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Iluka Resources Ltd (ASX:ILU) has seen its profit fall by a third – to $231 million – during 2024, compared to $343 million the year before.
The main reason, the company today argued, was that earnings from its mineral sands business contracted and the company faced higher inflation conditions.
Mineral sands EBITDA for mineral sands had been 18% lower in 2024, to $477 million. Revenue for this sector was $1.1 billion, down 9% from $1.2B the previous year.
The company’s final dividend (fully franked) was unchanged at 4cps.
Managing director and CEO Tom O’Leary said solid markets had enabled Iluka to remain on track, although cost pressures had been a factor.
“Stable markets in 2024 enabled Iluka to maintain operational and pricing discipline and achieve sound margins,” he said.
“In parallel, we further progressed the transition underway in the company’s mineral sands business; and delivered funding certainty for our rare earths diversification.
He continued: “Inflation in Australia was persistent, which impacted our cost environment. By electing to run our mines at capacity, we optimised unit costs and maintained Iluka’s ability to service the premium zircon market, where demand is stronger.”
Iluka shares have been trading at $4.68.
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