The Iluka Resources Ltd (ASX: ILU) share price is in focus today after the miner reported mineral sands revenue of $147 million for the March quarter, alongside ramping up activities at its rare earths refinery.
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What did Iluka Resources report?
- Mineral sands revenue fell 46.8% quarter-on-quarter to $147 million
- Zircon sand sales reached 40.3kt; Z/R/SR sales totalled 70.2kt for the quarter
- Weighted average zircon sand price steady at US$1,491 per tonne
- Total capital expenditure at Eneabba rare earths refinery reached $977 million
- Net debt as at 31 March: $417 million (mineral sands) and $693 million (rare earths, non-recourse)
What else do investors need to know?
Production volumes were down significantly from the prior quarter as Iluka idled its Cataby mine and both synthetic rutile kilns, pending market improvements. Finished goods output in the first half of the year is being sourced from Jacinth-Ambrosia, with Balranald mine continuing its ramp-up phase and producing on-specification heavy mineral concentrate.
The company has already contracted 50kt of zircon sand sales for the second quarter, incorporating price increases of up to US$120/t depending on customer and grade. Logistics costs are climbing, and Iluka expects a weighted average zircon price increase of around US$45/t for Q2. In rare earths, construction at Eneabba is nearing a key milestone, with engineering almost complete and major equipment now on site.
What's next for Iluka Resources?
Iluka's operational focus for 2026 will be the progressive ramp-up at Balranald, aiming for steady-state HMC production by mid-year, and continued development at Eneabba in preparation for planned commissioning in 2027. The company continues to monitor market demand, energy costs, and logistics conditions, with synthetic rutile kiln restarts dependent on improving pricing and sales outlook.
With macroeconomic uncertainty and energy supply disruptions affecting global markets, Iluka is targeting improved pricing and cost control, and progressing major projects that support Australia's supply of critical minerals for electrification and manufacturing.
Iluka Resources share price snapshot
Over the past 12 months, Iluka resources shares have risen 112%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 15% over the same period.
