Iluka Resources Limited

This report is an updated version of the report published on 6 February 2026 at 11:11 AM AEDT. 

Section 1: Company Overview, Low Carbon Emission Initiatives and Fundamentals

Section 1.1: Iluka Resources Limited (ASX: ILU) is a global critical minerals company with specialization in exploration, project development, mining, processing, marketing and rehabilitation. It sells a range of titanium dioxide feedstocks, zircon products and rare earth minerals. Kalkine’s Low Carbon Research Report covers the Investment Highlights, Low Carbon Emission Initiatives, Key Financial Metrics, Risks, and Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

Section 1.2: Why Low Carbon Emission Matters?

The shift toward a low-carbon economy is one of the most significant challenges of current time, spurred by the urgent need to combat climate change and reduce the environmental impact of corporate activities. This report covers the ASX-listed low-carbon emission company, Iluka Resources Ltd (ASX: ILU), that is committed to sustainability and responsible environmental practices.

(Source: Company Filings; Analysis by Kalkine Group)

Carbon and Waste Management - Key Metrics

The image shows that CO₂ emissions and total waste intensity (per AUD million of revenue) declined between FY20 and FY22, indicating an improvement in environmental efficiency, before reversing and increasing in FY23 and FY24. This deterioration largely reflects a revenue denominator effect, rather than a commensurate rise in absolute emissions or waste volumes and was further compounded by heightened development and construction activity associated with major growth projects such as Balranald and the Eneabba rare earths refinery, which increased energy consumption and waste generation ahead of revenue contribution. While Iluka has implemented several environmental initiatives—including energy efficiency measures, the 9MW solar installation at Cataby, progressive land rehabilitation, and nature-based carbon initiatives—the absence of a formal net-zero emissions target leaves intensity metrics highly exposed to commodity and revenue cycles, resulting in elevated CO₂ and waste intensity during the current transition phase.

Peer Comparison: Carbon Emission and Waste Management Metrics

The peer comparison table indicates that Iluka Resources Limited stands out for its long-term and comprehensive climate ambition, with emissions reduction aligned to a 2050 timeframe, consistent with global decarbonisation pathways for hard-to-abate materials producers. While Iluka’s reported CO₂-equivalent emissions and waste recycling ratio appear higher than some peers, this largely reflects the nature and scale of its integrated mining, processing and rehabilitation activities, as well as its conservative and transparent reporting approach that captures emissions and waste across a broad operational footprint. Importantly, Iluka’s ESG strategy prioritises structural, long-duration improvements over short-term intensity optics, underpinned by initiatives such as energy efficiency programs, the 9MW solar installation at Cataby, progressive land rehabilitation, and nature-based carbon initiatives. As major growth projects such as Balranald and the Eneabba rare earths refinery transition from construction to production, these investments are expected to improve emissions and waste efficiency over time, positioning Iluka to deliver more sustainable outcomes across the full project lifecycle while supporting the global energy-transition supply chain.

1.3 The Key Positives, Negatives, Investment Highlights, and Risks

1.4 Top 10 Shareholders:

The top 10 shareholders together form ~51.45% of the total shareholding. Perpetual Investment Management Limited and Van Eck Associates Corporation hold maximum stakes in the company at ~6.96% and ~6.24%, respectively.

1.5 Key Metrics: In H1FY25, ILU's cash cycle reduced to 435.6 days vs 462.1 days in H2FY24. Below are captured other metrics:

Section 2: Business Updates, Financial and Operational Highlights

2.1 Recent Business Updates:

2.2 Results Highlights

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

The stock price has declined by ~22.3% in the last one month, whereas over the last six months, it has declined by ~13.99%. The stock has a 52-week low and 52-week high of AUD 3.140 and AUD 9.480, respectively, and is currently trading below to its 52-week mid-level. ILU was last covered in a report dated ‘11 July 2025’.

4.2 Fundamental Valuation

Valuation Methodology: P/E Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

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

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 6 February 2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement.

Note 5: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice. 

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.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.