This report is an updated version of the report published on 11 February 2026 at 1:10 PM AEDT.  

Iluka Resources Limited (ASX: ILU) 

Company Overview: 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. 

Recommendation Rationale – AUD 5.460

• Trading Around Resistance: ILU’s share price has surpassed ‘Resistance 1’ level recommended on 6 February 2026. Therefore, it can face resistance at the current levels.
• Financial Decline: During H1 FY26, mineral sands revenue and profit after tax fell by 8.0% and 31.2% YoY, respectively. It was primarily driven by weaker mineral sands market conditions, global economic uncertainty, and softer demand conditions.
• Earnings Cyclicality – Mineral Sands Are Volatile: ILU’s earnings are heavily exposed to zircon and rutile pricing, which are highly cyclical and driven by construction, ceramics, and industrial demand. Demand is sensitive to China’s property market slowdown.
• Overvalued Multiples: On a forward 12-month basis – key valuation multiples (EV/Sales, EV/EBITDA, and Price/Cash Flow) of ILU are higher than median of the Basic Materials sector. 

Daily Price Chart

ILU Daily Technical Chart; Source: REFINITIV 

Valuation Methodology: Price/Cash Flow Approach (Illustrative)

The stock might trade at a slight discount to its peers given the financial decline in H1 FY25, zircon & rutile price volatility, and China property slowdown. For conducting the valuation, following peers have been considered - Rio Tinto Ltd (ASX: RIO), Emerald Resources NL (ASX: EMR), and Nickel Industries Ltd (ASX: NIC).

Given the stock has crossed its R1 level, recent rally in the share price, and risks associated, it is prudent to sell the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of AUD 5.460, as of 11 February 2026, at 12:41 PM AEDT.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. 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 11 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: 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.

Note 5: Dividend Yield may vary as per the stock price movement.     

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.