Year Results on 19 August 2026, outlining weaker mineral sands earnings but improved cash generation alongside continued progress across its major development projects. The six-month period was shaped by lower production, inventory utilisation and stronger zircon sales.

Mineral sands revenue came in at AU$433 million, down 22% compared to AU$558 million in H1 2025. Underlying mineral sands EBITDA fell to AU$41 million from AU$218 million, while underlying Group EBITDA was AU$53 million. Iluka recorded a net loss after tax of AU$24 million, compared to a AU$92 million profit in the prior corresponding period.

Operating Cash Flow Improves Sharply

Operating cash inflow increased to AU$247 million, more than twice the AU$115 million recorded in the prior-year period. Mineral sands free cash flow improved to AU$200 million, despite AU$94 million of capital expenditure during the half. Mineral sands net debt narrowed to AU$273 million from AU$473 million at the end of December 2025.

Total zircon, rutile and synthetic rutile production declined 62% to 106 thousand tonnes, while sales decreased 9% to 228 thousand tonnes. Zircon sand sales increased to 110 thousand tonnes, and Iluka expects full-year zircon production of approximately 180 thousand tonnes.

Rare Earths Strategy Moves Forward

Construction of the Eneabba rare earths refinery reached 60%, with the total capital forecast retained at AU$1.70–AU$1.80 billion. Commissioning is targeted for 2027, while the refinery is designed for total rare earth oxide capacity of 23 thousand tonnes per annum.

Iluka entered its inaugural rare earths supply deal with a major global automaker. The agreement is due to begin in 2028 and will run for four years, covering 1,200 tonnes of magnet rare earth oxides with minimum contracted revenue of US$155 million.

H2 Focus Turns to Execution

For the second half, management is focused on advancing Eneabba construction, lifting Balranald ore extraction and recovery rates, and maintaining disciplined inventory management. The synthetic rutile kilns are expected to remain idle unless market conditions improve.

Note- All data presented is based on information available at the time of writing.

Disclaimer for Kapitales Research

The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.Disclosure: The information mentioned above has been sourced from the company reports and a third-party database, i.e. Koyfin. Investors are advised to use strict stop-loss to protect their investments in case of any unfavorable/uncertain market events.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au