Iluka Resources Ltd. reported a 115% year-over-year increase in operating cash flow to $247 million for the first half of 2026, alongside a 42% reduction in net debt to $273 million, as the company advanced its Eneabba rare earths refinery project in Western Australia.
The H1 2026 results presentation, delivered on August 19, 2026, highlighted a 62% decline in production volumes year-over-year, with mineral sands revenue totaling $433 million and underlying group EBITDA at $53 million. Mineral sands free cash flow reached $200 million, while unit cash costs rose 9% to $1,236 per tonne. Capital expenditure for the half amounted to $94 million.
The Eneabba refinery, targeting completion in 2027, has reached 60% construction completion with a workforce expected to peak at 750 personnel in the second half of 2026. The project’s total capital estimate remains at $1.7–1.8 billion, with approximately $1.1 billion already spent as of July 31. Export Finance Australia has confirmed full access to a $1.65 billion non-recourse loan facility to support the project. Remaining committed and contingent expenditures are estimated at $0.6–0.7 billion, including $170 million allocated for contingency and growth allowances.
Iluka’s rare earths strategy includes a four-year take-or-pay offtake agreement with a global automotive company, covering 1,200 tonnes of magnet rare earth oxides annually, with minimum contracted revenue of $155 million over the initial term. The refinery is designed for annual output of 5,500 tonnes of NdPr oxide and 750 tonnes of DyTb oxide, with a maximum total rare earth oxide capacity of 23,000 tonnes per annum.
The company’s mineral sands operations reported zircon sand sales of 110 kilotonnes in H1 2026, up from 97 kilotonnes in the prior-year period, with average contracted prices rising to $1,514 per tonne. Third-quarter contracted zircon prices increased further to $1,760 per tonne. Rutile sales totaled 28 kilotonnes at an average price of $1,254 per tonne, while synthetic rutile sales declined to 37 kilotonnes from 70 kilotonnes in H1 2025.
Iluka also noted the impact of Chinese export restrictions on heavy rare earths, announced in April 2025, which reduced average dysprosium oxide exports from approximately 13 tonnes monthly (2020–2024 average) to about 4 tonnes monthly in 2025–2026. The company’s stock rose 3.1% to $7.31 following the presentation, trading within a 52-week range of $4.92 to $9.48.
