Australian mineral sands producer Iluka Resources reported a first-half net loss of A$24 million, reversing a A$92 million profit in the same period last year, as weak zircon prices and lower volumes weighed on earnings.
Revenue declined 22% to A$433 million from A$554 million a year earlier, while underlying group EBITDA fell 77% to A$53 million, with the EBITDA margin shrinking to 9% from 39% in the prior-year period. The company attributed the decline to lower zircon prices and reduced sales volumes.
Iluka commissioned its Balranald mine during the period, with both mining rigs operational and producing magnetic and non-magnetic heavy mineral concentrate to specification. The company noted ongoing ramp-up efforts aimed at improving extraction rates and recoveries. Construction of the Eneabba rare earths refinery reached 60% completion, remaining on schedule and within budget. Iluka also secured its first offtake agreement for light and heavy magnet rare earth oxides.
The company confirmed full access to a A$1.65 billion non-recourse loan from Export Finance Australia. Despite the first-half loss, Iluka declared an interim dividend of 3 cents per share, fully franked, up from 2 cents a year earlier.
Looking ahead, Iluka expects first final product from the Balranald project in the second half of this year, with the Eneabba refinery scheduled for commissioning in 2027.
