Iluka Resources (ILU) Q2 2025 TU earnings summary

Executive summary

• Q2 2025 zircon/rutile/synthetic rutile production reached 150kt, with SR2 operating at full capacity and zircon sand sales up 2% sequentially.

• H1 2025 mineral sands revenue was $558 million, down 8% year-over-year, with total Z/R/SR sales of 249kt.

• Construction at Balranald and Eneabba rare earths refinery progressed on schedule, with Eneabba capex to date at $570 million.

Financial highlights

• H1 2025 mineral sands revenue was $558 million, a decrease of 8% compared to H1 2024.

• Unit cash production costs for Z/R/SR were $1,138/t, down 19% year-over-year.

• H1 2025 capital expenditure totaled $402 million, split between mineral sands ($223m) and rare earths ($179m).

• Net debt as of 30 June 2025 was $502 million, with $338 million non-recourse debt for rare earths.

• Operating cash flow for mineral sands was $115 million in H1 2025.

Outlook and guidance

• Full year ZIC production guidance achieved by 30 June 2025; minimal ZIC production expected in 2026.

• No guidance provided for Q3 zircon sales volumes or pricing due to ongoing trade policy uncertainty.

• Synthetic rutile and rutile sales expected to be weighted towards H2 2025 due to shipping schedules.