Iluka Resources has announced that it will recognise approximately $565 million in exceptional items, pre-tax, in its financial results for the year ending December 31, 2025. These charges include a non-cash impairment of around $350 million, pre-tax, within its mineral sands business and a net realisable value adjustment to inventory of about $215 million, pre-tax.
Iluka Resources is an Australian-based resources company, specialising in mineral sands exploration, project development, and operations. The company produces zircon, rutile, and synthetic rutile. The impairment decision follows Iluka’s September announcement to cease production at the Cataby mine and the SR2 synthetic rutile kiln in Western Australia, starting December 1, due to weak demand for mineral sands and pigment. The majority of the impairment is related to the Cataby mine, synthetic rutile kilns 1 and 2, and associated project study costs in Western Australia’s south-west.
Furthermore, Iluka anticipates a reduction of approximately 35 per cent in Cataby ore reserves, which equates to a 7 per cent decrease in overall group ore reserves. This revision results in a projected mine life of about four years, contingent on the resumption of mining activities. The inventory write-down is a consequence of lowered price expectations, causing some products to fall below the weighted average cost. This is primarily associated with Cataby ore and heavy mineral concentrate work-in-progress.
Following the adjustment, Iluka estimates its inventory balance as of December 31 to be around $1.1 billion, which includes roughly $600 million in finished goods. Excluding these exceptional items, Iluka projects an underlying mineral sands EBITDA of approximately $300 million for FY25.
