Iluka Resources (ILU) Q1 2026 TU earnings summary

Executive summary

• Q1 2026 saw lower production and sales volumes across zircon, rutile, and ilmenite compared to both Q4 2025 and Q1 2025, reflecting idled operations and logistics constraints.

• Synthetic rutile kilns and the Cataby mine remained idled, with restarts dependent on market conditions.

• Commissioning at Balranald advanced, with mining ramp-up ongoing and first HMC shipments dispatched.

Financial highlights

• Mineral sands revenue for Q1 2026 was $147 million, down 46.8% year-over-year and 43.5% sequentially.

• Weighted average zircon sand price held steady at US$1,491/t, with Q2 prices expected to rise by ~US$45/t FOB.

• Net debt as of 31 March 2026: $417 million for mineral sands, $693 million non-recourse for rare earths.

Outlook and guidance

• Synthetic rutile sales are expected to be weighted to H2 2026 due to take-or-pay contracts.

• Q2 zircon sand sales contracted at higher prices, with logistics costs also rising.

• Diesel supply disruptions could impact FY26 cash costs, with diesel representing ~7% of total production costs.