Iluka Resources (ILU) investor relations material

Executive summary

• H1 2026 saw a significant decrease in production volumes for zircon, rutile, and synthetic rutile compared to H1 2025, with synthetic rutile production particularly impacted by idle kilns.

• Operating cash flow for mineral sands was $247 million in H1 2026, with free cash flow of $200 million, including a $53 million tax refund.

• The Eneabba rare earths refinery project reached nearly 60% construction completion, with engineering finished and major equipment delivered.

• A milestone rare earths offtake agreement was signed with a global automotive company, commencing in 2028.

Financial highlights

• Mineral sands revenue for H1 2026 was $558 million, down 22.4% year-over-year.

• Underlying mineral sands EBITDA for H1 2026 is expected to be ~$40 million, with a net loss after tax of ~$25 million.

• Production cash costs for Z/R/SR were $319 million, down 59.1% year-over-year.

• Net debt as of 30 June 2026 was $273 million for mineral sands and $877 million non-recourse for rare earths.

Outlook and guidance

• Full year zircon production is expected to be ~180kt, with a more even split between sand and ZIC.

• Full year mineral sands capex is forecast at ~$115 million, with $25 million allocated to studies for Wimmera and rare earths metallisation.

• Q3 contracted zircon sand prices will increase by US$215/t, with reported Q3 prices expected at US$1,685/t FOB.