Iluka Resources reports first-half loss on weak zircon prices

Iluka Resources Limited reported a net loss of A$24 million for the six months ending June 30, marking a significant drop from the A$92 million profit the same period in the previous year. The Australian mineral sands producer attributed the decline to weaker prices and volumes in the zircon market, which impacted both its top and bottom lines. Revenue for the period fell by 22% to A$433 million, compared to the prior year.

Underlying group EBITDA decreased by 77% to A$53 million, and the EBITDA margin declined to 9% from 39% the previous year. The Balranald mine, which was commissioned during the period, is now operational with both mining rigs in service, producing magnetic and non-magnetic heavy mineral concentrate on specification. The company is focused on improving extraction rates and recoveries as ramp-up continues. The first final product from the project is expected to be produced in the second half of the year.

Construction of the Eneabba rare earths refinery reached 60% completion and is on track and within budget. Iluka Resources signed its first offtake agreement covering light and heavy magnet rare earth oxides and secured a full A$1.65 billion non-recourse loan from Export Finance Australia. The refinery's commissioning is anticipated in 2027. Iluka also declared an interim dividend of 3 cents per share, fully franked, an increase from 2 cents paid a year earlier.