Iluka Resources (ILU) H2 2024 earnings summary

Executive summary

• Achieved strong financial performance in 2024 with a 42% margin, despite higher costs, inflationary pressures, and muted global demand.

• Revenue declined 9% to AUD 1.12 billion, and NPAT fell 33% to AUD 231 million for FY 2024.

• Progressed Balranald and Eneabba projects, with Eneabba refinery fully funded and Balranald set for commissioning in H2 2025.

• Final dividend of AUD 0.04 per share, full-year dividend AUD 0.08 per share, fully franked.

• Cost review led to 130 role reductions, targeting AUD 20 million in annual savings.

Financial highlights

• Revenue reached AUD 1.12 billion and net profit was AUD 231 million for 2024.

• Underlying mineral sands EBITDA fell 18% to AUD 477 million; EBITDA margin at 42%.

• Operating cash flow from mineral sands was AUD 252 million, funding most of the AUD 272 million in growth capex.

• Net cash position for mineral sands was AUD 90 million; group net debt at AUD 115 million, including non-recourse rare earth debt.

• Free cash flow for the group was negative AUD 288 million.

Outlook and guidance

• Balranald commissioning and ramp-up expected in H2 2025, with production to be stockpiled before market release.

• FY 2025 production guidance: 495kt Z/R/SR, with zircon sand at 165kt, rutile at 50kt, and synthetic rutile at 220kt.

• Cash costs of production expected to rise to AUD 680 million, with unit cash costs at AUD 1,370/t.

• Capital expenditure guidance: AUD 480 million for mineral sands, AUD 600 million for Eneabba refinery.

• Ongoing focus on cost reduction, with AUD 20 million in annual savings targeted from 130 role reductions.