Join our daily newsletter At The Bell to receive exclusive market insights
Iluka Resources (ASX:ILU) has heralded a happy quarterly report, with the mineral sands explorer landing full-year production guidance for zircon through to June 30, and scoring a 22.7% increase in first-half volumes.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
Zircon, rutile, and synthetic rutile production in the second quarter reached 150 kilotonnes, the company reported, and Iluka confirmed it had landed an average weighed zircon sand price of US$1,692 per tonne through the period.
First-half sales rose 2.8% YOY, to 249,000, while second-quarter sales were up 14.1%, to 132.7K. First-half revenue fell 8% YOY; second-half revenue then rallied +15%.
The good times may not last, though, the company warned in the same ASX market release, with Iluka sharing a sombre prediction for how “trade policy uncertainty” in the U.S. will impact any future earnings – and guidance.
“As global trade patterns evolve, the downstream impact on global economies remains unclear, with a broad range of potential outcomes as supply and demand dynamics are reshaped,” the mineral sands explorer wrote on July 23.
“Tariffs, the reaction to those tariffs (including stimulus in some countries), and geopolitical conflicts continue to undermine forecast reliability.”
There’s plenty for Iluka to keep an eye on, too – Trump pushed his grand tariffs unpause date back to Friday, August 1, while slapping new levies on countries like Japan (25%), Europe (30%), and South Africa (30%).
And, Australia is still under the shadow of 10% U.S. tariffs, for the time being.
South Africa’s levies may prove to be the biggest hurdle for Iluka next year; the U.S. imports as much as 50% of its zircon sands from South Africa. (Titanium dioxide feedstocks and rare earth oxides remain exempt for now.)
Thanks to all that “uncertainty” and how much may still change, Iluka deemed it wiser to skip sharing guidance for zircon sales and any pricing for the next quarter.
More market news
Meet GeoGeorge: The HotCopper poster so accurate he got hired as an analyst
‘TACO’ in action: Trump has turned into the boy who cried tariffs
With that in mind, Iluka said it will “continue to be disciplined and remains well-positioned to respond to a broad range of market conditions.” Once things have settled, it will re-examine FY26 guidance for shareholders.
ILU has been up around +2.7% today, selling at $5.32 a share.
Join the discussion. See what HotCopper users are saying about Iluka Resources Ltd and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
