Iluka Resources has reported a net loss of $288 million for 2025, a significant downturn compared to the $231 million profit recorded the previous year. The result was impacted by weaker conditions in the mineral sands market and $566 million in pre-tax impairments and inventory write-downs. Iluka Resources is a global resources company, specialising in mineral sands exploration, project development, and operations. They are also involved in the development of a rare earths refinery.
Revenue from mineral sands decreased to $976 million from $1.129 billion, while underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell to $300 million. This contraction resulted in a narrowing of margins, from 42 per cent to 31 per cent. Operating cash flow also experienced a decline, dropping to $61 million, and net debt, excluding non-recourse debt, increased to $473 million as of December 31.
Despite the challenging financial results, Iluka Resources has declared a final dividend of 3¢ per share, fully franked. This brings the total dividend payout for the year to 5¢ per share. The company anticipates that cash requirements in its mineral sands operations will be significantly lower in 2026. This is expected to be driven by cost reduction initiatives and the completion of the Balranald project.
Iluka also stated that construction of its Eneabba rare earths refinery remains on schedule for commissioning next year. This project is a key part of Iluka’s strategy to diversify its revenue streams and capitalize on the growing demand for rare earth elements.
