Citi downgrades Australia's Iluka Resources as co refrained from providing Q3 sales forecast

Iluka Resources

24/07/2025 24:31

** Citi downgrades rating on Iluka Resources ILU.AX to neutral/high risk from buy/high risk

** ILU refrained from providing a forecast for zircon sales volumes or pricing for Q3 in its Q2 review, citing concerns from tariffs

** "ILU is aware that some competitors have reduced prices for Z products in China by ~$100/t in Q3" — Citi

** Brokerage says Q2 realised zircon price was down 7% at US$1,692/t on last quarter, and it’s not clear that zircon prices have bottomed out

** Says June-quarter mineral sand revenue of A$289 million ($190.68 million) was broadly in line with estimates, but zircon/rutile/synthetic rutile sales of 133kt were 5% below

** However, Citi revises up CY25 underlying profit estimate by 8% to A$171 million and raises price target to A$5.30

** Nine analysts rate the stock "buy" on average; median price target is A$5.45 — data compiled by LSEG

** YTD, stock up 6.7% as of last close

($1 = 1.5156 Australian dollars)

(Reporting by Jasmeen Ara Shaikh in Bengaluru)

((JasmeenAraIslam.Shaikh@thomsonreuters.com))