Iluka Resources (ASX: ILU) – Iluka Q3 2026 Quarterly Review

Iluka Resources has delivered a quarterly review showing pricing momentum despite weak underlying market conditions, with zircon sand prices contracted in Q3 averaging USD 1,768 per tonne and management guiding to USD 1,825 per tonne in Q4. This represents a meaningful increase of USD 80 per tonne quarter-on-quarter and reflects supply constraints that continue to support pricing despite customers prioritising working capital and purchasing on a just-in-time basis.

Production of zircon, rutile and synthetic rutile reached 76 kilotonnes in Q3, with sales volumes of 115 kilotonnes across the quarter. Zircon sales totalled 77 kilotonnes including 30 kilotonnes of zircon-in-concentrate, while synthetic rutile sales hit 16 kilotonnes at an average realised price of USD 1,136 per tonne in line with take-or-pay contract schedules. Year-to-date synthetic rutile sales stand at 52 kilotonnes with the company expecting to deliver 58 kilotonnes in Q4 to meet full-year contracted volumes of 110 kilotonnes.

The Balranald mine ramp-up is progressing, with Iluka reporting improvements in ore extraction rates and recoveries. Enhancements to one mining rig were completed in October and have achieved targeted extraction rates consistently. The company plans to apply these enhancements to the second mining rig in November, with Q4 activities focused on improving consistency of grade recovered. The first 30 kilotonnes of heavy mineral concentrate from Balranald was shipped to Western Australia for processing in September, supporting the ramp-up trajectory.

The Eneabba rare earths refinery project reached 65 percent completion by end of Q3, with total capex expenditure of AUD 1.237 billion recorded to date. The capital estimate remains AUD 1.7 to 1.8 billion. Concrete installation, major equipment placement and assembly work are complete, with mixer-settlers in place and much of the solvent extraction building 1 pipework installed. During the quarter, the company also achieved production of dysprosium and terbium metal on specification and has purchased metallisation equipment required for commercial scale production, enabling future production capacity of 200 tonnes per annum of dysprosium and terbium metal.

Mineral sands net debt improved to AUD 249 million at 30 September, down from AUD 273 million at 30 June, reflecting the company’s progress in managing its balance sheet through the capital-intensive development phase. Market conditions remained soft with weak demand in China offset by more resilient conditions in Europe, India and the United States, while anti-dumping duties continue to affect feedstock markets across several regions.

Investors should monitor Q4 results for realisation of guided zircon sand sales of approximately 35 kilotonnes and final quarter synthetic rutile deliveries, as well as updates on Balranald grade consistency improvements and progress toward full operational capacity. The metallisation developments for rare earth elements also represent a potential value-add for future production once the Eneabba refinery comes on stream. This announcement is price sensitive and has been flagged as material by the Australian Securities Exchange.

View the full ASX announcement (PDF)

About Iluka Resources Limited (ASX: ILU)

Iluka Resources Limited is a global critical minerals company that engages in exploration, project development, mining, processing, marketing and rehabilitation of mineral sands and rare earth minerals. The company produces titanium dioxide feedstocks, zircon products, and rare earth minerals, operating mining facilities primarily in Australia including locations in South Australia, Western Australia, and New South Wales. Iluka operates internationally with sales across Australia, China, Asia, Europe, the Americas and other global markets.

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