Mineral sands producer Iluka Resources Ltd reported AUD 247 million in operating cash flow and AUD 200 million in free cash flow for the first half of 2026, driven by strong operational performance and project advancements.
Net debt in the mineral sands segment fell 42% to AUD 273 million as of June 30, down from approximately AUD 471 million at the start of the period. Capital expenditure totaled AUD 94 million in H1, including AUD 35 million reclassified from operating costs for the Balranald project. Full-year 2026 mineral sands capital expenditure guidance was lowered to AUD 115 million from prior expectations.
The company maintained its Eneabba refinery capital budget at AUD 1.7 billion to AUD 1.8 billion, with construction now 60% complete. High-voltage power infrastructure has been energized, and the roaster kiln was recently installed, with mineral commissioning scheduled for 2027. At Balranald, commissioning milestones were achieved, two mining rigs are operational, and first heavy mineral concentrate shipments to Narngulu are planned for September.
Zircon contracted sand prices rose to around AUD 1,760 per tonne in Q3, with prices expected to broadly hold through year-end. Demand remained subdued in China but stable in Europe, while supply faced disruptions from operational challenges at peers and a fire at Eramet’s Senegal facility in February. Synthetic rutile inventory declined by 74,000 tonnes for zircon and sand, and 37,000 tonnes for synthetic rutile in H1.
Iluka also allocated AUD 25 million for Wimmera and rare earths metallisation studies, though the Detailed Feasibility Study for Wimmera was delayed to the first half of 2027. The company declared a 3-cent fully franked dividend, linked to receipts from its 20% stake in Deterra Royalties. Shares traded up 2.96% at AUD 7.30 in early trading, near the lower end of its 52-week range of AUD 4.92 to AUD 9.48.
