Iluka Resources (ASX: ILU) Increases FY24 Full-Year Dividend by 14%, Defying Revenue Dip

Highlights

• Iluka Resources reported FY24 revenue of AUD 1,129 million, down 8.8% YoY, but maintained an EBITDA margin of 42%.
• In FY24, capital expenditure surged by 54.45% YoY to AUD 434 million.,
• The Balranald is set for commissioning in 2025, and the Eneabba rare earths refinery is planned for 2027.
• Despite a 35.99% annual share price decline, Iluka increased its fully franked dividend by 14.29% to 8 cents per share.

Iluka Resources Ltd (ASX:ILU), an Australian-based international mineral sands company, reported  mineral sands revenue of AUD 1,129 million in the financial year 2024 (FY24), reflecting an 8.8% YoY decline from AUD 1,238 million in FY23. Despite the revenue dip, Iluka achieved an EBITDA margin of 42%, with a net profit after tax (NPAT) of AUD 231 million.

In FY24, capital expenditure surged by 54.45% YoY to AUD 434 million. During the reported period, the company made investments in growth projects like the Balranald and Eneabba developments.

Iluka increased its full-year total dividend to 8 cents per share (fully franked), marking a 14.29% rise from the previous year’s dividend of 7 cents.

Outlook and Strategic Projects

The Balranald project is expected to be commissioned in the second half of 2025 and is anticipated to contribute 60ktpa of rutile, 50ktpa of zircon, and synthetic rutile feedstock. The Eneabba rare earths refinery is fully funded, with commissioning scheduled for 2027, while the Wimmera project is progressing through its DFS, targeting completion by mid-2026.

Capital expenditure guidance for 2025 is set at AUD 480 million, with AUD 380 million allocated to Balranald, and AUD 10 million each for Wimmera and Tutunup. Additionally, Eneabba’s refinery construction is expected to incur AUD 600 million in 2025 as development accelerates.

Industry Dynamics and Demand

Despite some late-2024 price pressures, zircon pricing is projected to stay resilient, and titanium feedstock demand is anticipated to strengthen through 2025. Global pigment markets are showing early signs of recovery, providing a favorable demand backdrop for Iluka’s products.

Key Business Update: Goschen South Mineral Resource Estimate

In February 2025, Iluka announced its first Mineral Resource Estimate (MRE) for the Goschen South deposit in Australia. The deposit contains 630 million tonnes (Mt) at 3.7% heavy minerals (HM), equating to 24 Mt of HM, classified as indicated and inferred resources under the JORC Code (2012 Edition).

The deposit spans 10.5 km by 6 km, with an average mineralised thickness of 6.5m beneath 13.5m–25m of overburden.

Share performance of ILU

ILU shares closed 2.97% lower at AUD 4.25 per share on 26 February 2025. Over the past year, ILU’s share price has dropped by nearly 35.99% and in the last three months, it has decreased by almost 23.42%.

52-week high of ILU is AUD 8.31, recorded on 8 May 2024 and 52-week low is AUD 4.27, recorded on 3 February 2025.

Support and Resistance Summary

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 26 February 2025. The reference data in this report has been partly sourced from REFINITIV.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

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