Iluka Resources has reported a fiscal first-half loss of AU$24 million, compared to a AU$92 million profit in the first half of 2025 even as its mineral sands business generated strong cash flow.
Strong cash generation allowed the miner to reduce its mineral sands net debt from AU$473 million down to AU$273 million. Operating cash flow jumped 115 per cent to AU$247 million, while mineral sands free cash flow rebounded to AU$200 million.
“2026 is an important year of execution for Iluka and H1 saw several milestones in this regard,” said Iluka Managing Director Tom O’Leary.
“The mineral sands business generated strong cash flow, supported by improved zircon pricing, inventory drawdown and continued operational and market discipline.
“This enabled a substantial reduction in net debt.”
The board declared a fully franked interim dividend of 3 cents per share, up 50 per cent on the prior corresponding period.
Operational highlights across the half-year included commissioning the Balranald mine in New South Wales, where both underground mining rigs are now active, producing heavy mineral concentrate on specification.
In Western Australia, the landmark Eneabba rare earths refinery reached 60 per cent construction completion on schedule and budget.
The project also secured its inaugural rare earth oxides offtake agreement and confirmed access to its full AU$1.65 billion non-recourse loan facility from Export Finance Australia.
“In rare earths, the Eneabba refinery has progressed on schedule and budget. All major equipment has been delivered to site, construction is 60% complete and confidence in the project’s capital estimate has continued to strengthen,” O’Leary said.
Management expects first final product from Balranald in the second half of 2026, while Eneabba remains on track for commissioning in 2027 to capture growing international demand for critical minerals.
“Execution remains our focus for H2; and we set about this from a position of improved balance sheet strength, a recovering zircon market and key strategic projects continuing to advance,” O’Leary added.
