Iluka Resources shares gain on higher first-half output
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More news: Shares in Iluka Resources lifted in morning trade after the mineral sands miner reported a 22.7% year-on-year increase in production volumes in the first half of 2025.
However, it did not provide third-quarter guidance for zircon prices or sales volumes due to ongoing tariff uncertainty.
At 11:51am AEST, Iluka’s share price had increased by 1.6% to $5.26.
Iluka Resources lifts first-half output but warns of tariff uncertainty
The news: Mineral sands miner Iluka Resources reported a 22.7% increase in first-half production volumes, but failed to provide any third-quarter guidance for zircon's price or sales volumes due to ongoing tariff uncertainties.
The numbers: Iluka produced 280,400 tonnes of zircon, rutile and synthetic rutile in the six months to June, up from 228,500 tonnes in the prior corresponding period.
First-half sales rose 2.8% year over year to 249,000. Second-quarter sales were up 14.1% quarter over quarter to 132,700, but 5% behind Citi's forecasts.
First-half revenue fell 8% year on year to $558 million. However, second-quarter revenue of $298 million was up 15% on the previous quarter and broadly in-line with consensus estimates.
Citi analyst Paul McTaggart noted Iluka's realised zircon price for the second quarter was down 7% quarter over quarter and flagged "it's not clear that zircon prices have bottomed out".
The context: Iluka did not provide guidance for zircon sales volumes or pricing for the third quarter, noting "ongoing uncertainty and the broad range of potential outcomes on market dynamics".
The miner warned that trade policy uncertainty continues to impact global economic activity, including in the company's end markets. It noted that "tariffs, the reaction to tariffs, and geopolitical conflicts" are undermining forecast reliability.
The company said that while zircon is subject to new US tariffs, titanium dioxide feedstocks and rare earth oxides remain exempt.
What they said: "As global trade patterns evolve, the downstream impact on economies remains unclear, with a broad range of potential outcomes as supply and demand dynamics are reshaped," the company said.
The sources: ASX, Citi research
