ILUKA RESOURCES LIMITED — Earnings Release 2024

Feb 18, 2025

ILUKA RESOURCES LIMITED (ASX:ILU) AUSTRALIAN SECURITIES EXCHANGE NOTICE

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19 February 2025

2024 Full Year Results

Key features

Key financials

Safety

• Serious Potential Injury Frequency Rate 3.3 (FY 2023: 3.6)

• Total Recordable Injury Frequency Rate at 3.8 (FY 2023: 2.4)

Mineral sands revenue

$1,129m

Operational and marketing discipline maintained; market conditions stable; pricing relatively strong

Sound margins despite cost environment

Mineral sands EBITDA margin

42%

Mining settings at capacity to optimise units costs and maintain availability of key products and ilmenite feedstock

SR2 operated at capacity

Group NPAT

$231m

Balranald project on track for commissioning H2 2025

Eneabba rare earths refinery fully funded, commissioning scheduled for 2027

Final dividend of 4cps, fully franked; full year dividend of 8cps

Net cash (excluding non-recourse net debt)

$90m

2024 Full year results teleconference details

9:00am (AEDT) 19 February 2025. Participants must register through the participant link below.

Participant pre-registration link:

https://register.vevent.com/register/BI6394a69f828b40bdb6e0f118ee7b5821

Dial in details and instructions will be provided in the confirmation

email received upon registering.

This release uses non-IFRS information including, for example EBITDA and net debt. Refer to slide 28 of the accompanying ASX release, 2024 Full Year Results presentation, for a reconciliation of these items to relevant statutory measures.

Iluka Resources Limited • ABN 34 008 675 018 • Level 17 240 St Georges Terrace Perth WA 6000 GPO Box U1988 Perth WA 6845 • T +61 8 9360 4700 • F +61 8 9360 4777 • www.iluka.com

Managing Director’s commentary

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Stable markets in 2024 enabled Iluka to maintain operational and pricing discipline and achieve sound margins. In parallel, we further progressed the transition underway in the company’s mineral sands business; and delivered funding certainty for our rare earths diversification.

Global macroeconomic conditions dictated activity levels in the construction and real estate sectors, which in turn drove customer buying behaviour in both the zircon and titanium markets. Iluka’s separated zircon sand sales volumes were higher than had been expected at the beginning of the year and concentrate sales reflected available production.

The sales contracts we have in place for synthetic rutile continued to provide a high degree of revenue certainty, underpinning production from our main synthetic rutile asset, SR2. The implementation of tariffs on Chinese imports in Europe and other regions – considered favourable to Iluka’s customers – is expected to impact trade flows from H1 2025. Several pigment producers are anticipating improved market conditions in 2025, which would in turn be positive for titanium feedstock demand.

Inflation in Australia was persistent throughout the year, 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. The company has built ilmenite inventory to ensure feedstock is available for a future restart of our swing synthetic rutile asset, SR1, when market conditions warrant.

Our new mine development at Balranald is well advanced and on track for commissioning in H2 2025. Over a 10 year mine life, Balranald will provide 60ktpa of natural rutile, 50ktpa of high quality zircon and concentrate feedstocks to support the production of synthetic rutile and rare earths. Each of these commodities are crucial in the context of declining industry supply.

Progress was also made on the Wimmera project, where our definitive feasibility study is focused on the WIM100 deposit – one of several multi-decade sources of rare earths and zircon that Iluka is looking to develop in Western Victoria. At an earlier stage of development, Iluka has declared a resource estimate for the Goschen South deposit, further demonstrating the long-life potential of this region.

In December, we announced an expansion of the Australian Government’s $1.25 billion non-recourse loan facility to $1.65 billion to deliver the Eneabba rare earths refinery. This strategic partnership represents one of the most significant government investments in a critical minerals project globally.

Iluka’s objective is to deliver sustainable value and we expect our rare earths business to underpin this over several decades. With the capital structure for Eneabba now certain, the principal drivers of realising that value are project delivery, operational performance, market development and maturing additional feedstock options to secure longevity. These are our key priorities in rare earths.

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Results summary

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	Units	Full year 2024	Full year 20231	% Change
Mineral sands revenue	$m	1,129	1,238	(9%)
Mineral sands EBITDA	$m	477	582	(18%)
Mineral sands EBITDA margin	%	42	47	(11%)
Share of profit in associate (Deterra)	$m	22	27	(19%)
Underlying Group EBITDA2	$m	499	609	(18%)
Group EBIT	$m	356	492	(27%)
Profit for the period (NPAT)	$m	231	343	(33%)
Operating cash flow	$m	252	347	(27%)
Free cash flow – Mineral sands3	$m	(157)	(69)	128%
Free cash flow – Group3	$m	(288)	(160)	80%
Final dividend – fully franked	cps	4	4
Full year total dividend – fully franked	Cps	8	7
		31 Dec	30 June
		2024	2024
Net (debt) cash (excluding non-recourse debt)	$m	90	305	(70%)
Non-recourse net debt	$m	(205)	(151)	36%
Reported Group net (debt) cash	$m	(115)	154	(175%)

This document was approved and authorised for release to the market by Iluka’s Managing Director.

Investor and media enquiries

Luke Woodgate General Manager, Investor Relations and Corporate Affairs Mobile: + 61 (0) 477 749 942

Email: luke.woodgate@iluka.com

1 From FY24, corporate support functions (e.g. People, IT, Procurement, Communities etc.) that directly support operations recharge a proportion of their functions’ costs to production costs. Cost figures for FY23 have been restated for comparative purposes.

2 Underlying group EBITDA excludes non-recurring adjustments including impairments and changes to rehabilitation provisions for closed sites, which are non-cash in nature.

3 Free Cash Flow is determined as cash flow before refinance costs, proceeds/repayment of borrowings and dividends paid in the period

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