Iluka Resources reports 42% profit drop, slashes dividend
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The news: Mineral sands miner Iluka Resources reported a hit to full-year earnings after a challenging 12 months characterised by "persistent inflation, subdued demand and geopolitical volatility".
The numbers: Iluka reported a 42% fall in net profit after tax to $343 million compared to FY22, with revenue down 19% to $1.24 billion. EBITDA reduced 32% to $582 million.
Iluka's full-year dividend shrank from 45 cents per share to 7 cents per share compared to a year earlier.
The context: Iluka's share prices tracked a decline in lithium prices and weaker demand for commodities such as zircon and rutile in 2023. In December, shares dropped after announcing a project delay at its Eneabba Rare Earths Refinery in Western Australia, and increasing the project cost — estimated at between $1.3 billion and $1.6 billion — by 20%.
Iluka's managing director Tom O'Leary said its full-year dividend of 4 cents per share reflects the pass through of funds received from the miner's 20% holding in royalty investment company Deterra Royalties, which remained "a valuable source of additional financial strength".
The source: ASX announcement
