Iluka Resources sales rise while revenue falls

·       Mineral sands producer Iluka Resources reported a 62.3% year-on-year drop in total production to 105.6 kilotonnes for the first half of 2026.

·       Total mineral sands revenue fell 22.4% to $433 million during the period, even as total sales volumes climbed.

·       The company continues to advance construction on its Eneabba rare earths refinery while operating new mining rigs at Balranald.

Mineral sands miner Iluka Resources (ASX:ILU) reported a 22.4% drop in first-half mineral sands revenue to $558 million in the previous corresponding period.

The revenue decline occurred despite a 18.7% quarter-on-quarter rebound in second-quarter mineral sands revenue to $286 million, driven by higher zircon, rutile, and synthetic rutile sales volumes of 157.4 kilotonnes.

The lower half-year revenue reflected reduced realised pricing, as average unit revenue for zircon, rutile, and synthetic rutile sold decreased 18.9% year-on-year to US$1,699 per tonne.

At the Eneabba rare earths refinery project, total capital expenditure reached $1.7–$1.8 billion.

Following the announcement, the Iluka Resources share price was up at $6.11.

Production of core products fell 62.3% to 105.6 kilotonnes in the first half as the Narngulu processing plant and synthetic rutile kilns 1 and 2 remained idle.

At the Balranald development, both mining rigs were operational in the second quarter to process non-magnetic and magnetic concentrates, though commissioning required more time than expected.