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Iluka Resources Ltd ILU

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Stock XASX Rating as of
A$5.70 −0.03 (0.52%)
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Iluka Shares Are Undervalued as Mineral Sands Industry Downturn Shows Signs of Improvement

Jon Mills, Alex Anderson

Iluka is a mineral sands miner. Major mines are Jacinth-Ambrosia in South Australia and Cataby in Western Australia, and production from its Balranald mine in New South Wales started in 2025. Relatively low operating costs for zircon are supported by Jacinth-Ambrosia, but its reserve life is less than a decade. Like the industry, Iluka is facing a declining grade profile at its mines, but a constrained outlook for supply should support prices.

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Price vs Fair Value

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ILU is trading within a range we consider fairly valued.
Price
A$5.70
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Iluka is an industry leader with relatively high-grade zircon and rutile deposits. Supply can be withheld to defend prices and margins in times of weak demand.

Bears

Mineral sands markets are relatively small. Sales volumes can go through periods of significant demand weakness, such as in 2008-09, 2012-16, and 2023-25.

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Trading Information

Previous Close Price
A$5.73
Day Range
A$5.64–5.82
52-Week Range
A$5.06–9.48
Bid/Ask
A$5.68 / A$5.80
Shares Outstanding
431.25M
Market Cap
A$2.46B
Volume/Avg
3M / 2M

Key Statistics

Price/Earnings (Normalized)
28.48
Price/Sales
2.74
Dividend Yield (Trailing)
1.05%
Dividend Yield (Forward)
1.05%
Dividend Payment Schedule
Mar, Sep
Total Yield
1.07%

Company Profile

Iluka Resources is a leading global mineral sands miner. It is the largest global producer of zircon, and one of the largest producers of titanium dioxide feedstocks (rutile, synthetic rutile). Low zircon costs are underpinned by the high-grade Jacinth-Ambrosia mine in South Australia, but reserve life is less than 10 years. A 20% shareholding in Deterra Royalties brings exposure to the high-quality Mining Area C iron ore royalty. Production from the Balranald rutile and zircon mine commenced in late 2025, and Iluka is also building a rare-earth refinery at Eneabba. The refinery will be able to process Iluka's existing monazite stockpile as well as feed from third parties, Balranald, and future Iluka projects.
Sector
Basic Materials
Industry
Other Industrial Metals & Mining
Stock Style Box
Mid Growth
Total Number of Employees
950
Website
https://www.iluka.com

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Valuation

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Metric
ILU
BHP
VALE
Price/Earnings (Normalized)
 28.4814.6812.16
Price/Book Value
 1.214.371.51
Price/Sales
 2.743.671.39
Price/Cash Flow
 12.889.196.01
Price/Earnings
ILU
BHP
VALE

Financial Strength

Metric
ILU
BHP
VALE
Quick Ratio
 0.931.440.68
Current Ratio
 3.271.881.19
Interest Coverage
 −20.0411.363.12
Quick Ratio
ILU
BHP
VALE

Profitability

Metric
ILU
BHP
VALE
Return on Assets (Normalized)
 −0.23%11.44%6.01%
Return on Equity (Normalized)
 −0.46%27.20%14.19%
Return on Invested Capital (Normalized)
 0.25%17.58%11.52%
Return on Assets
ILU
BHP
VALE

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