Iluka Resources Limited (ASX:ILU) Announces Q4 2024 Performance Overview
Production Highlights
Iluka Resources Limited (ASX:ILU) reported a zircon/rutile/synthetic rutile (Z/R/SR) production of 129kt for Q4 2024, including 45kt of zircon sand and 58kt of synthetic rutile. The full year production of 496kt exceeded the company’s guidance of 455kt, primarily due to enhanced performance in zircon-in-concentrate (ZIC) and synthetic rutile kiln operations.
Sales and Pricing Trends
Z/R/SR sales for the quarter totalled 136kt, although zircon sand sales were subdued due to seasonal demand and market conditions. The weighted average zircon sand price was reported at US$1,819/t, showing a decline from Q3 2024. Notably, safety measures were taken in response to lower demand, with the company contracting around 40kt of zircon sand sales at roughly 5% lower prices for Q1 2025.
Financial Summary and Cost Management
Iluka’s mineral sands business generated $252 million in operating cash flow during 2024, alongside capital expenditure of $434 million aimed at growth initiatives. Notably, the company reported a net cash balance of $90 million as of 31 December 2024. To optimise the cost base and align with operational demands, Iluka identified approximately 130 roles for removal, which is expected to yield savings of around $20 million in 2025.
Project Developments
Construction of the Balranald project is on track, with mining unit delivery expected in H1 2025 and commissioning scheduled for H2 2025. Furthermore, the Eneabba rare earths refinery project is fully funded following successful negotiations with the Australian Government.
Outlook for 2025
Looking ahead, Iluka projects total Z/R/SR production of 495kt for 2025, predominantly from the larger synthetic rutile kiln, with potential for increased output under favourable market conditions. The company also anticipates a rise in cash costs due to Balranald operational readiness expenses, which will impact unit costs in 2025.
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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