ANNUAL
REPORT
2024
DELIVER
SUSTAINABLE
VALUE
ABOUT THIS REPORT
ILUKA IS COMMITTED TO OPEN AND
TRANSPARENT ENGAGEMENT WITH
ITS STAKEHOLDERS
This Annual Report is a summary of Iluka Resources’ and its
subsidiaries’ operations, activities and financial position as
at 31 December 2024. Currency is expressed in Australian
dollars (AUD) unless otherwise stated.
This Report includes Iluka's Sustainability reporting, guided
by the Global Reporting Initiative Framework.
Current and previous reports are available on the company’s
website at www.iluka.com. Iluka is committed to reducing
the environmental footprint associated with the production
of the Annual Report, and printed copies are only posted to
shareholders who have elected to receive one.
FORWARD LOOKING STATEMENT
This document contains certain statements which constitute
‘forward-looking statements’. While these forward-looking
statements reflect Iluka’s expectations at the date of this
report, they are not guarantees or predictions of future
performance or statements of fact and readers are cautioned
against relying on them. Further information regarding
forward-looking statements in this Annual Report is provided
on page 156.
This document contains non-IFRS financial measures
including cash production costs, non-production costs,
mineral sands EBITDA, underlying Group EBITDA, EBIT, free
cash flow, and net debt amongst others. These non-IFRS
measures are not subject to audit or review, however, a
reconciliation of the measures to Iluka’s statutory accounts is
provided on page 21.
CONTENTS
About Iluka Resources
1
Financial and operational review
14
Financial report
48
Physical, financial and corporate information
142
ABOUT THIS
REPORT
ABN 34 008 675 018
Iluka Resources Limited Annual Report 2024 1
Iluka Resources Limited (Iluka or the company)
is a global critical minerals company with
expertise in exploration, project development,
mining, processing, marketing and
rehabilitation.
THE COMPANY’S
OBJECTIVE IS
TO DELIVER
SUSTAINABLE
VALUE
With more than 70 years’ industry experience,
Iluka is a leading producer of zircon and high-
grade titanium feedstocks (rutile and synthetic
rutile).
Via the company’s development of Australia’s
first fully-integrated rare earths refinery at
Eneabba in Western Australia, Iluka is set
to become a globally material supplier of
separated rare earth oxides.
Iluka’s products are used in an array
of applications including technology,
construction, medical, lifestyle, defence and
industrial uses. As the world moves towards a
more sustainable future, Iluka’s high-quality,
Australian critical minerals products are in
increasing demand.
Alongside the company’s Australian
production base and development pipeline,
Iluka has a globally integrated marketing
network.
Exploration activities are conducted both
within Australia and internationally and Iluka
is actively engaged in the rehabilitation of
previous activities in the United States and
Australia.
Headquartered in Perth, Western Australia,
Iluka is listed on the Australian Securities
Exchange (ASX). Iluka holds a 20% stake
in Deterra Royalties, the largest ASX-listed
resources-focused royalty company.
ABOUT ILUKA
RESOURCES
FOR MORE INFO PLEASE VISIT
ILUKA.COM
Above: Iluka's Echo site in Victoria was mined from 2009 to 2012; rehabilitation is 97%
complete and the land has been returned to cropping and grazing purposes.
Cover: Iluka's Jacinth-Ambrosia operations.
2 Iluka Resources Limited Annual Report 2024
OUR
PRODUCTS
ZIRCON
Iluka is one of the world’s largest producers of
zircon. From premium-grade zircon to zircon-in-
concentrate, Iluka delivers quality products to a
wide range of customers around the world utilising
its well-developed logistics and distribution
capabilities. Main applications for Iluka's zircon
include ceramics, refractory, foundry, and
zirconium chemicals.
Zircon is a high-performing whitener, stable and
non-reactive at high temperatures, and resistant
to chemical attack, abrasion and corrosion.
Zircon's key derivatives such as zirconia materials
are highly resistant to thermal shock, highly
biocompatible, extremely hard, and provide
differentiated functional properties to many
applications.
TITANIUM DIOXIDE
Iluka is a leading producer of synthetic rutile,
an upgraded, value-added form of the mineral
ilmenite. The company also produces natural
rutile. Collectively, these products are referred to
as high-grade titanium dioxide feedstocks, due
to their high titanium content. Primary uses are in
the manufacturing of pigment, titanium metal and
welding.
Titanium and titanium dioxide are favoured for
their high strength to weight ratio, high melting
point, corrosion and chemical resistance,
biocompatibility, high refractive index and UV
blocking abilities (absorption and reflection).
RARE EARTHS
Iluka has established a significant position in rare
earths elements. Rare earths are essential inputs
to defence systems, electric and hybrid vehicles,
robotics, renewable energy, consumer, industrial
and agricultural applications.
The strong outlook for these applications is
expected to drive growing market demand for
Iluka’s rare earth oxides, particularly neodymium,
praseodymium, dysprosium and terbium.
Global rare earth production is highly
concentrated, which creates inherent risks.
Iluka’s Eneabba refinery in Western Australia is
an important step in increasing the resilience of
global rare earths supply chains.
OTHER
Iluka recovers and markets products produced as
part of its processing activities, including activated
carbon, gypsum and iron concentrate.
Iluka Resources Limited Annual Report 2024 3
FOR MORE INFO PLEASE VISIT
ILUKA.COM
OUR
LOCATIONS
Iluka's production is located exclusively in Australia. The company has a global marketing network
and is conducting rehabilitation activities in Australia and at former mine sites in the United States.
AUSTRALIA
WESTERN AUSTRALIA
Narngulu processing
Cataby mining and concentrating
Capel synthetic rutile processing
South West deposits (Tutunup)
Corporate support centre
Rehabilitation
SOUTH AUSTRALIA
Jacinth-Ambrosia mining and
concentrating
Jacinth-Ambrosia satellite
deposits (Atacama, Typhoon,
Sonoran, Tripitaka)
Rehabilitation
Corporate support centre
NEW SOUTH WALES
Balranald project
Euston deposit
VICTORIA
Wimmera project
Hamilton processing (idle)
Rehabilitation
GLOBAL
UNITED STATES
Marketing and distribution
Rehabilitation
EUROPE
Marketing and distribution
ASIA
Marketing and distribution
4 Iluka Resources Limited Annual Report 2024
THE VALUE OF OUR
CRITICAL MINERALS
INDUSTRIAL
Zircon and zirconia refractories find key uses in
high temperature and specialist kilns, furnaces
and moulds, due to excellent stability at high
temperatures and corrosive environments, such as
in steel, high alloys and glass manufacturing.
FABRICATION
Welding accounts for five to 10 percent of titanium
feedstock end use markets via its usage within the
fluxes of Shielded Metal Arc, Flux Cored wire and
Submerged Arc used in general construction and
manufacturing to more specialised aspects like
shipbuilding and pipeline construction. Zircon is
a key refractory material for producing cast metal
components through sandcasting and precision-
casting techniques. These metal components
are used in a range of applications, including
automotive, industrial and aerospace.
AUTOMOTIVE
Titanium, zircon and rare earths are required
for vehicles in the brake linings/pads, parking
sensors, oxygen sensors, engine management
systems, paint, catalytic converters, electrics and
rubber products. Rare earths are used in catalytic
converters and electric vehicles, enabling lighter
and more efficient motors.
CERAMICS
More than 50% of all zircon produced
globally is used in the production of
ceramics where it provides whiteness,
strength and corrosion resistance.
AEROSPACE
Rare earths in alloying agents create high-strength
metals for aircraft engines. Zirconia ceramics are
used to manufacture high-temperature parts for
jet engines. Titanium metal and titanium alloys
are used in critical components within airframe
structures (fuselage frames, wing spars and landing
gears) and engine components (turbine disks and
compressor blades).
CONSUMER ELECTRONICS
Rare earth elements are key to products such as
smartphones, televisions, lasers, rechargeable
batteries and computer hard drives. Zirconia
materials are applied in various electronics, ultra-
tough structural casings for mobile phones, and
new-generation, higher-capacity and safer solid-
state batteries.
Iluka Resources Limited Annual Report 2024 5
DEFENCE
Heavy rare earths are essential in a range of
defence applications, providing magnets with
specialised qualities that include enhanced
thermal resistance. Non-magnetic defence
applications include laser range finders, fibre optic
communications and night vision goggles.
SUSTAINABLE
DEVELOPMENT
TECHNOLOGIES
The magnet rare earths neodymium, praseodymium,
dysprosium and terbium are essential for the
production of ultra-strong permanent magnets
used in the motors that power electric vehicles,
the generators used in wind turbines, and other
sustainable technologies. Dysprosium and
terbium are also valued for their ability to enable
permanent magnets to retain their coercivity at high
temperatures.
PIGMENTS AND
CONSTRUCTION
About 80 to 85 percent of all titanium feedstocks
globally are used to produce pigment for the
manufacturing of paint, plastic, paper and fibre.
Zircon provides corrosion resistance to glass fibres
applied to high-performance concrete for building
construction.
HOME AND PERSONAL
APPLICATIONS
Iluka products are used in light bulbs, dishes,
glasses, clock parts, food colouring, ceramic
knives, pans, toothpaste, cosmetics, medication
coatings, antiperspirants and sunscreens, glass,
and tap faucets.
ENERGY AND
PHOTOCATALYTICS
The properties of titanium dioxide lend themselves
to having the most effective photoactivity, allowing
it to be used as a vital component of anti-
microbial coatings, self-cleaning surfaces, air and
water purification systems. Emerging solar cell
technologies typically use titanium dioxide as the
semiconductor doped with zirconium to increase
efficiency. Zirconia is used as a key component for
solid oxide fuel cells and solid oxide electrolytic
cells.
HEALTHCARE
Zirconia ceramics are used in medical implants and
zirconium-containing sorbents are used in dialysis
systems. Zirconium is ideal for the manufacture of
specialist surgical instruments. Titanium is used
in dental implants, joint replacements, prosthetics
and surgical equipment. Rare earths are found in a
range of applications used for medical diagnoses
and treatment. They offer significant benefits
in various laser technology and imaging, such
as increasing the sensitivity and specificity of
diagnostic pictures in magnetic resonance imaging
machines.
6 Iluka Resources Limited Annual Report 2024
2024 HIGHLIGHTS
FINANCIALS
$1,129m
Mineral Sands revenue
(2023: $1,238m)
42%
Underlying mineral sands
EBITDA margin
(2023: 47%)
$477m
Underlying mineral sands EBITDA
(2023: $582m)
$115m
Net debt (as at 31 December 2024)
(2023: net cash $225m)
MARKETS
& OPERATIONS
496kt
Z/R/SR produced
(2023: 639kt)
475kt
Z/R/SR sold
(2023: 494kt)
OUR PEOPLE
Iluka begins recruitment
for operational roles to
support Balranald critical
minerals development
4.2%
Aboriginal and Torres Strait
Islander peoples in total
Australian workforce
(2023: 4.2%)
SUSTAINABILITY
403 ha
Land rehabilitated
(2023: 353ha)
Iluka plants native seedlings on
80ha of land at North Capel to
generate carbon credits
Iluka enters an important phase in 2025, with the commissioning of the Balranald project and
the construction of the Eneabba project. These major capital developments will provide a strong
future for the company’s mineral sands and rare earths businesses.
ILUKA ENTERS AN IMPORTANT PHASE IN 2025
Second new mining unit
commissioned at Cataby
Eneabba camp works
completed
Balranald construction
camp completed
Peter Smith appointed
as independent Non-
Executive Director
Q2
APR, MAY, JUN
Detailed earthworks begin
at Eneabba rare earths
refinery site
Safe demolition of Mining
Unit 18 at WRP
(in Victoria)
Retirement of Non-
Executive Director
Marcelo Bastos
Q3
JUL, AUG, SEP
2024 YEAR IN REVIEW
Additional financing
support from the Australian
Government to deliver
Eneabba refinery
Power on at the Cataby
9MW solar farm
Operational camp
accommodation units arrive
at Balranald
Chairman Rob Cole retires,
Andrea Sutton acting Chair
Q4
OCT, NOV, DEC
DIVERSIFYING ILUKA'S BUSINESS
The development of the Eneabba refinery marks a key evolution for Iluka,
with the company adding refined rare earth oxides to its critical minerals
product suite. Iluka continued to invest in growth projects throughout 2024.
Iluka Resources Limited Annual Report 2024 7
Q1
SR2 kiln at Capel
restarted after planned
major maintenance
outage
Updated Ore Reserve
estimate for Tutunup
deposit announced
Updated Mineral
Resource estimate
for WIM100 deposit
announced
JAN, FEB, MAR
8 Iluka Resources Limited Annual Report 2024
DEAR SHAREHOLDERS
In 2024 Iluka achieved important milestones
and encountered several challenges.
Your company’s evolution – diversifying
into rare earths and investing in technical
development to sustain and grow production
in Australia – continues to take place against a
complex external backdrop.
Persistent inflation, subdued market conditions
and ongoing geopolitical volatility again
affected our financial performance. NPAT was
$231 million and underlying group EBITDA
was $477 million. While Australia has become
a higher cost jurisdiction, Iluka’s disciplined
approach to operations and pricing preserved
sound margins of 42%, which also benefitted
from a favourable foreign exchange rate. The
company’s mineral sands business ended
the year in a net cash position of $90 million,
while non-recourse net debt associated with
construction of the Eneabba rare earths
refinery was $205 million.
2024 saw over 3.5 billion people – nearly
half the world’s population – take part in
democratic elections, with a notable shift
in political leadership in some key markets.
International fragmentation, combined with
the possibility of some reconfiguration in
trade flows, has heightened the imperative of
governments to derisk reliance on any single
country for the supply of critical minerals. Iluka
is at the forefront of this megatrend through
its development of an Australian rare earths
industry in partnership with the Australian
Government.
In December, we announced an expansion
of the Commonwealth’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.
The basis for Iluka’s investment decision is
twofold: our conviction that our rare earths
business will deliver substantial returns for
shareholders; and a thorough consideration
of the risks associated with the rare earths
industry, with those risks mitigated and shared
appropriately with the Commonwealth.
China currently accounts for approximately
90 percent of all rare earth oxide production
and effectively 100 percent of the key heavy
rare earths. These products are critical
to the future of Western and likeminded
manufacturing, including the automotive,
robotics and defence sectors. Once
operational in 2027, the Eneabba refinery
will produce material quantities of both light
and heavy separated rare earth oxides – the
only fully-integrated facility of its type outside
China.
Iluka’s objective is to deliver sustainable value
and we expect our rare earths business to
embody this over several decades. With the
capital structure for Eneabba now certain,
the principal drivers of that value are project
delivery, operational performance, market
development and maturing additional
feedstock options to secure longevity. The next
two years are pivotal for progress in each of
these areas, alongside our ongoing efforts to
educate stakeholders on what is at present an
opaque and monopolistic market structure.
Of equal importance is the transition underway
in Iluka’s mineral sands business and the
mineral sands industry more broadly.
Global macroeconomic uncertainty in 2024 led
to subdued activity in the construction and real
estate sectors. This affected customer buying
behaviour in both the titanium and zircon
markets. However, prices for Iluka’s zircon
products remained relatively strong, with
separated sand sales volumes higher than
had been expected at the beginning of the
year and concentrate sales reflecting available
production.
In titanium feedstocks, the long-term sales
contracts Iluka has in place for synthetic
rutile continue to provide the company a high
degree of revenue certainty. These contracts,
which currently extend to 2026, underpin
production from our main synthetic rutile asset,
SR2.
We remain focused on operational efficiency
and continue to run our mines at capacity.
This approach optimises unit costs and
maintains Iluka’s ability to service the premium
zircon market, where demand is stronger.
The company has built ilmenite inventory at
Cataby, which ensures feedstock is available
to underpin a future restart of SR1, Iluka’s
swing production asset for synthetic rutile,
when market conditions warrant.
The implementation of tariff arrangements
in Europe favourable to our customers is
expected to impact trade flows in 2025,
with other tariff and trade impacts also
possible. Structural change is taking place
in the pigment industry and several pigment
producers are anticipating improved market
conditions in 2025, which would in turn be
positive for titanium feedstock demand.
As we have conveyed previously, the
operations that have sustained the mineral
sands industry over the past two decades
are all in the process of depletion and grade
decline. This includes Iluka’s Jacinth-Ambrosia
mine, which is approaching the end of its life
in 2028.
With industry supply of high-quality zircon and
high-grade titanium feedstocks likely to remain
constrained, Iluka has invested in technical
development to unlock new deposits in our
portfolio previously considered uneconomic.
The Balranald project in New South Wales and
the Wimmera project in Victoria exemplify this
investment focus.
Significant progress has been made at
Balranald, where Iluka will deploy a novel,
remotely-operated, underground mining
technology at commercial scale for the first
time. This enables the commercialisation of
a high-grade deposit which, at 60 metres
below the surface, would not be viable through
traditional extraction techniques.
CHAIRMAN’S AND MANAGING DIRECTOR’S
REVIEW
ILUKA'S OBJECTIVE IS TO DELIVER SUSTAINABLE
VALUE AND WE EXPECT OUR RARE EARTHS BUSINESS
TO EMBODY THIS OVER SEVERAL DECADES
Iluka Resources Limited Annual Report 2024 9
Over a 10-year mine life, Balranald will provide
60ktpa of natural rutile (returning Iluka to a
leading position in the industry’s most supply
constrained commodity); 50ktpa of high-
quality zircon (which is key in the context
of grade decline at Jacinth-Ambrosia);
and concentrate feedstocks to support the
production of value-added synthetic rutile
and rare earths (at our processing facilities at
Capel and Eneabba respectively).
Commissioning is set for the second half
of 2025.
Over the longer term, Iluka’s underground
mining technology has the potential to unlock
other deep deposits beyond Balranald, with
the dual benefit of substantially reduced
environmental disturbance. In time it may also
be applicable to mining other commodities,
conceivably delivering Iluka a revenue stream
from licensable intellectual property.
Additional progress was made on the
Wimmera project, where our definitive
feasibility study (DFS) is focused on the
WIM100 deposit – one of several large sources
of rare earths and zircon that Iluka is looking to
develop in western Victoria.
Wimmera will provide decades of feedstock
for the Eneabba refinery, including material
volumes of highly valuable heavy rare earths.
Options to process Wimmera’s zircon are
being matured in parallel, with the project
important to the future sustainability of the
zircon industry.
At an earlier stage of development, Iluka has
declared a resource estimate for the Goschen
South deposit, which is proximate to WIM100,
further demonstrating the long-life potential
of western Victoria as a significant critical
minerals province.
Additional progress on projects included
the Tutunup development, with that DFS
scheduled for completion in 2026.
Iluka’s project pipeline is vital to the company’s
future. Each of our current and future mineral
sands mines will contribute rare earth minerals
as feedstock for the Eneabba refinery; and
the refinery in turn aids the economics of
those mines through the value uplift achieved
by converting their rare earth minerals to
separated oxides. This is a unique offering that
is key to our competitive advantage.
The company’s ability to fund capital
developments in the mineral sands business
is the result of prudent balance sheet
management over many years. We have a
demonstrated record of drawing down on our
large commercial facilities to fund new mines
before paying down that debt quickly once
operations commence. This will continue to be
Iluka’s approach as we enter our next capital
investment phase. The highly-flexible nature
of the Australian Government’s loan to fund
Eneabba will see the debt associated with our
rare earths business treated differently, with
expected high gearing levels that are non-
recourse to Iluka (such that the mineral sands
business is quarantined from that debt).
Capital and operational intensity means
greater levels of activity, demanding
constant vigilance in relation to safety and
environmental stewardship. In 2024, we
achieved a decrease in our Serious Potential
Injury Frequency Rate to 3.3; a Total
Recordable Injury Frequency Rate of 3.8
(an increase driven largely by hand and trip
injuries); and rehabilitated 400 hectares of land
across the portfolio.
Board changes during the year included the
retirements of Rob Cole and Marcelo Bastos
and the appointment of Peter Smith, who
brings over 40 years of industry experience.
On behalf of the Board, we again extend our
gratitude to Rob and Marcelo for their service
to Iluka.
Thank you for your ongoing support.
ANDREA
SUTTON
Acting Chair
TOM O'LEARY
Managing Director
and CEO
TOM O'LEARY
Managing Director & CEO
ANDREA SUTTON
Acting Chair
10 Iluka Resources Limited Annual Report 2024
FINANCIAL
SUMMARY
Note:
2020-2021 results include Sierra Rutile Limited, which
was demerged from the Group in August 2022.
$1,129 M
MINERAL SANDS
REVENUE
$477 M
UNDERLYING MINERAL
SANDS EBITDA
UNDERLYING
NPAT
$231 M
849.4
581.8
633.9
342.0
1,532.7
1,238.3
1,485.8
947.0
1,128.5
476.9
2024
2023
2022
2021
2020
2024
2023
2022
2021
2020
599.6
343.3
321.3
230.6
2024
2023
2022
2021
2020
MINERAL SANDS REVENUE
Iluka’s mineral sands revenue in 2024 was
$1,129 million.
Total zircon sales reached 230 thousand
tonnes for the year, with a notable 165
thousand tonnes of premium and standard
zircon sand, 12% higher than the previous
year. Zircon-in-concentrate (ZIC) sales
contributed 65 thousand tonnes, representing
all available production. While total volumes
were robust, the weighted average realised
zircon premium and standard price for the
year was 9% lower than 2023. The Group’s
disciplined marketing approach has limited
the price decline recorded for the company’s
products, while balancing the need to meet
customers’ needs and deliver sales revenue.
Iluka's synthetic rutile sales in 2024 were
consistent with contractual commitments,
with a total of 200 thousand tonnes sold,
aligning with volumes under Iluka’s take-or-
pay agreements. Natural rutile sales reached
45 thousand tonnes for the year, including
HyTi. Demand for rutile and HyTi remained
stable despite increased competition from
lower-priced exports from China, as imported
concentrates continue to be processed and
sold.
UNDERLYING MINERAL
SANDS EBITDA
Underlying mineral sands EBITDA was $477
million. The mineral sands business continued
to generate strong EBITDA margins of 42%
(2023: 47%).
NET PROFIT AFTER TAX
Iluka reported NPAT of $231 million.
Challenging economic conditions continued
throughout 2024. Management took advantage
of opportunities early in the year to place
greater than had been anticipated volumes
of zircon into the market at attractive pricing
and demonstrated discipline in its approach
in responding to generally subdued demand
for products over the year and reducing costs
through a targeted review. NPAT included an
earnings contribution of $22 million from Iluka’s
20% interest in Deterra Royalties.
111.0
Iluka Resources Limited Annual Report 2024 11
FOR MORE INFO PLEASE VISIT
ILUKA.COM
Note:
2020-2021 results include Sierra Rutile
Limited, which was demerged from the
Group in August 2022.
$(115) M
NET CASH/(DEBT)
ROE AND ROC
10% 22%
$(288) M
FREE CASH
FLOW
33%
89%
17%
42%
26%
69%
10%
22%
284%
311%
484.2
307.6
294.8
50.2
90.4
(205.0)
(82.2)
4.4
2024
2023
2022
2021
2020
444.3
(159.6)
299.5
36.3
(288.1)
2024
2023
2022
2021
2020
2024
2023
2022
2021
2020
ROE
ROC
Mineral Sands
Eneabba Refinery
FREE CASH FLOW
During 2024, the company built heavy mineral
concentrate (HMC) inventory, particularly
magnetic (ilmenite bearing) concentrate
produced at Cataby mine, which will underpin
the future restart of the SR1 kiln. This decision
also helps balance the need for non-
magnetic HMC (zircon and rutile bearing) to
satisfy sales demand alongside optimising
operating costs. This, combined with subdued
market conditions, led to an operating
cash flow of $252 million. Iluka remains
focused on delivering sustainable value and
demonstrating supply discipline.
Iluka’s 20% stake in Deterra Royalties
generated a further $31 million of cash flow,
which is fully distributed to Iluka’s shareholders
in accordance with Iluka’s dividend framework.
Capital expenditure was $434 million. This
included approximately $160 million spent
on the Eneabba rare earths refinery and
approximately $190 million on Balranald;
approximately $20 million was spent on
feasibility studies including Wimmera, Euston,
and South West deposits; $6 million on the last
of the SR2 major maintenance work; and the
remainder on sustaining capital expenditure.
In addition, a further $10 million was spent on
advancing critical research and development
of earlier stage studies, including zircon
purification, metallisation study, and other
mineral sands opportunities that do not
yet qualify as capital expenditure and are
captured within operating cash flows.
Total tax payments of $129 million include $34
million for 2023 final tax payments, paid in the
first half of 2024. Iluka expects minimal tax
payments will be necessary in 2025 related to
the 2024 financial results.
As a result of continuing significant capital
investment, especially on the Eneabba
refinery and Balranald mineral sands mine,
the company had a free cash outflow of $288
million during 2024, compared to a free cash
outflow of $160 million in 2023.
NET CASH (DEBT)
As at 31 December 2024, Iluka’s mineral sands
business remained in a net cash position of
$90 million, compared to $308 million at 31
December 2023.
As expected, the gearing levels for the rare
earths business unit continued to increase,
with a net debt position of $205 million at 31
December 2024, up from a net debt position of
$82 million last year.
ROE AND ROC
Iluka reported return on equity of 10% and
return on capital of 22%, reflecting continued
positive operational results despite the
subdued markets.
12 Iluka Resources Limited Annual Report 2024
ILUKA DECLARED A FULL YEAR DIVIDEND OF
4 CENTS PER SHARE, FULLY FRANKED, FOR 2024
DEBT FACILITIES MATURITY PROFILE
MINERAL SANDS
As at 31 December 2024, Iluka’s mineral
sands business unit had debt facilities of $930
million. This comprised:
• $800 million Multi Option Facility
Agreement (MOFA) being a series of
committed five-year unsecured bilateral
revolving facilities with several domestic
and foreign institutions. The MOFA is
denominated in AUD and matures in
May 2029. There were $10 million of
debt drawings under the MOFA at year
end. There was $39 million of the facility
committed for bank guarantees under the
facility; and
• $130 million dedicated bank guarantee
facility, of which $118 million was
committed.
The mineral sands business unit had a net
cash balance of $90 million.
RARE EARTHS
As at 31 December 2024, the rare earths
business unit had a $1,250 million non-
recourse loan facility from the Australian
Government (administered by Export Finance
Australia) to construct the Eneabba refinery,
with a term of up to 16 years expiring in 2038,
against which $249 million was drawn down at
year-end.
Iluka agreed to an expansion of the non-
recourse loan of $400 million on 6 December
2024, and the final loan documentation was
finalised post-year end, resulting in the rare
earths business unit now having access to
$1,650 million of non-recourse debt from
the Australian Government. Access to the
additional $400 million facility is subject to
securing offtake agreements satisfactory to
the Australian Government. Iluka announced
the details of this additional funding in ASX
announcement Eneabba Rare Earths Refinery
Positive Outcome of Funding Discussions
dated 6 December 2024.
The rare earths business unit had a net debt
position of $205 million at 31 December 2024.
As a result, the Group had a net debt position
of $115 million at 31 December 2024. Note 15
of Iluka’s Financial Report provides details of
the maturity profile and interest rate exposure.
DIVIDEND FRAMEWORK
Iluka’s dividend framework is to pay 100% of
dividends received from Deterra Royalties
and pay a minimum of 40% of free cash flow
from the mineral sands business not required
for investing or balance sheet activity. The
company also seeks to distribute the maximum
franking credits available.
During the year, Iluka paid a fully franked
interim dividend of 4 cents per share and has
declared a full year dividend of 4 cents per
share, fully franked, for 2024.
HEDGING
Iluka manages a portion of its foreign
exchange risk via a foreign exchange hedging
program.
The Group entered into the following hedging
contracts in 2024:
• US$496 million in foreign exchange collars
consisting of US$496 million of bought AUD
call options with weighted average strike
prices of 68.6 cents and US$496 million
of sold AUD put options with weighted
average strike prices of 63.4 cents.
In addition, the following hedging contract
matured during the year:
• US$199 million in foreign exchange collar
contracts consisting of US$199 million of
bought AUD call options with weighted
average strike prices of 69.8 cents and
US$199 million of sold AUD put options
with weighted average strike prices of 63.6
cents.
Iluka has US$455 million in foreign exchange
collar contracts in relation to expected
USD revenue from contracted sales to 31
December 2026 which remain open as at 31
December 2024, which are detailed in Note 21
of Iluka’s Financial Report.
800
2025
2026
2027
2028
2029
2030+
0
200
400
600
800
1000
1200
1400
1600
1800
1,650
2025
2026
2027
2028
2029
2030+
0
200
400
600
800
1000
1200
1400
1600
1800
MOFA maturity profile
Eneabba refinery non-recourse
loan facility maturity profile
STRATEGY AND
BUSINESS MODEL
The Iluka Plan outlines the company’s purpose, core, direction and values.
It is the reference point that guides strategic and business decisions.
OUR CORE
We are an
GLOBAL CRITICAL
MINERALS COMPANY
with expertise in exploration, development,
mining, processing, marketing and
rehabilitation.
OUR
DIRECTION
-
NEAR TERM
DELIVER TO
GROW OUR
FUTURE
EXECUTE
our projects
EXCEL
in our core
MATURE
operations
OUR DIRECTION
-
LONGER TERM
GROW WHERE WE
CAN ADD VALUE
Critical minerals opportunities
and diversification
OUR VALUES
Act with
INTEGRITY
Demonstrate
RESPECT
Show
COURAGE
Take
ACCOUNTABILITY
COLLABORATE
OUR VALUES.
Integrity
Respect
Courage
Accountability
Collaboration
THE ILUKA PLAN
OUR PURPOSE.
TO DELIVER SUSTAINABLE VALUE.
The company aims to achieve this by:
• ensuring the safety, health and wellbeing of our employees;
• optimising shareholder returns through prudent capital management and allocation;
• developing a robust business that can maintain and grow returns over time;
• providing a competitive offering to our customers;
• managing our impact on the environment;
• supporting the communities in which we operate; and
• building and maintaining an engaged, diverse and capable workforce.
Iluka Resources Limited Annual Report 2024 13
14 Iluka Resources Limited Annual Report 2024
FINANCIAL AND
OPERATIONAL
REVIEW
IN THIS SECTION
Financial results
16
Sales and markets
18
Production and operations
19
Projects
24
Exploration
28
Sustainability report
30
Business risk management
43
Iluka Resources Limited Annual Report 2024 15
THE FUTURE OF CRITICAL MINERALS
Iluka Managing Director Tom O'Leary spoke at the 2024 AFR Mining
Summit about the company's role in catalysing an independent
Australian rare earths industry.
Photo credit: Trevor Collens
16 Iluka Resources Limited Annual Report 2024
INCOME STATEMENT ANALYSIS
$ million
Full Year
2024
Full Year
2023
%
Change
Z/R/SR revenue
1,043.4
1,143.2
(8.7)
Ilmenite and other revenue
85.1
95.1
(10.5)
Mineral sands revenue
1,128.5
1,238.3
(8.9)
Cash costs of production
(644.0)
(660.5)
(2.5)
By-product costs
(16.4)
(11.2)
46.4
Inventory movement - cash costs of production
179.9
185.8
(3.2)
Idle capacity charges
(35.3)
(23.0)
53.5
Government royalties
(35.1)
(47.1)
(25.5)
Marketing and selling costs
(32.5)
(27.4)
18.6
Asset sales and other income
0.9
23.9
(96.2)
Major projects, exploration, and innovation
(40.0)
(52.3)
(23.5)
Corporate and other costs
(48.6)
(42.6)
14.1
Foreign exchange
19.9
(2.1)
n/a
Underlying mineral sands EBITDA
477.3
581.8
(18.0)
Share of profit of associate
21.5
27.3
(21.2)
Underlying Group EBITDA
498.8
609.1
(18.1)
Depreciation and amortisation
(192.2)
(167.8)
14.5
Inventory movement - non-cash production costs
48.2
51.7
(6.8)
Rehabilitation costs for closed sites
5.2
4.3
20.9
Gain/(loss) on revaluation of investments
(4.5)
(5.0)
(10.0)
Group EBIT
355.5
492.3
(27.8)
Net interest and bank charges
6.5
12.3
(47.2)
Rehabilitation unwind and other finance costs
(36.7)
(33.1)
(10.9)
Profit before tax
325.3
471.5
(31.0)
Tax expense
(94.0)
(128.9)
(27.1)
Profit for the period (NPAT)
231.3
342.6
(32.5)
Average AUD/USD rate for the period (cents)
66.0
66.5
(0.8)
FINANCIAL
RESULTS
FOR MORE INFO PLEASE VISIT
ILUKA.COM
Photo above: Iluka's North Capel operations include two synthetic rutile kilns.
Iluka Resources Limited Annual Report 2024 17
MOVEMENT IN UNDERLYING NPAT
$ million
Full Year
2024
Full Year
2023
%
Change
NPAT
231.3
342.6
(32.5)
Non-recurring adjustments:
Rehabilitation for closed sites - Total (post tax)
(5.2)
(4.3)
(20.9)
Revaluation of Northern Minerals
4.5
5.0
(10)
Underlying NPAT
230.6
343.3
(32.8)
Note: 2023 comparatives have been adjusted for updated corporate allocation methodology that came into effect on 1 January 2024. See page 21 for a reconciliation of prior year corporate
cost allocations.
Sales commentary is contained on page 18.
Exchange rate variances relate to AUD:USD
translation of sales, which are predominantly
sold in USD currency. The Australian dollar
was highly volatile again in 2024, with a range
from 69.2 cents to 62.1 cents. On average,
the exchange rate was 66.0 cents for 2024,
compared to a similar average in 2023 of 66.5
cents. Due to timing of sales, the Group’s
Australian dollar revenue benefitted from
exchange differences compared to 2023. The
Group hedges a portion of its USD sales to
assist in managing exchange rate exposure,
which is detailed on page 12 of this report.
Cash costs of production decreased by
3% from the prior year on lower production
resulting in lower transport costs from Jacinth-
Ambrosia and lower synthetic rutile costs as
SR1 remained offline for 2024, though this
was offset by higher coal, power, and labour
costs. While inflation continues to flow through
the cost base, the increases have noticeably
slowed as stability returns to input costs.
Unit cost of goods sold increased to $1,190
per tonne compared to $1,127 per tonne in
2023.
This predominantly reflected inflationary
pressure on production costs, a shift in
product mix, as well as higher Jacinth-
Ambrosia HMC costs on lower grade and
recovery. In addition, there were higher
depreciation and amortisation charges as
depreciation started on new assets, such
as the Cataby mining units, as well as on
increased asset carrying values, mainly
associated with rehabilitation and restoration
requirements at Cataby and Jacinth-Ambrosia.
Idle, restructure, disposals, and other
amounts decreased year-on-year as 2023
reflected a $27 million gain on the sale of US
fixed assets to Atlantic Strategic Minerals.
The variance was further increased by higher
idle costs and depreciation for the SR1 kiln,
which remained offline in 2024 as the Group
manages synthetic rutile supply given market
conditions.
Corporate cost reflects expenses to operate,
govern and grow the business. Higher costs
compared to the prior year were primarily
driven by spend on support costs for the major
capital projects underway, most significantly
in preparation for operation of the Eneabba
refinery. The Group announced a restructure
of the support functions which was executed in
December 2024, and will reduce 2025 spend
on support costs.
Marketing and selling costs increased year-
on-year due to a variety of reasons including
increased royalties, and lower net freight
and warehouse recoveries from customers
compared to the prior period.
Major projects, exploration, and
innovation spend continued to focus on
supporting innovation and R&D in critical
minerals production, identifying and defining
new mineral sands and rare earths mining
opportunities, and supporting delivery of the
mineral sands capital projects and growth
studies.
Tax expense had an effective tax rate of 29%
in 2024. The equity-accounted profit for the
Group’s investment in Deterra Royalties is not
assessable and the dividends received were
fully franked, resulting in an effective tax rate
lower than the corporate tax rate. The tax rate
applicable in Australia remained at 30%.
Rehabilitation unwind and other costs
increased slightly on rehabilitation provision
increases for Cataby and Jacinth-Ambrosia,
but primarily due to lower interest income
as cash balances were drawn down to fund
capital expenditure programs.
$m
350
300
250
200
150
100
50
0
31 December 2023
Price
Volume
Mix
FX
Ilm & by-prod
Unit COGS
Idle & other
Major Projects
Deterra
Corporate Services
Net finance costs
Royalties
Tax
31 December 2024
343
(18)
(23)
(24)
3
12
(5)
(6)
(9)
(75)
35
(48)
12
35
231
18 Iluka Resources Limited Annual Report 2024
SALES AND
MARKETS
ZIRCON
Iluka's total zircon sales of 230 thousand
tonnes for the year were down 2% from 2023.
Sales included 65 thousand tonnes of zircon-
in-concentrate.
In China, the housing market remained
challenged for much of the year, negatively
impacting the demand for ceramics. Although
the Chinese Government introduced different
measures to stabilise the domestic economy,
these had limited impacts on the real estate
market until later in the year, when signs of
stabilisation began to emerge.
The reliance on conventional economic drivers
such as infrastructure and manufacturing is
giving way to a more consumption-driven
strategy. Still, the effects of this transition, and
more recent stimulus, will take time to manifest.
In Europe, despite the weak economy in the
first half, zircon demand from ceramics was
stable; but then slowed following the traditional
summer holidays. In the US, industrial activity
was stable during 2024, with a stronger
economy than expected. Indications are that
growth will strengthen in 2025 with positive
implications for zircon demand.
In India, the production of tiles and foundry
products continued to grow, despite tile
exports being impacted by anti-dumping
measures and lower domestic demand due to
the hiatus in construction as a result of general
elections. Indian producers remain positive
that despite the export hurdles stemming from
anti-dumping regulations, producers will be
able to leverage India's competitive cost and
quality benefits in new export markets.
Zircon prices did soften in the second half of
2024 due to intense competition from China's
domestic zircon sand production (ie sand
produced from imported concentrates) and
the actions of major competitors who made
significant price reductions in Q4. Prices for
premium grade zircon sand (Iluka’s primary
offering) have been more resilient.
Customers remain alert to the evolving
economic and political landscape and were
reluctant to hold inventories at year-end.
However, as demand recovers, Iluka is well-
positioned to support customers’ underlying
consumption and the inevitable inventory
re-stocking.
Iluka's weighted average price for zircon
sand (premium and standard) in 2024 was
US$1,882 per tonne.
HIGH-GRADE TITANIUM
FEEDSTOCKS
Iluka’s total sales of high-grade titanium
feedstocks totalled 245 thousand tonnes,
down 5% from 2023. This included 45
thousand tonnes of rutile sales and 200
thousand tonnes of synthetic rutile sales, the
latter under take-or-pay contracts.
Ongoing economic and geopolitical
uncertainty surrounding the conflicts in
Ukraine and the Middle East, high interest
rates and persistent inflation continued to
dampen consumer spending in 2024. This, in
turn, negatively affected demand for quality-
of-life products containing titanium dioxide.
Pigment producers had initially expected 2024
to see a return to normal demand patterns
during the peak northern hemisphere spring
and summer paint seasons.
However, the anticipated uptick did not
materialise. New home construction and
existing home re-sales remained low,
particularly in the important North American
market on the back of high borrowing costs.
As a result, titanium dioxide plant operating
rates were reduced in Q2 2024 and remained
constrained until Q4, when some producers
began to rebuild pigment inventories in
preparation for 2025.
Pigment producers anticipate a gradual
recovery in demand throughout 2025, as
downstream consumers seek to replenish
depleted supply chains. Strong housing
demand in the US, coupled with China's
trillion-dollar stimulus, is expected to provide
a significant boost to underlying demand.
Additionally, the recently implemented anti-
dumping tariffs in Europe, along with pending
duties in Brazil, India, and other regions, are
expected to benefit non-Chinese producers,
many of whom are consumers of Iluka’s
synthetic rutile.
Rutile demand from the welding market
remained stable throughout 2024, driven by
increased infrastructure spending in emerging
economies and a rise in shipbuilding activity.
Demand for titanium metal also remained
robust, with the aerospace industry outpacing
production capacity.
In response to market conditions, Iluka made
the decision to service its synthetic rutile sales
commitments from inventory and production
from SR2, keeping the second kiln (SR1) offline
for all of 2024. A decision to restart SR1 will be
evaluated based on future market conditions.
Iluka's average rutile and synthetic rutile prices
for the year were US$1,694 and US$1,205 per
tonne, respectively.
The macroeconomic and geopolitical uncertainty that characterised 2023 continued into 2024, with no clear catalyst to lift consumer confidence and
ultimately lead to an increase in demand for Iluka’s core products of zircon and titanium dioxide feedstocks. The lack of clarity on the demand outlook
was reflected in many customers’ approaches to purchase only what was required for consumption in the short- term. This resulted in a supply imbalance
of many mineral sands products, except for premium grade zircon, which Iluka estimates to be either in balance or undersupplied.
ILUKA TOOK ACTION TO PROTECT PRODUCT VALUE AND
MARGINS, WHILE BALANCING THE NEED TO SUPPORT
CUSTOMER NEEDS AND DELIVER SALES REVENUE
Photo above: Titanium dioxide is used as a pigment in the manufacture of paint, plastic, paper and fibre where, in addition to being a non-toxic
whitener, it also provides UV and chemical resistance. The wide range of end applications for pigment include house and car paints,
laminates, plastic pipes and packaging, inks, clothing, sunscreen, toothpaste and make-up.
Iluka Resources Limited Annual Report 2024 19
PRODUCTION
AND OPERATIONS
MINERAL SANDS
Iluka’s Mineral Sands segment comprising
all its mining and processing operations
are located in South Australia and Western
Australia. The company is committed to safe
and sustainable operations and strives to
optimise production to meet market demand
while continuously driving operational and
technical excellence.
Iluka’s operations produced 227 thousand
tonnes of zircon, 58 thousand tonnes of rutile,
and 211 thousand tonnes of synthetic rutile.
The Cataby mine in Western Australia
produced 616 thousand tonnes of heavy
mineral concentrate, up 26% from 2023 as the
mining units were fed higher grades, in line
with the mine plan.
Mining and concentrating at Jacinth-Ambrosia
in South Australia produced a total of 260
thousand tonnes of heavy mineral concentrate,
down from 2023 as ore grade was lower for
2024 in line with the planned mining sequence
as well as lower runtime due to a planned
outage in Q2 2024.
The Narngulu mineral separation plant in
Western Australia processed 434 thousand
tonnes of heavy mineral concentrate from
Cataby and Jacinth-Ambrosia. Narngulu
was offline for six weeks at the beginning of
2024, restarting in mid-February. The SR2
synthetic rutile kiln in Capel delivered 211
thousand tonnes of production in 2024, with
the kiln coming back online from a planned
major maintenance outage in late January
2024. SR1 production was idled in October
2023 in response to weaker market conditions
and remained offline in 2024, in line with the
operating rationale for this asset as a swing
producer in the high-grade feedstock market.
Note: 2020-2021 volumes include Sierra Rutile Limited, which was demerged from the Group in August 2022.
ZIRCON
Production volumes (kt)
298.7
327.0
227.2
324.2
185.2
2024
2023
2022
2021
2020
RUTILE
Production volumes (kt)
55.1
52.7
57.8
196.6
172.6
2024
2023
2022
2021
2020
SYNTHETIC RUTILE
Production volumes (kt)
237.6
259.5
211.2
198.7
227.4
2024
2023
2022
2021
2020
ILMENITE
Production volumes (kt)
591.4
460.6
398.1
563.7
455.9
2024
2023
2022
2021
2020
Photo above: The Jacinth-Ambrosia operation encompasses mining and wet concentration activities, producing heavy mineral
concentrate which is then transported to Iluka's Narngulu mineral separation plant in Western Australia for final processing.
Production (kt)
Full Year
2024
Full Year
2023
% Change
Zircon
227.2
327.0
(30.5)
Rutile
57.8
52.7
9.7
Synthetic rutile
211.2
259.5
(18.6)
Total Z/R/SR production
496.2
639.2
(22.4)
Ilmenite
398.1
460.6
(13.6)
Total Mineral Sands Production
894.3
1,099.8
(18.7)
HMC produced
951
898
5.9
HMC processed
752
909
(17.3)
Cash costs of production, excluding ilmenite and by-products ($m)
644.0
660.5
(2.5)
Unit cash cost per tonne of Z/R/SR produced excluding by-products ($/t)
1,298
1,035
25.4
Unit cost of goods sold per tonne of Z/R/SR sold ($/t)
1,190
1,127
5.6
20 Iluka Resources Limited Annual Report 2024
IDLE OPERATIONS
Discontinued and idle operations reflect rehabilitation obligations in the United States (Florida and Virginia) and certain idle assets in Australia (Murray
Basin). Iluka completed the sale of some US idle plant and mining claims and the associated rehabilitation obligations to Atlantic Strategic Minerals in
2023.
MOVEMENT IN NET (DEBT)/CASH
FY 2024
H1 2024
H2 2024
FY 2023
H1 2023
H2 2023
Opening net cash
225.4
225.4
154.4
488.7
488.7
342.9
Operating cash flow
252.1
189.2
62.9
346.7
227.6
119.1
Exploration
(12.1)
(7.2)
(4.9)
(18.8)
(9.8)
(9.0)
Interest (net)
12.1
7.0
5.1
17.2
9.0
8.2
Tax
(128.8)
(76.2)
(52.6)
(255.5)
(183.2)
(72.3)
Capital expenditure - Mineral Sands
(271.7)
(123.8)
(147.9)
(160.7)
(55.4)
(105.3)
Principal element of lease payments
(8.6)
(3.4)
(5.2)
(8.4)
(4.3)
(4.1)
Asset sales
0.2
0.2
-
10.1
0.6
9.5
Free cash flow - Mineral Sands
(156.8)
(14.2)
(142.6)
(104.6)
(25.7)
(78.9)
Dividends received - Deterra
30.8
15.8
15.0
30.5
12.7
17.8
Eneabba Rare Earths - Capital expenditure
(162.1)
(48.7)
(113.4)
(120.7)
(52.6)
(68.1)
Free cash flow - Group
(288.1)
(47.1)
(241.0)
(159.6)
(55.4)
(104.2)
Dividends
(33.6)
(16.7)
(16.9)
(97.0)
(84.4)
(12.6)
Net cash flow
(321.7)
(63.8)
(257.9)
(256.6)
(139.8)
(116.8)
Exchange revaluation of USD net debt
(2.0)
1.0
(3.0)
(0.6)
0.2
(0.8)
EFA facility costs capitalised to refinery
(0.2)
(0.1)
(0.1)
(0.0)
(4.0)
4.0
EFA interest capitalised to refinery
(12.9)
(5.4)
(7.5)
(5.3)
(1.8)
(3.5)
Amortisation of deferred borrowing costs
(3.2)
(2.7)
(0.5)
(0.9)
(0.4)
(0.5)
Increase in net (debt)/cash
(340.0)
(71.0)
(269.0)
(263.3)
(145.8)
(117.5)
Closing net (debt)/cash
(114.6)
154.4
(114.6)
225.4
342.9
225.4
Iluka Resources Limited Annual Report 2024 21
NON-IFRS FINANCIAL INFORMATION
Mineral
Sands
Rare
Earths
Idle
Total
Operations
Non-operating
(Corp & Other)
Group
Mineral sands revenue
1,128.5
-
-
1,128.5
-
1,128.5
Freight revenue
41.8
-
-
41.8
-
41.8
Expenses
(611.1)
-
(15.5)
(626.6)
(37.7)
(664.3)
Share of profits in associate
-
-
-
-
21.5
21.5
FX
-
-
-
-
19.9
19.9
Corporate costs
-
-
-
-
(48.6)
(48.6)
EBITDA
559.2
-
(15.5)
543.7
(44.9)
498.8
Depn & Amort
(188.2)
-
(0.9)
(189.1)
(3.1)
(192.2)
Inventory movement - non-cash
48.2
-
-
48.2
-
48.2
Rehabilitation for closed sites
2.2
-
3.0
5.2
-
5.2
Revaluation on investments
-
-
-
-
(4.5)
(4.5)
EBIT
421.4
-
(13.4)
408.0
(52.5)
355.5
Net interest costs
(0.7)
-
-
(0.7)
7.2
6.5
Rehab unwind and other finance costs
(30)
-
(3)
(33)
(3.7)
(36.7)
Profit before tax
390.7
-
(16.4)
374.3
(49.0)
325.3
Segment result
390.7
-
(16.4)
374.3
n/a
325.3
CASH AND CASH EQUIVALENTS RECONCILIATION
$m
FY 2024
FY 2023
Cash and cash equivalents
(per condensed consolidated statement of financial position)
136.0
364.9
Non-current Interest bearing liabilities
(250.6)
(139.5)
Closing net (debt)/cash
(114.6)
225.4
RECONCILIATION OF PRIOR YEAR CORPORATE COST ALLOCATIONS
Effective 1 January 2024, the Company updated its corporate cost allocation methodology to better reflect operational performance by further
distributing corporate costs that are directly attributable to running each operation. To facilitate meaningful year-on-year comparisons, the 2023
figures presented in this Financial and Operational Review have been adjusted to align with the new allocation approach. This adjustment is limited to
the Financial and Operational Review section and is intended to provide readers with a clearer understanding of underlying business performance,
unaffected by changes in cost allocation practices. A reconciliation for the 2023 figures to the published results in the 2023 Annual Report is below.
2024 Group Segments
$m
Mineral
Sands
Rare
Earths
US/MB
Total
Operating
Non-operating
(Corp & Other)
Group
Previously published
underlying EBITDA
723.1
-
13.0
736.1
(127.0)
609.1
Reallocated corporate costs
based on updated drivers:
Cash costs of production
(55.3)
-
-
(55.3)
(55.3)
Marketing and selling costs
(7.3)
-
-
(7.3)
7.3
-
Corporate and other costs
-
37.1
37.1
Major projects, exploration,
and innovation
-
-
-
-
8.9
8.9
Inventory movement
12.2
-
-
12.2
-
12.2
Idle capacity charges
(1.4)
-
(1.5)
(2.9)
(2.9)
Total reallocated costs
(51.8)
-
(1.5)
(53.3)
53.3
-
Underlying EBITDA
671.3
-
11.5
682.8
(73.7)
609.1
A STRONG TRACK RECORD
Iluka has a long history of working collaboratively with local
communities across Australia, including in western Victoria,
to successfully restore land. This site at the former Douglas
mine is now 80% rehabilitated.
22 Iluka Resources Limited Annual Report 2024
Iluka Resources Limited Annual Report 2024 23
2024 PROJECT PIPELINE
Resource development activities being undertaken by Iluka include projects across Australia, technical innovation and a global exploration program.
SELECT
Preliminary
Feasibility Study
Determine what it should be
DEVELOP
Definitive
Feasibility Study
Determine what it will be
MURRAY
BASIN
Euston (paused)
Wimmera
Resource
Reserve
Processing facilities
PRODUCING
Operate and
maximise
Grow and improve
EUCLA
BASIN
Jacinth-
Ambrosia
satellite
deposits
Jacinth-
Ambrosia
PERTH
BASIN
Tutunup
Capel
Narngulu
Cataby
EXECUTE
Production
execution
Deliver the project
Balranald
Eneabba
24 Iluka Resources Limited Annual Report 2024
PROJECTS
Beneficiation plant at Eneabba.
ENEABBA
Iluka is building Australia’s first fully-
integrated refinery for the production of
separated rare earth oxides, including
neodymium, praseodymium, dysprosium
and terbium.
This is taking place via a strategic
partnership between Iluka and the
Australian Government, with a non-
recourse loan to Iluka under the Critical
Minerals facility administered by Export
Finance Australia.
In December 2023, Iluka announced that
the estimated capital cost to build the
refinery had increased to $1.7-1.8 billion.
This resulted in a funding gap, which was
the subject of discussions between Iluka
and the Australian Government in 2024.
Iluka and the Australian Government
reached agreement on an updated funding
package in December 2024. This includes
a further $400 million contribution from the
Commonwealth (increasing the total non-
recourse loan to $1.65 billion) and a further
$214 million cash equity contribution
from Iluka (increasing the total equity
contribution to $414 million). In addition,
Iluka and the Australian Government have
agreed to establish a $150 million cost
overrun facility, which would be contributed
on a 50/50 basis (noting the government’s
contribution is recourse).
During 2024, long lead procurement,
engineering, equipment, fabrication
and site works contract packages were
tendered and awarded, with this process
continuing in 2025. The upgrade of the
water bore and pipework infrastructure
was completed, while detailed earthworks
began in August. Various non-process
infrastructure upgrades, including high
voltage powerlines and office building
upgrades, continued during Q4.
Construction of the workforce
accommodation village was completed in
April 2024. The village was named ‘Ngulya’,
meaning Black Cockatoo in Wilunyu/
Amangu.
Commissioning of the refinery is expected
in 2027. In parallel, Iluka continues
to progress a feasibility study into
metallisation – the next stage in the rare
earth value chain. This work is expected to
be completed in 2026.
AUSTRALIA'S FIRST
FULLY-INTEGRATED
RARE EARTHS
REFINERY
Eneabba, Western Australia
The following is a summary of all projects that are in a Definitive Feasibiltiy Study or Execute phase.
Iluka Resources Limited Annual Report 2024 25
Construction at Balranald remains on track for commissioning in H2 2025.
BALRANALD
Located in south western New South
Wales, the West Balranald deposit is one of
the world’s highest grade critical minerals
deposits, containing significant quantities
of rutile and zircon, as well as smaller but
material quantities of rare earths. With the
deposit located at 60 metres below the
surface and within a hyper-saline water
table, traditional extraction techniques
were not deemed economically or
technically feasible. Iluka has therefore
developed a new remotely-operated
underground mining technology to access
the deposit.
The final investment decision to develop
the mine was made in February 2023.
Heavy mineral concentrates will be
produced onsite and transported to the
company’s processing and refining assets
in Western Australia. Final products will
include natural rutile, synthetic rutile,
premium grade zircon, and primary and
secondary ilmenites. Balranald’s rare
earths will serve as an important source of
incremental feed for the Eneabba refinery,
demonstrating the complementary nature
of Iluka’s mineral sands and rare earths
businesses.
Following receipt of primary and secondary
approvals, Iluka commenced early works
on site in H2 2023. Construction of the
mine, processing plant and supporting
infrastructure, including the site access
road and workforce accommodation
village, is now well underway.
The mining units and modular concentrator
will be transported to site and assembled
in H1 2025. All construction contracts have
been awarded, with contractor mobilisation
aligning with module delivery.
Balranald remains on track for
commissioning in H2 2025.
BALRANALD
WILL DELIVER
APPROXIMATELY
250 JOBS DURING
CONSTRUCTION AND
APPROXIMATELY
270 JOBS DURING
OPERATION,
INCLUDING
CONTRACTORS
Balranald, New South Wales
26 Iluka Resources Limited Annual Report 2024
PROJECTS
Surface water monitoring is being undertaken as part of the Wimmera project and will inform the Environment Effects Statement.
This monitoring point is located in the Jallumba Marsh Nature Conservation Reserve.
WIMMERA
Located in western Victoria, the
Wimmera project involves the mining and
beneficiation of the WIM100 deposit, a fine
grained heavy mineral sands ore body,
for the long-term supply of zircon and rare
earths.
A definitive feasibility study for the project
began in early 2023, alongside the
declaration of an Ore Reserve in respect of
the rare earths within the WIM100 deposit
(zircon revenue is not yet accounted for in
Wimmera’s Ore Reserve).
If executed, the Wimmera project will
unlock a multi-decade source of rare earth
minerals, including the heavy rare earths
dysprosium and terbium, as feed for the
Eneabba refinery.
In 2024, Iluka made further progress on
the project’s definitive feasibility study,
completing all fieldwork, finalising the
process flow sheet, and advancing
processing solutions for Wimmera zircon.
Studies to inform the project’s Environment
Effects Statement (EES) are well advanced.
Iluka expects to submit the EES to the
Victorian Government for assessment in
2026.
Selection of the major engineering service
provider is expected in H1 2025, following
which more detailed engineering will
commence.
Subject to regulatory and Board approvals,
pre-construction activities could
commence in 2028.
Wimmera, Victoria
Iluka Resources Limited Annual Report 2024 27
Situated close to the North Capel processing facility, the Tutunup mine will form part of the company’s south west operations.
TUTUNUP
The Tutunup project is focused on the
development of a chloride ilmenite deposit
in the south west of Western Australia. It
is located 20km from Iluka’s North Capel
processing facility.
The Tutunup deposit contains significant
quantities of high-quality ilmenite, with
associated volumes of zircon and rutile.
Ilmenite from Tutunup will be used as
a feedstock for Iluka’s synthetic rutile
production and may unlock additional
value across the company’s portfolio if
blended with other, lower quality ilmenites.
A definitive feasibility study for the
project began in H2 2023 and continued
throughout 2024, during which time
opportunities to extend the mine-life were
identified.
Detailed engineering, based on the new
life-of-mine plan, is due to commence in
H1 2025. Studies to inform the project’s
Environmental Review Document are
progressing.
Tutunup’s definitive feasibility study is
scheduled for completion in 2027.
Tutunup, Western Australia
28 Iluka Resources Limited Annual Report 2024
GENERATION
AND EXTERNAL
OPPORTUNITIES
Iluka identifies opportunities within Australian
and North American jurisdictions to
complement and enhance the company’s
existing project pipeline. Iluka continues to
focus on traditional mineral sands prospects,
while also expanding into rare earth
exploration search spaces.
AUSTRALIA
In Australia, activity primarily centred around
increasing geological definition of mineral
resources associated with operations and
feasibility studies in South Australia, Victoria,
New South Wales and Western Australia.
Regional exploration was also completed
in Queensland as part of the Hughenden
greenfields project, across south western
New South Wales, and the Northern Territory
as part of the Supplejack greenfields project.
Across Australia, a total of 1,770 holes for
55,559 metres were drilled.
In South Australia, drilling to improve
resource definition was completed at the
Jacinth Extension, and the geological and
metallurgical assessment programs aligned
to the project’s preliminary feasibility study. At
Ambrosia, drilling was completed to support
mine optimisation studies and metallurgical
assessment programs. A total of 208 holes for
7,537 metres were drilled across the sites.
In Victoria, drilling was undertaken at the
Douglas mine site as part of scoping studies
that commenced in 2024. A total of 398 holes
for 6,490 metres were drilled across the site.
Drilling and sampling activities were also
carried out in support of the feasibility studies
at Wimmera in Victoria and Tutunup in Western
Australia.
At Cataby, drilling was undertaken as part of
normal life of mine, future-pit definition and
resource extension activities. A total of 606
holes were completed for 21,931 metres.
During 2024, the first field mapping and
sampling program for exploration focusing on
hard rock rare earths was completed in the
Northern Territory. The field work focussed on
the identification of key geological features in a
largely underexplored region in the territory.
UNITED STATES
In the United States, exploration activity
focused on drill testing underexplored target
sediment packages, shown during the 2023
Georgia Embayment program, to host high
value heavy mineral (HM) assemblages.
Targets selected in rural areas confirmed the
presence of excellent grades of the targeted
monazite and zircon within the HM, at shallow
depths. This has directed the drilling focus to
specific areas where scale and continuity will
be tested in 2025. In total, 195 holes for 5,392
metres were drilled.
In December 2024, an Exploration Agreement
with Option to Purchase was agreed with
Megado Minerals Limited in respect of the
North Fork Rare Earth Project, whereby Iluka
was granted exclusive exploration rights
over the claims in exchange for a A$500,000
payment (plus claim maintenance fees).
Iluka was also granted a two-year option
(extendable under certain circumstances) to
acquire the claims for A$1 million.
Iluka will make a further payment of A$2 million
within 30 days of Iluka receiving US$10 million
in revenues from the first sale of product
from the project after commencement of
commercial production (Iluka may convert this
obligation to a 2% gross revenue royalty).
Iluka’s exploration portfolio is managed through a structured process that considers a range of technical and economic factors. Near mine exploration
seeks to add value in areas adjacent to Iluka’s existing assets, where synergies can deliver additional value through mine-life extension or progressive
development. New mine exploration focuses on identifying high-quality mineralisation that can deliver a new operation and longer-term growth. Please
refer to the Ore Reserves and Mineral Resources Statement on page 148.
EXPLORATION
Photo above: The view from an exploration site in the Tanami Desert, Northern Territory.
Iluka Resources Limited Annual Report 2024 29
GRANTED TENEMENT POSITION
as at 31 December 2024
State
Approx .Square Kilometres
QLD
5,906
NT
2,703
SA
12,536
NSW
3,718
Vic
1,487
WA
1,919
Total
28,269
TENEMENT APPLICATIONS
as at 31 December 2024
State
Approx .Square Kilometres
QLD
723
NT
2,057
WA
1,852
Total
4,632
EXPLORATION AND GEOLOGY EXPENDITURE 2024
$2,895,365
Operations and
project support
$989,170
Opportunity ID
$5,365,305
Australian exploration
$87,218
International exploration
$4,485,257
US and Canada
$13.8M
TOTAL
Exploration and
Geology expenditure
TENURE POSITION
30 Iluka Resources Limited Annual Report 2024
SUSTAINABILITY
REPORT
SUSTAINABILITY AT ILUKA
Iluka’s goal is to be a safe, responsible and
sustainable supplier of critical minerals. To
achieve this, Iluka prioritises three pillars:
1. Trusted by our people and
communities:
To engage and build the capability of
Iluka’s workforce, prioritising health, safety
and wellbeing, and embed a consistent
and open approach to relationships with
the communities in which Iluka operates.
2. Responsible for our environment:
To be cognisant of the impact of Iluka’s
operations on the environment and
maximise the efficiency with which the
company operates.
3. Operate in and provide products
for a lower carbon world:
To recognise that the manner in which Iluka
operates and evolves its business can
reduce the company’s carbon footprint
and provide opportunities to support the
transition to a lower carbon economy.
Iluka is committed to practical integration
of sustainability into everyday business
practices and to the continuous
improvement of the company’s
sustainability performance. Underpinning
the company’s approach is Iluka’s
commitment to transparency, behaving
ethically and conducting business in
accordance with high standards of
corporate governance through fit-for-
purpose systems and processes. Iluka’s
approach to sustainability is guided by
recognised principles and frameworks,
and contributes to the advancement, of the
United Nations Sustainable Development
Goals.
GOVERNANCE
AND ASSURANCE
The Iluka Board Sustainability Committee
assists the Board in reviewing progress
made against the sustainability strategy.
Responsibilities include oversight of
performance and compliance with legislation
and management of health, safety,
environmental, social and governance risks
and impacts. The Committee also monitors the
effectiveness of company strategies, policies
and standards as they relate to sustainability.
This year, KPMG Australia was engaged to
provide the Directors of Iluka with assurance
on scope 1 and 2 greenhouse gas emissions.
REPORTING OUR
PERFORMANCE
This report summarises Iluka’s performance
for material topics determined by the 2024
sustainability materiality assessment, as
outlined in the separate 2024 Sustainability
Data Book. The company’s approach to
managing the material topics, case studies,
and the Sustainability Data Book outlining
key performance information for 2024 and
historical reporting periods are available
at www.iluka.com. Iluka reported using
guidance from the GRI Standards for the
period 1 January 2024 to 31 December 2024.
Refer to the GRI content index in the 2024
Sustainability Data Book.
KPMG INDEPENDENT LIMITED
ASSURANCE STATEMENT
Scope of information subject
to assurance
KPMG was engaged by Iluka Resources to
undertake limited assurance over scope 1
and 2 greenhouse gas emissions presented
in Iluka’s Annual Report and Data Book for
the year ended 31 December 2024. KPMG’s
limited assurance opinion outlining the
information subject to assurance and the
procedures performed is available at www.
iluka.com.
Photos (this page): For more than 50 years, Iluka has worked with landowners to successfully restore land.
Iluka Resources Limited Annual Report 2024 31
HEALTH, SAFETY AND WELLBEING
Protecting the safety, health, and
wellbeing of Iluka’s people is the
company’s highest priority.
Iluka focuses on creating a culture where all
employees are leaders in promoting a safe
working environment. This includes identifying,
assessing, and controlling risks, reducing the
potential for occupational illness and injury,
and promoting healthy lifestyles. The results
of the 2024 Employee Engagement Survey
confirmed that employees agree Iluka is a safe
place to work, reporting they feel comfortable
stopping work if they identify anything unsafe
(94% of employees who responded).
In 2024, Iluka launched its Switched On
program, which advocates that “safety isn’t
about protecting employees from something,
but for something”. The program incorporates
a standardised pre–start focusing on
consistent discussion and treatment of
critical risk, broader risk identification and
management, and how preparations for work
are made each day. This program supports
Iluka’s commitment to its teams, recognising
the need for cooperative efforts to drive
continual improvements in work, health and
safety performance.
The company has continued to embed its
Critical Control Management (CCM) program
to mitigate fatality risk across operations. CCM
system improvements included improved
electronic accessibility for both employees
and contractors, including offline functionality
for remote teams. The improvements enable
immediate visibility of CCM performance data,
while reducing the administration burden
(from a previous paper-based approach).
Operational and project teams completed
more than 9,500 Critical Control Checks and
4,500 Critical Control Verifications.
Iluka's TRIFR increased to 3.8 in 2024 from
2.4 in 2023. This was largely driven by
hand/finger and slips/trips injuries. Data
analysis of the 16 injuries in 2024 has been
completed with specific programs targeting
injury areas commencing in 2025. During the
year the Jacinth-Ambrosia operations safely
transitioned their earthmoving contractor
without any injuries or SPI.
Iluka has matured its Psychosocial Safety
and Wellbeing program. Focus areas in
2024 included implementation of updated
Behavioural Expectations training including the
role of a bystander and improved workplace
reporting options for all employees. The 2024
Employee Engagement Survey confirmed an
increase in confidence to speak up and report
harassment, bullying or poor behaviours in the
workplace, from an already high level.
IN 2024, ILUKA
LAUNCHED ITS
SWITCHED ON
PROGRAM
TRUSTED BY OUR PEOPLE AND COMMUNITIES
HIGHLIGHTS
3.8
Total Recordable Injury
Frequency Rate (TRIFR)
(2.4 in 2023)
14
Serious Potential Incidents (SPI)
(15 in 2023)
4.2%
Aboriginal and Torres Strait
Islander peoples in total Australian
workforce, including 17% at
Jacinth-Ambrosia
24%
women representation
across workforce
60+
community projects supported
via new Iluka Lends a Hand
grants program
72
Employee Engagement
score maintained
with 88% of employees participating
ILUKA AIMS TO CREATE AN
ENGAGED, DIVERSE, INCLUSIVE
AND CAPABLE WORKFORCE
FOR MORE INFO PLEASE VISIT
ILUKA.COM
32 Iluka Resources Limited Annual Report 2024
OUR PEOPLE
Iluka continues to develop an engaged,
capable and diverse workforce.
Working for Iluka presents the opportunity to
develop a career with an experienced critical
minerals company that is set to become a
globally significant supplier of separated rare
earth oxides.
The company and its subsidiaries employed
more than 1,000 people during 2024 with the
majority of employees based in Australia.
Iluka’s business is supported by a contractor
workforce of approximately 350 people.
During the year Iluka completed a review to
ensure the cost base of the company was
sustainable and aligned with operational
and project delivery objectives. This resulted
in the identification of approximately 130
roles to be removed across operations and
support functions. Support was provided to
impacted employees through Iluka’s Employee
Assistance Program and outplacement
career support services in addition to their
redundancy entitlements.
Iluka continued to invest in developing its
workforce, with 95 leaders commencing one
or more modules from Iluka’s Leadership Skills
series, 15 senior leaders completing the Senior
Leadership Development program, and 22
graduates continuing through their graduate
program. Five technical skills frameworks were
developed, focusing on Iluka’s most critical
technical roles, to identify core competencies
and skills required. A working group was also
formed to give greater focus on bridging skill
gaps across these areas.
In 2024, Iluka established a partnership
arrangement with CoRE Learning Foundation
to further support talent pipelines. This
partnership focuses on promoting STEM
education in Western Australia’s Mid West
region through project-based learning that
incorporates Iluka’s operations and value
chain. Iluka continued its participation in the
Future Female Leaders program to provide
mentoring opportunities to female high school
students in Western Australia, encouraging
more women to pursue STEM and traditionally
male-dominated roles within the mining
industry.
Iluka also continued to offer traineeship
opportunities for students through education
partnerships, including the Clontarf
Foundation and SHINE Academy. Iluka
currently employs four alumni from the Clontarf
Foundation in the Mid West and one alumnus
in the South West. Iluka facilitates stronger
pathways to employment for Aboriginal
and Torres Strait Islander women through
its partnership with the Stars Foundation,
providing support and encouragement to
Aboriginal and Torres Strait Islander women
and girls in their academic endeavours.
The company launched ‘Iluka Star’, a
customised reward and recognition platform
that supports a culture of continuous
recognition and appreciation. Since the
platform’s launch in February 2024, 430
people were nominated by a peer for
demonstrating the Iluka values, 160 people
received an Iluka Star Values Award and 133
people received an ‘on the spot’ Star Award
from their leader.
Iluka continues to prioritise employee
wellbeing by providing support and tools to
assist them both in and outside the workplace.
The Employee Assistance Program provides
confidential counselling services to help
employees and their immediate family
members manage personal and workplace
challenges. Following a review in 2024, Iluka
appointed new providers for its Australian and
overseas workforce to ensure better access
to support for employees and effective critical
incident response services.
ILUKA CONTINUES TO
PRIORITISE EMPLOYEE
WELLBEING
Iluka was proud to be a silver sponsor of the WIMWA Summit 2024, promoting networking, mentoring and career development in the mining industry.
Iluka Resources Limited Annual Report 2024 33
RADIATION
Iluka aims to be recognised and trusted
as an industry leader in radiation
management.
The company is committed to maintaining and
enhancing the technical competencies of its
radiation specialists through formal mentoring
programs, in line with Western Australian
Government requirements. These programs
provide significant support, knowledge
transfer, practical field experience, and
preparation of radiation management plans
and annual reports for regulatory review.
In 2024, Iluka centralised its radiation
management system and published an
updated radiation management standard to
ensure exposures remain within statutory limits
and as low as reasonably achievable (ALARA).
The company revised its internal investigation
systems and established new investigation
levels as outlined in the updated Radiation
Management Group Standard. These levels
trigger swift internal investigations when
exceeded.
COMMUNITIES AND INDIGENOUS RELATIONS
Iluka is proud of its long-standing,
respectful relationships with local
communities and shares the value its
business creates.
Respect for human rights, community benefit-
sharing, and cultural heritage is embedded in
Iluka's values, policies, and standards.
In 2024, key objectives for social performance
included implementing a company-wide social
investment strategy, continuously improving
community engagement approaches, and
implementing the Iluka Indigenous Peoples
Plan.
Iluka remains committed to fostering and
strengthening its relationships with Indigenous
stakeholders. This commitment is underpinned
by the Iluka Indigenous Peoples Policy and
reflected in the Iluka Indigenous Peoples Plan
objectives. In 2024, Iluka
• Commenced a review of its recruitment and
retention practices to emphasise greater
accessibility and cultural safety
• Addressed barriers to inclusion and growth
amongst Indigenous businesses within its
supply chain
• Progressed its approach toward cultural
heritage management through the
development of culturally considerate
procedures
• Advanced the company’s collective
understanding of Indigenous culture,
history and lived experience through
dedicated initiatives
The opportunity to work closely with members
of the Yamatji Southern Regional Council’s
Southern Cultural Committee toward
bestowing a traditional Wilunyu name on the
company’s new camp facility at Eneabba was
a highlight for 2024. The name, ‘Ngulya’, was
chosen by members of the Southern Cultural
Committee in recognition of the camp's layout
and its similarity to the tail feathers of the
local Black Cockatoo species, which is found
throughout the region.
Additional highlights have included Iluka’s
annual celebration of National Reconciliation
Week and NAIDOC Week and regular
engagement with Aboriginal and Torres Strait
Islander students engaged with both the
Clontarf Foundation, Stars Foundation and
SHINE Academy.
In early 2024, Iluka launched the Iluka
Lends a Hand community grants program
to support local projects in five focus areas:
healthy communities, environment, education
and training, community enterprise, and
community safety. Through this program, the
company supported more than 60 community
projects in 2024 across Western Australia,
South Australia, New South Wales and Victoria.
Examples include installing weather monitoring
stations for farmers in western Victoria,
funding new equipment and upgrades for rural
sporting clubs such as cricket pitch irrigation,
improving access to an early-childhood
playgroup in WA’s Mid West, and supporting
the construction of cancer accommodation
units in Mildura.
In total, more than $1.2 million was provided
in community donations, sponsorships and
education partnerships across Australia
in 2024, including $150,000 to the Clontarf
Foundation and Stars Foundation to support
indigenous students’ academic endeavours.
Through a $40,000 donation to Dandelions
WA, Iluka ensured students near its Narngulu
and Capel operations started the year with
necessary school supplies.
The Western Australian Police and
Community Youth Centre's Drive to
the Future program was a key part
of Iluka’s social investment in 2024.
This initiative helps vulnerable and
disadvantaged people in or near
Moora to learn to drive - essential for
accessing education, employment,
and socio-cultural opportunities in
regional Western Australia.
ILUKA’S SUPPORT
ENABLED 156 PEOPLE TO
OBTAIN THEIR DRIVER’S
LICENCE
As part of the company’s commitment to
positive community relations and social
investment, Iluka also supported local and
regional events such as Mildura Field Days,
Sheepvention in Hamilton, Oysterfest in
Ceduna, the Mingenew Midwest Festival,
and Shore Leave Festival in Geraldton.
Iluka continued to engage proactively with
community members at these events and
through information sessions, stakeholder
meetings, and rehabilitation site tours. The
Cataby operation's community open day
attracted more than 300 residents to learn
more about the mineral sands industry and
explore the site.
Iluka supports economic development by
utilising hundreds of local businesses across
Australia. In 2024, the company invested
more than $6 million alone in the economy
surrounding Balranald in New South Wales.
Throughout the year, Iluka's employees
volunteered with youth mentoring
organisations, health service fundraising days,
wildlife rescue centres, and native vegetation
restoration projects. Workplace giving efforts
supported several organisations including the
Royal Flying Doctor Service and Harry Perkins
Institute of Medical Research. The company
continued its support of Foodbank WA with a
$100,000 sponsorship of the Geraldton branch
and volunteer efforts from 40 employees.
The Arapiles South Agriculture Group received an Iluka
Lends a Hand grant to install weather stations.
34 Iluka Resources Limited Annual Report 2024
RESPONSIBLE FOR THE ENVIRONMENT
HIGHLIGHTS
403ha
land rehabilitated
14
Level 3 or greater environmental
incidents (13 Level 3, 1 Level 4)
(an increase from 8 in 2023)
Completed
four-year farmland rehabilitation
campaign at Yoganup Extended
$39m
million spent
on rehabilitation
ILUKA IS COGNISANT OF THE IMPACT OF
ITS OPERATIONS ON THE ENVIRONMENT
ENVIRONMENTAL MANAGEMENT
Iluka is dedicated to preventing
or limiting adverse environmental
impacts, protecting biodiversity, and
sustainably managing water resources.
In 2024, Iluka identified and rectified 11 Level
3 incidents and one Level 4 incident related
to turbid or saline water, reporting them to
the relevant regulatory agencies. In 2023 and
2024, a number of turbid water discharges
related to intense rainfall events coinciding
with the final stages of site rehabilitation, where
mine stormwater infrastructure is removed to
re-establish agriculture. Significant effort was
made by Iluka in 2024 to trial and refine storm
water management during this phase.
Two Level 3 incidents related to vegetation
disturbance were also recorded, which
impacted less than 0.2ha of remnant
vegetation. In both cases, there was no net
increase to impacts on biodiversity compared
with Iluka’s approved disturbance. Iluka’s new
Group Ground and Vegetation Disturbance
Procedure introduced new minimum
requirements for controlling ground-disturbing
activities.
All environmental incidents categorised as
Level 3 or higher were reported to the relevant
regulatory authorities.
To support Iluka’s compliance with regulatory
obligations, an internal environmental
approvals portal was launched, providing
employees with easy access to the company’s
environmental regulatory approvals and
obligations.
A significant achievement this year was the
awarding of an Australian Research Council
Linkage Project grant for collaborative
research on dark diversity with the Harry
Butler Institute at Murdoch University. This
project, involving other mining industry
partners and universities, aims to develop
AI-driven tools for more effective monitoring
of vegetation restoration. These tools will
enhance on-ground decisions and practices
in ecosystem rehabilitation, benefiting both
industry and regulators.
In addition to research initiatives, Iluka
commissioned more than 38,000 hectares
of biodiversity studies in 2024. Conducted
according to regulatory requirements, these
studies help Iluka identify, assess, and
manage potential biodiversity impacts of its
existing or potential future operations.
Water remains essential to Iluka's operations.
Activities affecting water resources are
regulated by legislation with set limits on
extraction and discharges. Total water
consumption in 2024 changed due to
increased requirements at Cataby and project
execution at Balranald.
FOR MORE INFO PLEASE VISIT
Iluka.com
FOR MORE DETAILS, READ ABOUT
ILUKA’S ENVIRONMENTAL
PERFORMANCE IN THE 2024
SUSTAINABILITY DATA BOOK.
Jacinth-Ambrosia sand stack.
Iluka Resources Limited Annual Report 2024 35
TAILINGS
Iluka is dedicated to managing its
tailings storage facilities in a safe and
responsible manner.
Iluka applies a risk-based approach to
minimise or mitigate any potential impacts
on its workforce, local communities, and the
environment. Tailings management practices
and systems are regularly reviewed to
ensure applicable standards are met and
improvement actions completed.
In 2024, document suites based on ANCOLD
(2019)-aligned templates were prepared
to guide and support the management
of operational tailings storage facilities.
Iluka also appointed technical specialists
to provide governance-level oversight of
tailings management practices at these sites.
To support governance-related activities,
existing management systems were amended
to categorise tailings-related incidents
and hazards, identifying opportunities for
management improvement.
REHABILITATION AND CLOSURE
Iluka’s objective is to achieve beneficial
closure outcomes by planning and
executing the rehabilitation and closure
of assets in a manner aligned with
leading practice.
With more than 50 years of experience, Iluka
is proud of its strong track record in mine
rehabilitation and closure.
In 2024, Iluka rehabilitated 403ha globally,
including 390ha in Australia and 13ha in the
United States. This effort limited the increase
in Iluka’s open disturbance area to only 27ha,
despite ongoing mining at Cataby and Jacinth-
Ambrosia and construction at Balranald.
Rehabilitation highlights for 2024 included
the completion of a four-year farmland
rehabilitation campaign at Yoganup Extended
and the recommencement of rehabilitation
for remaining open areas at the Eneabba
West mine. Continued rehabilitation activity
took place at the Douglas mine. At the Capel
Wetlands, Iluka continued revegetation of
wetland and dryland areas. At the WRP site,
Iluka demolished and removed a redundant
mining unit and began rehabilitating a section
of mine pit previously used to store ilmenite
concentrate, with topsoiling and revegetation
to be completed in 2025.
Iluka achieved partial relinquishment of the
North Capel site under the Mining Act 1978,
enabling the implementation of a carbon offset
credit project. This involves converting 80ha of
agricultural rehabilitation land into a biodiverse
forest to generate carbon credits.
Iluka's partnership with Kings Park
Science led to published research
demonstrating that the pollination of
native plants in the company's Eneabba
rehabilitation is equivalent to that in
surrounding natural vegetation. This
finding highlights Iluka's ability to
restore important ecological functions
within rehabilitated areas.
Iluka is a supporting participant in the
Australian Government’s Cooperative
Research Centre program for ‘Transformations
in Mining Economies’ (CRC TiME). This
program commenced in 2020 and enables
sustained research and stakeholder
collaboration into improving mine closure
outcomes. Iluka continued its participation
with TiME, supporting two projects in 2024:
‘Mine Pit Lake Assessment and Management:
A National Initiative to Support Mine Closure
and Regional Opportunities’ and ‘Broadening
NPV through a multi-criteria optimisation
framework’.
FOR MORE DETAILS, READ
ABOUT ILUKA’S APPROACH
TO REHABILITATION AND
CLOSURE IN THE 2024
SUSTAINABILITY DATA BOOK.
A REGISTER OF ILUKA’S
TAILINGS STORAGE FACILITIES
IS AVAILABLE IN THE 2024
SUSTAINABILITY DATA BOOK.
Iluka’s Jacinth-Ambrosia operations.
36 Iluka Resources Limited Annual Report 2024
OPERATE IN AND PROVIDE PRODUCTS FOR A LOWER CARBON WORLD
HIGHLIGHTS
Power on
at the 9MW solar
farm at Cataby mine
Trial run
of diesel additive in diesel
generators at Jacinth-Ambrosia
Successful
validation test work of hydrogen to
produce synthetic rutile
(NewGenSR technology)
Early-stage
evaluation of use of tyre-derived fuels
and biochar as a substitute for coal
80ha
of native plantings completed on Iluka-owned
land at North Capel to generate carbon credits
ILUKA SUPPORTS THE TRANSITION
TO A LOWER CARBON ECONOMY
FOR MORE INFO PLEASE VISIT
Iluka.com
ILUKA’S CLIMATE
CHANGE RESPONSE
Iluka supports the objectives of the Paris
Agreement and is committed to pursuing
the reduction of its carbon footprint and
supporting the transition to a lower carbon
economy through the production of critical
minerals. The company’s ambition is to be
net zero by 2050 where technology is viable,
available and commercially feasible.
Iluka accepts the Intergovernmental Panel on
Climate Change assessment of climate change
science and potential climate change impacts.
Iluka’s position is detailed in its Climate
Change Position Statement.
Iluka recognises that physical and transitional
risks associated with climate change may
affect its business and assets, including
through changing laws and regulation, supply
chains, markets for its products, technologies,
and changing climatic conditions.
These climate statements are structured
around the incoming mandatory Australian
Sustainability Reporting Standard (ASRS)
– Disclosure of Climate-related Financial
Information and draw from the Task Force on
Climate-Related Financial Disclosures (TCFD)
framework that Iluka has reported against in
previous years. The order of the statements
varies from the order as they appear in the
ASRS for the purpose of readability.
CLIMATE GOVERNANCE
Climate change presents both risks and
opportunities for Iluka. To support an effective
response to managing climate-related risks
and opportunities, Iluka has a well-established
governance framework spanning its Board,
Executive and functional teams.
Board oversight of climate-related risk
and opportunities
Iluka’s Board Sustainability Committee
supports the Board in considering Iluka’s
climate-related risks and approach to
climate change. The Committee monitors the
effectiveness, performance and reporting
of Iluka’s climate response and progress
made against objectives in the annual climate
change work program.
Management’s role in assessing and
managing climate-related risks and
opportunities
The Board Sustainability Committee is
informed by an Executive-level Sustainability
Committee. At a working level, alignment
across business functions on climate-related
work is carried out through a climate change
working group, led out of the company’s
Technology function.
New Cataby solar farm
Iluka Resources Limited Annual Report 2024 37
Figure 1. Sources of Iluka’s primary scope 1 and scope 2 emissions in 2024
CLIMATE RISK MANAGEMENT
In 2024, Iluka commenced an updated and more detailed assessment of climate-related risks with the potential to impact its business, covering both
transition and physical risks, over the short-, medium- and long-terms.
This activity was scoped in the context of the emergence of mandatory climate-related financial disclosure requirements in Australia. Work is ongoing
and includes the assessment of climate-related risks under several scenarios, including those prepared by the Network for Greening the Financial
System, the International Energy Agency, and RepuTex.
Approach to climate risk management
Iluka’s approach to managing climate risk is in
accordance with its Risk Management Policy,
operationalised through the Risk Management
Framework, the apex being the Board’s Risk
Appetite Statement of which climate change is
a recognised component.
Climate change risks and opportunities
are also considered in Iluka’s strategic risk
register reviewed by the Board with a focus
on understanding the risk environment and
articulating planned actions to address the
risk. Progress on management of climate-
related risks is regularly reported to Iluka’s
Sustainability Committee and flow-on financial
impacts reviewed through Iluka’s Audit and
Risk Committee.
Management of climate-related risks against
the approved tolerance thresholds in the
Board’s Risk Appetite Statement is also
reviewed and reported to the Audit and Risk
Committee and Sustainability Committee twice
a year.
Transition risks
The work undertaken during the year builds
on Iluka's understanding of the transition risks
identified in prior risk identification processes.
These have been previously disclosed, and
can be found in Iluka’s 2023 Sustainability
Data Book.
Iluka’s primary areas of transition risk relate
to the use of fossil fuels in its operations.
This includes the use of coal as a chemical
reductant in the production of synthetic rutile,
and diesel for mobile fleet and equipment.
These emissions sources account for nearly
three-quarters of Iluka’s total emissions. There
is also an ongoing potential for a disorderly
energy transition that drives unpredictability
in the availability and cost of grid-connected
energy.
Physical risks
In 2024, Iluka commenced a detailed update
of the potential impact of physical risks on
its business, with the support of third-party
experts. That work considered existing
physical risk management on a site-by-site
basis and assesses the impact of key climate
variables, including chronic changes in
temperature, rainfall, sea level rise, fire and
extreme heat days, and acute storm-related
winds and water inundation. These may impact
production assets as well as Iluka’s upstream
and downstream supply chains.
In this context, Iluka continues to engage
closely with its primary asset and business
insurer. Iluka has no exposure to today’s
physical risks associated with climate change
that require further mitigation.
In 2025, Iluka will:
• Finalise its assessment of climate-related
risks in different scenarios and disclose
those findings as part of its mandatory
climate-related financial disclosures in
early 2026
• Continue to develop the Eneabba rare
earths refinery, which seeks to take
advantage of the opportunity presented
by the global energy transition, particularly
in the electrification of vehicles and
renewable energy generation which rely on
rare earths.
6.7 %
Natural gas
26.2%
Diesel
0.1%
Fuels, oil and greases
51.6%
Coal
15.4%
Electricity
SCOPE 1
& SCOPE 2
EMISSIONS
Transition risks
38 Iluka Resources Limited Annual Report 2024
Iluka also considers decarbonisation in the
context of its product offering. Its rare earths
business puts the company at the forefront of
global decarbonisation efforts, through the
supply of its products. It reflects a significant
investment by Iluka and the Australian
Government in seizing the opportunity
presented in the global transition towards
net zero by 2050 to diversify and serve new
markets for products.
When complete, Iluka’s refinery will
produce the key rare earths: neodymium,
praseodymium, dysprosium and terbium.
These rare earths are the building blocks
of a lower carbon economy – essential for
the permanent magnets used in electric
vehicles and wind turbines. These renewable
applications will support the substitution of
traditional internal combustion engines and
energy generation using fossil fuels.
Iluka’s approach to climate change is
supported by an internal shadow carbon price,
a maturing approach to carbon offsets, and
an understanding of the carbon footprint of its
products.
CLIMATE STRATEGY
In light of its identified transition risks, Iluka has developed a response to climate change that focuses on decarbonisation.
Iluka’s decarbonisation plan considers ways to improve energy efficiency across the company’s operations, opportunities
to deploy renewable energy, alternative lower-carbon fuels and technology that may pave the way for step-change
reductions in operational emissions.
Iluka applies the mitigation hierarchy to evaluate its decarbonisation option; the company explores and implements
opportunities to eliminate, reduce and substitute its scope 1 and scope 2 greenhouse gas emissions.
*denotes initiatives that will continue to be evaluated but will not be executed until technically and commercially viable.
ELECTRICITY
• Electrical efficiency
• Narngulu solar*
• Balranald solar/BESS hybrid
• North Capel wind and solar
• Co-generation
• Power purchase agreements
NATURAL GAS
• Coolbrook RotoDynamic Heater™ Technology
FUELS, OIL
AND GREASES
COAL
• Tyre derived fuel
• Biochar
• NewGen SR*
• Kiln natural gas*
• Kiln heat recovery*
DECARBONISATION
INITIATIVES
ADDRESSING
PRIMARY
SOURCES
OF SCOPE 1
AND SCOPE 2
EMISSIONS
DIESEL
• Vehicle fuel burn optimisation
• Bio- and renewable diesel*
• Battery-electric mobile fleet*
Iluka Resources Limited Annual Report 2024 39
Iluka’s decarbonisation options to be actively pursued in 2025
MONITOR
For technical and/or
commercial viability
SELECT /
DEVELOP
What could it be?
What should it be?
ASSESS
Scoping studies
INITIATE
Opportunity
identification
ONGOING
Continual improvement
EXECUTE
Deliver the project
ENERGY
EFFICIENCY
RENEWABLE
ENERGY
ALTERNATIVE
LOWER-
EMISSIONS
FUELS
TECHNOLOGY
STEP-CHANGE
2025
Electrical co-generation
from process waste heat
Energy from natural gas
to generate electricity
Kiln heat recovery
(refractory lining
upgrade)
Process and vehicle
fuel burn optimisation
Electrical efficiency of
plant equipment
Mine optimisation software
PPAs with offsite
renewable generators
Narngulu solar
North Capel wind
and solar
Balranald solar/BESS
hybrid
Biochar and tyre-derived
fuels as substitute for
coal in SR kiln
Bio- and renewable
diesel for mobile fleet
SR kiln natural gas for
process heat
Battery-electric
mobile fleet
NewGenSR technology
to displace use of coal
through use of hydrogen
as a reductant in
production of synthetic
rutile
Coolbrook RotoDynamic
Heater™ Technology
(Process heat generation
via electrification)
Iluka routinely seeks out new and emerging decarbonisation opportunities
40 Iluka Resources Limited Annual Report 2024
Energy efficiency
Iluka’s Carbon and Energy Standard guides
its operations in the monitoring of energy
use and greenhouse gas emissions and
considers ways to reduce emissions and
improve efficiency. This includes through
CORE, Iluka’s continuous improvement
program, which provides a framework for
employees to identify, evaluate and implement
improvements, including those related to
emissions reduction opportunities. Energy
efficiency opportunities identified are
progressively implemented to help reduce
Iluka’s emissions intensity, where technically
and commercially viable.
In 2024, Iluka
• Undertook a trial of diesel additives in the
diesel generators at its hybrid diesel-
solar renewable power plant at Jacinth-
Ambrosia. The trial demonstrated a very
limited efficiency improvement (<1%) from
the use of an additive. As a result, Iluka
will not pursue the continued technical
evaluation of diesel additives at this time
• Commenced a trial of mine scheduling
software at Cataby to optimise its mine
planning process and vehicle fuel burn.
If successful, the trial will pave the way
for further use of the software at other
operations
• Evaluated the use of a more heat
efficient refractory product for its kiln.
The abatement cost for this was not as
competitive as other initiatives on Iluka’s
margin abatement cost curve and so will
not be pursued further at this time
• Revisited evaluations of energy efficiency
opportunities, including for process control
loops and draw power efficiency on pumps
In 2025, Iluka plans to
• Finalise the trial of mine scheduling
software at Cataby and assess opportunity
to deploy to Jacinth-Ambrosia
• Prepare a detailed technical assessment
of opportunities to improve pumping
efficiencies with a view to taking forward
specific projects for implementation
Renewable energy
Iluka’s scope 2 emissions associated with
electricity use represent approximately 15.4%
of Iluka’s current emissions. The company
continues to focus on initiatives to increase the
use of renewable energy as this is expected
to be an opportunity for emission reductions
in the short- to long-term and mitigate risks
associated with a potentially less orderly grid
energy transition in Australia.
Iluka has taken steps to reduce emissions
associated with on-site electricity generation
at Jacinth-Ambrosia. A hybrid solar diesel
electricity facility was built in 2022 and in 2023
this resulted in a 13% reduction in emissions
associated with electricity generation at this
operation.
In 2024
• The 9MW solar facility at Cataby was
executed and powered on in January 2025.
This facility is expected to abate ~10,700
tonnes of carbon dioxide per annum
• Iluka evaluated options for an off-grid
diesel/solar/battery power supply solution
for its Balranald project
• Iluka completed a wind resource study and
an options study for a potential renewable
energy project for North Capel
• Iluka assessed the potential for solar
panels to be deployed on legacy tailings
impoundments at Narngulu; economics
are not currently favourable but this will be
reviewed on a periodic basis
Iluka’s projects include a review of renewable
energy options as part of project evaluation.
This work, coupled with the ongoing
assessment of renewable energy options
at existing operations, has allowed Iluka to
develop a pipeline of potential renewable
energy facilities.
In 2025, Iluka plans to
• Continue to develop and then execute a
renewable power supply strategy for its
Balranald project
• Finalise its assessment of the potential for a
renewable energy project in the South West
close to its North Capel operation
Alternative fuels
Iluka’s use of coal as a chemical reductant is
an identified transition risk, particularly given
the potential for the price of coal to increase
and for coal to become less available as global
decarbonisation continues. Iluka’s coal-based
emissions account for approximately 51.6% of
its total emissions. As a result, the company
continues to explore opportunities to reduce
its use and reliance on coal, including using
alternatives like natural gas, tyre-derived fuels
(TDF) and biochar.
In 2024, Iluka
• Finalised its evaluation for the potential
partial displacement of coal through the
introduction of a natural gas injection
system in its synthetic rutile kilns. While the
use of such a system is technically feasible,
the project is not currently economically
viable. A gas injection system has not been
ruled out but will need to be evaluated
alongside the potential use of tyre-derived
fuels and biochar, as work on those
possibilities is progressed
• Conducted lab-scale piloting and
simulation of the synthetic rutile production
process for tyre-derived fuels and biochar
In 2025, Iluka plans to
• Undertake a plant trial to determine the
technical feasibility of TDF as a substitute
for coal
• Perform further test work on biochar to
derisk a potential future plant trial
For Iluka’s mining operations, the company
will continue to evaluate the potential for
augmentation of diesel to provide a reduction
in overall use and emissions, including use of
bio- and renewable diesels.
Iluka Resources Limited Annual Report 2024 41
Technology step-change
The company is exploring long-term
alternatives to coal as a reductant in the
synthetic rutile production process. This
includes ongoing evaluation of the next
generation of synthetic rutile production
processes (NewGenSR) that would deploy
a hydrogen fluid bed reduction technology
for the replacement of coal as a reductant
in the synthetic rutile production process.
This presents a step-change opportunity to
reduce emissions by using hydrogen as a
reductant. The technology is also a potential
strategic enabler as it would allow Iluka to treat
lower quality ilmenites.
Iluka invented NewGenSR technology more
than 20 years ago and has renewed its
commitment to evaluating the technology as
a key enabler for its business, including in
the context of its response to climate change.
The technology could be applied beyond
2030 to substantially reduce emissions in the
production of synthetic rutile.
In 2024, Iluka
• Completed 50mm and some 80mm
circulating fluid bed oxidation and
reduction tests, utilising different sources
of ilmenite
• Completed a location study that assessed
future deployment locations for NewGenSR
which was based on a range of factors,
including where the company owns existing
infrastructure and land, future mineral
deposits, and proximity to designated
hydrogen production locations
• Joined the Heavy Industry Low-carbon
Transition Cooperative Research Centre
(HILT-CRC). Iluka’s primary interest in
the work of the HILT-CRC is in relation to
hydrogen use and its associated supply
chain, but also extends to potential lower-
carbon solutions for industrial process
heating
In 2025, Iluka plans to
• Develop a technical plan for larger scale
200mm test work
• Complete hydrometallurgical test work
program to assess quality of synthetic rutile
products resulting from the NewGenSR
process, and commence a process heat
study
• Refresh its existing preliminary feasibility
study engineering/cost estimate
• Continue to engage through the HILT-CRC
• Identify and assess potential applications
for the Coolbrook RotoDynamic Heater™
technology
Iluka will continue to monitor and investigate
the emergence of transitional technologies in
the context of its decarbonisation roadmap.
Carbon offset strategy
Iluka recognises the role of carbon offsets
in addressing long-term, hard to abate
emissions, in addition to being used to ensure
compliance under the Australian Government
Safeguard Mechanism Reform.
In 2024
• Native trees and seeds were planted at
Iluka’s pilot 80ha carbon farm located close
to its operations in North Capel. Iluka has
partnered with Canopy, the environmental
credits business of Greening Australia,
to deliver the project, which is expected
to generate up to 30,000 ACCUs over 25
years
• Iluka developed an internal carbon offset
strategy to optimise value in its approach
to the purchase and surrender of ACCUs to
meet its compliance obligation associated
with the Safeguard Mechanism. Iluka will
focus on nature-based ACCUs where
commercially feasible to acquit its liability
Use of carbon pricing
Iluka applies a shadow carbon price when
evaluating the feasibility of future projects and
to understand compliance costs as it manages
climate-related risks and supports the
adoption of lower emissions options for current
operations as well as part of new project
design. The company continues to monitor
changes in carbon policy in key jurisdictions
of interest and assesses implications for its
internal carbon price.
In 2024
• Iluka updated its shadow carbon
price to reflect RepuTex scenarios
for decarbonisation and the ongoing
development of the carbon offset market in
Australia
Product carbon footprints
Iluka acknowledges that the global transition
towards net zero by 2050 is changing
consumer behaviour, which impacts its supply
chain.
In 2024
• Iluka completed life cycle assessments
(LCAs) for its zircon and rare earth
products. Those LCAs focused primarily
on the carbon intensity (footprint) of those
products. This complements LCA work
completed in prior years for the company’s
synthetic rutile product, the results of
which were presented in Iluka’s 2023
Sustainability Report. For more information,
please see the Product Stewardship
section of this report.
In 2025, Iluka plans to
• Evaluate opportunities to update its product
LCAs, guided by the value to its customers
of those assessments
42 Iluka Resources Limited Annual Report 2024
CLIMATE-RELATED METRICS
AND TARGETS
Iluka’s scope 1 and scope 2 emissions, along
with additional emissions and energy data, are
included in the 2024 Sustainability Data Book.
Emissions are based on Iluka’s corporate
reporting year (1 January to 31 December)
and are reported for Iluka’s Group-wide
businesses, which includes all exploration,
construction, operations, rehabilitation and
corporate activities.
Continual improvement in its carbon
accounting helps the company to better
understand its emissions profile. While the
focus is on eliminating and reducing scope 1
and 2 emissions produced by the company’s
operations, work is underway to support the
development of Iluka’s scope 3 emissions
inventory.
Iluka reports greenhouse gas emissions for
its Australian operations under the National
Greenhouse and Emissions Reporting
(NGER) Act 2007. The company’s North Capel
operation is covered under the Australian
Safeguard Mechanism.
The majority of Iluka’s total greenhouse gas
emissions are derived from two operations
– North Capel and Cataby. Approximately
51.6% of Iluka’s total emissions emanate from
use of coal in the production of synthetic
rutile. Coal is used as a chemical reductant
and heat source to reduce ilmenite to produce
synthetic rutile, for which there is currently no
economically viable alternative. Approximately
14% of Iluka’s total emissions come from the
use of diesel at Cataby. 2024 saw a decrease
of 16.5% in total scope 1 and scope 2
emissions compared to 2023. This was largely
due to the decision to only operate one of the
two synthetic rutile kilns.
PRODUCT STEWARDSHIP
The sustainable delivery of Iluka’s
products and minerals requires
responsible business practices
throughout the company's value chain.
Iluka works collaboratively with its business
partners to uphold responsible practices
across its value chain and to support
opportunities for responsible product use.
In 2024, Iluka completed an extensive
internal review to enhance customer service
performance and product quality management
system. This identified improvement
opportunities including risk mitigation,
streamlining, compliance, and system control.
Several of these improvements have been
implemented, with the remainder in progress
or requiring further detailed development.
Iluka’s mining and processing activities
produce a range of by-products and co-
products that generate revenue and limit
waste production, handling, and storage. Rare
earth concentrates are one such co-product
separated during the processing of Iluka’s
mineral sands.
In 2024, Iluka commenced study work to
evaluate the viability of commercial-scale
production of rare earth metals. Metallisation
is the next stage of value addition following
the production of rare earth oxides. Subject to
positive study outcomes, metallisation would
further enhance Iluka’s marketability as a
sustainable producer of light and heavy rare
earths, with traceable product provenance.
More information on Iluka’s Eneabba refinery
and metallisation work can be found on page
24.
As stated in the Climate Strategy section of this
report, independent consultants undertook
carbon emissions LCA for Iluka’s zircon, rutile,
and rare earths production during the year.
Rare earths
Iluka commissioned LCA on the production of
neodymium praseodymium (NdPr) oxide and
separated rare earth oxide (REO) at Eneabba.
The analysis quantified and compared the
environmental impacts of producing REO,
comparing Eneabba to similar REO production
routes of existing rare earth producers.
The analysis highlighted that rare earth
oxides produced from the Eneabba refinery,
with feedstock from the Eneabba stockpile,
have the lowest climate change impact per
kg of NdPr oxide compared to other systems
under examination, supported by uncertainty
analysis. Iluka’s calculated carbon footprint
for Eneabba’s NdPr oxides is 55% lower than
Inner Mongolia rare earth oxide producers.
This LCA was built using pre-operational
stage data and was conducted according
to the requirements of the ISO-14040:2006
and ISO-14044:2006 standards. The LCA
has undergone an independent critical panel
review.
Synthetic rutile
Iluka produces synthetic rutile through
the Becher process, an industrial-scale
manufacturing method developed by the
company’s forebears, to upgrade ilmenite
(57-59% TiO2) to synthetic rutile (88-92% TiO2).
The Becher process has been applied in
Australia’s South West since 1968. At that time,
the same forebears operated the first synthetic
rutile kiln of its kind in the world. For the last
few decades, Iluka’s North Capel facility has
added value to the processing of mineral
sands in Australia by upgrading ilmenite to
synthetic rutile.
In 2022, Iluka engaged a carbon emissions
life cycle consultant to undertake a life cycle
analysis for the company’s synthetic rutile
production process to better understand the
carbon footprint generated by synthetic rutile
compared to other titanium feedstocks used
in the production of pigment. The analysis
found that one of the main determiners of
greenhouse gas emissions in the pigment
supply chain is the grade of the feedstock
used.
There is a trade-off between using a high-
grade feedstock, such as Iluka’s synthetic
rutile, which undergoes significant processing
prior to reaching the pigment plant, and using
a lower-grade feedstock. The latter requires
pigment manufacturers to use significant
chemical inputs to produce finished pigment,
thereby generating more carbon emissions
in producing their finished product (when
emissions generated in producing those
chemical inputs are included).
To capture this trade-off, the LCA was
extended to compare the carbon footprint
of pigment produced when using synthetic
rutile with other titanium feedstocks used
within both sulphate and chloride pigment
production processes. Specifically,
Iluka and its consultant considered and
compared the emissions intensity of pigment
manufactured from a single feedstock in
two reference plants. Results indicate that
pigment manufactured with Iluka’s synthetic
rutile would be placed in the lowest 50% of
emissions intensity when compared to pigment
manufactured with other titanium feedstocks.
Iluka continues to explore and innovate its
approach to the production of synthetic rutile.
In particular, it is committed to continued
evaluation of alternatives to coal used in the
production of synthetic rutile. Coal is used as
a reductant, and in 2024, emissions generated
by the use of coal accounted for 90% of
synthetic rutile emissions and 51% of Iluka’s
total emissions.
Zircon
In 2024, Iluka completed a carbon LCA study
on its zircon products; the scope included
zircon production from operations at Cataby
and Jacinth-Ambrosia, utilising Iluka's
operational data, as well as future production
at Balranald, utilising project design data.
A key objective was to determine the carbon
footprint of Iluka’s zircon products, partly
in response to customer requests. After
completing the study, Iluka prepared carbon
footprint summary reports for those customers,
with the reports presenting the process
and basis of the zircon LCA study and the
assessed carbon footprint of Iluka’s zircon
products.
Throughout the year, Iluka engaged with
two major zircon customers on sustainability
and ESG matters. These engagements
provided a venue for two-way sharing of best
practices, plans, lessons learned, and future
expectations.
A robust Quality Management System
(QMS) is a key pillar of Iluka’s aim to be the
supplier of choice. In 2024, a supplier QMS
audit was undertaken by one of Iluka’s major
zircon customers to assess the company’s
product quality assurance and management
processes. The results were positive, with
Iluka receiving an excellent score, zero gaps,
and a request to continue the active culture of
continuous quality improvement.
Iluka Resources Limited Annual Report 2024 43
Risk management is critical to
achieving Iluka’s purpose of delivering
sustainable value and informing
strategic choices, and supports the
co-ordinated delivery of value across
the company. Effectively identifying,
understanding and managing Iluka’s
exposure to risk enables Iluka’s Board
and leadership team to make informed
decisions on where to take risks to
realise opportunities and where to
manage risks to enhance and preserve
business value.
Iluka’s Risk Management Policy and
Framework, aligned with ISO 31000, sets the
mandatory requirements for managing risks
that could impact business objectives. The
Framework provides a whole –of-business
approach to the management of risks and
applies to all directors, employees and
contractors of Iluka Resources and is reviewed
annually by the Audit and Risk Committee.
Iluka has a dedicated Group Risk and
Compliance function that is accountable to
the Audit and Risk Committee (reporting to
Iluka’s Chief Financial Officer and Head of
Development). It is focused on continuous
improvement of Iluka’s risk management
framework to suit business requirements and
embed good risk management practices
and mature a proactive and consistent risk
management culture across the company. The
function is also responsible for delivering and
executing an annual internal audit plan (third
line assurance), managing Iluka’s insurance
strategy, and overseeing Iluka’s crisis
management approach and training.
Strategic level direction on risk management
is considered and set through Iluka’s Board-
approved Risk Appetite Statement (RAS). The
RAS guides the company on the appropriate
level of risk to take in pursuit of its strategic
objectives and provides the backdrop for risk
assessment, consideration of risk treatments,
and risk assurance processes. In 2024, Iluka
reviewed the Risk Appetite Statement (RAS)
to align risk appetite categories with strategic
priorities for the next three years.
Key Risk Indicators (KRI) that measure
performance against approved appetite
(reported to the Audit and Risk Committee bi-
annually) were updated, drawing from existing
business processes. Where risk management
becomes outside of approved tolerance,
the matter is escalated to Iluka’s Managing
Director and mitigation actions to bring the risk
back within appetite is communicated to the
Audit and Risk Committee and the Board.
Outcomes of the RAS review informed the
Strategic Risk review process which both
informs and is an output of Iluka’s corporate
planning process and is reported annually to
the Board with risk outlook considered on a
six-monthly monthly basis by Iluka’s Executive.
Material risks, where raised, are reported to
the Board by Iluka's Executive team along with
response actions.
Iluka’s Audit and Risk Committee and
Sustainability Committees respectively have
accountability for governance and oversight
of Iluka’s process and approach to managing
risks and opportunities.
Emerging risks continue to be identified and
monitored through operational and project risk
management processes and at a strategic
level through the annual corporate planning
and strategic risk review process.
MANDATORY CLIMATE
CHANGE REPORTING
To meet 2025 climate change reporting
requirements, Iluka used its existing risk
and opportunities process to identify and
address climate transition and physical
risks. Enhancements to the existing process
were made to accommodate mandated
scenario analysis to test resilience of
business strategies against risks identified.
Further information on Iluka’s approach
to climate change is detailed at page 42.
Iluka’s approach is to integrate management
of climate-related risks into its overall risk
management process. The resiliency of
Iluka’s Climate Change strategy is considered
in Iluka’s Strategic Risk register with risk
treatment considerations informed by the
Climate Change Work Program and other
related business initiatives.
INTERNAL AUDIT AND
ASSURANCE
In 2024, the Audit and Risk Committee
approved an Internal Audit Charter informed
by ASX Governance Principles and Global
International Internal Audit Standards setting
out the role and purpose of Iluka’s internal
audit function, reporting responsibilities to the
Audit and Risk Committee and management
accountabilities. The Charter also provides a
process for maintaining independence of the
internal audit function.
Iluka's annual internal audit strategy is
informed by a review of strategic risk priority
areas, updates to the internal assurance map
as to existing assurance processes already
undertaken, such as independent reviews, and
industry insights on internal audit trends.
Outside of internal audit, Iluka continues to
mature its second line assurance processes
with dedicated resources and processes in
place for health and safety and risk-based
second line assurance reviews undertaken
in environment, communities and tailings
management.
BUSINESS RISK
MANAGEMENT
Photo above: Iluka has systems in place to ensure the health and safety of its people.
44 Iluka Resources Limited Annual Report 2024
GROUP RISK
• Training and support to
implement Risk Policy and
Management Framework
• Drive continuous uplift of risk
management capabilities aligned
to business needs
• Design and delivery of an internal
audit program to evaluate
effectiveness of risk management
control environment and
adequacy of risk management
practices
AUDIT AND RISK COMMITTEE
• Monitoring management team’s performance against the risk management framework
including whether management is operating within the Board’s risk appetite
• Review and monitor adequacy of Iluka’s Risk Policy and Management Framework
EXECUTIVE TEAM
• Implementation and embedding of Risk Policy and Management Framework
• Review and manage strategic and risks material to business outcomes
• Recommend to Board tolerance measures against Board’s risk appetite
BOARD OF DIRECTORS
• Governance and oversight
MANAGEMENT AND EMPLOYEES
Identify, treat and report business risks in accordance with Risk Policy
and Management Framework
ILUKA’S RISK
MANAGEMENT
ACCOUNTABILITIES
Iluka's Eneabba operations, with the beneficiation plant in the background at right.
Iluka Resources Limited Annual Report 2024 45
KEY RISK AREAS
Set out below are the key risk areas that could have a material impact on Iluka. These risks are not the only risks that the company faces and while
reasonable effort is made to identify and manage material risks, additional risks not currently known or detailed below may adversely affect future
business performance.
These risks are considered against a backdrop of a myriad of changes and ongoing uncertainties in the external environment including evolving
regulatory and stakeholder expectations, shifting geopolitical landscapes and global politics, evolving market dynamics for mineral sands and rare
earths business, and changing technology landscapes.
CONTEXT, RISK MANAGEMENT,
MITIGATIONS AND OPPORTUNITIES
KEY RISK
CLIMATE CHANGE,
UNCERTAIN
ENVIRONMENTAL
POLICY
LANDSCAPE
AND EVOLVING
COMMUNITY
EXPECTATIONS
Iluka acknowledges that these key risks may have an impact on its business, including:
• Policy changes from carbon pricing to energy mix change can materially impact operational cost and
performance
• Environmental policy changes can materially affect operations and project development pathways
• Maintaining stakeholder trust and maintaining social license to operate
Risk management, mitigations and opportunities
• Opportunities to sustainably and commercially achieve lower emission energy sources continue to be
monitored and assessed
• Contribute to energy transition to lower carbon economy through delivering a sustainable rare earths business
• Implementation of governance and processes to achieve mandatory climate change reporting requirements
• Monitoring Federal and State environmental management policy and regulatory developments
• Respectfully engaging with Iluka’s diverse community stakeholders remains a key focus
Further details are contained in the Sustainability Report from pages 30 to 42.
HEALTH AND
SAFETY
Ensuring a productive and engaged workforce, maintaining trust and social license to operate.
Risk management, mitigations and opportunities
• Focus on strong systems, processes, and culture to protect workforce health and safety, monitored through
specific programs and regular audits
• Focus on health and safety includes physical, mental and social wellbeing
• Internal review completed in 2024 of Iluka’s psychosocial control environment against regulatory requirements
PROJECT
EXECUTION
Large capital projects are by their nature complex and subject to a number of factors often outside of Iluka’s
control (inflationary environment, regulatory, market competition for talent, and contractor and supply chains) that
can materiality impact delivery of successful project outcomes.
Project execution risks also include the ability to obtain appropriate access to property, cost escalation,
construction and commissioning risks.
Risk management, mitigations and opportunities
• Execution of the Eneabba refinery and Balranald projects are closely monitored with a number of independent
reviews and internal audits undertaken
• Capital projects follow a defined risk management approach that includes risk management outcomes
reported by respective EPCMs, steering committees and the Board
46 Iluka Resources Limited Annual Report 2024
CONTEXT, RISK MANAGEMENT,
MITIGATIONS AND OPPORTUNITIES
KEY RISK
KEY RISK AREAS
GROWTH
(RESOURCE,
RESERVE AND
PIPELINE)
Iluka aims to generate and deliver on growth options through exploration, innovation, project development, and
appropriate external growth opportunities, with the objective of continuing to deliver sustainable value.
Iluka’s Resource and Reserves assessments are prepared in accordance with the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves 2012 Edition (the JORC Code 2012) and
the ASX Listing Rules and as disclosed in various public announcements released through the ASX. As these
estimates involve the application of significant judgement, no guarantee of assurance of the estimated mineral
recovery levels or the commercial viability of deposits can be provided.
The actual quality and characteristics of mineral deposits cannot be known until mining takes place and may
differ from the assumptions used to develop the mineral resources. Further, Ore Reserves are valued based on
assumed future costs and commodity prices and, consequently, the value of actual Ore Reserves, including their
economic extraction and mineral resources, may differ from those estimated, which may result in either a positive
or negative impact on operations.
Risk management, mitigations and opportunities
• Iluka regularly assesses its ability to enhance its production profile or extend the economic life of deposits
through the development of new projects within its portfolio
• Evaluating growth opportunities requires prudent risk-taking as part of a disciplined process of project
selection and evaluation to maximise the opportunity, achieve the desired outcomes, and manage the
associated risks to the company
Iluka’s Ore Reserves are prepared by experienced ‘Competent Persons’ in accordance with the JORC Code
2012. Preparation and publication of Resources and Reserves follows an established resource and reserves
corporate governance process under the remit of Iluka’s Audit and Risk Committee (refer to page 152 for
Competent Persons Statement and Mineral Resources and Ore Reserves Corporate Governance).
FINANCIAL
RISK
Financial risks present in a number of ways, including:
• Exposures to the cost and availability of funds, fluctuations in interest rates, and foreign exchange rates,
commodity price fluctuations that can materially impact financial outcomes, and ability to execute business
priorities
• Long-term rehabilitation obligations can materially affect Iluka’s balance sheet capacity
Risk management, mitigations and opportunities
• Established Treasury Policy and Credit Risk Policy that define risk management approach and governance
processes for financial risk and customer credit exposure
• Maintain a strong balance sheet that allows the company to pursue its strategic objectives
• Compliance to terms of EFA funding agreement for the Eneabba refinery adheres to a robust reporting and
monitoring process
• Rehabilitation risks and liabilities adhere to a robust review, monitoring and forecasting process. Iluka adopts
a progressive rehabilitation approach at its operating sites
CHANGING
WORKFORCE
AND SKILLS
Change in broader talent market, pipeline and available skills base can impact Iluka’s ability to execute its
strategic priorities.
Risk management, mitigations and opportunities
• While 2024 saw an improvement in the talent market, availability of key technical skills still remains a challenge
as seen within the broader market
• Risk is being addressed through a talent management, technical skills and leadership development
framework and programs
Iluka Resources Limited Annual Report 2024 47
CONTEXT, RISK MANAGEMENT,
MITIGATIONS AND OPPORTUNITIES
KEY RISK
TECHNOLOGY
AND
CYBERSECURITY
In an increasingly technology-dependent landscape and integration of cloud-based applications and services
means Iluka is exposed to operational disruption and/or reputation damage from attacks/security breaches which
are evolving in sophistication.
Risk management, mitigations and opportunities
• Cybersecurity strategy reviewed in 2024 to ensure that robust cyber hygiene practices leveraging the National
Institute of Standards and Technology (NIST), Cybersecurity Framework (CSF) and the Australian Signals
Directorate’s (ASD) Essential 8 principles
• Continuous cyber penetration testing including security simulations
• Focus on cyber controls such as multi-factor authentication, restricted administrative privileges, and rigorous
patch management by leveraging guidance from the Australian Cyber Security Centre
• Focus on cyber in third-party risk management including due diligence processes
• Cyber crisis, cyber incidence response plans, and post-incident review process
KEY RISK AREAS
REGULATORY AND
COMPLIANCE RISK
Ensuring compliance to regulatory requirements and management of compliance risk enables Iluka to preserve
stakeholder trust and social license to operate.
Risk management, mitigations and opportunities
• Review of governance and processes to ensure compliance to evolving privacy requirements. In 2024, an
assessment was completed to identify valuable data assets, assess risks, and improve protection to reduce
exposure throughout data life cycle
• Continued monitoring of anti-bribery procedures and controls and fraud detection-related controls against
Iluka’s Policy. This includes training and third-party risk management processes
SUSTAINABLE
OPERATIONS
Operational disruptions and not achieving planned outcomes can lead to material detrimental financial outcomes.
Business continuity risks may arise due to natural disasters, material disruptions to logistics chains, critical plant
failures or industrial action, among other things.
Risk management, mitigations and opportunities
• Dedicated life-of-mine planning team which monitors and drives risks and priorities to achieving planned
outcomes
• Dedicated geotechnical resources team which leverages external tailings and dam management
experts. Extensive annual reviews of asset integrity, short- and long-term planning, and geotechnical and
hydrogeological modelling undertaken
• Asset risk reviews and risks to business continuity are subject to an annual independent review by Factory
Mutual Global, Iluka’s property insurer
• Crisis management plan (reviewed in 2024) together with ongoing training and crisis simulations
48 Iluka Resources Limited Annual Report 2024
FINANCIAL
REPORT
IN THIS SECTION
Results for announcement to the market
50
Directors’ report
51
Remuneration report
57
Auditor’s independence declaration
81
Financial statements
82
Directors’ declaration
136
Independent auditor’s report
137
RESPONSIBLE FOR OUR ENVIRONMENT
Groundwater depth is regularly measured as part of Jacinth-Ambrosia's
site-wide groundwater monitoring program.
Iluka Resources Limited Annual Report 2024 49
50 Iluka Resources Limited Annual Report 2024
RESULTS FOR ANNOUNCEMENT
TO THE MARKET
Provided below are the results for announcement to the market in accordance with Australian Securities Exchange (ASX)
Listing Rule 4.3A and Appendix 4E for the consolidated entity Iluka Resources Limited and its controlled entities for the year
ended 31 December 2024 (the 'current period’) compared with the year ended 31 December 2023 (the ‘comparative period').
All currencies shown in this report are Australian dollars unless otherwise indicated.
Revenue from ordinary activities
Down 9% to $1,170.3m
Net profit after tax for the period from ordinary activities
Down 32% to $231.3m
Net profit after tax for the period attributable to equity holders of the parent
Down 32% to $231.3m
Dividends
2024 final: 4 cents per ordinary share (100% franked), to be paid in March 2025 (record date 5 March 2025)
2024 interim: 4 cents per ordinary share (100% franked), paid in September 2024 (record date 4 September 2024)
Key ratios
2024
2023
Basic profit per share (cents)
54.1
80.5
Diluted profit per share (cents)
53.6
79.8
Free cash flow per share (cents)1
(67.5)
(37.5)
Return on equity2
10.2
17.1
Net tangible assets per share ($)
4.24
3.84
¹ Free cash flow is determined as cash flow before refinance costs, proceeds/repayment of borrowings and dividends paid in the year.
² Calculated as net profit after tax (NPAT) for the year as a percentage of average monthly shareholder's equity over the year.
Commentary on the consolidated results and outlook are set out in the Operating and Financial Review section of the
Directors’ Report.
DIVIDEND REINVESTMENT PLAN (DRP)
The current Dividend Reinvestment Plan (DRP) was approved by the Board of Directors, effective for all dividends from the
2017 final dividend onwards. Under the plan, eligible shareholders can reinvest either all or part of their dividend payments
into additional fully paid Iluka shares. The DRP remains active for the 2024 final dividend.
The Directors have determined that no discount will apply for the DRP in respect of the 2024 final dividend. Shares allocated
to shareholders under the DRP for the 2024 final dividend will be allocated at an amount equal to the average of the daily
volume weighted average market price of ordinary shares of the Company traded on the ASX over the period of 10 trading
days commencing on 10 March 2025. The last date for receipt of election notices for the DRP is 6 March 2025.
INDEPENDENT AUDITOR’S REPORT
The Consolidated Financial Statements upon which this Appendix 4E is based have been audited.
The Directors of Iluka Resources Limited present their report together with the financial statements of the Group for the year
ended 31 December 2024 and the auditor's report thereon.
Iluka Resources Limited Annual Report 2024 51
DIRECTORS'
REPORT
The directors present their report on the Group consisting of Iluka Resources Limited (the 'Company') and the entities it controlled at the end of, or
during, the year ended 31 December 2024.
The overview of Iluka's operations, including key aspects of operating and financial performance, are contained on pages 14 to 47 which forms part of
the Directors' Report for the year ended 31 December 2024 and is to be read in conjunction with the following information:
DIRECTORS
The following individuals were directors of Iluka Resources Limited during the whole of the financial year and up to the date of the report, unless
otherwise stated:
• A Sutton (Acting Chair)
• T O'Leary (Managing Director and CEO)
• P Smith – appointed 28 June 2024
• L Saint
• S Corlett
• R Cole (Chair) –retired 13 December 2024
• M Bastos – retired 31 August 2024
2024 MEETINGS OF DIRECTORS
In 2024 the Board formally met on 18 ocassions, of which seven meetings were scheduled. In addition to these meetings, the Board spent a day
primarily focused on strategic planning. Generally, Board meetings are held over two days (including Board Committee meetings). Directors are invited
to visit the Company’s operations during the year, often in conjunction with Board and Committee meetings.
The Non-executive Directors periodically met independent of management to discuss relevant issues. Directors' attendance at Board and committee
meetings during 2024 is detailed below.
Director
Board
Audit & Risk
Committee
Nominations
& Governance
Committee
People &
Performance
Committee
Sustainability
Committee
(1) (2)
Held
Attended
Held
Attended
Held
Attended
Held
Attended
Held
Attended
Total Meetings
18
4
6
3
3
Executive
T O’Leary
18
18
3
6
2
3
Non-executive
M Bastos (3)
5
5
3
3
4
4
2
2
2
R Cole (4)
8
6
3
4
4
2
2
2
2
S Corlett (5)
18
17
4
4
6
6
3
3
3
L Saint
18
18
4
4
6
6
3
3
2
P Smith (6)
16
16
2
4
4
1
1
1
1
A Sutton (7)
18
18
1
4
6
6
3
3
1
3
(1) “Held” indicates the number of meetings held during the period of each director’s tenure. Where a director is not a member but attended meetings during the period, only the number of
meetings attended is shown.
(2) “Attended” indicates the number of meetings attended by each director.
(3) Marcelo Bastos retired from the Board on 31 August 2024.
(4) Rob Cole was on temporary leave from 13 November 2024 and retired from the Board on 13 December 2024.
(5) Susie Corlett was appointed Chair of the Sustainability Committee on 1 November 2024.
(6) Peter Smith joined the Board and the Nominations and Governance Committee on 28 June 2024, and became a member of the People and Performance Committee and the Sustainability
Committee on 1 November 2024.
(7) Andrea Sutton became Acting Chair of the Board and the Nominations and Governance Committee on 13 November 2024, Member of the Audit and Risk Committee on 1 November 2024,
and Acting Member of the Sustainability Committee on 15 November 2024.
DIRECTORS’ SHAREHOLDING
Directors’ shareholding is set out in the Remuneration Report.
Current Chair
Prior Chair
Current Member
Prior Member
52 Iluka Resources Limited Annual Report 2024
BOARD OF DIRECTORS
TOM O'LEARY
Managing Director and Chief Executive Officer
Appointed: 13 October 2016
Qualifications: LLB, BJuris
Independent: No
Age: 61
Relevant skills and experience:
Tom has more than 30 years of commercial, investment banking,
business development and executive management experience in a
range of sectors including energy, chemicals and mining. Tom was
previously Managing Director of Wesfarmers Chemicals, Energy
& Fertilisers having been appointed to the role in 2010. Tom joined
Wesfarmers in 2000 in a business development role and was then
appointed Managing Director, Wesfarmers Energy, in 2009. Prior to
joining Wesfarmers, Tom worked in London for 10 years in finance law,
investment banking and private equity. He holds a law degree from
The University of Western Australia and has completed the Advanced
Management Program at Harvard Business School.
Other Directorships and Offices:
• Clontarf Foundation
- Non-executive Director (appointed June 2006);
Chairman (appointed April 2023)
ANDREA SUTTON
Non-executive Director and Acting Chair
Appointed: 11 March 2021
Qualifications: BEng Chemical (Hons), GradDipEcon, GAICD
Independent: Yes
Age: 53
Relevant skills and experience:
Andrea has more than 25 years’ experience across a range of
operational and corporate functions, having held executive roles in
health, safety, and environment, human resources, and infrastructure
management within the resources sector. Her 25-year career with Rio
Tinto included a secondment as CEO and Managing Director of Energy
Resources of Australia (ERA) from 2013 to 2017, Head of Health, Safety,
Environment and Security, Managing Director Support Strategy Review
– Human Resources, General Manager of Operations at the Bengalla
mine, and General Manager of Infrastructure, Iron Ore. Andrea is a
former Non-executive Director of Energy Resources Australia Limited.
Andrea is an experienced non-executive director across resources,
government and infrastructure industries. She is also a member of
Engineers Australia, Australasian Institute of Mining and Metallurgy, Chief
Executive Women, and the Australian Institute of Company Directors.
Other Directorships and Offices:
• Water Corporation – Non-executive Chair (effective January 2024)
• Perenti Limited – Non-executive Director (appointed October 2023)
• Australian Naval Infrastructure (ANI)
– Non-executive Director (appointed September 2023)
• Vault Minerals Limited (previously Red 5 Limited)
– Non-executive Director (appointed November 2020)
• National Association of Women in Operations (NAWO)
– Board member (appointed August 2020)
• Australian Nuclear Science and Technology Organisation (ANSTO) –
Board member (appointed April 2020)
• DDH1 Limited – Non-executive Director (retired September 2023)
• Infrastructure WA – Board member (retired December 2022)
Committee membership key
Board Chair or
Acting Board Chair
Sustainability Committee
S
B
Committee Chair or
Acting Committee Chair
Nominations and Governance
Committee
NG
People and Performance
Committee
Audit and Risk
Committee
AR
PP
AR
NG
PP
S
B
Iluka Resources Limited Annual Report 2024 53
PETER SMITH
Non-executive Director
Appointed: 28 June 2024
Qualifications: FAusIMM, GAICD, MBA
Independent: Yes
Age: 66
Relevant skills and experience:
Peter has more than 46 years’ experience across a range of operational,
business improvement and development functions within the resources
industry, including gold, coal, metals, and fertilisers. Peter held senior
positions with Rio Tinto, WMC Resources, Ensham Resources, Western
Metals, Newcrest Mining, Israel Chemicals Limited, and Kestrel Coal
Resources. Peter’s recent former executive roles include Chief Executive
Officer at Krestal Coal Resources, Executive Vice President, Potash at
ICL Group, Executive General Manager, Australia, Indonesia and African
Operations for Newcrest, and Chief Operating Officer for Lihir Gold.
Peter was a former Non-executive director of NSW Minerals Council,
Evolution Mining (2011-2013), and VP Minerals Limited, Commissioner
of PT NHM Indonesia, and Executive Director and Chairman of Western
Metals Limited. He has a Master of Business Administration and
Management from University of Southern Queensland.
Other Directorships and Offices:
• Yancoal Australia Limited
– Non-executive Director (appointed December 2024)
• VP Minerals Limited
– Non-executive Director (retired August 2024)
• Evolution Mining Limited
– Non-executive Director (appointed April 2020)
SUSIE CORLETT
Non-executive Director
Appointed: 1 June 2019
Qualifications: BSc (Geo, Hons), FAusIMM, GAICD
Independent: Yes
Age: 54
Relevant skills and experience:
Susie has more than 30 years of experience in exploration, mining
operation, mining finance and investment. Susie is a professional
non-executive director following an executive career spanning mine
operations, investment banking and private equity. A geologist, her
background is in mining operations and exploration for RGC Ltd and
Goldfields Ltd. Susie was most recently an Investment Director for
Pacific Road Capital Ltd (a global mining private equity fund), following
a career in mining project finance and credit risk management for
Standard Bank Limited, Deutsche Bank and Macquarie Bank. Susie
is currently an Advisory Board member for the Foundation of National
Parks and Wildlife, a member of Chief Executive Women, and a former
Non-executive Director of the David Burgess Foundation. In 2024, she
was recognized as one of the 100 Globally Inspirational Women in Mining
(WIM100).
Other Directorships and Offices:
• Australian Institute of Mining and Metallurgy (AusIMM) Education
Endowment Fund - Trustee (appointed June 2018)
• Foundation for National Parks and Wildlife
- Non-executive Director (retired December 2022)
• Aurelia Metals Ltd - Non-executive Director (appointed October 2018)
• Mineral Resources Limited
- Non-executive Director (appointed January 2021)
• Silex Systems Ltd – Non-executive Director
(appointed November 2024)
LYNNE SAINT
Non-executive Director
Appointed: 24 October 2019
Qualifications: BCom, GradDip Ed Studies, FCPA, FAICD,
Cert Business Administration
Independent: Yes
Age: 62
Relevant skills and experience:
Lynne has more than 30 years of financial, auditing, corporate
governance, enterprise risk, supply chain management, project
management, and commercial experience both within Australia and
internationally. Her career spans more than 19 years in executive
leadership at Bechtel Group, having served as Chief Audit Executive
and Chief Financial Officer of Bechtel’s Mining and Metals global
business unit.
In Lynne’s early career, she held consulting and auditing roles with
KMPG and PwC, financial and commercial roles in financial services and
assurance, mining, and the engineering and construction industries in
Australia and Papua New Guinea. In 2003, Lynne was recognised as the
Telstra Queensland Business Woman of the Year.
Other Directorships and Offices:
• Ventia Services Group Limited
– Non-executive Director (appointed October 2021)
• NuFarm Ltd – Non-executive Director (appointed December 2020)
AR
NG
S
AR
NG
PP
S
NG
PP
54 Iluka Resources Limited Annual Report 2024
TOM O'LEARY
Managing Director and Chief Executive Officer
LLB, BJuris
Refer to page 52 of the Annual Report for Tom O’Leary's qualifications and experience.
EXECUTIVE LEADERSHIP TEAM
ADELE STRATTON
Chief Financial Officer and Head of Development
BA (Hons), FCA, GAICD
Ms Stratton joined Iluka in 2011, was appointed Chief Financial Officer
in 2018, and assumed accountabilities for Head of Development in
2020. She is a qualified chartered accountant with over 20 years’
experience working in both professional practice and public listed
companies. Ms Stratton commenced her career with KPMG,
spending seven years in the assurance practice both in the UK,
where she qualified as a chartered accountant, and Australia. Prior
to joining Iluka, she worked in a number of finance roles at Rio Tinto
Iron Ore in Perth. Ms Stratton is the Iluka nominee Board member on
Deterra Royalties Ltd, since its listing on the ASX in 2020.
MATTHEW BLACKWELL
Head of Projects and Sales and Marketing
BEng (Mech), Grad Dip (Tech Mgt), MBA, MAICD, MIEAust
Mr Blackwell joined Iluka in 2004 as President of US Operations. He
had responsibilities for Land Management and as General Manager,
USA, before being appointed Head of Marketing, Mineral Sands
in February 2014. In 2019, Mr Blackwell was made Head of Major
Projects, Engineering and Innovation. In late 2020, Mr Blackwell
reassumed responsibility for Sales and Marketing, with Strategy
added to his accountabilities in late 2024. Prior to joining Iluka, he
was Executive Vice President of TSX-listed Asia Pacific Resources,
based in Thailand. Mr Blackwell’s 30 years of experience in the
mining industry has involved varied technical and leadership roles,
spanning multiple commodities.
SARAH HODGSON
Head of People and Sustainability
LLB, GAICD
Ms Hodgson has 25 years’ professional experience spanning HR,
tax and sustainability. Ms Hodgson joined the People team at Iluka
Resources in 2013 and was appointed to her current role in March
2018. Her career started at PricewaterhouseCoopers in London
providing advice on UK and US tax, employment and international
mobility before relocating to Australia with KPMG in 2002. Prior to
joining Iluka, Ms Hodgson held senior roles, both as a consultant
and in-house, at Mercer, Westpac and KPMG advising on executive
remuneration, HR and governance matters.
COLIN NEXHIP
Chief Technology Officer
PhD (Chem Eng), BSc (Hons), B Ed
Mr Nexhip joined Iluka in 2023 as the Chief Technology Officer. Prior
to joining Iluka, Mr Nexhip had been based in the US for the last 15
years where he most recently held the role of Vice President – Assets
and Energy Management with Newmont Corporation. Mr Nexhip has
over 25 years’ experience in the mining industry, including 15 years
with Rio Tinto.
Iluka Resources Limited Annual Report 2024 55
SHANE TILKA
Chief Operating Officer, Australian Operations
BCom
Mr Tilka joined Iluka in November 2004 and has held operations
management roles throughout Iluka. His most recent appointment
was General Manager – Jacinth-Ambrosia and Midwest. Prior to this
Mr Tilka was the Chief Operating Officer for Sierra Rutile Ltd, General
Manager for Iluka’s US Operations and has held other senior roles at
Iluka’s Western Australian and South Australian operations.
CRAIG RENNER
Project Director, Eneabba Project
BEng Chem & Process (Hons); Exec MBA
Mr Renner joined Iluka in 2020 with his most recent prior role as
GM of Strategy, Planning and Commercial functions including
procurement and warehousing. Starting as a chemical engineer, Mr
Renner's career expanded into strategy/management consulting and
senior corporate strategy roles with significant exposure to a range
of industries including oil and gas, coal, iron ore and steel. Prior to
Iluka he held the position of Head of Strategy, Planning, Studies and
Technology, for BHP’s WA Iron Ore business.
DANIEL MCGRATH
Head of Rare Earths
BSc (Math)
Mr McGrath joined Iluka in 1993 and has held technical and
operations management roles throughout Iluka for many years. Mr
McGrath is now focused on developing Iluka's rare earths business.
His most recent appointment was as Chief Technology Officer and
prior to that General Manager - Cataby and Southwest Operations
where he oversaw mining and synthetic rutile operations along with
the technical development and metallurgy functions. Prior to this Mr
McGrath has held senior operational positions at Iluka’s Western
Australian, eastern Australian, and USA operations while also having
held metallurgy and process engineering roles in Australia, Indonesia
and Sierra Leone.
56 Iluka Resources Limited Annual Report 2024
COMPANY SECRETARY
Mr Ben Martin BMSc LLB MAICD is the
Company Secretary of the Company. Mr
Martin was appointed to the position of
General Counsel and Company Secretary
in September 2021 and prior to that, he held
positions in Iluka’s in-house legal and land
management teams. Before joining Iluka
in 2014, Mr Martin was a solicitor at global
law firm King & Wood Mallesons where he
advised resources companies on a range
of project development, approvals, land
access and regulatory compliance matters.
Mr Nigel Tinley BBus FCPA FGIA FCG
(CS, CGP) GAICD also acts as Company
Secretary for the Company. Mr Tinley was
appointed to the position of Joint Company
Secretary in 2013 and prior to that, he held
senior positions in Finance, Commercial,
and Sales and Marketing. Before joining
Iluka in 2006, Mr Tinley held a range of
accounting, financial and commercial roles
over his 18 years with BHP Limited both in
Australia and internationally.
DIRECTORS AND OTHER
OFFICERS’ REMUNERATION
Discussion of the Board’s policy for
determining the nature and amount of
remuneration for directors and senior
executives and the relationship between
such policy and company performance are
contained in the Remuneration Report on
pages 57 to 80 of this Annual Report.
PRINCIPAL ACTIVITIES
The principal activities and operations of
the Group during the financial year were the
exploration, project development, mining
operations, processing and marketing
of mineral sands and rare earths, and
rehabilitation. Iluka holds a 20% stake in
Deterra Royalties Limited (Deterra), the
largest ASX-listed resources focused royalty
company.
INDEMNIFICATION AND
INSURANCE OF DIRECTORS
AND OFFICERS
The Company indemnifies all directors of the
Company named in this report and current
and former executive officers of the Company
and its controlled entities against all liabilities
to persons (other than the Company or the
related body corporate) which arise out of the
performance of their normal duties as director
or executive officer unless the liability relates
to conduct involving bad faith. The Company
also has a policy to indemnify the directors
and executive officers against all costs and
expenses incurred in defending an action that
falls within the scope of the indemnity and any
resulting payments.
During the year the Company has paid a
premium in respect of directors' and executive
officers' insurance. The contract contains a
prohibition on disclosure of the amount of the
premium and the nature of the liabilities under
the policy.
INDEMNIFICATION OF
AUDITORS
The Company's auditor is KPMG. The terms
of engagement of Iluka's external auditor
includes an indemnity in favour of the external
auditor. This indemnity is in accordance with
KPMG’s standard Terms of Business and is
conditional upon KPMG acting as external
auditor. Iluka has not otherwise indemnified or
agreed to indemnify the external auditors of
Iluka at any time during the financial year.
NON-AUDIT SERVICES
The Group has, from time to time, employed
the external auditor, KPMG, on assignments
additional to their statutory audit duties where
the auditor's expertise and experience with the
Group are important.
Fees that were paid or payable during the year
for non-audit services provided by the auditor
of the parent entity, its network firms and non-
related audit firms is set out in Note 26 of the
Financial Report.
The Board of Directors has considered the
position and, in accordance with advice
received from the Audit and Risk Committee,
is satisfied that the provision of the non-audit
services is compatible with the general
standard of independence for auditors
imposed by the Corporations Act 2001 for the
following reasons:
• All non-audit services were provided in
accordance with Iluka’s Non-Audit Services
Policy and External Auditor Guidelines; and
• All non-audit services were subject to the
corporate governance processes adopted
by the company and have been reviewed
by the Audit & Risk Committee to ensure
that they do not affect the integrity or
objectivity of the auditor.
A copy of the auditors' independence
declaration as required under section 307C
of the Corporations Act 2001 is set out on
page 81.
ENVIRONMENTAL
REGULATIONS
So far as the directors are aware, there have
been no material breaches of the Group's
licences and all mining and exploration
activities have been undertaken in compliance
with the relevant environmental regulations.
MATTERS SUBSEQUENT
TO THE END OF THE
FINANCIAL YEAR
The directors are not aware of any matter or
circumstance not otherwise dealt with in the
Directors' Report or Financial Statements that
has or may significantly affect the operations
of the entity, the results of its operations or the
state of affairs of the entity in the current or
subsequent financial years.
DIVIDEND
The directors have declared a fully franked
final dividend of 4 cents per ordinary share
payable on 28 March 2025.
LIKELY DEVELOPMENTS
AND EXPECTED RESULTS
In the opinion of the directors, likely
developments in and expected results of the
operations of the Group have been disclosed
in the Financial and Operational Review on
pages 14 to 47. Disclosure of any further
material relating to those matters could result
in unreasonable prejudice to the interests of
the Group.
CORPORATE GOVERNANCE
STATEMENT
The Company’s Corporate Governance
Statement for the year ended 31 December
2024 may be accessed from the Company’s
website at http://www.iluka.com/about-iluka/
governance.
ROUNDING OF AMOUNTS
The Company is of a kind referred to in "ASIC
Corporations (Rounding in Financial/Directors'
Reports) Instrument 2016/191", issued by
the Australian Securities and Investments
Commission, relating to the 'rounding off'
of amounts in the Directors' Report and
accompanying Financial Report. Amounts in
the Directors' Report have been rounded off
in accordance with that Rounding Instrument
to the nearest hundred thousand dollars, or in
certain cases, to the nearest dollar.
This report is made in accordance with a
resolution of the directors.
19 February 2025
A SUTTON
Acting Chair
T O'LEARY
Managing Director
Iluka Resources Limited Annual Report 2024 57
REMUNERATION
REPORT
MESSAGE FROM THE CHAIR OF THE PEOPLE AND PERFORMANCE COMMITTEE
Dear Shareholders
On behalf of the Board, I am pleased to present Iluka’s Remuneration Report (Report) for the financial year to 31 December 2024
(2024). The Board is committed to ensuring that Iluka’s remuneration framework is competitive, provides an effective incentive to
Executives and is aligned to company performance and shareholder outcomes. We continue to focus on transparent reporting
through this Report and ensuring shareholders understand our approach and the decisions taken by the Board in relation to
remuneration.
2024 REMUNERATION APPROACH
Our Executive remuneration structures remained unchanged from 2023, consisting of fixed remuneration and short- and long-
term incentive plans (STIP and LTIP). Each year Iluka selects STIP performance metrics and sets targets based on business
priorities, operational settings, and prevailing industry and macroeconomic environment conditions.
Due to subdued market conditions and cost headwinds at the time of setting the 2024 financial metrics and targets, we shifted
the STIP financial assessment to have a greater focus on cost management. Within the 50% weighting allocated to financial
metrics, the weighting of the Unit Cash Cost of Production measure was increased and as a result the weighting of ROC reduced.
In addition a new Operating Cash Flow measure was introduced in place of NPAT, noting that improvement in both the selected
cost metrics will drive improved NPAT results. We also increased the sustainability metric weighting from 15% to 25% of the
scorecard, reflecting the importance of our safety improvement and climate change work programs. This change aligns the
sustainability and safety metric weightings with industry market practice. Production was removed as a measure due to being in
a sales constrained rather than production constrained environment.
The targets set in relation to Unit Cash Cost of Production and for Operating Cash Flow are disclosed in the report and are
compared with actual results delivered. The financial earnings target (ROC) is not disclosed as Iluka does not consider this to be
in the best interest of its shareholders. Iluka is focused on sustainable value delivery and uses its market knowledge and influence
as a strategic advantage in optimising product prices and projected volume levels to deliver the best value for its shareholders
over time. We believe maintaining confidentiality on financial earnings targets, even on a retrospective basis, is important in
maintaining our competitive advantage.
Refer to Sections 2 and 3 for further details.
2024 PERFORMANCE AND REMUNERATION OUTCOMES
In determining the 2024 remuneration outcomes, the Board has carefully considered company performance and progression of
strategic objectives, individual achievements, the operating environment and the context in which targets were set, and alignment
with stakeholder expectations.
Challenging economic conditions continued throughout 2024. Management took advantage of opportunities early in the year to
place greater than had been anticipated volumes of zircon into the market at attractive pricing and demonstrated discipline in its
approach in responding to generally subdued demand for products over the year and in reducing costs through a targeted review.
Nevertheless, it was disappointing that the sales of synthetic rutile remained insufficient to warrant a restart of SR1.
Agreement was ultimately reached with the Australian Government ensuring the Eneabba rare earths refinery project is fully-
funded. The Balranald mine in construction remains on track for commissioning in 2025. These are both important strategic
growth projects for the future of Iluka’s mineral sands and rare earths businesses and delivery of long-term value for shareholders.
The health and safety improvement program implemented more easily accessible systems and processes to support effective
critical control management outcomes. While environmental incidents were above targeted levels, they resulted in a minor impact
on the environment or were easily remediated. Procedures relating to ground disturbance and management of groundwater, key
factors in the incidents, were reviewed and improved.
At the time of setting the 2024 STIP targets, the outlook was uncertain; the final outcomes achieved for the year were above
targets set. However, in determining the final financial outcome the Board has exercised its discretion to reduce the overall
achieved outcome for the financial metrics to slightly above threshold level. This resulted in a below target financial score of 60%
out of 100% (adjusted down from 119%). This decision was based on an acknowledgement of the shareholder experience over
2024 and the beginning of 2025. While shareholder experience is not a STIP measure, we have adjusted the final financial outcome
to recognise this factor; in addition, no vesting of long-term incentives will occur in relation to the 2020 Executive Incentive Plan
(EIP) Performance Rights award.
The following summarises the outcomes by component:
■
No fixed remuneration increases: No fixed remuneration increases were awarded to Executive KMP in 2024. There have been
no increases to Executive KMP fixed remuneration since 2022 and no increase to the Managing Director’s fixed remuneration
since his commencement in 2016.
■
2024 STIP outcome between threshold and target: The Board has determined a STIP outcome of 53% of maximum (80% of
target) for the Managing Director, based on 77% achievement against target under the annual group scorecard (after the
downwards adjustment to the financial outcome) and 90% achieved against individual strategic objectives. The Managing
Director’s award will be delivered in cash (50%) and in restricted shares (50%). KMP outcomes were between 53-58% of
maximum (depending on the individual executive). Refer Sections 3.4 and 3.5 for further details.
58 Iluka Resources Limited Annual Report 2024
■
No vesting of 2020 EIP Performance Rights: The Board determined that no performance rights would vest for the 2020 EIP
Performance Rights award. The Total Shareholder Return (TSR) outcome of 43.6% was at the 37th percentile against Iluka’s
peer group over the performance period. See Section 3.6 for further details.
■
No Board fee increases: No changes to the Non-executive Director fees were made during 2024.
The Board believes these outcomes fairly balance the performance of [the company and] management while recognising
shareholder outcomes.
2025 REMUNERATION APPROACH
No significant changes to the remuneration framework or incentive plan arrangements are planned for 2025. STIP financial
measures will remain consistent with 2024. 2025 Sustainability measures continue to focus on the maturity of our Health, Safety,
Environment and Community systems and progression of our climate change work program. We look forward to your feedback
on our Remuneration Report and continuing discussions with our shareholders and their proxy advisers on our remuneration
approach. Thank you for your ongoing support.
Yours sincerely
Andrea Sutton
Chair of the People and Performance Committee
Iluka Resources Limited Annual Report 2024 59
2024 AT A GLANCE
2024 Key achievements:
1
Reflects cash flow generated by the Mineral Sands business. Excludes growth costs, Deterra dividend and Northern Minerals investment.
2
Reflects ROC for the Group Incentive Scorecard and is adjusted to remove the income from Deterra.
3
Reflects Production for the Group Incentive Scorecard, which excluded Zircon-in-Concentrate in 2024.
How this year’s performance compares to previous years:
The following table outlines historic business performance outcomes:
KPI
2024
2023
2022
2021
20204
Net profit/(loss) after tax ($m) – Reported
231.3
342.6
588.5
365.9
2,410
Net profit/(loss) after tax ($m) – Underlying4,5
230.6
343.3
597.0
314.8
151.2
Net profit/(loss) after tax ($m) – Underlying, excluding Deterra
209.1
315.4
558.8
296.4
151.1
Underlying EBITDA (Group) ($m)6
498.8
581.8
946.4
652.3
423.1
EBITDA margin (%)
44
47.0
54.8
43.9
41.2
Free cash flow ($ million)
(288.1)
(159.6)
444.3
299.5
36.3
Earnings per share (cents)
54.1
80.5
138.6
86.7
570.4
Return on equity (%)
10.2
17.1
33
25.9
283.7
Closing share price ($)7
5.05
6.60
9.53
9.89
6.36
Total dividends declared for the year (cents)
8
7
45
24
2
Franking credit level (%)
100
100
100
100
100
Average AUD: USD spot exchange rate (cents)
66.0
66.5
69.5
75.1
69.1
Revenue per tonne Z/R/SR sold ($/t)
2,196
2,314
2,214.7
1,593
1,625
4
Reported earnings in 2020 were impacted by significant impairments and write-downs; profit on demerger of Deterra Royalties and/or changes to rehabilitation
provisions for closed sites.
5
Underlying Net profit/(loss) after tax and Group EBITDA excludes adjustments relating to impairments and write-downs; profit on demerger; and changes to
rehabilitation provisions for closed sites.
6
Underlying Net profit/(loss), excluding the income derived from Deterra Royalties, is used as a financial measure in the Group Incentive Scorecard. Deterra Royalties
demerged from the Group in November 2020.
7
2020 and 2021 represent the historical closing share price adjusted for the demerger of Sierra Rutile Limited. Data sourced from ASX
www2.asx.com.au/markets/company/ilu. Starting price on 2 January 2020 was $4.75.
60 Iluka Resources Limited Annual Report 2024
TABLE OF CONTENTS
This Remuneration Report contains the following Sections.
SECTION 1
Who is covered by
this Report?
Section 1 defines the KMP at Iluka covered in this Remuneration Report.
Page 61
SECTION 2
Executive
remuneration
framework –
overview
Section 2 describes Iluka’s remuneration philosophy and the 2024 remuneration
structure for Executive KMP (including further detail on the STIP and LTIP).
Page 62
SECTION 3
2024 Executive
KMP remuneration
outcomes
Section 3 details 2024 remuneration outcomes for Executive KMP including fixed
remuneration, STIP outcomes and LTIP performance rights vesting outcomes
where relevant.
Page 68
SECTION 4
Non-executive
Director
remuneration
Section 4 details policy fee and benefits for the company’s Non-executive
Directors including relevant statutory remuneration disclosure.
Page 73
SECTION 5
Remuneration
governance
Section 5 provides an overview of key elements of the company’s remuneration
governance framework and other governance disclosures for 2024.
Page 75
SECTION 6
Additional
remuneration
disclosures
Section 6 provides an update for all relevant statutory remuneration disclosures as
required by the Corporations Act 2001 (if not disclosed elsewhere in the Report).
Page 77
Iluka Resources Limited Annual Report 2024 61
1. WHO IS COVERED BY THIS REPORT?
This Report details the remuneration arrangements for Iluka’s KMP. KMP are those persons who, directly or indirectly, have
authority and responsibility for planning, directing, and controlling activities of the company. The KMP members over the 2024
year comprised the following Executive KMP and Non-executive Directors.
Name
Position
Term as KMP
Executive KMP
Current Members
T O’Leary
Managing Director and Chief Executive Officer (Managing Director)
Full year
A Stratton
Chief Financial Officer and Head of Development
Full year
M Blackwell
Head of Projects and Sales and Marketing
Full year
S Tilka
Chief Operating Officer, Mineral Sands1
Full year
Non-executive Directors
Current Members
A Sutton
Acting Chair, Independent Non-executive Director2
Full year
S Corlett
Independent Non-executive Director
Full year
L Saint
Independent Non-executive Director
Full year
P Smith3
Independent Non-executive Director
Partial year
Former Members
R Cole4
Former Chair, Independent Non-executive Director
Ceased 13 December 2024
M Bastos5
Former Independent Non-executive Director
Ceased 31 August 2024
1
S Tilka position title change effective 16 September 2024.
2
A Sutton appointed as Acting Chair on 13 November 2024.
3
P Smith appointed Non-executive Director on 28 June 2024.
4
R Cole retired as Chair on 13 December 2024.
5
M Bastos retired as a Non-executive director on 31 August 2024.
62 Iluka Resources Limited Annual Report 2024
2. EXECUTIVE REMUNERATION FRAMEWORK – OVERVIEW
2.1 SNAPSHOT
REMUNERATION PRINCIPLES
Iluka’s Remuneration Principles (outlined below) provide the foundations for how remuneration is structured and awarded to
achieve our purpose of delivering sustainable value to our shareholders.
EXECUTIVE FRAMEWORK AND COMPONENTS
Executive KMP remuneration at Iluka is comprised of a mix of fixed and at-risk components to attract, retain and motivate
executives. The table below provides an overview of the different remuneration components within the Iluka rRemuneration
framework. Further detail on the executive remuneration framework is outlined on the following page.
Component
Delivery
Approach and rationale
Fixed
remuneration
Consists of base salary and superannuation.
Fixed remuneration is set considering::
■
Trajectory of the company’s growth and key strategic
objectives
■
Relevant market comparators and scarcity of talent
■
Executive KMP’s experience and performance
■
Executive KMP’s role responsibilities
Short-term
incentives (STIP)
Delivered as cash (50% of the award) and restricted
shares (50% of the award).
Restricted shares are subject to one and two year
disposal restriction periods and continuity of service.
Provides an award based on performance against an
annual scorecard of financial, non-financial and strategic
measures. Measures are set considering Iluka’s annual
performance objectives and aligned to short- to mid-term
strategy.
Long-term
incentives (LTIP)
Delivered as performance rights vesting over four
years.
Drives focus on long-term company performance and creates
alignment with returns generated for our shareholders over the
long-term. Performance is measured through relative TSR
against the S&P / ASX 200 Resources Index (excluding
companies primarily engaged in the oil and gas sector and non-
mining activities).
Minimum shareholding requirement: 200% of fixed remuneration (MD), 100% of fixed remuneration (other Executive KMP)
Iluka Resources Limited Annual Report 2024 63
PAY MIX FOR PERFORMANCE
The following diagram sets out the mix for fixed and at-risk remuneration for Executive KMP during 2024. Remuneration packages
for Executive KMP are weighted towards at-risk remuneration to drive performance for our shareholders.
2.3 EXECUTIVE INCENTIVE PLAN – MORE DETAIL
OVERVIEW
The following diagram outlines Iluka’s Executive remuneration framework for FY24.
64 Iluka Resources Limited Annual Report 2024
STIP – KEY QUESTIONS AND ANSWERS
Question
Answer
How is it paid?
For all Executive KMP, STIP awards are delivered as 50% cash and 50% restricted shares which are
released from disposal restrictions in equal tranches one year following the grant date (first tranche)
and two years following the grant date (second tranche). Restricted shares are granted at no cost to
the participants because they are awarded as remuneration.
How much can
participants earn
under the STIP?
STIP opportunities are expressed as a percentage of fixed remuneration.
STIP target
(% of fixed remuneration)
STIP maximum
(% of fixed remuneration)
Managing Director
80%
120%
Other Executive KMP
60%
90%
What
performance
measures will
inform the STIP
awards?
The Board sets an annual scorecard to focus our Executive KMP on financial, non-financial and
strategic imperatives they can influence and are critical to Iluka’s long-term sustainability. Performance
objectives are reviewed each year to ensure they remain relevant in the context of Iluka’s strategy and
the external environment conditions. In 2024 some changes were made from the 2023 annual
scorecard.
Due to subdued market conditions and cost headwinds at the time of setting the 2024 financial
metrics and targets, the STIP financial assessment was shifted to have a greater focus on cost
management. The weighting of the Unit Cash Cost of Production measure was increased and a new
Operating Cash Flow measure was introduced in place of NPAT, noting that improvement in both the
selected metrics will drive improved NPAT results. The sustainability metric weighting was increased
from 15% to 25% of the scorecard, reflecting the importance of the safety improvement and climate
change work programs. Production was removed as a measure due to being in a sales constrained
rather than production constrained environment.
In 2024 scorecard objectives covered:
■
Financial performance (50%);
Group ROC% (15%);
Operating Cash Flow $m (15%); and
Unit Cash Costs of Production $/t (20%)
■
Sustainability performance focusing on health and safety performance and systems,
environmental management, proactive rehabilitation and the climate change work program (25%);
and
■
Individual strategic measures (25%).
In setting objectives, the Board aims to ensure that targets are quantifiable and drive the right
commercial and strategic outcomes for Iluka. Section 3 provides a detailed explanation of the specific
targets set in 2024, how they were measured and our assessment of performance.
How are STIP
awards are
determined?
STIP outcomes are calculated based on the following schedule, with a sliding scale operating between
threshold and target, and between target and stretch:
Performance level
STIP outcome (% target)
Threshold
50%
Target
100%
Stretch (maximum)
150%
Who assesses
STIP
performance?
STIP outcomes are determined by the Board following an assessment of performance measures at the
end of the 2024 performance period and with regard to financial metrics, Iluka’s performance and
broader market factors.
How is the
number of
restricted shares
to be granted to
participants
determined?
The number of restricted shares awarded to each participant is based on a face value methodology.
This is determined by dividing the dollar value of the STIP award to be deferred by the Volume
Weighted Average Price (VWAP) of Iluka shares traded on the ASX over the five trading days following
the release of the company’s FY24 full year results.
Iluka Resources Limited Annual Report 2024 65
Question
Answer
What happens if
participants leave
before the
vesting date?
Unless the Board determines otherwise, in the event of an Executive KMP resigning or ceasing
employment for cause (e.g. serious or wilful misconduct, negligence etc): all unvested restricted shares
will lapse.
If an Executive KMP ceases employment for any other reason or circumstances (including death, total
and permanent disability, retirement or redundancy): unvested restricted shares will remain on foot and
be subject to the original terms of the award.
What happens on
a change of
control?
The Board has discretion to determine that some or all of the equity restrictions be lifted, in the event
of a takeover or other transaction that in the Board’s opinion should be treated as a change of control
event.
Do any clawback
or malus
provisions apply?
The Board may clawback incentives that have vested and that have been paid or awarded to
participants in certain circumstances. In addition, restricted shares may be forfeited in certain
circumstances during the disposal restricted period. For example, restricted shares may lapse if a
participant acts fraudulently or dishonestly or if there is a material misstatement or omission in the
accounts of a Group company.
What does the
Board take into
account when
considering
whether to
exercise
discretion?
In determining whether to exercise discretion, the Board will have regard to all relevant factors at the
time, which may include the performance of the company and the participant over the performance
period and the proportion of the performance period that has elapsed. Other factors considered by
the Board include the operating environment and the context in which targets were set and alignment
with stakeholder expectations. Consideration of these factors may lead to the exercise of discretion to
increase or decrease award outcomes.
Do restricted
shares have any
dividend and
voting rights?
Restricted shares carry voting rights and participants are entitled to dividends paid during the disposal
restriction period.
66 Iluka Resources Limited Annual Report 2024
LTIP – KEY QUESTIONS AND ANSWERS
Question
Answer
How is it paid?
LTIP awards are granted in the form of performance rights are granted at no cost to participants
because they are awarded as remuneration.
How much can
participants earn
under the LTIP?
LTIP face value (Maximum)
(% of fixed remuneration)
Managing Director
120%
Other Executive KMP
90%
What
performance
measures will
inform the LTIP
awards?
Performance rights will be subject to a relative TSR performance measure which will be measured over
a four-year period commencing on 1 January 2024 against the S&P / ASX 200 Resources Index
constituents (excluding companies primarily engaged in the oil and gas sector and non-mining
activities). Relative TSR was selected as the performance measure for the LTIP award because it aligns
the interests of KMP with that of Iluka’s shareholders.
Vesting is subject to the sliding scale below:
Performance level to be achieved
Percentage vesting
Below 50th percentile
0%
50th percentile
50%
Between 50th and 75th percentile
Sliding scale vesting
75th percentile or above
100%
How is the
number of rights
to be granted to
participants
determined?
The number of performance rights awarded to each participant is based on a face value methodology.
This is determined by dividing the dollar value of the LTIP maximum opportunity for FY24 by the VWAP
of Iluka shares traded on the ASX over the five trading days following the release of the company’s
FY24 full year results.
Who assesses the
LTIP
performance?
Incentive outcomes are determined by the Board following an assessment of the performance
measure at the end of the four-year performance period. The assessment of the relative TSR
performance measures involves calculation of the relative TSR results by an external remuneration
advisor as soon as practicable after the end of the relevant performance period.
What happens on
vesting of the
LTIP?
On vesting, participants are generally entitled to one Iluka share for each performance right that vests.
No amount is payable on vesting of performance rights. Any performance rights that do not vest
automatically lapse. There is no re-testing of performance rights.
What happens if
participants leave
before the
vesting date?
Unless the Board determines otherwise, in the event of an Executive KMP resigning or ceasing
employment for cause (e.g. serious or wilful misconduct, negligence etc): all unvested performance
rights will lapse.
If an Executive KMP ceases employment for any other reason or circumstances (including death, total
and permanent disability, retirement or redundancy): unvested performance rights will remain on foot
and be subject to the original terms of the award.
What happens on
a change of
control?
The Board has discretion to determine that vesting of some or all of the equity awards be accelerated,
in the event of a takeover or other transaction that in the Board’s opinion should be treated as a
change of control event.
Do any clawback
or malus
provisions apply?
The Board may clawback incentives that have vested and that have been paid or awarded to
participants in certain circumstances. In addition, performance rights may lapse in certain
circumstances during the performance period. For example, performance rights may lapse if a
participant acts fraudulently or dishonestly or if there is a material misstatement or omission in the
accounts of a Group company.
Iluka Resources Limited Annual Report 2024 67
Question
Answer
What does the
Board take into
account when
considering
whether to
exercise
discretion?
In determining whether to exercise discretion, the Board will have regard to all relevant factors at the
time, which may include the performance of the company and the participant over the performance
period and the proportion of the performance period that has elapsed.
Are participants
entitled to voting
rights and
dividends?
No dividends are paid on performance rights prior to vesting. Performance rights do not carry voting
entitlements.
68 Iluka Resources Limited Annual Report 2024
3. 2024 EXECUTIVE KMP REMUNERATION OUTCOMES
3.1 2024 FIXED REMUNERATION OUTCOMES
There were no changes to KMP fixed remuneration in 2024.
3.2 2024 STIP SCORECARD AND OUTCOMES ACHIEVED
The STIP scorecard is approved by the Board at the commencement of the financial year and focuses executives on business
priorities over the one-year performance period. Outlined below are the targets that were set for 2024 and the level of
performance achieved.
We have provided specific targets for Unit Cash Costs of Production and Operating Cash Flow to provide greater transparency.
Specific targets are not disclosed in relation to ROC due to commercial sensitivity. Iluka’s approach to the marketing and pricing
of its products is key to achievement of the company’s objective to deliver sustainable value. We believe maintaining
confidentiality on financial earnings targets, even on a retrospective basis, is important to maintaining our competitive advantage
and is in the best interests of shareholders.
Scorecard measure
Below threshold
Threshold to target
Target
Target to stretch
Stretch
Performance and outcome
FINANCIALS (50%)
Adjusted outcome – 60% of target; 40% of maximum achieved
Notwithstanding the financial outcome achieved in relation to the targets set (see below), the Board has determined to reduce
the overall financial outcome from 119% down to 60% of target. This decision was based on an acknowledgement of the
shareholder experience over 2024 and the beginning of 2025.
Unit Cash Costs of
Production $/t1
Target $1,590/t
Weighted: 20%
The Group Unit Cash Cost of Production achieved was better (lower) than
target with a focused reduction on cash production costs, being $15m below
that guided at the start of the year. Production performance also exceeded
guidance with strong performance from SR2 following its restart from a
planned major maintenance outage in late January 2024. A strong focus on
cost management and concluding a cost review process during Q4 2024 led
to further $20m ongoing cost reductions for 2025 across the business.
Above
threshold
(Adjusted down
from between
target and
stretch)
Operating Cash Flow
Target: $266m
Weighted: 15%
Subdued market conditions in mineral sands led to a greater focus on cash
generation to support the growth pipeline for the business. The business
generated $256m of operating cashflow from sales revenue of $1.1bn, with the
threshold level set at what was budgeted by the business for 2024.
Above
threshold
(Adjusted down
from between
target and
stretch)
Group ROC (%)2
Weighted: 15%
Challenging economic conditions continued throughout 2024. Management
took advantage of opportunities early in the year to place greater than had
been anticipated volumes of zircon into the market at attractive pricing, and
demonstrated discipline in its approach in responding to generally subdued
demand for products over the year and in reducing costs through a targeted
review. Nevertheless, it was disappointing that the sales of synthetic rutile
remained insufficient to warrant a restart of SR1.
Continuing to generate ROC above 20% in the challenging and subdued market
conditions which prevailed for most of 2024 is considered a strong result.
Above
threshold
(Adjusted down
from stretch)
1
Unit Cash Costs of Production targets and outcomes exclude production related to Zircon-in-Concentrate.
2
The targets and outcomes are adjusted to exclude the income derived from Iluka’s investment in Deterra Royalties.
Iluka Resources Limited Annual Report 2024 69
Scorecard measure
Below threshold
Threshold to target
Target
Target to stretch
Stretch
Performance and outcome
SUSTAINABILITY (25%)
Outcome – 110% of target; 73% of maximum achieved
Trusted by our People and Communities
Group Total
Recordable Injury
Frequency Rate
(TRIFR)
Target 4.15
Weighted: 5%
TRIFR of 3.8 was above the target set for 2024.
The 2024 target was set at an improvement to the 2023 target set ensuring
that the focus was maintained on minimising injuries whilst acknowledging the
challenge to keep TRIFR at the level achieved in 2023 (2.4). There were 16
injuries in 2024 (compared to 11 in 2023). This was largely driven by
hand/finger (6) and slips/trips injuries (8). Only one injury out of the 16 was
classified as an SPI. Prevention of these types of injuries were a focus of
specific campaigns together with continued priority of strong leadership
presence in the field and embedding of the Critical Control Management
program.
Between target
and stretch
Health and Safety
system improvements
Target Achieve work
program objectives for
3 key initiatives
Weighted: 6%
In 2024 Iluka implemented a Health and Safety improvement program
focused on improving the effectiveness and value delivered through the
Critical Control Management program. The achievements include:
• Implementation of mobile technology for employees and contractors to
support critical control verifications and checks in the field and dashboard
reporting of gaps identified
• 9,500 critical control checks and 4,500 field verifications were completed
reflecting a ratio of 1.92:1.
• 100% close out of 2023 corrective actions relating to the Health and
Safety audit program
Stretch
Responsible for the environment
Mine closure risk (ha)
Reduction of open
mining area against
plan
Target 205ha of open
mining area
Weighted: 4%
171ha of open area against a target of 205ha open area was achieved in
2024.
The stretch outcome reflects progress made on our operating mines (Cataby
and Jacinth-Ambrosia) to optimise their rehabilitation and disturbance activity
throughout the year. A total of 403ha of rehabilitation was achieved across
all Iluka sites, including 89ha of progressive rehabilitation at the operating
mines and 314ha at closed sites.
Between target
and stretch
Group environmental
level 3 and above
incidents
Target of 7 or less
Weighted: 3%
There were 14 environmental incidents classified as Level 3 or above in 2024.
Twelve incidents relation to the unauthorised release of turbid (sediment
laden) water flowing off-site. The remaining incidents related to unauthorised
vegetation disturbance.
Environmental incident reports were reviewed in detail through 2024 to
ensure classifications are applied consistently and transparently, in
accordance with the relevant Group Guideline, which may have contributed to
the higher number of L3+ incidences for 2024.
Revised environmental incident classification guidance has been issued for
use in 2025.
Below
threshold
Operating in and providing products for a low carbon world
Climate change work
program
Target Achieve work
program objectives for
five key initiatives
Weighted: 7%
The 2024 climate change work program was set against qualitative metrics
relevant for the five initiatives tracked throughout the year. Iluka achieved an
above target outcome for progress achieved related to those initiatives.
Further detail of Iluka’s work in relation to those initiatives is set out in the
Sustainability report (page 30).
Between target
and stretch
GROUP SCORECARD1
Outcome – 77% of target; 52% of maximum achieved
1
Financials, Production, Sustainability
70 Iluka Resources Limited Annual Report 2024
3.3 MANAGING DIRECTOR INDIVIDUAL OBJECTIVES
Individual strategic objectives were set based on individual KMP accountabilities. Outlined below is the assessment of the
Managing Director (MD)’s performance against the Individual Strategy scorecard measure and corresponding EIP outcome.
Notwithstanding the scorecard assessment and outcome, the Board would like to acknowledge the Managing Director’s strong
leadership through a very challenging macroeconomic period for Iluka and his drive to successfully progress key strategic
projects, specifically the development of the Eneabba rare earths refinery.
Scorecard measure
(weight) – 25%
Below threshold
Threshold to target
Target
Target to stretch
Stretch
Performance and outcome
INDIVIDUAL STRATEGY
Outcome – 90% of target; 60% of maximum
Advance diversification
of portfolio into rare
earths in a prudent
manner
•
Pleasingly, agreement was reached with the Australian Government to secure an additional
$400 million in funding, confirming the capital structure for the development of the Eneabba
rare earths refinery. The time taken to reach agreement (one year from commencement of
discussions with Government) was disappointing, and this had consequences for progress
with project delivery.
•
Front End Engineering Design for the project was completed and the majority of equipment,
fabrication and site works awarded. Site activities focused on progressing critical path items
reflecting prudent capital management while funding arrangements were concluded.
•
Operational readiness plans advancing in line with the schedule for Eneabba’s
commissioning including detailed planning, organisation design, major operational supply
contracts and maintenance and asset management strategies.
•
Marketing strategy progressing through development of pricing approach to support a
diversified supply chain for rare earths and through engagement with potential offtake
partners on that approach. Metallisation feasibility study phase 1 completed.
Pursue value accretive
opportunities in mineral
sands to deliver
sustainable value over
the long-term with a view
to extending reserve life
•
Construction of Balranald mine and operational readiness progressed and on track for
commissioning in H2 2025. Earthworks and site access road well advanced. Off-site
construction of concentrator and mining rigs completed. All primary approvals secured for
operation.
•
Wimmera DFS progressed with all fieldwork complete; the process flow sheet finalised
including value accretive optimisations and environmental studies to support Environmental
Impact Statement (EIS) submission well advanced.
Optimise price and
volume settings
•
Disciplined approach to production and supply. Cataby and Jacinth-Ambrosia mining
operations at optimal settings to minimise operating costs. Ilmenite concentrate build to
underpin capability to restart SR1 when required. It was disappointing that market
conditions have not warranted restart of SR1.
•
SR contracts and negotiated pricing outcomes provided degree of revenue certainty
against backdrop of subdued demand. A considered approach to zircon price setting and
sales volumes delivered industry-leading pricing outcomes, margin protection and higher
than expected revenue and earnings.
The Individual Strategy scorecard area outcomes for other Executive KMP ranged from 90% – 115% of target.
3.4 OVERALL STIP SCORECARD OUTCOME FOR THE MANAGING DIRECTOR
Scorecard measure
Weight
Outcome
Weighted
Outcome
Below threshold
Threshold to target
Target
Target to stretch
Stretch
Group scorecard
75%
77%
58%
Individual Strategy MD outcome
25%
90%
22%
OVERALL MD RESULT
80%
Iluka Resources Limited Annual Report 2024 71
3.5 STIP AWARDS FROM 2024 SCORECARD OUTCOMES
The following table presents the outcomes of the STIP awards attributed to the 2024 performance year. The face value of
restricted shares has been presented, as the fair value will not be determined until the grant is made in March 2025.
Executive
KMP
Target STIP
opportunity
Maximum
STIP
opportunity
% of
target
STIP
earned
% of
maximum
STIP
earned
% of
maximum
STIP
forfeited
STIP
cash
STIP
restricted
shares
Total
T O’Leary
$1,120,000
$1,680,000
80.0
53.3
46.7
$448,000
$448,000
$896,000
A Stratton
$438,000
$657,000
85.0
57.7
43.3
$186,150
$186,150
$372,300
M Blackwell
$438,000
$657,000
80.3
53.5
46.5
$175,748
$175,747
$351,495
S Tilka
$390,000
$585,000
86.5
57.7
42.3
$168,675
$168,675
$337,350
3.6 VESTING OF 2020 EIP PERFORMANCE RIGHTS
40% of Executive KMPs’ total 2020 EIP award was granted as performance rights. The EIP was the legacy combined incentive
plan in place prior to 2023.
These performance rights were tested and assessed by the Board based on Iluka’s TSR performance in relation to the S&P / ASX
200 Resources Index (excluding companies primarily engaged in the oil and gas sector and non-mining activities) over the five
years to 31 December 2024 (as per the vesting schedule below).
The 2020 EIP Performance Rights were assessed as follows:
Relative TSR
Weighting:
100%
Actual Score:
TSR of (43.6%) 37th percentile of comparator group
Outcome:
0% vesting - Iluka’s TSR is below the 50th percentile of peer group (as per the terms
of the 2020 EIP Performance Rights).
3.7 SUMMARY OF REALISED REMUNERATION PAID TO EXECUTIVE KMP IN 2024
This section uses non-IFRS information to show the ‘realised remuneration’ received by Executive KMP for 2024. This is a
voluntary disclosure intended to demonstrate the link between the remuneration received by Executive KMP and the performance
of Iluka over 2024. Refer to following Section 3.8 for statutory remuneration disclosure.
Executive KMP
Fixed
remuneration
STIP
Total
Other1
Cash2
Restricted
shares2
2020 EIP
Performance
Rights vesting3
T O’Leary
$1,400,000
$65,652
$448,000
$448,000
$0
$2,361,652
A Stratton
$730,000
$28,263
$186,150
$186,150
$0
$1,130,563
M Blackwell
$730,000
$31,193
$175,748
$175,747
$0
$1,112,688
S Tilka
$650,000
$19,215
$168,675
$168,675
$0
$1,006,565
1
Represents car parking for T O’Leary, A Stratton and M Blackwell, FBT value of car benefit for S Tilka and dividend equivalent payments in relation to vesting of 2020
EIP Tranche 4, 2021 EIP Tranche 3 and 2022 EIP Tranche 2 payable in March 2025 for all KMP. Dividend equivalent payments are no longer made under the STIP or
LTIP in place since 2023.
2
Relates to outcome from 2024 STIP. Restricted shares vest in two tranches in March 2026 and 2027. This represents the face value of the grant being made.
3 Reflects outcome of the 2020 EIP Performance Rights detailed in Section 3.6.
72 Iluka Resources Limited Annual Report 2024
3.8 EXECUTIVE KMP STATUTORY REMUNERATION DISCLOSURES
Details of the remuneration of the KMP, prepared in accordance with the requirements of the Corporations Act 2001 (Cth) and the relevant Australian Accounting Standards, are set out in the following
tables.
Name
Year
Short-term benefits
Post-employment benefits
Other long-term
benefits
Share based payments4
%
Perform-
ance
based
remun-
eration
Base salary
STIP cash1
Non-
monetary
benefits2
Superann-
uation
benefits
Termin-
ation
benefits
Accrued
AL and
LSL3
STIP
Restricted
shares
LTIP
Performance
Rights
EIP Rights
Statutory
total
T O’Leary
2024
$1,371,335
$448,000
$13,968
$28,666
$0
($33,864)
$394,537
$628,883
$1,029,572
$3,881,097
64.4%
2023
$1,373,6545
$582,400
$13,459
$26,346
$0
$108,709
$226,358
$339,108
$1,396,614
$4,066,648
62.6%
A Stratton
2024
$701,334
$186,150
$13,968
$28,666
$0
$14,915
$157,795
$221,846
$293,967
$1,618,641
53.1%
2023
$703,6546
$225,760
$13,459
$26,346
$0
($14,942)
$87,745
$127,633
$373,930
$1,543,585
52.8%
M
Blackwell
2024
$701,334
$175,748
$16,798
$28,666
$0
($4,680)
$153,752
$221,846
$293,443
$1,586,907
53.2%
2023
$703,6547
$225,760
$13,459
$26,346
$0
$8,726
$87,745
$127,633
$374,362
$1,567,685
52.0%
S Tilka
2024
$621,335
$168,675
$8,021
$28,666
$0
$55,676
$142,930
$197,535
$243,136
$1,465,974
51.3%
2023
$623,6548
$204,432
$2,673
$26,346
$0
$21,719
$79,456
$113,646
$306,436
$1,378,362
51.1%
Total
2024
$3,395,338
$978,573
$52,755
$114,664
$0
$32,047
$849,014
$1,270,110
$1,860,118
$8,552,619
58.0%
2023
$3,404,6169
$1,238,352
$43,050
$105,384
$0
$124,212
$481,304
$708,020
$2,451,342
$8,556,280
57.0%
1
STIP cash payment for 2024 will be made in March 2025. STIP cash payment reflects the change in Executive incentives noted in the 2022 Annual Report from an EIP to Executive STIP.
2
Represents car parking for Executive KMP based in Perth and FBT value of car benefit for S Tilka and 20-year service awards for M Blackwell and S Tilka
3
Represents the movement in the annual and long-service leave provisions during the year. Any reduction in accrued annual leave reflects more leave taken than which accrued in the period.
4
Amounts relate to the fair value of awards made under various incentive plans attributable to the year measured in accordance with AASB 2 Share Based Payments.
5
T O’Leary remuneration in 2023 included the above super guarantee cash of $8,430, within the base salary reported as $1,382,084. This expense was incorrectly calculated and should have been reported as $1,373,654. Accordingly the remuneration has been
restated to reflect the expense of $1,373,654 which is $8,430 less than the previously reported amount and consequently the total has been restated by an amount lower of $8,430.
6
A Stratton remuneration in 2023 included the above super guarantee cash of $21,998, within the base salary reported as $725,652. This expense was incorrectly calculated and should have been reported as $703,654. Accordingly the remuneration has been
restated to reflect the expense of $703,654 which is $21,998 less than the previously reported amount and consequently the total has been restated by an amount lower of $21,998.
7
M Blackwell remuneration in 2023 included the above super guarantee cash of $21,632 within the base salary reported as $725,287. This expense was incorrectly calculated and should have been reported as $703,654. Accordingly the remuneration has been
restated to reflect the expense of $703,654 which is $21,632 less than the previously reported amount and consequently each total has been restated by an amount lower of $21,632.
8
S Tilka remuneration in 2023 included the above super guarantee cash of $17,375, within the base salary reported as $641,029. This expense was incorrectly calculated and should have been reported as $623,654. Accordingly the remuneration has been restated
to reflect the expense of $623,654 which is $17,373 less than the previously reported amount and consequently each total has been restated by an amount lower of $17,375
9
Total has been restated by an amount lower of $69,433 (refer to above footnote 5,6,7 & 8).
Iluka Resources Limited Annual Report 2024 73
4. NON-EXECUTIVE DIRECTOR REMUNERATION
4.1 2024 NON-EXECUTIVE DIRECTOR FEE POLICY
The Board sets the fees for its Non-executive Directors in line with the key objectives of Iluka’s Non-executive Director
remuneration policy set out below. Fees are reviewed annually and are set at a level that is sufficient to attract and retain high
calibre Directors with the skills and experience required to oversee a business of Iluka’s size and complexity.
4.2 AGGREGATE FEE
4.2 AGGREGATE FEE
The current annual aggregate fee pool for Non-executive Directors is capped at $1.8 million (including statutory contributions),
as approved by shareholders at Iluka’s AGM in May 2015.
4.3 2024 FEES AND OTHER BENEFITS
Non-executive Director fees for 2024 are outlined in the table below. No changes were made to Non-executive Director fees in
2024.
2024 Board and Committee fees
(excl. superannuation)
Chair
Member
2023
2024
2023
2024
Board
$321,400
$321,400
$128,800
$128,800
Audit and Risk Committee
$36,100
$36,100
$18,100
$18,100
People and Performance Committee
$30,600
$30,600
$15,350
$15,350
Nomination and Governance Committee
Nil
Nil
Nil
Nil
Sustainability Committee
$30,600
$30,600
$15,350
$15,350
The minimum required employer superannuation contribution up to the statutory maximum is paid into each Non-executive
Director’s nominated eligible fund and is in addition to the above fees. The statutory value for superannuation increased in 2024.
Non-executive Directors are not entitled to retirement benefits other than statutory superannuation or other statutory required
benefits.
The Board’s policy is to remunerate Non-executive Directors at market-competitive rates to attract and
retain Non-executive Directors of the requisite expertise having regard to:
•
Market data;
•
The size and complexity Iluka’s operations; and
•
The workload and time commitment of Directors.
Market
competitive
•
Non-executive Director remuneration consists of base fees, and additional fees for the Chair and
members of any Board Committee (with the exception of the Nomination Committee).
•
No element of Non-executive Director remuneration is ‘at-risk’ (i.e. Directors are not entitled to
any performance-related pay such as share or bonus schemes designed for Executive KMP or
employees) to preserve their independence and impartiality.
Preserve and
safeguard
independence
and impartiality
•
Non-executive Directors are required to hold securities in Iluka to create alignment between the
interests of Non-executive Directors and shareholders.
•
Non-executive Directors are subject to a minimum shareholding requirement equal to 1 times
their annual Board base member fee (exclusive of superannuation). Refer to Section 5.2 for
further detail.
Alignment with
shareholders
74 Iluka Resources Limited Annual Report 2024
4.4 STATUTORY REMUNERATION TABLE
The fees paid to Non-executive Directors in 2024 are outlined below, prepared in accordance with the requirements of the
Corporations Act 2001 (Cth) and the relevant Australian Accounting Standards.
Name
Year
Board and
Committee fees
Non-
monetary
benefits
Superannuation
Statutory total
Current Non-executive Directors
A Sutton1
2024
$181,832
$0
$20,512
$202,344
2023
$159,400
$0
$17,136
$176,536
S Corlett
2024
$164,792
$0
$18,545
$183,337
2023
$162,250
$0
$17,442
$179,692
L Saint
2024
$180,250
$0
$9,914
$190,164
2023
$180,250
$0
$19,377
$199,627
P Smith2
2024
$75,234
$0
$8,652
$83,886
2023
$0
$0
$0
$0
Former Non-executive Directors
R Cole3
2024
$278,036
$0
$25,436
$303,472
2023
$321,400
$0
$26,346
$347,746
M Bastos4
2024
$118,333
$0
$13,165
$131,498
2023
$177,500
$0
$19,081
$196,581
Total fees
2024
$998,477
$0
$96,224
$1,094,701
2023
$1,000,800
$0
$99,382
$1,100,182
1 A Sutton acting Chair from 13 November 2024.
2 P Smith became a Non-executive Director on 28 June 2024.
3 R Cole retired as Chair on 13 December 2024. Remuneration disclosures for 2024 reflect the period he was a Non-executive Director.
4 M Bastos retired as a Non-executive director on 31 August 2024. Remuneration disclosure for 2024 reflect the period he was a Non-executive Director.
Iluka Resources Limited Annual Report 2024 75
5. REMUNERATION GOVERNANCE
5.1 REMUNERATION GOVERNANCE FRAMEWORK
KMP remuneration decision-making is governed by the Iluka remuneration governance framework. The Iluka People and
Performance Committee Charter can be found at www.iluka.com/about-iluka/governance.
5.2 MINIMUM SHAREHOLDING REQUIREMENT (MSR)
KMP are required to acquire and hold a personally significant shareholding in Iluka to align to the interests of shareholders over a
reasonable time frame taking into account vesting and taxation obligations. See Sections 6.3 and 6.4 for details of current KMP
shareholdings.
Executive KMP The MSR policy for Executive KMP is as below:
MSR policy
% of fixed remuneration (year-end)
Managing Director
Other Executives
200%
100%
As of 31 December 2024, three members of the Executive KMP meet the MSR.
Non-executive
Directors
The Board is committed to Non-executive Directors acquiring and holding a shareholding within three years of
appointment. The Chair and other Non-executive Directors are required to hold such a number that the aggregate
value is at least equal to 100% of their annual Board base member fee (exclusive of superannuation)1. As at 31
December 2024, three of the four Non-executive Directors meet the MSR.
See Section 6 for details of current KMP shareholdings.
1Excludes committee fees and superannuation
76 Iluka Resources Limited Annual Report 2024
5.3 SECURITIES TRADING POLICY
Security Trading
Policy
Directors and employees (including Executive KMP) are prohibited from trading in financial products issued
or created over the company’s securities created by third parties, and from trading in associated products
and entering into transactions which operate to limit the economic risk of holdings of unvested Iluka securities
or vested Iluka securities which are subject to a holding lock.
The Security Trading Policy is available on the company’s website at www.iluka.com.
5.4 EXECUTIVE EMPLOYMENT AGREEMENTS
Iluka’s Executive KMP are employed on terms set out in individual employment agreements which do not contain a fixed term. Key
terms of the agreements are as follows:
Executive KMP
Position
Termination notice period by
Iluka or employee
Termination
benefit
T O'Leary
Managing Director
6 months
6 months
A Stratton
Chief Financial Officer and Head of
Development
6 months
6 months
M Blackwell
Head of Projects and Sales and Marketing
3 months
6 months
S Tilka
Chief Operating Officer, Mineral Sands
3 months
6 months
If the Executive KMP’s employment is terminated by Iluka (other than for gross misconduct or on other grounds for summary
dismissal), the executive may be eligible to receive a termination payment to a maximum of 6 months fixed remuneration (inclusive
of any payment made in lieu of notice).
Iluka may terminate Executive KMP’s employment agreements without notice and without providing payment in lieu of notice
where there is gross misconduct or other grounds for summary dismissal.
5.5 ENGAGEMENT OF EXTERNAL REMUNERATION CONSULTANTS
External remuneration consultants were engaged by the PPC in 2024 to provide advice and market insights in relation to executive
remuneration arrangements. The remuneration consultants did not provide a ‘Remuneration Recommendation’ as defined in the
Corporations Act 2001 during the 2024 financial year.
Iluka Resources Limited Annual Report 2024 77
6. ADDITIONAL REMUNERATION DISCLOSURES
6.1 EXECUTIVE KMP SHARE–BASED REMUNERATION
RESTRICTED RIGHTS/SHARES
The table below shows the number of restricted rights/shares (RRs) that were granted, vested and forfeited during the 2024
year. The table also includes additional rights granted to keep participants ‘whole’ in relation to the demerger of Sierra Rutile Ltd
in 2022. The terms and conditions of previous years’ incentive awards are outlined in the relevant year’s Remuneration Report,
available at www.Iluka.com.
Award
Number of restricted rights
Value of restricted rights
Grant date
Balance at
1 Jan 2024
KMP start
date
Granted
during
2024
Vested / exercised into
shares in 2024
Lapsed during 2024
Balance
at
31 Dec
2024
Granted in
20241
$
Value
vested /
exercised
into
shares in
20242
#
%
#
%
#
$
T O’Leary
2020 EIP RRs3,6
1 March 2021
and 18 Aug
2022
36,691
-
(18,347)
(25%)
-
-
18,344
-
130,631
2021 EIP RRs4,6
13 April 2022
and 18 Aug
2022
118,151
-
(39,394)
(25%)
-
-
78,757
-
280,485
2022 EIP RRs5,6
10 May 2023
142,502
-
(35,626 )
(25%)
-
-
106,876
-
253,657
2023 STIP RRs
(shares)7
7 May 2024
-
82,071
-
-
-
-
82,071
655,747
-
A Stratton
2020 EIP RRs3,6
1 March 2021
and 18 Aug
2022
12,902
-
(6,451)
(25%)
-
-
6,451
-
45,931
2021 EIP RRs4,6
23 Feb 2022
and 18 Aug
2022
27,450
-
(9,150)
(25%)
-
-
18,300
-
65,148
2022 EIP RRs5,6
16 Feb 2023
38,910
-
(9,728)
(25%)
-
-
29,182
-
69,263
2023 STIP RRs
(shares)7
15 Feb 2024
-
31,815
-
-
-
-
31,815
219,842
-
M Blackwell
2020 EIP RRs3,6
1 March 2021
and 18 Aug
2022
12,888
-
(6,445)
(25%)
-
-
6,443
-
45,888
2021 EIP RRs4,6
23 Feb 2022
and 18 Aug
2022
28,225
-
(9,409)
(25%)
-
-
18,816
-
66,992
2022 EIP RRs5,6
16 Feb 2023
38,064
-
(9,516)
(25%)
-
-
28,548
-
67,754
2023 STIP RRs
(shares)7
15 Feb 2024
-
31,815
-
-
-
-
31,815
219,842
-
S Tilka
2020 EIP RRs3,6
1 March 2021
and 18 Aug
2022
8,237
-
(4,119)
(25%)
-
-
4,118
-
29,327
2021 EIP RRs4,6
23 Feb 2022
and 18 Aug
2022
24,271
-
(8,091)
(25%)
-
-
16,180
-
57,608
2022 EIP RRs5,6
16 Feb 2023
32,180
-
(8,045)
(25%)
-
-
24,135
-
57,280
2023 STIP RRs
(shares)7
15 Feb 2024
-
28,809
-
-
-
-
28,809
199,070
-
1
Value at point of grant was $6.91 for KMP and $7.99 for MD
2
Value at point of vest. Share price at 1 March 2024 was $7.12
3
The initial grant date reflects the original Restricted Right were allocated in relation to the 2020 EIP award. ‘Top up’ rights were granted in Aug 2022 as a result of the
Sierra Rutile Ltd demerger, in order to keep participants ‘whole’ and further details can be found in Section 7 of the 2022 Remuneration Report
4
The initial grant date reflects the original Restricted Right were allocated in relation to the 2021 EIP award. ‘Top up’ rights were granted in Aug 2022 as a result of the
Sierra Rutile Ltd demerger, in order to keep participants ‘whole’ and further details can be found in 2022 Remuneration Report.
5
The initial grant date reflects the original Restricted Right were allocated in relation to the 2022 EIP award.
6
The 2020, 2021 and 2022 EIP Restricted Rights are subject to time-based restrictions, vesting in four equal tranches over four years from grant date. The rights also
attract dividend equivalent payments and are subject to cessation of employment, change of control and clawback provisions consistent with those set out in
Section 2. Further detail can be found in the relevant year’s Remuneration Report.
7
The initial grant date reflects the original Restricted Shares allocated in relation to the 2023 Executive STIP award.
78 Iluka Resources Limited Annual Report 2024
PERFORMANCE RIGHTS
The table below shows the number of performance rights (PRs) that were granted, vested and forfeited during the 2024 year.
The terms and conditions of previous years’ incentive awards are outlined in the relevant year’s Remuneration Report, available
at www.iluka.com:
Award
Number of performance rights
Value of performance
rights
Grant date
Balance
at 1 Jan
2024
KMP
start
date
Granted
during
20241
Vested / exercised into
shares in 2024
Lapsed during 2024
Balance
at
31 Dec
2024
Granted in
20242
$
Value
vested /
exercised
into
shares in
20243
#
%
#
%
#
$
T O’Leary
2020 EIP PRs4,6
1 March 2021
and 18 Aug 2022
48,923
-
-
-
-
-
48,923
-
-
2021 EIP PRs5,6
13 April 2022
and 18 Aug 2022
105,031
-
-
-
-
-
105,031
-
-
2022 EIP PRs6
10 May 2023
95,001
-
-
-
-
-
95,001
-
-
2023 Executive
LTIP7
10 May 2023
160,928
-
-
-
-
-
160,928
-
-
2024 Executive
LTIP
7 May 2024
-
236,744
-
-
-
-
236,744
1,207,394
-
A Stratton
2020 EIP PRs4,6
1 March 2021
and 18 Aug 2022
17,203
-
-
-
-
-
17,203
-
-
2021 EIP PRs5,6
23 February 2022
and 18 Aug 2022
36,600
-
-
-
-
-
36,600
-
-
2022 EIP PRs6
16 February 2023
38,910
-
-
-
-
-
38,910
-
-
2023 Executive
LTIP7
1 May 2023
62,935
-
-
-
-
-
62,935
-
-
2024 Executive
LTIP
16 April 2024
-
92,584
-
-
-
-
92,584
392,556
-
M Blackwell
2020 EIP PRs4,6
1 March 2021
and 18 Aug 2022
17,185
-
-
-
-
-
17,185
-
-
2021 EIP PRs5,6
23 February 2022
and 18 Aug 2022
37,634
-
-
-
-
-
37,634
-
-
2022 EIP PRs6
16 February 2023
38,064
-
-
-
-
-
38,064
-
-
2023 Executive
LTIP7
1 May 2023
62,935
-
-
-
-
-
62,935
-
-
2024 Executive
LTIP
16 April 2024
-
92,584
-
-
-
-
92,584
392,556
-
S Tilka
2020 EIP PRs4,6
1 March 2021
and 18 Aug 2022
10,307
-
-
-
-
-
10,307
-
-
2021 EIP PRs5,6
23 February 2022
and 18 Aug 2022
32,362
-
-
-
-
-
32,362
-
-
2022 EIP PRs6
16 February 2023
32,180
-
-
-
-
-
32,180
-
-
2023 Executive
LTIP7
1 May 2023
56,038
-
-
-
-
-
56,038
-
-
2024 Executive
LTIP
16 April 2024
-
82,438
-
-
-
-
82,438
349,537
-
1
Performance rights granted in respect of the 2024 LTIP, which form part of the share based payments for 2024 to 2027.
2
Fair value of $8.06 at point of grant for KMP and for MD’s grant is $8.24 for the 2022 EIP and a fair value of $8.45 at point of grant for KMP and $8.78 for MD’s grant
for the 2023 Executive LTIP and a fair value of $4.24 at point of grant for KMP and $5.10 for MD’s grant for the 2024 Executive LTIP.
3
No performance rights were due for vesting in 2024.
4
The initial grant date reflects the original performance were allocated in relation to the 2020 EIP award. ‘Top up’ rights were granted in Aug 2022 as a result of the
Sierra Rutile Ltd demerger, in order to keep participants ‘whole’; further details can be found in Section 7 of the 2022 Annual Report.
5
The initial grant date reflects the original performance were allocated in relation to the 2021 EIP award. ‘Top up’ rights were granted in Aug 2022 as a result of the
Sierra Rutile Ltd demerger, in order to keep participants ‘whole’; further details can be found in the 2022 Remuneration Report.
6
The 2020, 2021 and 2022 EIP Performance Rights are subject to a five-year performance period, tested against a relative total shareholder return test against a
comparator group consisting of constituents of the S&P / ASX 200 Resources Index (excluding companies primarily engaged in the oil and gas sector and non-
mining activities) with vesting based on a sliding scale . The Performance Rights also attract dividend equivalent payments only on those rights that vest and are
subject to cessation of employment, change of control and clawback provisions further details can be found in the their respective Remuneration Reports.
7
The 2023 Executive LTIP Performance Rights are subject to a four-year performance period, tested against a relative total shareholder return test against a
comparator group consisting of constituents of the S&P / ASX 200 Resources Index (excluding companies primarily engaged in the oil and gas sector and non-
mining activities) with vesting based on a sliding scale. The LTIP Performance Rights do not attract dividend equivalent payments. Further details can be found in the
2023 Remuneration Report.
Iluka Resources Limited Annual Report 2024 79
6.2 FAIR VALUE OF EQUITY GRANTS
The fair value of each restricted right or performance right and the vesting year for each incentive plan is set out below. The
maximum value of restricted rights and/or performance rights yet to vest is not able to be determined as it is dependent on
satisfaction of service and performance conditions and Iluka’s future share price. The minimum value of unvested restricted rights
and/or performance rights is nil.
Incentive
plan
Grant date
Grant type
Fair value per
right at grant
date $1
Vesting (expiry) date
2020 EIP2
1 March 2021 and
18 Aug 2022
Restricted rights
7.47
1 March 2022, 1 March 2023, 1
March 2024, 1 March 2025
Performance rights
6.15
1 March 2025
2020 EIP (MD)3
29 April 2021 and
18 Aug 2022
Restricted rights
7.47
1 March 2022, 1 March 2023, 1
March 2024, 1 March 2025
Performance rights
6.36
1 March 2025
2021 EIP4
23 February 2022
Restricted rights
10.99
1 March 2023, 1 March 2024, 1
March 2025, 1 March 2026
23 February 2022
Performance rights
9.90
1 March 2026
2021 EIP (MD)5
13 April 2022
Restricted rights
12.54
1 March 2023, 1 March 2024, 1
March 2025,
1 March 2026
13 April 2022
Performance rights
11.45
1 March 2026
2022 EIP6
16 February 2023
Restricted rights
10.92
1 March 2024, 1 March 2025, 1
March 2026, 1 March 2027
Performance rights
8.06
1 March 2027
2022 EIP (MD)7
10 May 2023
Restricted rights
11.30
1 March 2024, 1 March 2025, 1
March 2026, 1 March 2027
Performance rights
8.24
1 March 2027
2023 STIP8
15 February 2024
Restricted shares
7.09
1 March 2025 (Tranche 1), 1
March 2026 (Tranche 2)
2023 STIP (MD)8
7 May 2024
Restricted shares
7.09
1 March 2025 (Tranche 1), 1
March 2026 (Tranche 2)
2023 LTIP9
1 May 2023
Performance rights
8.45
1 March 2027
2023 LTIP (MD)10
10 May 2023
Performance rights
8.78
1 March 2027
2024 STIP11
March 2025
Restricted shares
5.05
1 March 2026 (Tranche 1), 1
March 2027 (Tranche 2)
2024 LTIP12
16 April 2024
Performance rights
4.24
1 March 2028
2024 LTIP (MD)13
7 May 2024
Performance rights
5.10
1 March 2028
1
The fair value is calculated in accordance with the measurement criteria of Accounting Standard AASB 2 Share Based Payments.
2
Represents the fair value on the grant date of restricted rights, and fair value of $6.15 for performance rights awarded to Executive KMP,
3
Represents the share price on the grant date of restricted rights and MD fair value of $6.36 for the Managing Director’s performance rights award under the 2020 EIP
for which the performance period concluded on 31 December 2020. Shareholder approval for the grant of restricted rights and performance rights to the Managing
Director was obtained under ASX Listing Rule 10.14 at the 2020 Annual General Meeting.
4
Represents the share price on the grant date of restricted rights, and fair value of $9.90 for performance rights awarded to Executive KMP.
5
Represents the share price on the grant date of restricted rights and fair value of $11.45 for the Managing Director’s award under the 2021 EIP for which the
performance period concluded on 31 December 2021. Shareholder approval for the grant of restricted rights and performance rights to the Managing Director was
obtained under ASX Listing Rule 10.14 at the 2021 Annual General Meeting
6
Represents the share price on the grant date of restricted rights, and fair value of $8.06 for performance rights awarded to Executive KMP.
7
Represents the share price on the grant date of restricted rights and fair value of $8.24 for the Managing Director’s award under the 2022 EIP for which the performance
period concluded on 31 December 2022. Shareholder approval for the grant of restricted rights and performance rights to the Managing Director was obtained under
ASX Listing Rule 10.14 at the 2022 Annual General Meeting
8
Represents the fair value of $7.09 for restricted shares award to Executive KMP for the 2023 STIP in 2024 following the release of the company’s 2023 annual results.
9
Represents the fair value of $8.45 for performance rights awarded to Executive KMP for the 2023 LTIP at 1 May 2023
10
Represents the fair value of $8.78 for performance rights awarded to Managing Director for the 2023 LTIP at 10 May 2023. Shareholder approval for the grant of
performance rights to the Managing Director was obtained under ASX Listing Rule 10.14 at the 2022 Annual General Meeting
11
Represents the estimated fair value of restricted shares and performance rights to be awarded under the 2024 Executive STIP for which the performance period
concluded on 31 December 2024, calculated using the closing share price of $5.05 at 31 December 2024. The fair value will be determined in 2025 following the
release of the company’s 2024 annual results.
12
Represents the fair value of $4.24 for performance rights awarded to Executive KMP for the 2024 LTIP at 16 April 2024
13
Represents the fair value of $5.10 for performance rights awarded to Managing Director for the 2024 LTIP at 7 May 2024. Shareholder approval for the grant of
performance rights to the Managing Director was obtained under ASX Listing Rule 10.14 at the 2023 Annual General Meeting
80 Iluka Resources Limited Annual Report 2024
6.3 SHAREHOLDINGS OF EXECUTIVE KMP AND THEIR RELATED PARTIES
Number of shares1
Name
Balance
held at
1 Jan
2024
Vesting/
exercise
of share
rights
pursuant
to EIP
Awarded as
restricted
shares
pursuant to
STIP
Other
changes2
Total
balance
held at 31
Dec 2024
Restricted3
Unrestri-
cted4
Minimum
share-
holding
met?5
T O’Leary
1,423,346
-
82,071
-
1,505,417
286,048
1,219,369
Yes
A Stratton
209,067
-
31,815
(11,400)
229,482
85,748
143,734
Yes
M Blackwell
137,164
-
31,815
(50,370)
118,609
85,622
32,987
No
S Tilka
120,471
-
28,809
-
149,280
73,242
76,038
Yes
1
Includes shares held directly or through a nominee or agent (e.g. family trust).
2
Other changes may include those due to personal trades.
3
Restricted includes both restricted shares and rights that have only a time-based vesting component.
4
Unrestricted are ordinary shares with restrictions on transactions.
5
As at 31 December 2024 with share price of $5.05.
6.4 SHAREHOLDINGS OF NON-EXECUTIVE DIRECTORS AND THEIR RELATED PARTIES
Name
Number of shares1
Minimum
shareholding met?2
Balance held
at
1 Jan 2024
Net movement
Balance held at
31 Dec 2024
S Corlett
16,040
9,760
25,800
Yes
L Saint4
19,737
7,365
27,102
Yes
A Sutton7
22,000
10,000
32,000
Yes
P Smith4
-
17,141
17,141
No
Former Non-executive Directors
R Cole3,5
37,000
-
37,000
N/A
M Bastos3,6
24,222
-
24,222
N/A
1
Non-Executive directors do not receive share based remuneration and movements in their shareholdings reflect on-market trades.
2
As at 31 December 2024 share price of $5.05.
3 Includes shares held indirectly through a nominee or agent (e.g. family trust).
4 P Smith became a Non-executive Director on 28 June 2024.
5
R Cole retired as Chair and as a Non-executive director on 13 December 2024.
6
M Bastos retired as a Non-executive director on 31 August 2024.
7
A Sutton acting Chair from 13 November 2024
6.5 OTHER DISCLOSURES
On-market share purchases
Iluka issued 2,127,602 shares to satisfy employee incentive schemes in 2024, at an average price of $6.28 per share.
Transactions with key management personnel
During the financial year there were no product or services purchases by Executive KMP from the Group (2024: nil) and there are
no amounts payable at 31 December 2024 (2024: nil).
Loans with KMPs
There have been no loans to Executive KMP during the financial year (2024: nil).
Iluka Resources Limited Annual Report 2024 81
AUDITOR'S INDEPENDENCE
DECLARATION
Lead Auditor’s Independence Declaration under
Section 307C of the Corporations Act 2001
To the Directors of Iluka Resources Limited
I declare that, to the best of my knowledge and belief, in relation to the audit of Iluka Resources
Limited for the financial year ended 31 December 2024 there have been:
i.
no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
ii.
no contraventions of any applicable code of professional conduct in relation to the audit.
KPMG
Jane Bailey
Partner
Perth
19 February 2025
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated
with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and
logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited
by a scheme approved under Professional Standards Legislation.
82 Iluka Resources Limited Annual Report 2024
FINANCIAL STATEMENTS
For the year ended 31 December 2024
Iluka Resources Limited ABN 34 008 675 018
Consolidated statement of profit or loss
83
Consolidated statement of comprehensive income
84
Consolidated statement of financial position
85
Consolidated statement of changes in equity
86
Consolidated statement of cash flows
87
Notes to the consolidated financial statements
88
Consolidated entity disclosure statement
134
Directors’ declaration
136
Independent auditor’s report to the members
137
ABOUT THIS REPORT
These financial statements are the consolidated financial statements of the Group consisting of Iluka Resources Limited
and its subsidiaries (the Group). The financial statements are presented in Australian dollars.
Iluka Resources Limited is a company limited by shares, incorporated and domiciled in Australia. Its registered office and
principal place of business is:
Iluka Resources Limited
Level 17
240 St Georges Terrace
Perth WA 6000
A description of the nature of the Group's operations and its principal activities is included in the operating and financial
review section of the Directors' Report, which is not part of these financial statements.
The financial statements were authorised for issue by the directors on 19 February 2025. The directors have the power to
amend and reissue the financial statements.
Through the use of the internet, we have ensured that our corporate reporting is timely and complete. All ASX releases,
financial reports and other relevant information are available at www.iluka.com.
Iluka Resources Limited Annual Report 2024 83
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
For the year ended 31 December 2024
2024
2023
Notes
$m
$m
Revenue
4
1,170.3
1,291.0
Other gains/(losses)
5
33.0
43.2
Expenses
6
(857.3)
(850.8)
Equity accounted share of profit - Deterra Resources
23
21.5
27.3
Interest and finance charges
(9.5)
(7.8)
Rehabilitation and mine closure provision discount unwind
8
(32.7)
(31.4)
Total finance costs
15
(42.2)
(39.2)
Profit before income tax
325.3
471.5
Income tax expense
11
(94.0)
(128.9)
Profit after income tax for the year
231.3
342.6
Cents
Cents
Earnings per share
Basic earnings per share
19
54.1
80.5
Diluted earnings per share
19
53.6
79.8
The above consolidated statement of profit or loss should be read in conjunction with the accompanying notes.
84 Iluka Resources Limited Annual Report 2024
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2024
2024
2023
Notes
$m
$m
Profit for the year
231.3
342.6
OTHER COMPREHENSIVE INCOME
Items that may be reclassified subsequently to profit or loss
Currency translation of foreign entities
17
3.8
(2.2)
Movements in foreign exchange cash flow hedges, net of tax
17
(21.5)
4.9
Share of other compehensive income of associate
23
6.4
-
Items that will not be reclassified to profit or loss
Remeasurement of post-employment benefit obligations
(0.2)
0.5
Total other comprehensive (loss)/profit for the year, net of tax
(11.5)
3.2
Total comprehensive income for the year
219.8
345.8
The above consolidated statement of comprehensive income should be read with the accompanying notes.
Iluka Resources Limited Annual Report 2024 85
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2024
2024
2023
Notes
$m
$m
ASSETS
Current assets
Cash and cash equivalents
15
136.0
364.9
Receivables
13
305.9
283.1
Inventories
14
839.4
662.7
Derivative financial instruments
21
-
2.6
Total current assets
1,281.3
1,313.3
Non-current assets
Property, plant and equipment
9
1,670.9
1,333.7
Right-of-use assets
10
35.9
18.4
Inventories
14
205.0
142.0
Investments accounted for using the equity method - Deterra
23
443.6
446.3
Financial assets at fair value through profit or loss - Northern Minerals
10.5
15.0
Deferred tax assets
12
94.2
62.1
Total non-current assets
2,460.1
2,017.5
Total assets
3,741.4
3,330.8
LIABILITIES
Current liabilities
Payables
198.4
177.0
Current tax payable
26.7
39.6
Derivative financial instruments
21
13.7
-
Provisions
8
65.6
62.7
Lease liabilities
10
12.6
8.4
Total current liabilities
317.0
287.7
Non-current liabilities
Derivative financial instruments
21
14.4
-
Interest bearing liabilities
15
250.6
139.5
Provisions
8
770.9
729.3
Lease liabilities
10
28.1
15.8
Total non-current liabilities
1,064.0
884.6
Total liabilities
1,381.0
1,172.3
Net assets
2,360.4
2,158.5
EQUITY
Contributed equity
16
1,158.4
1,143.2
Reserves
17
11.2
21.4
Retained earnings
17
1,190.8
993.9
Total equity
2,360.4
2,158.5
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
86 Iluka Resources Limited Annual Report 2024
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2024
Share
capital
Other
reserves
Retained
earnings
Total
Notes
$m
$m
$m
$m
Balance at 1 January 2023
1,129.6
16.6
748.6
1,894.8
Profit for the period
17
-
-
342.6
342.6
Other comprehensive income
17
-
2.7
0.5
3.2
Total comprehensive income
-
2.7
343.1
345.8
Transactions with owners in their capacity as owners:
Shares issued
16
10.6
-
-
10.6
Issue of treasury shares, net of tax
(7.8)
-
-
(7.8)
Transfer of shares to employees, net of tax
10.0
(10.0)
-
-
Share-based payments, net of tax
27
-
12.1
-
12.1
Dividends paid
18
0.8
-
(97.8)
(97.0)
13.6
2.1
(97.8)
(82.1)
Balance at 31 December 2023
1,143.2
21.4
993.9
2,158.5
Share
capital
Other
reserves
Retained
earnings
Total
Notes
$m
$m
$m
$m
Balance at 1 January 2024
1,143.2
21.4
993.9
2,158.5
Profit for the period
17
-
-
231.3
231.3
Other comprehensive loss
17
-
(11.3)
(0.2)
(11.5)
Total comprehensive income
-
(11.3)
231.1
219.8
Transactions with owners in their capacity as owners:
Shares issued
16
15.3
-
-
15.3
Issue of treasury shares, net of tax
(10.7)
-
-
(10.7)
Transfer of shares to employees, net of tax
10.0
(10.0)
-
-
Share-based payments, net of tax
27
-
11.1
-
11.1
Dividends paid
18
0.6
-
(34.2)
(33.6)
15.2
1.1
(34.2)
(17.9)
Balance at 31 December 2024
1,158.4
11.2
1,190.8
2,360.4
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Iluka Resources Limited Annual Report 2024 87
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2024
2024
2023
Notes
$m
$m
Cash flows from operating activities
Receipts from customers
1,175.9
1,278.1
Payments to suppliers and employees
(923.8)
(931.4)
Operating cash flow
252.1
346.7
Interest received
12.9
18.5
Interest paid
(0.8)
(1.3)
Income taxes paid
(128.8)
(255.5)
Exploration expenditure
(12.1)
(18.8)
Net cash inflow from operating activities
29
123.3
89.6
Cash flows from investing activities
Payments for property, plant and equipment
(433.9)
(281.4)
Sale of property, plant and equipment
0.2
10.1
Dividends received - Deterra Royalties
23
30.8
30.5
Net cash outflow from investing activities
(402.9)
(240.8)
Cash flows from financing activities
Proceeds from borrowings
15
100.0
100.0
Dividends paid
18
(33.6)
(97.0)
Debt refinance costs
(5.2)
-
Principal element of lease payments
10
(8.6)
(8.4)
Net cash outflow from financing activities
52.6
(5.4)
Net increase (decrease) in cash and cash equivalents
(227.0)
(156.6)
Cash and cash equivalents at 1 January
364.9
521.7
Effects of exchange rate changes on cash and cash equivalents
(1.9)
(0.2)
Cash and cash equivalents at end of the year
15
136.0
364.9
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
88 Iluka Resources Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
Basis of preparation
1.
Reporting entity
89
2.
Basis of preparation
89
Key numbers
3.
Segment information
91
4.
Revenue
94
5.
Other gains/(losses)
95
6.
Expenses
96
7.
Impairment of assets
97
8.
Provisions
98
9.
Property, plant and equipment
100
10.
Leases
103
11.
Income tax
104
12.
Deferred tax
106
13.
Receivables
107
14.
Inventories
108
Capital
15.
Net (debt)/cash and finance costs
109
16.
Contributed equity
111
17.
Reserves and retained earnings
112
18.
Dividends
113
19.
Earnings per share
114
Risk
20.
Financial risk management
115
21.
Hedging
118
Group Sructure
22.
Controlled entities and deed of cross guarantee
120
23.
Equity accounted associate – Deterra Royalties Limited (Deterra)
124
Other Notes
24.
Contingent liabilities
126
25.
Commitments
126
26.
Remuneration of auditors
127
27.
Share-based payments
128
28.
Post-employment benefit obligations
129
29.
Reconciliation of profit after income tax to net cash inflow from operating activities
130
30.
Key management personnel
131
31.
Parent entity financial information
132
32.
Related party transactions
133
33.
New and amended standards
133
Iluka Resources Limited Annual Report 2024 89
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
BASIS OF PREPARATION
1. REPORTING ENTITY
Iluka Resources Limited (Company or parent entity) is a for-profit public company listed on the Australian Securities
Exchange Limited (ASX) incorporated in Australia and is primarily involved in mineral sands and rare earths exploration,
project development, mining operations, processing and marketing.
The consolidated financial statements of the Company comprise the Company and its controlled entities (‘Consolidated
Group’ or ‘Group’) and the Consolidated Entity’s interest in associates.
2. BASIS OF PREPARATION
These general purpose financial statements have been prepared in accordance with applicable Australian Accounting
Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001.
The consolidated financial statements of Iluka Resources Limited also comply with International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
These financial statements have been prepared under the historical cost convention except for financial assets and
liabilities which are required to be measured at fair value. The consolidated financial statements are presented in Australian
dollars, which is the Company's functional and presentation currency.
New and amended standards adopted by the Group, and their related impacts on the financial statements (if any), are
detailed in note 33.
a)
Principles of consolidation
Subsidiaries
Subsidiaries are all entities (including structured entities) controlled by the Company. The Group controls an entity when the
Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those
returns through its power to direct the activities of the entity.
The consolidated financial statements are prepared by consolidating the financial statements of all entities within the Group
as defined in AASB 10 Consolidated Financial Statements. A list of controlled entities (subsidiaries) at year-end is contained
in note 22(a).
The financial statements of subsidiaries are included in the consolidated financial statements from the date on which
control commences until the date on which control ceases. Accounting policies of subsidiaries are changed where
necessary to ensure consistency with the policies adopted by the Group.
Intercompany transactions, balances, and unrealised gains on transactions between Group companies, are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred.
The Group accounts for business combinations using the acquisition method when control is transferred to the Group. Cost
is measured as the fair value of the assets given, shares issued, or liabilities incurred or assumed at the date of exchange.
Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities.
Associates
Associates are entities over which the Group has significant influence but not control or joint control. This is generally the
case where the Group holds between 20% and 50% of the voting rights.
Investments in associates are accounted for using the equity method. Under this method, the Group recognises its share of
the associate’s profit or loss in the statement of profit or loss and its share of movements in other comprehensive income
(OCI) in the statement of comprehensive income. These OCI movements, including foreign currency translation differences,
are recorded directly in the Group’s equity and not in retained earnings. Upon disposal of an associate, the cumulative OCI
relating to that associate is reclassified to profit or loss. The Group’s investment in Deterra Royalties Limited is accounted
for as an associate (refer to note 23).
The carrying amount of equity-accounted investments is tested for impairment in accordance with the policy described in
note 7.
90 Iluka Resources Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
2. BASIS OF PREPARATION(CONTINUED)
b)
Principles of consolidation (continued)
Employee share trust
The Group's Employee Share Schemes are administered through the Iluka Resources Limited Employee Share Plan Trust
(the trust). Shares in the Company held by the trust are disclosed as treasury shares in the consolidated financial statements
and deducted from contributed equity, net of tax.
c)
Rounding of amounts
The Company is of a kind referred to in Rounding Instrument 2016/191, issued by the Australian Securities and Investments
Commission, relating to the rounding of amounts in the financial statements. In accordance with that Rounding Instrument,
amounts in the financial statements have been rounded to the nearest hundred thousand dollars, unless otherwise
indicated.
d)
Critical accounting estimates and judgements
The Group makes estimates and assumptions concerning the future in applying its accounting policies. The resulting
accounting estimates will, by definition, seldom equal related actual results. This note provides an overview of areas that
involve a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted if estimates
or assumptions significantly differ from actual outcomes. Detailed information about each of these estimates and
judgements is included in other notes together with information about the basis of calculation for each affected line item in
the financial statements.
The areas involving significant estimates or judgements are:
Note
8
9
Rehabilitation and mine closure provisions
Mineral Resources and Ore Reserves
Net realisable value and classification of product inventory
14
Estimates and underlying assumptions are reviewed on an ongoing basis, with revisions recognised in the period in which
the estimates are revised and future periods affected.
The Group recognises the physical and transitional impacts of climate change may affect its assets, productivity, the
markets in which it sells its products, and the jurisdictions in which it operates. The Group continues to develop its
assessment of the potential impacts of climate change and the transition to a lower carbon economy and, where possible,
the potential financial impacts have been considered in the preparation of these financial statements.
The Group’s physical and transition risk assessment process is ongoing. Changes in the Group’s climate strategy or global
decarbonisation initiatives may impact the Group’s significant judgements and key estimates and materially impact financial
results and the carrying values of certain assets and liabilities in future reporting periods.
Iluka Resources Limited Annual Report 2024 91
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
KEY NUMBERS
3. SEGMENT INFORMATION
a)
Description of segments
The Group has identified its operating segments based on the internal reports that are reviewed and used by the executive
management team (the chief operating decision-makers) in assessing performance and in determining the allocation of
resources.
During the reporting period, the Group changed the internal reporting basis of its operations to match changes in the
operational structure of the business, with the resultant new operating segments of the group being as follows:
The operating segments of the Group are:
Mineral Sands comprising the mining operations at Jacinth-Ambrosia in South Australia, Cataby in Western Australia,
and activities at Balranald in New South Wales. It also includes associated processing operations at the Narngulu
mineral separation plant in mid-west Western Australia, and the processing of ilmenite at Synthetic Rutile Kilns, also
located in Western Australia.
Rare Earths (RE) comprises the Eneabba Rare Earths Refinery currently being constructed in Western Australia
alongside Phase 1 and 2 of the Eneabba development, and the Group's investment in Northern Minerals Limited.
Idle comprises rehabilitation obligations in the United States (Florida and Virginia) where mining and processing
activities were substantially completed in December 2015; and certain idle assets located in Australia (Murray Basin).
The previous Jacinth-Ambrosia/Mid West (JA/MW) and Cataby/South West (C/SW) have combined with associated
processing operations at Narngulu and Balranald operations to form the Mineral Sands segment. The United States/Murray
basis segment is the same apart from Balranald now being part of Mineral Sands, and the Rare Earths segment is
unchanged.
Cash, debt and tax balances are managed at a group level, together with exploration and other corporate activities, and are
not allocated to segments.
Where finished product capable of sale to a third party is transferred between operating segments, the transfers are made
at arm’s length prices. Any transfers of intermediate products between operating segments are made at cost. During the
year-ended 31 December 2024, $19.8 million of intermediate material was transferred from Rare Earths to the Minerals
Sands segment, and $7.6 million was transferred from Idle to Mineral Sands (2023: no transfers of intermediate products).
b)
Segment results
2024
Mineral
Sands
Rare Earths
Idle
Total
$m
$m
$m
$m
Total segment sales of critical minerals
1,128.5
-
-
1,128.5
Total segment freight revenue
41.8
-
-
41.8
Depreciation and amortisation expense
(188.2)
-
(0.9)
(189.1)
(Decrease) in rehabilitation recognised in profit or loss
2.2
-
3.0
5.2
Total segment result
390.7
-
(16.4)
374.3
Segment assets
2,591.1
311.0
118.4
3,020.5
Segment liabilities
876.1
302.5
70.9
1,249.5
Segment capital expenditure
286.2
165.2
-
451.4
Additions to non-current segment assets
346.6
166.2
-
512.8
92 Iluka Resources Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
3. SEGMENT INFORMATION (CONTINUED)
b)
Segment results (continued)
2023¹
Mineral
Sands
Rare Earths
Idle
Total
$m
$m
$m
$m
Total segment sales of critical minerals
1,238.3
-
-
1,238.3
Total segment freight revenue
52.7
-
-
52.7
Depreciation and amortisation expense
(163.9)
-
(0.9)
(164.8)
Increase/(decrease) in rehabilitation recognised in profit or loss
6.7
-
(2.4)
4.3
Total segment result
589.7
-
4.8
594.5
Segment assets
1,971.2
212.0
243.0
2,426.2
Segment liabilities
756.1
221.7
107.9
1,085.7
Segment capital expenditure
106.7
139.1
69.0
314.8
Additions to non-current segment assets
131.4
93.3
20.0
244.7
1 Previously reported segment information has been restated to align with new reporting segments
Critical minerals revenue is derived from sales to external customers domiciled in various geographical regions. Details of
Segment Revenue by location of customers is as follows:
2024
2023
$m
$m
China
367.5 402.8
Asia excluding China
146.9 237.7
Europe
359.2 341.8
Americas
240.0 252.6
Other countries
14.9
3.4
1,128.5 1,238.3
Revenue of $190.0 million was derived from one external customer of the mineral sands segment, which individually
accounted for greater than 10% of the total segment revenue (2023: revenues of $202.8 million and $105.2 million from two
external customers).
Iluka Resources Limited Annual Report 2024 93
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
3. SEGMENT INFORMATION (CONTINUED)
b)
Segment results (continued)
Segment result is reconciled to profit before income tax as follows:
2024
2023
$m
$m
Total segment result
374.3
594.5
Interest income
11.4
18.4
Marketing and selling
(2.1)
(13.1)
Corporate and other costs
(48.6)
(79.7)
Revaluation loss on investment in Northern Minerals
(4.5)
(5.0)
Projects, innovation and exploration
(35.6)
(61.2)
Depreciation
(3.1)
(3.0)
Interest and finance charges
(7.9)
(4.6)
Net foreign exchange gain
19.9
(2.1)
Share of profits in associate
21.5
27.3
Profit before income tax
325.3
471.5
Total segment assets and total segment liabilities are reconciled to the balance sheet as follows:
2024
2023
$m
$m
Segment assets
3,020.5
2,426.2
Corporate assets
47.1
31.3
Cash and cash equivalents
136.0
364.9
Deferred tax assets
94.2
62.1
Investment in Deterra Resources Limited
443.6
446.3
Total assets as per the balance sheet
3,741.4
3,330.8
Segment liabilities
1,249.5
1,085.7
Corporate liabilities
104.8
47.0
Current tax payable
26.7
39.6
Total liabilities as per the balance sheet
1,381.0
1,172.3
94 Iluka Resources Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
4. REVENUE
2024
2023
Notes
$m
$m
Sale of goods
4(a)
1,128.5
1,238.3
Freight revenue
4(b)
41.8
52.7
1,170.3
1,291.0
a)
Sale of mineral sands
The Group earns revenue by mining, processing, and subsequently selling mineral sands (including zircon, rutile, synthetic
rutile and ilmenite) by export to customers based in the Americas, Europe, China, the rest of Asia, and other countries under
a range of commercial terms.
Revenue from the sale of product is recognised when control has been transferred to the customer, generally being when
the product has been dispatched and is no longer under the physical control of the Group. In cases where control of product
is transferred to the customer before dispatch takes place, revenue is recognised when the customer has formally
acknowledged their legal ownership of the product, which includes all inherent risks associated with control of the product.
In these cases, product is clearly identified and immediately available to the customer.
Sales to customers are generally denominated in US Dollars, which are translated into Australian Dollars using the spot
exchange rate applicable on the transaction date. The effect of variable consideration arising from rebates, discounts and
other similar arrangements with customers is included in revenue to the extent that it is highly probable that there will be no
significant reversal of the cumulative amount of revenue recognised when any pricing uncertainty is resolved. Revenue is
recognised net of duties and other taxes.
The Group does not expect to have any contracts where the period between the transfer of the promised goods or services
to the customer and payment by the customer exceeds one year. Accordingly, the group does not adjust transaction prices
for the time value of money.
b)
Freight revenue
The Group also earns revenue from freighting its products to customers in accordance with the Incoterms in each particular
sales contract. Freight revenue is recognised to the extent that the freight service has been delivered, specifically with
reference to the proportion of completed freight distance to total freight distance, which is determined by the Group at each
reporting date.
Freight revenue is allocated from the overall contract price at its standalone selling price (where observable) or otherwise
at its estimated cost plus margin.
Freight revenue in the current reporting period includes $0.6 million relating to contracts in place at the end of the prior year
and excludes $0.5 million relating to contracts in place at the end of the current year in relation to unfulfilled shipping
obligations. (2023: Freight revenue included $nil relating to contracts in place at the end of the prior year and excluded
$0.6m million relating to contracts in place at the end of 2023 in relation to unfulfilled shipping obligations.)
In the current and prior reporting period, freight revenue includes $0.6 million relating to contracts in place at the end of the
prior year (2023: $nil). For the year ended 31 December 2024, freight revenue excludes $0.5 million which has been deferred
at the end of the year in relation to unfulfilled shipping obligations (2023: $0.6 million).
Iluka Resources Limited Annual Report 2024 95
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
5. OTHER GAINS/(LOSSES)
2024
2023
$m
$m
Notes
Interest income
5(a)
12.0
18.4
Net foreign exchange gain/(loss)
5(b)
19.9
(2.1)
Net gain on sale of fixed assets
1.1
26.9
33.0
43.2
a)
Interest income
Interest income is recognised in profit or loss using the effective interest method, net of capitalised borrowing costs.
b)
Foreign exchange gains/(losses)
Transactions in foreign currencies are translated into Australian dollars using the spot exchange rate when the transaction
occurs. Foreign currency monetary assets and liabilities are translated to Australian dollars at each reporting date exchange
rate. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated to Australian
dollars at the exchange rate when the fair value was determined. Non-monetary items that are measured based on historical
cost in a foreign currency are not re-translated.
Foreign currency differences are recognised in profit or loss (and included in other gains/(losses)) to the extent that they
are not part of a designated hedging relationship or form part of the net investment in a foreign operation (notes 21 and 17,
respectively).
96 Iluka Resources Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
6. EXPENSES
2024
2023
Notes
$m
$m
Expenses
Cash costs of production
6(a)
644.0
605.2
Depreciation/amortisation
172.0
156.4
Inventory movement - cash costs of production
(179.9)
(173.6)
Inventory movement - non-cash production costs
(48.2)
(51.7)
Cost of goods sold
6(b)
587.9
536.3
By-product costs
6(c)
16.4
11.2
Depreciation (idle, corporate and other)
20.2
11.4
Idle capacity charges
6(d)
35.3
20.1
Rehabilitation costs for closed sites
6(e)
(5.2)
(4.3)
Government royalties
35.1
47.1
Marketing and selling costs
74.3
80.1
Corporate and other costs
6(f)
48.6
79.7
Projects, exploration and innovation
6(g)
40.0
61.2
Revaluation on investments - Northern Minerals
4.5
5.0
Net loss on sales of assets
0.2
3.0
Total expenses
857.3
850.8
a)
Cash costs of production
Cash costs of production include costs for mining and concentrating, transport of heavy mineral concentrate, mineral
separation, synthetic rutile production, externally purchased ilmenite, and production overheads; but exclude Australian
state royalties which are reported separately.
b)
Cost of goods sold
Cost of goods sold is the inventory value of each tonne of finished zircon, rutile, synthetic rutile and ilmenite sold. All
production is added to inventory at cost, which includes direct costs and a portion of fixed and variable overhead
expenditure, including depreciation and amortisation, allocated on the basis of relative sales value. The inventory value
recognised as cost of goods sold for each tonne of finished product sold is the weighted average value per tonne for the
stockpile from which the product is sold.
Inventory movement represents the movement in balance sheet inventory of work in progress and finished goods, including
the non-cash depreciation and amortisation components and movement in the net realisable value adjustments.
c)
By-product costs
By-product costs include the costs of processing iron concentrate, processing activated carbon, monazite treatment, wet
high intensity magnetic separation (WHIMS), and other transport costs.
d)
Idle capacity charges
Idle capacity charges reflect ongoing costs incurred during periods of no or restricted production.
Iluka Resources Limited Annual Report 2024 97
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
6. EXPENSES (CONTINUED)
e)
Rehabilitation costs for closed sites
These costs relate to adjustments to the rehabilitation provision for closed sites arising from the annual review of
rehabilitation programmes and estimates, and are recognised in profit or loss. Details regarding the annual review for the
current reporting period, together with the applicable accounting policy details, are outlined in note 8.
f)
Corporate and other costs
Corporate and other costs reflect expenses required to operate, govern, and grow the business and operations, including
employee expenses, office costs, and other overheads for finance, legal, human resources, and senior management.
The Group revised its methodology for allocating corporate costs to better align with operational performance, effective
from the start of the current reporting period. This updated methodology more closely reflects actual current usage of
resources by each department, ensuring a more accurate and fair distribution of costs across the organisation. Amounts in
the comparative period have not been restated in the financial statements.
g)
Projects, exploration and innovation
These costs relate to activities associated with developing our resources, including exploration and mine planning.
h)
Other required disclosures
Expenses also include the following:
2024
2023
$m
$m
Employee benefits (excluding share-based payments)
202.9
195.0
Share-based payments
15.3
16.8
Exploration expenditure
12.1
10.6
Expenses for short term, low value leases and leases with variable payments
3.1
2.0
7. IMPAIRMENT OF ASSETS
Non-financial assets, including equity accounted investments are assessed for the presence of impairment indicators
whenever events or changes in circumstances suggest that their carrying amounts may not be recoverable. For the purposes
of impairment indicator assessments (and, if required, impairment testing) operating assets are grouped at the lowest levels
for which there are separately identifiable cash flows (Cash Generating Units - CGUs). The Mineral Sands and Rare Earths
CGUs are the same as the operating segments of the Group – refer to note 3.
If an impairment indicator is found to be present for a CGU, then the Group estimates its recoverable amount and compares
it to its carrying amount. The recoverable amount of each CGU is determined as the higher of value-in-use and fair value
less costs of disposal (FVLCD) estimated based on the discounted present value of future cash flows (a level 3 fair value
estimation method) and other adjustments. Assets that are not currently in use and not scheduled to be brought back into
use (idle assets) are considered on a standalone basis. If necessary, an impairment charge is recognised for the amount by
which the asset’s carrying amount exceeds its recoverable amount.
The Group assessed all CGUs for the presence of impairment indicators at the reporting date, including those which may
have arisen due to evolving geopolitics, ongoing conflicts, changes in applicable environmental and other regulations, and
changes in the economic environments in which the Group operates.
No impairment indicators were found to be present in respect of any CGU at 31 December 2024, accordingly no impairment
testing was required to be recognised.
The Group did not note any conditions that suggest previously recognised impairments can be reversed.
98 Iluka Resources Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
8. PROVISIONS
Notes
2024
2023
$m
$m
Current
Rehabilitation and mine closure
8(a)
46.7
45.7
Employee benefits - long service leave
8(b)
14.4
14.8
Workers compensation and other provisions
4.5
2.2
65.6
62.7
Non-current
Rehabilitation and mine closure
8(a)
757.3
716.8
Employee benefits - long service leave
8(b)
5.3
4.8
Retirement benefit obligations
28
8.3
7.7
770.9
729.3
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is
probable that resources will be expenses to settle the obligation, and a reliable estimate can be made of the amount of the
obligation.
a)
Rehabilitation and mine closure
The movements in the rehabilitation and mine closure provision are set out below:
Movements in rehabilitation and mine closure provisions
2024
Notes
$m
Balance at 1 January
762.5
Amounts spent during the year
(31.3)
Rehabilitation and mine closure provision unwind
15(d)
32.7
Change in provisions - additions to property, plant and equipment
42.4
Change in provisions - profit or loss impact of closed sites
(5.2)
Foreign exchange rate movements
2.9
Balance at 31 December
804.0
The Group has obligations to dismantle and remove certain items of property, plant and equipment and to restore and
rehabilitate the land on which they sit. A provision is raised for the estimated cost of performing the rehabilitation and
restoration obligations existing at balance date, discounted to present value using an appropriate pre-tax discount rate.
Where the obligation is related to an item of property, plant and equipment, its cost includes the present value of the
estimated costs of dismantling and removing the asset, and restoring and rehabilitating the site on which it is located. Costs
that relate to obligations arising from waste created by the production process are recognised as production costs in the
period in which they arise.
The total rehabilitation and mine closure provision of $804 million (2023: $762.5 million) includes $171.9 million (2023:
$233.3 million) for assets no longer in use. Changes in the expected rehabilitation liability that relate to closed sites are
recognised as a credit to or expense in profit or loss (refer to note 6).
Open site rehabilitation liabilities increased by $42.4 million in the current reporting period (2023: increased by $57.4 million),
predominantly due to an increase in disturbed area and higher earth moving rates at Cataby. An increased mining footprint
at Eneabba Rare Earths also contributed, due to progress on construction of the Eneabba Rare Earths Refinery. Jacinth-
Ambrosia and Cataby comprise $220.8 million and $294.3 million of the rehabilitation provision balance, respectively.
Iluka Resources Limited Annual Report 2024 99
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
8. PROVISIONS (CONTINUED)
a)
Rehabilitation and mine closure (continued)
Key estimate: Rehabilitation and mine closure provisions
The Group’s assessment of the present value of the rehabilitation and mine closure provisions requires the use of
significant estimates and judgements, including the future cost of performing the work required, timing of the cash flows,
discount rates, final remediation strategy, and future land use requirements. The provision can also be impacted
prospectively by changes to legislation or regulations.
The provisions are reassessed at least annually. A change in any of the assumptions used to determine the provisions
could have a material impact on the carrying value of the provision. In the case of provisions for assets which remain in
use, adjustments to the provision are offset by a change in the carrying value of the related asset. Where the provisions
are for assets no longer in use, such as mines and processing sites that have been closed, any adjustment is reflected
directly in profit or loss.
Key estimate: Discount rate for provisions
Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability to the extent they are not included in the
cash flows.
Rehabilitation and mine closure provisions for Australia and the US are remeasured at each reporting date by discounting
risk adjusted cash flows at discount rates representing the risk-free rates of applicable government bonds for the
currencies in which each respective provision is recognised.
Rehabilitation and mine closure provisions have been calculated by discounting risk adjusted cash flows at discount
rates of 4.3% and 3.9% for Australia the US, respectively (2023: 4.3% and 3.9% for Australia and the US, respectively).
An increase of one percent in only the discount rate used to calculate rehabilitation and mine closure provisions would
result in a decrease to their closing balance of $72.1 million. Of this amount, $58.9 million would be recognised as a
decrease in rehabilitation assets for open sites, and $13.2 million would be recognised as a credit in profit or loss for
closed or previously impaired sites.
b)
Employee benefits
The employee benefits provision includes long service leave entitlements measured as the present value of expected future
payments to be made in respect of services provided by employees up to the reporting date, discounted using market yields
at the reporting date on corporate bonds with terms to maturity and currency that match, as closely as possible, the
estimated future cash outflows. Liabilities for annual leave are included in payables.
The current provision includes amounts for vested long service leave for which the Group does not have an unconditional
right to defer settlement, regardless of when the actual settlement is expected to occur. However, based on past experience,
the Group does not expect all employees to take the full amount of accrued leave or require payment within the next 12
months.
100 Iluka Resources Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
9. PROPERTY, PLANT AND EQUIPMENT
Plant,
machinery &
Land &
buildings
equipment
Mine
reserves &
development
Exploration &
evaluation
Total
$m
$m
$m
$m
$m
At 1 January 2023
Cost
196.8
2,120.4
1,122.9
27.2
3,467.3
Accumulated depreciation¹
(56.2)
(1,721.5)
(557.5)
(16.1)
(2,351.3)
Opening written down value
140.6
398.9
565.4
11.1
1,116.0
Additions
12.1
284.0
88.3
-
384.4
Disposals
(4.6)
(0.6)
(0.1)
(0.1)
(5.4)
Depreciation
(1.8)
(78.4)
(80.9)
-
(161.1)
Exchange differences²
0.1
0.3
(0.3)
(0.3)
(0.2)
Closing written down value
146.4
604.2
572.4
10.7
1,333.7
At 31 December 2023
Cost
187.7
2,302.9
1,211.0
27.2
3,728.8
Accumulated depreciation¹
(41.3)
(1,698.7)
(638.6)
(16.5)
(2,395.1)
Closing written down value
146.4
604.2
572.4
10.7
1,333.7
Plant
Year ended 31 December 2024
Additions
8.2
444.1
63.3
1.6
517.2
Disposals
(0.1)
(0.3)
-
-
(0.4)
Depreciation
(1.9)
(81.5)
(102.4)
-
(185.8)
Exchange differences²
6.2
-
-
-
6.2
Closing written down value
158.8
966.5
533.3
12.3
1,670.9
Plant
At 31 December 2024
Cost
202.1
2,747.0
1,274.3
28.8
4,252.2
Accumulated depreciation¹
(43.3)
(1,780.5)
(741.0)
(16.5)
(2,581.3)
Closing written down value
158.8
966.5
533.3
12.3
1,670.9
1 Accumulated depreciation includes cumulative impairment charges
2 Exchange differences arising on translation of the gross cost and accumulated depreciation of items of property, plant
and equipment held by foreign operations are reflected net.
Key estimate: determination of Mineral Resources and Ore Reserves
The determination of Mineral Resources and Ore Reserves impacts the accounting for asset carrying values. The Group
estimates its Mineral Resources and Ore Reserves in accordance with the Australian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves 2012 (the "JORC Code"). The information on Mineral Resources and Ore
Reserves was prepared by or under the supervision of Competent Persons as defined in the JORC Code. The amounts
presented are based on the Mineral Resources and Ore Reserves determined under the JORC Code.
There are numerous uncertainties inherent in estimating Mineral Resources and Ore Reserves, and assumptions that are
valid at the time of estimation may change significantly when new information becomes available.
Changes in the forecast prices of commodities, exchange rates, production costs or recovery rates may change the
economic status of Reserves and may ultimately result in Reserves being restated.
Iluka Resources Limited Annual Report 2024 101
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
9. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
a)
Property, plant and equipment
Property, plant and equipment is stated at cost, less accumulated depreciation and impairment charges. Cost includes:
•
expenditure that is directly attributable to the acquisition of the items;
•
direct costs associated with the commissioning of plant and equipment, including pre-commissioning costs in
testing the processing plant;
•
if the asset is constructed by the Group, the cost of all materials used in construction, direct labour on the project,
project management costs and unavoidable borrowing costs incurred during construction of assets with a
construction period greater than 12 months and an appropriate proportion of variable and fixed overheads; and
•
the present value of the estimated costs of dismantling and removing the asset, and restoring and rehabilitating
the site on which it is located.
As set out in note 8, in the case of rehabilitation provisions for assets which remain in use, adjustments to the carrying value
of the provision are offset by a change in the carrying value of the related asset. Total additions in the year include $42.4
million (2023: $57.4 million) relating to rehabilitation.
b)
Maintenance and repairs
Certain items of plant used in the primary extraction, separation and secondary processing of extracted minerals are subject
to a major overhaul on a cyclical basis. Costs incurred during such overhauls are characterised as either capital in nature or
repairs and maintenance. Work performed may involve:
(i)
the replacement of a discrete sub-component asset, in which case an asset addition is recognised and the book
value of the replaced item is written off; and
(ii)
demonstrably extending the useful life or functionality of an existing asset, in which case the relevant cost is added
to the capitalised cost of the asset in question.
Costs incurred during a major cyclical overhaul which do not constitute (i) or (ii) above, are written off as repairs and
maintenance as incurred. General repairs and maintenance which are not characterised as part of a major cyclical overhaul
are expensed as incurred.
c)
Depreciation and amortisation
Items of property, plant and equipment are depreciated on a straight-line basis over their useful lives. The estimated useful
life of buildings is the shorter of applicable mine life or 25 years; plant and equipment is between 2 and 20 years. Land is
not depreciated.
Expenditure on mine reserves and development is amortised over the life of mine, based on the rate of depletion of the
economically recoverable reserves (units of production methodology). If production has not yet commenced, or the mine is
idle, amortisation is not charged.
d)
Assets not being depreciated
Included in plant, machinery and equipment, mine reserves and development, and land and buildings are amounts totalling
$690.5 million, $69.4 million and $2.6 million, respectively, relating to assets under construction which are currently not
being depreciated (including those related to the Rare Earths operating segment) as the assets are not ready for use (2023:
$318.5 million, $49.2 million and $0.9 million, respectively).
In addition, within property, plant and equipment, excluding exploration and land assets, are amounts totalling $100.7 million
which have not been depreciated in the year as mining of the related area of interest has not yet commenced (2023: $99.1
million).
102 Iluka Resources Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
9. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
e)
Exploration, evaluation and development expenditure
Exploration and evaluation expenditure is accumulated separately for each area of interest. Such expenditure comprises
net direct costs and an appropriate portion of related overhead expenditure. Expenditure is carried forward when incurred
in areas for which the Group has rights of tenure and where economic mineralisation is indicated, but activities have not yet
reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable ore
reserves, and active and significant operations in relation to the area are continuing. Each such project is regularly reviewed.
If the project is abandoned or if it is considered unlikely the project will proceed to development, accumulated costs to that
point are written off immediately.
Each area of interest is limited to a size related to a known mineral resource capable of supporting a mining operation.
Identifiable exploration assets acquired from another mining company are recognised as assets at their cost of acquisition.
Projects are advanced to development status when it is expected that accumulated and future expenditure on development
can be recouped through project development or sale. Capitalised exploration is transferred to Mine Reserves once the
related ore body achieves JORC reserve status (reported in accordance with JORC, 2012) and has been included in the life
of mine plan.
All of the above expenditure is carried forward up to commencement of operations at which time it is amortised in
accordance with the reserves and development depreciation policy noted in (c) above.
f)
Capitalised borrowing costs
Refer to note 15 for details on capitalised borrowing costs.
g)
Impairment of PPE
Refer to note 7 for details on impairment assessments.
Iluka Resources Limited Annual Report 2024 103
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
10. LEASES
a)
Amounts recognised in the statement of financial position
2024
2023
$m
$m
Right-of-use assets
Buildings
5.2
7.0
Plant, machinery and equipment
30.7
11.4
35.9
18.4
Lease Liabilities
Current
12.6
8.4
Non-current
28.1
15.8
40.7
24.2
Additions to the right-of-use assets during the reporting period were $24.4 million (2023: $1.6 million), including a solar farm
at Cataby ($17.3 million) and new fleet vehicles ($5.4 million). Right-of-use assets are reflected net of incentives received.
The maturity analysis of lease liabilities is included in note 20(d).
b)
Amounts recognised in the statement of profit or loss
2024
2023
$m
$m
Amortisation charge of right-of-use assets
Buildings
1.0
1.0
Plant, machinery and equipment
5.9
5.7
6.9
6.7
Borrowing costs
0.8
0.8
Expenses relating to short term leases, low value leases and leases with variable
payments
3.1
2.0
Payments for the principal element of leases of $8.6 million (2023: $8.4 million) are included in the statement of cash flows.
The group leases various offices, warehouses, equipment and vehicles. Rental contracts are typically made for fixed periods
of 6 months to 10 years, but may have extension options as described below.
Contracts may contain both lease and non-lease components. The group allocates the consideration in the contract to the
lease and non-lease components based on their relative stand-alone prices.
Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease
agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor.
Leased assets may not be used as security for borrowing purposes.
Lease liabilities
Liabilities arising from a lease are initially measured on a present value basis by discounting the following lease payments
to their present value:
•
Fixed payments (including in-substance fixed payments), less any lease incentives receivable;
•
variable lease payments that are based on an index or a rate, initially measured using the index or rate as at the
commencement date;
•
amounts expected to be payable by the group under residual value guarantees;
•
the exercise price of a purchase option if the group is reasonably certain to exercise that option; and
•
payments of penalties for terminating the lease, if the lease term reflects the group exercising that option.
104 Iluka Resources Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
10. LEASES (CONTINUED)
b)
Amounts recognised in the statement of profit or loss (continued)
Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined,
which is generally the case for leases in the Group, the incremental borrowing rate is used, being the rate that the individual
lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a
similar economic environment with similar terms, security and conditions. The weighted average borrowing rate used for
the year was 4.6% (2023: 4.8%).
Subsequent to initial recognition, lease liabilities are carried at amortised cost. Payments are allocated between repayment
of principal and borrowing costs, which are charged to profit or loss over the lease period so as to produce a constant
periodic rate of interest on the remaining balance of the liability for each period.
Right-of-use assets
Right-of-use assets are initially recognised at cost, comprising:
•
the amount of the lease liability;
•
any lease payments made at or before the commencement date, less any incentives received;
•
initial direct costs; and
•
restoration costs.
Subsequently, right-of-use assets are depreciated over the shorter of the asset’s useful life and the lease term on a straight-
line basis. Where the Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over
the underlying asset’s useful life.
Short term leases, leases of low value assets and leases containing variable payments
Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets are recognised
on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less.
11. INCOME TAX
Income tax expense comprises current and deferred tax and is recognised in profit or loss, as disclosed in (a) below, except
to the extent that it relates to items recognised directly in equity or other comprehensive income as disclosed in (c) below.
a)
Income tax expense
2024
2023
$m
$m
Current tax
121.9
158.9
Deferred tax
(24.8)
(26.6)
(Over)/under provided in previous years
(3.1)
(3.4)
94.0
128.9
Iluka Resources Limited Annual Report 2024 105
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
11. INCOME TAX EXPENSE (CONTINUED)
b)
Reconciliation of income tax expense to prima facie tax payable
2024
2023
$m
$m
Profit before income tax expense
325.3
471.5
Tax at the Australian tax rate of 30% (2023: 30%)
97.6
141.5
Tax effect of amounts not deductible (taxable) in calculating taxable income:
Equity accounted share of profit - Deterra
(6.6)
(8.2)
Share based payments
1.4
0.1
Remeasurement loss on Northern Minerals
1.3
1.5
Non-deductible expenses
0.4
0.1
Other items
0.8
0.4
(Gains)/losses not recognised by overseas operations
2.2
(3.1)
97.1
132.3
Over provision in prior years
(3.1)
(3.4)
Income tax expense
94.0
128.9
No tax benefits have been recognised in respect of exploration activities of overseas operations as their recovery is not
currently considered probable.
The idling of the US operations at the end of 2015 means that the recovery of US state and federal tax losses are not
considered probable. Unrecognised US state and federal tax losses for which no deferred tax asset has been recognised
are US$702.9 million (equivalent to $1,130 million) at 31 December 2024 (2023: US$679.4 million, equivalent to $1,026
million).
Unused capital losses for which no deferred tax asset has been recognised are approximately $101.7 million (2023: $101.5
million) (tax at the Australian rate of 30%: $30.5 million (2023: $30.4 million)). The benefit of these unused capital losses
will only be obtained if sufficient future capital gains are made and the losses remain available under tax legislation.
c)
Tax expense relating to items of other comprehensive income
2024
2023
$m
$m
Changes in fair value of foreign exchange cash flow hedges
6.5
(2.1)
Actuarial gains (losses)/on retirement benefit obligation
0.1
(0.2)
6.6
(2.3)
The income tax expense or benefit for the period is the tax payable on the current period’s taxable income based on the
applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses. The current tax charge is calculated using the tax rates and tax laws
enacted or substantively enacted at the reporting date in the countries where the Group operates and generates taxable
income.
d)
International tax reform – pillar two model rules
The Base Erosion and Profit Shifting (BEPS) Pillar Two legislation has been substantively enacted in Australia and applies
to the Group for the income year commencing 1 January 2024. BEPS Pillar Two establishes a global minimum tax rate of
15% for multinational enterprise groups with consolidated global revenues over €750 million. This initiative, part of the
Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework seeks to curb profit-shifting
and create uniform tax regulations across different jurisdictions.
Consistent with amendments to AASB 112 Income Taxes, the Group has applied the mandatory exception to recognising
and disclosing information about deferred tax assets and liabilities relating to Pillar Two income taxes.
The Group has satisfied the de-minimis test under the transitional safe harbours which allows the Group to use existing
country-by-country reporting and financial accounting data as a basis. As the Group has qualified for safe harbor relief, there
will be no Pillar Two current tax expense for the Group.
106 Iluka Resources Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
12. DEFERRED TAX
2024
2023
$m
$m
Deferred tax asset:
The balance comprises temporary differences attributable to:
Employee provisions
10.8
11.2
Rehabilitation provisions
234.7
219.4
Lease liabilities
12.2
7.0
Cash flow hedge reserve (in equity)
9.2
-
Other
11.1
17.0
Gross deferred tax assets
278.0
254.6
Amount offset from deferred tax liabilities pursuant to set-off provision
(183.8)
(192.5)
Net deferred tax assets
94.2
62.1
Deferred tax liability:
The balance comprises temporary differences attributable to:
Property, plant and equipment
(149.8)
(171.2)
Inventory
(20.5)
(14.0)
Treasury shares
(0.7)
(0.3)
Right-of-use assets
(10.8)
(5.3)
Receivables
(0.3)
(0.4)
Other
(1.7)
(1.3)
Gross deferred tax liabilities
(183.8)
(192.5)
Amount offset to deferred tax assets pursuant to set-off provision
183.8
192.5
Net deferred tax liabilities
-
-
Movements in net deferred tax balance:
Balance at 1 January
62.1
35.0
Credited/(charged) to the income statement
24.8
26.6
Over provision in prior years
(1.9)
4.5
Charged directly to equity
9.2
(4.0)
Balance at 31 December
94.2
62.1
Deferred tax policy
Deferred income tax is provided on all temporary differences at the balance sheet date between accounting carrying
amounts and the tax bases of assets and liabilities.
Deferred income tax liabilities are recognised for all taxable temporary differences, other than for the exemptions permitted
under accounting standards.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and
unused tax losses, to the extent it is probable that taxable profit will be available to utilise these deductible temporary
differences, other than for the exemptions permitted under accounting standards. The carrying amount of deferred income
tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the
asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted
at the balance sheet date.
Income taxes relating to items recognised directly in equity are also recognised in equity and not in the income statement.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same
taxation authority.
No deferred tax liability is recognised on the Iluka Group’s equity accounted investment in Deterra Royalties, which generates
dividends for the Group . It is Deterra Royalties’ current policy to frank all dividends to the maximum percent possible, which
means no tax is payable on the dividends by the Group. The Group continuously monitors this position and will update it as
required.
Iluka Resources Limited Annual Report 2024 107
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
13. RECEIVABLES
2024
2023
$m
$m
Trade receivables
268.1
254.8
Other receivables
22.6
12.0
Prepayments
15.2
16.3
305.9
283.1
Trade receivables are recognised initially at the value of the invoice sent to the customer and subsequently at the amount
considered recoverable, translated using the spot exchange rate at balance date with translation differences accounted for
in line with the Group's accounting policy (refer note 1). Recognition occurs at the earlier of dispatch or formal
acknowledgement of legal ownership by a customer, as this is the point in time that the consideration is unconditional
because only the passage of time is required before payment is due. Trade receivables are generally paid within 76 days of
the invoice being issued (2023: 70 days).
The Group has applied the simplified approach to measuring expected credit losses (ECL), which uses a lifetime expected
loss allowance for all trade receivables. Based on the payment profiles of sales over the past three years and historical
credit losses experienced within this period, the Group concluded that the lifetime ECL would be negligible and therefore no
loss allowance was required at 31 December 2024 (2023: nil). The amount of any impairment loss is recognised in the
Consolidated Statement of Profit or Loss and Other Comprehensive Income within other expenses.
Trade receivables are written off where there is no reasonable expectation of recovery. Indicators that there is no reasonable
expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the group, and a
failure to make contractual payments for a period of greater than 120 days past due. Impairment losses on trade receivables
and subsequent recoveries of amounts previously written off of $nil are included in other expenses (2023: $nil).
There was $27.2 million overdue at balance date (2023: $4.0 million), of which $nil is more than 28 days overdue (2023:
$nil). One invoice accounts for 80.3% of the total amount overdue at 31 December 2024 and was paid in full by the customer
on 3 January 2025.
Due to the short-term nature of the Group’s receivables, their carrying value is considered to approximate fair value.
a)
Trade receivables purchase facility
Iluka has a purchase facility for the sale of eligible trade receivables. Sold trade receivables are not derecognised because
the majority of the risks and rewards of ownership, including credit risk, are retained by the Group. Instead, the amount of
sold receivables is reflected as a continuing involvement asset (included in other receivables) with a corresponding
continuing involvement liability (included in payables) for the same amount. Trade receivables include $nil of sold trade
receivables at the reporting date (2023: $nil million).
b)
Credit risk
At 31 December 2024 the trade receivables balance was $268.1 million, with $52.8 million secured by letters of credit. As a
result, the Group had $215.3 million of uninsured receivables at the reporting date (2023: $191.4 million uninsured
receivables). Further details regarding the Group's approach to managing customer credit risk are outlined in note 20(b).
108 Iluka Resources Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
14. INVENTORIES
2024
2023
$m
$m
Current
Work in progress
284.6
194.0
Finished goods
476.0
412.7
Consumables stores
78.8
56.0
Total current inventories
839.4
662.7
Non-Current
Finished goods
2.9
16.9
Work in progress
202.1
125.1
Total non-current inventories
205.0
142.0
Total Inventories
1,044.4
804.7
Inventories are valued at the lower of weighted average cost and estimated net realisable value. The net realisable value is
the estimated selling price in the normal course of business, less any anticipated costs of completion and the estimated
costs to sell, including royalties.
There are separate inventory stockpile values for each product, including Heavy Mineral Concentrate (HMC) and other
intermediate products, at each inventory location.
Weighted average cost includes direct costs and an appropriate portion of fixed and variable overhead expenditure, including
depreciation and amortisation. As a result of mineral sands being co-products from the same mineral separation process,
costs are allocated to inventory on the basis of the relative sales value of the finished goods produced. No cost is attributed
to by-products, except direct costs.
All finished goods and product inventory were carried at cost in the current and previous reporting periods.
Consumable stores include ilmenite feedstock acquired from third parties, flocculant, coal, diesel and warehouse stores. A
regular and ongoing review is undertaken to establish the extent of surplus, obsolete or damaged stores, which are then
valued at estimated net realisable value.
Inventories expected to be sold (or consumed in the case of stores) within 12 months after the balance sheet date are
classified as current assets; all other inventories are classified as non-current assets.
Key estimate: Net realisable value and classification of product inventory
The Group’s assessment of the net realisable value and classification of its inventory holdings requires the use of estimates,
including the estimation of the relevant future product price and the likely timing of the sale of the inventory.
During the year, no inventory write-downs were reversed for work in progress or finished goods (2023: $0.5 million write-
down reversal). If finished goods future selling prices were 5% lower than expected, the impact on inventory net realisable
value would be negligible (i.e. less than $0.1 million) (2023: $0.1 million).
Inventory of $205.0 million (2023: $142.0 million) was classified as non-current as it is not expected to be processed and
sold within 12 months of the balance sheet date.
Iluka Resources Limited Annual Report 2024 109
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
CAPITAL
15. NET (DEBT)/CASH AND FINANCE COSTS
2024
2023
$m
$m
Cash and cash equivalents
Cash at bank and in hand
96.0
129.7
Deposits at call
40.0
235.2
Total cash and cash equivalents
136.0
364.9
Non-current interest bearing liabilities (unsecured)
EFA loan facility
(248.8)
(145.9)
MOFA loan facility
(10.0)
-
Deferred borrowing costs
8.2
6.4
Total interest-bearing liabilities
(250.6)
(139.5)
Net (debt)/cash
(114.6)
225.4
a)
Cash and cash equivalents
Cash and cash equivalents include cash on hand and deposits held at call with financial institutions with original maturities
of three months or less.
Cash and deposits are at floating interest rates between 0.1% and 5.3% (2023: 0.1% and 5.3%) on Australian and foreign
currency denominated deposits.
b)
Interest-bearing liabilities
Interest-bearing liabilities are initially recognised at fair value less directly attributable transaction costs, with subsequent
measurement at amortised cost using the effective interest rate method. Under the amortised cost method the difference
between the amount initially recognised and the redemption amount is recognised in profit or loss over the period of the
borrowings on an effective interest basis.
Interest-bearing liabilities are classified as current liabilities unless the Group has a substantive right to defer settlement for
at least 12 months after the balance sheet date.
The Group has access to the following facilities at the reporting date:
(i)
Multi Option Facility Agreement (MOFA)
The Multi Optional Facility Agreement comprises a series of unsecured committed five year bilateral revolving credit
facilities with several domestic and foreign institutions. The agreement was renegotiated during the reporting period to a
total of $800 million, expiring in 2029 (31 December 2023: $570.0 million expiring in 2027).
At 31 December 2024, $10 million cash and $39 million bank guarantees was drawn against the MOFA, with $751 million
remaining undrawn (2023: $nil drawn, $570 million undrawn).
The MOFA is subject to both financial and non-financial covenants, including maintaining certain interest cover and gearing
ratios. The Group tests for compliance semi-annually to align with full- and half- year reporting dates. As at 31 December
2024 Iluka was in compliance, with no covenant breaches or waivers.
(ii) Export Finance Australia
The Group (via Iluka Eneabba Pty Ltd, a special purpose entity) has access to funds for construction and commissioning of
the Eneabba Rare Earths Refinery (ERER) under a risk sharing agreement with the Australian Government (as part of its
Critical Minerals Facility initiative).
The facility is non-recourse to Iluka, secured against the ERER asset, has a variable interest rate equal to the BBSY + 3% and
has a total term of up to 16 years expiring in 2038. Facility payments commence on project completion.
The facility originally amounted to $1,250 million, with additional cash equity contributions from the Group amounting to
$200 million (provided on a 1:3 basis with initial drawdowns).
110 Iluka Resources Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
15. NET (DEBT)/CASH AND FINANCE COSTS (CONTINUED)
b)
Interest bearing liabilities (continued)
The Group reached an agreement with the EFA (as outlined in the ASX announcement on 6 December 2024, and signed on
14 February 2025), increasing the facility total to $1,650 million and at the same time increasing the cash contribution by
the Group to $414 million. The availability of the increased facility amount is subject to the Group securing offtake
agreements satisfactory to the Australian Government as outlined in the aforementioned ASX announcement, and can only
be drawn down once the original $1,450 million of funding agreements is fully drawn.
The EFA facility is subject to covenants designed to support ongoing lender oversight and risk management, primarily
outlining that funds from the facility may only be used for the construction, commissioning and related activities of the
Eneabba Rare Earths Refinery. The Group tests for compliance each time an amount is drawn down from the facility. As at
31 December 2024 Iluka was in compliance with applicable covenants. The requirement to submit cost certificates to EFA
has been waived for 2024.
c)
Interest rate exposure
As at the reporting date, $248.8 million was drawn down (2023: $145.9 million) on the EFA facility and is subject to an
effective weighted average floating interest rate of 7.5% (2023: 7.2%).
Additionally, $10 million (2023: $nil) was drawn on the MOFA facility subject to an interest rate of 5.9%.
The contractual repricing date of all floating rate interest-bearing liabilities at the balance date is within one year.
d)
Finance costs
2024
2023
$m
$m
Interest charges on interest-bearing liabilities
0.8
0.6
Amortisation of deferred borrowing costs
3.2
0.9
Bank fees and similar charges
4.7
5.5
Lease borrowing costs
0.8
0.8
Rehabilitation and mine closure provision discount unwind
32.7
31.4
Total finance costs
42.2
39.2
(i)
Capitalisation of borrowing costs
The Group capitalises borrowing costs incurred on the EFA facility to the extent they are incurred for the construction of the
Eneabba Rare Earths Refinery. Borrowing costs comprise interest and related amortisation of deferred borrowing costs on
the EFA facility, net of interest income. The Group capitalised $11.4 million to the cost of the Eneabba Rare Earths Refinery
during the current reporting period (2023: $4.4 million), which is included in additions to property, plant and equipment.
(ii)
Amortisation of deferred borrowing costs
Fees paid on establishment of borrowing facilities are recognised as transaction costs and amortised over the shorter of
the loan term or expected repayment (or modification) date through profit or loss to the extent they are not capitalised to
qualifying assets.
(iii) Rehabilitation and mine closure provision discount unwind
Rehabilitation and mine closure unwind represents the cost associated with the passage of time. Rehabilitation provisions
are recognised as the discounted value of the present obligation to restore, dismantle and rehabilitate with the increase in
the provision due to passage of time being recognised as a finance cost in accordance with the policy described in note
8(a).
(iv) Rehabilitation provision discount rate changes
Differences arising from changes to the discount rates used to calculate rehabilitation provisions for closed sites are
recognised in profit or loss as finance costs. There was no change to the risk free discount rates used in calculating
rehabilitation provisions in the current reporting period. Refer to note 8.
Iluka Resources Limited Annual Report 2024 111
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
16. CONTRIBUTED EQUITY
2024
2023
2024
2023
Shares
Shares
$m
$m
Balance on 1 January, comprising
Ordinary shares - fully paid
426,032,302
424,932,151
1,143.9
1,132.5
Treasury shares - net of tax
(99,643)
(467,535)
(0.7)
(2.9)
425,932,659
424,464,616
1,143.2
1,129.6
Movement in ordinary share capital
2024 Interim Dividend - DRP
37,703
-
0.4
-
2023 Final Dividend - DRP
51,728
-
0.2
-
2023 Interim Dividend - DRP
-
19,496
-
0.6
2022 Final Dividend - DRP
-
80,655
-
0.2
Share issue
2,127,602
1,000,000
15.3
10.6
Movements in treasury shares, net of tax
Employee share allocations
1,847,719
1,367,892
10.0
10.0
Treasury share issues
(2,127,602)
(1,000,000)
(10.7)
(7.8)
Balance on 31 December, comprising
427,869,809
425,932,659
1,158.4
1,143.2
Ordinary shares - fully paid
428,249,335
426,032,302
1,159.8
1,143.9
Treasury shares - net of tax
(379,526)
(99,643)
(1.4)
(0.7)
a)
Ordinary Share Capital
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion
to the number of and amounts paid on the shares held. On a show of hands, every holder of ordinary shares present at a
meeting in person or by proxy is entitled to one vote, and upon a poll each share is entitled to one vote. Incremental costs
directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.
The Group issues ordinary shares to shareholders who elect to receive shares instead of cash dividends as part of the
Dividend Reinvestment Plan (DRP), the terms of which are detailed in the ASX announcement dated 27 February 2018.
During the year, the Group issued the following shares under the DRP:
Date issued
Price per share
Number of ordinary
shares issued
2023 final
25 March 2024
$7.03
51,728
2024 interim
27 September 2024
$5.85
37,703
b)
Treasury Shares
Treasury shares are shares in Iluka Resources Limited issued and held by the Group for the purpose of allocating shares
under the Directors, Executives and Employees Share Acquisition Plan and the Employee Share Plan.
112 Iluka Resources Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
17. RESERVES AND RETAINED EARNINGS
Notes
2024
2023
$m
$m
Asset revaluation reserve
Balance at 1 January
10.7
10.7
Balance at 31 December
17(a)
10.7
10.7
Hedge reserve
Balance at 1 January
1.4
(3.5)
Changes in the fair value of hedging instruments recognised in equity
(29.4)
11.7
Reclassified to profit or loss
(1.3)
(4.7)
Deferred tax
9.2
(2.1)
Balance at 31 December
17(b)
(20.1)
1.4
Share-based payments reserve
Balance at 1 January
10.4
8.3
Share-based payments, net of tax
11.1
12.1
Transfer of shares to employees, net of tax
(10.0)
(10.0)
Balance at 31 December
17(c)
11.5
10.4
Foreign currency translation
Balance at 1 January
(1.1)
1.1
Share of foreign currency translation reserve of associate - Deterra
23
6.4
-
Translation differences on other foreign entities
3.8
(2.2)
Balance at 31 December
17(d)
9.1
(1.1)
Total reserves
11.2
21.4
Retained earnings
Balance at 1 January
993.9
748.6
Net profit for the year attributable to the equity holders of the parent
231.3
342.6
Dividends paid
(34.2)
(97.8)
Actuarial gains on retirement benefit obligation, net of tax
(0.2)
0.5
Balance at 31 December
1,190.8
993.9
a)
Asset revaluation reserve
The asset revaluation reserve records revaluations of non-current assets prior to the adoption of AIFRS. Transfers are made
to retained earnings on disposal of previously revalued assets.
b)
Hedge reserve
Iluka uses foreign currency instruments as part of its foreign currency risk management strategy associated with its US
dollar denominated sales, as described in note 21. The foreign currency instruments are designated to cash flow hedge
relationships. To the extent these hedges are effective, the change in fair value of the hedging instrument is recognised in
the cash flow hedge reserve.
Iluka Resources Limited Annual Report 2024 113
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
17. RESERVES AND RETAINED EARNINGS (CONTINUED)
c)
Share-based payments reserve
The employee share-based payments reserve is used to recognise the fair value of equity instruments granted but not yet
issued to employees under the Group's various equity-based incentive schemes. Shares issued to employees are acquired
on-market prior to the issue. Shares not yet issued to employees are shown as treasury shares. When shares are issued to
employees the cost of the on-market acquisition, net of tax, is transferred from treasury shares (refer note 16) to the share-
based payment reserve.
d)
Foreign currency translation reserve
Exchange differences arising on translation of the net investment in foreign operations are recognised in the foreign
currency translation reserve net of applicable income tax and reclassified to retained earnings when the net investment is
disposed of.
e)
Other reserves
The impact on equity of transactions related to changes in the structure of the Group are accumulated in other reserves.
There were no such transactions in the current reporting period.
18. DIVIDENDS
2024
2023
$m
$m
Final dividend
for 2023 of 4 cents per share, fully franked
17.1
-
for 2022 of 20 cents per share, fully franked
-
85.0
Interim dividend
for 2024 of 4 cents per share, fully franked
17.1
-
for 2023 of 3 cents per share, fully franked
-
12.8
Total Dividends
34.2
97.8
Of the total $17.1 million interim dividend declared for 2024 and the total $17.1 million final dividend declared for 2023,
shareholders respectively took up $0.2 million and $0.4 million as ordinary shares as part of the Dividend Reinvestment
Plan. Refer to note 16(a).
Since balance date the directors have determined a final dividend for 2024 of 4 cents per share, fully franked. The dividend
is payable on 28 March 2025 for shareholders on the register as at 5 March 2025. The aggregate amount of the proposed
dividend is $17.1 million, which has not been included in provisions at balance sheet date as it was not declared on or before
the end of the financial year.
Franking credits
The balance of franking credits available as at 31 December 2024 is $813.0 million (2023: $685.5 million). This balance is
based on a tax rate of 30% (2023: 30%).
114 Iluka Resources Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
19. EARNINGS PER SHARE
2024
2023
Cents
Cents
Basic earnings per share
54.1
80.5
Diluted earnings per share
53.6
79.8
Total earnings per share (EPS) is the amount of post-tax earnings attributable to each share for continuing operations.
Total basic EPS is calculated on the profit for the period of $231.3 million (2023: profit of $342.6 million) divided by the
weighted average number of shares on issue during the year, excluding treasury shares, being 427,260,625 shares (2023:
425,610,795 shares).
Total diluted EPS takes into account the dilutive effect of all outstanding share rights vesting as ordinary shares. For the
year ended 31 December 2024 the weighted average number of issued shares and outstanding share rights was
431,329,631 (2023: 429,364,506).
Iluka Resources Limited Annual Report 2024 115
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
RISK
20. FINANCIAL RISK MANAGEMENT
The Group's activities expose it to a variety of financial risks: market risk (including currency risk and interest rate risk),
credit risk and liquidity risk. The Group's overall risk management program focuses on the unpredictability of financial
markets and seeks to minimise potential adverse effects on the financial performance of the Group. Financial risk
management is managed by a central treasury department under policies approved by the Board.
a)
Market risk
Market risk is the risk that changes in market prices such as foreign exchange rates and interest rates will affect the Group’s
income or value of its holdings of financial instruments.
(i)
Foreign exchange risk
The Group operates internationally and is exposed to foreign exchange risk arising predominantly from the US dollar, which
is the currency the Group’s sales are generally denominated in.
Foreign exchange risk is managed through entering into forward foreign exchange contracts and collar contracts detailed
in note 21.
The treasury function of the Group manages foreign currency risk centrally. The Group hedges foreign exchange exposures
for firm commitments relating to a portion of sales, where the hedging instrument must be in the same currency as the
hedged item.
The Group's exposure to USD foreign currency risk (by entities which have an Australian dollar functional currency) at the
end of the reporting period, expressed in Australian dollars, was as follows:
2024
2023
$m
$m
Cash and cash equivalents
5.4
12.2
Receivables
259.0
251.9
Payables
(104.0)
(68.9)
Derivative financial instruments
(28.1)
2.6
132.3
197.8
The Group’s balance sheet exposure to other foreign currency risk is not significant.
The objective of Iluka’s policy on foreign exchange hedging is to protect the Group from adverse currency fluctuations.
Derivative financial instruments amounts above reflect those recognised in the financial statements; gross foreign exchange
exposure and notional amounts are outlined in note 21.
(ii)
Group sensitivity
The average US dollar exchange rate during the year was 0.6602 (2023: 0.6647). The US dollar spot rate at 31 December
2024 was 0.6220 (31 December 2023: 0.6827). Based on the Group's net financial assets at 31 December 2024, the following
table demonstrates the estimated sensitivity to a -/+ 10% movement in the US dollar spot exchange rate, with all other
variables held constant, on the Group's post-tax profit for the year and equity:
-10%
+10%
Strengthen
Weaken
Profit (loss)
Equity
Profit (loss)
Equity
$m
$m
$m
$m
31 December 2024
2.0
(45.7)
(24.7)
29.5
31 December 2023
15.2
(9.8)
(17.6)
10.2
116 Iluka Resources Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
20. FINANCIAL RISK MANAGEMENT (CONTINUED)
a)
Market risk (continued)
(iii) Interest rate risk
Interest rate risk arises from the Group’s borrowings (to the extent that borrowing costs are not capitalised, as is the case
for the EFA facility – refer to note 15) and cash deposits. All borrowing costs subject to interest rate risk were capitalised
during the current and prior reporting periods, therefore a change in variable interest rates would not have impacted pre-tax
profit in either period.
Interest-bearing liability balances ranged between $145.9 million and $248.8 million during the year (2023: $40.7 million and
$145.9 million).
b)
Credit risk
Credit risk arises from cash and cash equivalents and hedging instruments held with financial institutions, as well as credit
exposure to customers.
The Group’s policy is to ensure that cash deposits are held by financial institutions with a minimum A-/A3 credit rating.
Exposure limits are approved by the Board based on credit ratings from external ratings agencies.
Derivative counterparties and cash transactions are limited to high credit quality financial institutions and policies limit the
amount of credit exposure to any one financial institution.
The Group manages customer credit risk subject to established policies, procedures and controls. Credit limits are
established for all customers. The Group trades primarily with recognised, creditworthy third parties. Customers who wish
to trade on credit terms are subject to credit verification procedures, including an assessment of their independent credit
rating (if available), financial position, past experience, and industry reputation.
Credit risk management practices include reviews of trade receivables aging by days past due, the timely follow-up of past
due amounts, and the use of letters of credit.
The expected credit loss on trade receivables is not material.
c)
Liquidity risk
Liquidity risk is the risk the Group will not be able to meet its financial obligations as they fall due. Liquidity risk management
involves maintaining sufficient cash on hand or undrawn credit facilities to meet the operating requirements of the business.
This is managed through committed undrawn facilities under the MOFA facility of $751.0 million and EFA facility of $1,401.2
million at balance date (refer note 15(b)), cash and cash equivalents of $136.0 million, and prudent cash flow management.
d)
Maturities of financial liabilities
The tables below analyse the Group’s interest-bearing liabilities into maturity groupings based on the remaining period at
the reporting date to the contractual maturity date. For the MOFA facility, the contractual maturity dates and contractual
cash flows are until the next contractual re-pricing date in 2029. For the EFA facility, the contractual maturity dates and
contractual cash flows are until the facility expires in 2038. The amounts disclosed in the table are the contractual
undiscounted cash flows based on expected repayment timeframes at the reporting date. Balances due within 12 months
equal their carrying balances as the impact of discounting is not significant. All other non-derivative financial liabilities are
due within 12 months. Derivative cash flows include the net amounts expected to be received for foreign exchange collar
contracts.
Iluka Resources Limited Annual Report 2024 117
20. FINANCIAL RISK MANAGEMENT (CONTINUED)
d)
Maturities of financial liabilities (continued)
< 1 year
1 < 2 years 2 < 5 years
> 5 years
Weighted
average rate
Total
contractual
cash flows
Carrying
amount in
liabilities
%
$m
$m
$m
$m
$m
$m
At 31 December 2024
Non-derivatives
Payables
198.4
-
-
-
198.4
198.4
Lease liabilities
4.6
11.7
9.5
10.2
16.1
47.5
40.7
Interest-bearing variable rate -
non-recourse debt
7.5
-
-
298.3
-
298.3
248.8
Interest-bearing variable rate -
recourse debt
5.9
-
-
10.0
10.0
10.0
Total non-derivatives
210.1
9.5
308.5
26.1
554.2
497.9
Derivatives
Foreign exchange collar contracts
13.7
14.4
-
-
28.1
28.1
At 31 December 2023¹
Non-derivatives
Payables
177.0
-
-
-
177.0
177.0
Lease liabilities
4.8
7.6
6.6
11.8
8.6
34.6
24.2
Interest-bearing variable rate -
non-recourse debt
7.2
-
-
173.7
-
173.7
145.9
Total non-derivatives
184.6
6.6
185.5
8.6
385.3
347.1
Derivatives
Foreign exchange collar contracts
-
-
-
-
-
-
1 Restated
Non-recourse and recourse debt comprises the EFA and MOFA facilities, respectively. Maturities are reflected above taking
into account the Group’s expectations on repayment timing. Repayment terms are outlined in note 15(b). Contractual
cashflows in the comparative period have been restated to align with the basis applied in the current reporting period.
Refer to note 21 for detail on derivative instruments.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
118 Iluka Resources Limited Annual Report 2024
21. HEDGING
2024
2023
$m
$m
Assets
Foreign exchange collar hedges - current
-
2.6
Liabilities
Foreign exchange collar hedges - current
13.7
-
Foreign exchange collar hedges - non current
14.4
-
Total liabilities
28.1
-
The Group is exposed to risk from movements in foreign exchange in relation to its forecast US dollar denominated sales
and as part of the risk management strategy has entered into foreign exchange collar contracts.
a)
Recognition
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-
measured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value
depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged and
the type of hedge relationship designated.
b)
Fair value of derivatives
The fair value of hedging instruments is determined using valuation techniques with inputs that are observable market data
(a level 2 measurement). The valuation of the options making up the collars is determined using forward foreign exchange
rates, volatilities and interest rates at the balance date. The only unobservable input used in the calculations is the credit
default rate, movements in which would not have a material effect on the valuation.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
Iluka Resources Limited Annual Report 2024 119
21. HEDGING (CONTINUED)
c)
Hedge accounting
At the start of a hedge relationship, the Group formally designates and documents the hedge relationship, including the risk
management strategy for undertaking the hedge. This includes identification of the hedging instrument, the hedged item or
transaction, the nature of the risk being hedged and how the entity will assess the hedging instrument’s effectiveness. Hedge
accounting is only applied where effective tests are met on a prospective basis.
Iluka will discontinue hedge accounting prospectively only when the hedging relationship, or part of the hedging relationship,
no longer qualifies for hedge accounting. This includes where there has been a change to the risk management objective
and strategy for undertaking the hedge and instances when the hedging instrument expires or is sold, terminated or
exercised. The replacement or rollover of a hedging instrument into another hedging instrument is not treated as an
expiration or termination if such a replacement or rollover is consistent with our documented risk management objective.
The foreign exchange collars Iluka holds are classified as cash flow hedges. Hedges are classified as cash flow hedges
when they hedge a particular risk associated with the cash flows of recognised assets and liabilities and highly probable
forecast transactions.
Cash flow hedges
For cash flow hedges, the portion of the gain or loss on the hedging instrument that is effective is recognised directly in
equity, while the ineffective portion is recognised in profit or loss. The ineffective portion was immaterial in the current and
prior periods. The maturity profile of these hedges is shown in note 20(d). The recognition of the future gain or loss is
expected to be consistent with this timing.
Foreign exchange collar contracts in relation to expected USD revenue, predominantly from contracted sales to 31
December 2026, remain open at the reporting date. The foreign exchange collar hedges cover US$455.0 million of expected
USD revenue to 31 December 2026 and comprise US$455.0 million worth of purchased AUD call options with a weighted
average strike price of 68.6 cents and US$455.0 million of AUD put options with a weighted average strike price of 63.4
cents.
The Group entered into US$496.3 million in foreign exchange collars consisting of US$496.3 million of bought AUD call
options with weighted average strike prices of 68.6 cents and US$496.3 million of sold AUD put options with weighted
average strike prices of 63.4 cents.
US$199.2 million in foreign exchange collar contracts consisting of US$199.2 million of bought AUD call options with
weighted average strike prices of 69.8 cents and US$199.2 million of sold AUD put options with weighted average strike
prices of 63.6 cents matured during the year.
Amounts recognised in equity are transferred to the income statement when the hedged sale occurs or when the hedging
instrument is exercised.
If the forecast transaction is no longer expected to occur, amounts previously recognised in equity are transferred to the
income statement. If the hedging instrument expires or is sold, terminated or exercised without replacement or roll over, or
if its designation as a hedge is revoked, amounts previously recognised in equity remain in equity until the forecast
transaction occurs.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
120 Iluka Resources Limited Annual Report 2024
GROUP STRUCTURE
22. CONTROLLED ENTITIES AND DEED OF CROSS GUARANTEE
a)
Subsidiaries
The consolidated financial statements incorporate the following subsidiaries
Note
Ownership interest held
by the group
2024
2023
Place of business/
country of
incorporation
%
%
Iluka Resources Limited (Parent Company)
(i)
Australia
-
-
Ashton Coal Interests Pty Limited
Australia
96
96
Associated Minerals Consolidated Ltd
(i)
Australia
100
100
Basin Minerals Holdings Pty Ltd
(i)
Australia
100
100
Basin Minerals Limited
(i)
Australia
100
100
Basin Properties Pty Ltd
(i)
Australia
100
100
Glendell Coal Ltd
(i)
Australia
100
100
Gold Fields Asia Ltd
(i)
Australia
100
100
Ilmenite Proprietary Limited
(i)
Australia
100
100
Iluka (Eucla Basin) Pty Ltd
(i)
Australia
100
100
Iluka Consolidated Pty Limited
(i)
Australia
100
100
Iluka Corporation Limited
(i)
Australia
100
100
Iluka Eneabba Pty Ltd
Australia
100
100
Iluka Exploration Pty Limited
(i)
Australia
100
100
Iluka Finance Limited
(i)
Australia
100
100
Iluka International (China) Pty Ltd
(i)
Australia
100
100
Iluka International (ERO) Pty Ltd
(i)
Australia
100
100
Iluka International (Lanka) Pty Ltd
(i)
Australia
100
100
Iluka International (MRO) Pty Ltd
(i)
Australia
100
100
Iluka International (Netherlands) Pty Ltd
(i)
Australia
100
100
Iluka International Limited
(i)
Australia
100
100
Iluka International Trading Pty Ltd
(i),(ii)
Australia
100
100
Iluka Midwest Limited
(i)
Australia
100
100
Iluka Rare Earths Pty Ltd
Australia
100
100
Iluka RE Investments Pty Ltd
Australia
100
100
Iluka Royalties (Australia) Pty Ltd
(i)
Australia
100
100
Iluka Share Plan Holdings Pty Ltd
(i)
Australia
100
100
Iluka WA Investments Pty Ltd
(i)
Australia
100
100
Lion Properties Pty Limited
(i)
Australia
100
100
NGG Holdings Ltd
(i)
Australia
100
100
PURE Exploration Pty Ltd
(i)
Australia
100
100
Renison Limited
(i)
Australia
100
100
Southwest Properties Pty Ltd
(i)
Australia
100
100
Swansands Pty Ltd
(i)
Australia
100
100
The Mount Lyell Mining and Railway Company Limited
(i)
Australia
100
100
The Nardell Colliery Pty Ltd
(i)
Australia
100
100
Western Mineral Sands Proprietary Limited
(i)
Australia
100
100
Western Titanium Limited
(i)
Australia
100
100
Westlime (WA) Limited
(i)
Australia
100
100
Yoganup Pty Ltd
(i)
Australia
100
100
Iluka Exploration (Canada) Limited
Canada
100
100
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
Iluka Resources Limited Annual Report 2024 121
22. CONTROLLED ENTITIES AND DEED OF CROSS GUARANTEE (CONTINUED)
a)
Subsidiaries (continued)
Note
Ownership interest held
by the group
2024
2023
Place of business/
country of
incorporation
%
%
Iluka Trading (Shanghai) Co., Ltd
China
100
100
Iluka International (Eurasia) Pte. Ltd
Singapore
100
100
Neurika Innovations SLU
Spain
100
100
Iluka Lanka P.Q. (Private) Limited
Sri Lanka
100
100
Iluka Lanka Resources (Private) Limited
Sri Lanka
100
100
ERO (Tanzania) Limited
(iii)
Tanzania
-
100
Iluka International Coöperatief U.A.
The Netherlands
100
100
Iluka Investments 1 B.V.
The Netherlands
100
100
Iluka (UK) Ltd
United Kingdom
100
100
Iluka Technology (UK) Ltd
United Kingdom
100
100
Associated Minerals Consolidated Investments
USA
100
100
Iluka (USA) Investments Inc.
USA
100
100
Iluka Atlantic LLC
USA
100
100
Iluka Resources (TN) LLC
USA
100
100
Iluka Resources Inc.
USA
100
100
IR RE Holdings LLC
USA
100
100
PURE Exploration (USA) LLC
(iv)
USA
100
-
(i)
Deed of cross guarantee
These companies are parties to a Deed of Cross Guarantee (the Deed) under which each company guarantees the debts
of the others. By entering into the Deed, the wholly-owned entities represent a closed group and have been relieved from
the requirements to prepare a Financial Report and Directors’ Report under ASIC Corporations (Wholly-owned
Companies) Instrument 2016/785. The closed group is also the extended closed group.
(ii)
Formerly Iluka International (Brazil) Pty Ltd
(iii) De-registered on 9 January 2024
(iv) Incorporated on 28 October 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
122 Iluka Resources Limited Annual Report 2024
22. CONTROLLED ENTITIES AND DEED OF CROSS GUARANTEE (CONTINUED)
b)
Condensed financial statements of the extended closed group
Condensed statement of profit or loss and other comprehensive income
2024
2023
$m
$m
Revenue from ordinary activities
1,170.3
1,238.3
Other income
33.5
22.7
Expenses from ordinary activities
(814.6)
(789.8)
Finance costs
(40.2)
(36.6)
Equity accounted share of profit - Deterra
21.9
27.3
Income tax expense
(95.8)
(128.9)
Profit for the period
275.1
333.0
Other comprehensive income
Changes in the fair value of cash flow hedges
(21.5)
(4.9)
Share of other comprehensive income - Deterra
6.4
-
Total comprehensive income for the period
260.0
328.1
Summary of movements in consolidated retained earnings
Retained earnings at the beginning of the year
1,044.5
809.4
Net profit after tax for the year
275.1
332.9
Reserves
(15.1)
-
Dividends provided for or paid
(33.6)
(97.8)
Retained earnings at the end of the year
1,270.9
1,044.5
Condensed balance sheet
Current assets
Cash and cash equivalents
88.8
286.5
Receivables
295.1
280.8
Inventories
839.4
662.7
Derivative financial instruments
-
2.6
Total current assets
1,223.3
1,232.6
Non-current assets
Property, plant and equipment
1,225.1
1,086.8
Deferred tax assets
103.6
62.2
Inventories
205.0
142.0
Other financial assets - investments in non-closed group entities
269.5
152.4
Investments accounted for using the equity method
443.6
446.3
Financial assets at fair value through profit or loss
10.5
15.0
Right-of-use assets
35.1
18.4
Total non-current assets
2,292.4
1,923.1
Total assets
3,515.7
3,155.7
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
Iluka Resources Limited Annual Report 2024 123
22. CONTROLLED ENTITIES AND DEED OF CROSS GUARANTEE (CONTINUED)
b)
Condensed financial statements of the extended closed group (continued)
2024
2023
$m
$m
Condensed balance sheet
Current liabilities
Payables
180.1
146.7
Derivative financial instruments
13.7
-
Current tax payable
43.3
39.6
Provisions
53.6
51.0
Lease liabilities
12.6
8.4
Total current liabilities
303.3
245.7
Non-current liabilities
Provisions
735.5
685.7
Lease liabilities
27.3
15.8
Derivative financial instruments - non current
14.4
-
Total non-current liabilities
777.2
701.5
Total liabilities
1,080.5
947.2
Net assets
2,435.2
2,208.5
Equity
Contributed equity
1,158.5
1,143.1
Reserves
5.8
20.9
Retained earnings
1,270.9
1,044.5
Total equity
2,435.2
2,208.5
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
124 Iluka Resources Limited Annual Report 2024
23. EQUITY ACCOUNTED ASSOCIATE – DETERRA ROYALTIES LIMITED (DETERRA)
Deterra was formed on 2 November 2020 when it was demerged from the Group. Deterra is the largest resource-focused
royalty company listed on the ASX. Since demerger, the Group has held a 20% equity ownership interest in Deterra. The
Group accounts for its investment in Deterra as an equity accounted associate.
a)
Investment carrying amount
Movements in the carrying value of the Group’s investment in Deterra are as follows:
2024
2023
$'m
$'m
Balance at the beginning of the year
446.3
449.5
Gross equity accounted profit
28.1
33.7
Depreciation
(6.4)
(6.4)
Equity accounted other comprehensive income
6.4
-
Dividends received
(30.8)
(30.5)
Balance at the end of the year
443.6
446.3
The Group recognises its share of the profits of Deterra, being 20% of its net profit after tax, as income in each reporting
period. The Group adjusts its share of the profit of Deterra by depreciating the value attributed to the Mining Area C (MAC)
Royalty right (materially all of its initial value) over a period of 50 years on a straight-line basis, which aligns with the
estimated life of mine of the mining operations in the MAC Royalty area. At the reporting date, the expected remaining life
of mine was 46 years.
The Group initially recognised its investment at its cost to the Group, which was equal to the carrying value of the net assets
of Deterra immediately prior to demerger in 2020. The retained interest was immediately remeasured to its fair value on the
demerger date. This fair value was allocated to the assets acquired on a notional basis, with the value uplift attributed to
MAC Royalty rights held by Deterra.
b)
Summarised financial information of Deterra (as at 31 December)
The following is a summary of the financial information presented in the financial statements of Deterra, amended to include
adjustments made by the Group in applying the equity method:
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
Iluka Resources Limited Annual Report 2024 125
23. EQUITY ACCOUNTED ASSOCIATE – DETERRA ROYALTIES LIMITED (DETERRA)
(CONTINUED)
b)
Summarised financial information of Deterra (continued)
2024
2023
$'m
$'m
Current assets
Cash and cash equivalents
5.5
24.9
Trade and other receivables
63.9
62.9
Income tax receivable
3.2
1.8
Prepayments
1.8
1.7
Total current assets
74.4
91.3
Non-current assets
Royalty and other intangible assets
323.8
8.1
Offtake financial assets
96.7
-
Property, plant and equipment
0.1
0.2
Prepayments
0.5
0.6
Right-of-use assets
0.4
0.5
Total non-current assets
421.5
9.4
Current liabilities
Trade and other payables
5.2
0.3
Provisions
0.2
0.2
Lease liability
0.1
0.1
Total current liabilities
5.5
0.6
Non-current liabilities
Lease liability
0.3
0.5
Borrowings
314.0
-
Contingent consideration
1.7
-
Deferred tax
72.8
17.3
Total non-current liabilities
388.8
17.8
Net assets
101.6
82.3
The Group's share of Deterra's net assets is reconciled to its carrying value as follows:
2024
2023
$'m
$'m
Opening net assets
82.3
65.9
Profit for the period
140.5
167.5
Other comprehensive income and reserve movements for the period
33.1
1.4
Dividends
(154.3)
(152.5)
Closing net assets
101.6
82.3
Group's share percentage
20%
20%
Group's share of net assets
20.3
16.5
Iluka's gain on demerger, net of accumulated depreciation
423.3
429.8
Carrying value of investment in Deterra
443.6
446.3
Deterra is a listed ASX royalty company. The market value of Iluka's interest at 31 December 2024 was $393.4 million (2023:
$557.0 million).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
126 Iluka Resources Limited Annual Report 2024
OTHER NOTES
24. CONTINGENT LIABILITIES
a)
Bank guarantees
The Group has a number of bank guarantees in favour of various government authorities and service providers to meet its
obligations under exploration and mining tenements. At 31 December 2024, the total value of performance commitments
and guarantees was $156.3 million (2023: $157.6 million).
b)
Native title
There is some risk that native title, as established by the High Court of Australia's decision in the Mabo case, exists over
some of the land over which the Group holds tenements or over land required for access purposes. It is impossible at this
stage to quantify the impact, if any, which these developments may have on the operations of the Group.
c)
Other claims
In the course of its normal business, the Group occasionally receives claims arising from its operating or historic activities.
In the opinion of the directors, all such matters are covered by insurance or, if not covered, are without merit or are of such
a kind or involve such amounts that would not have a material adverse effect on the operating results or financial position
of the Group if settled unfavourably.
25. COMMITMENTS
a)
Exploration and mining lease commitments
2024
2023
$m
$m
Commitments in relation to leases contracted for at reporting date but not
recognised as liabilities payable:
Within one year
13.5
19.9
Later than one year but not later than five years
83.2
63.8
Later than five years
70.1
40.5
166.8
124.2
These costs are discretionary. If the expenditure commitments are not met then the associated exploration and mining
leases may be relinquished.
b)
Capital commitments
Capital expenditure contracted for and payable, but not recognised as liabilities is $494.6 million (2023: $247.0 million). All
of the commitments relate to the purchase of property, plant and equipment of which $416.8 million is payable within one
year and $77.8 million is payable between one to five years of the reporting date.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
Iluka Resources Limited Annual Report 2024 127
26. REMUNERATION OF AUDITORS
The Group appointed KPMG Australia (KPMG) as external auditor with effect from 1 January 2024, replacing the former
external auditor PricewaterhouseCoopers Australia (PwC).
During the current reporting period, the following fees were paid or payable for services provided by KPMG Australia Pty
Limited, as the auditor of the parent entity, Iluka Resources Limited, by KPMG’s related network firms, and by non-related
audit firms.
For the comparative period, the fees were paid or payable for services provided by PwC, the auditor in place during 2023, by
PwC’s related network firms, and by non-related audit firms.
a)
Auditors of the Group – KPMG and related network firms¹
2024
20231
$'000
$'000
Audit and review of financial reports
Group
525
680
Controlled entities
50
42
575
722
Other assurance services
Other assurance services
28
25
28
25
Other services
Tax compliance and advisory services
23
47
Other advisory services
77
167
100
214
Total services provided by the external auditor of the Group
703
961
b)
Other auditors and their related network firms
Audit and review of financial statements
36
318
Other compliance and advisory services
-
12
36
330
¹Amounts in the comparative column were paid or payable to the former external auditor, PwC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
128 Iluka Resources Limited Annual Report 2024
27. SHARE-BASED PAYMENTS
Share-based compensation benefits are provided to employees via the Equity Incentive Plan (specifically, the Executive
Incentive Plan, Long Term Incentive Plan and Short Term Incentive Plan).
The fair value of shares granted is determined based on market prices at grant date, taking into account the terms and
conditions upon which those shares were granted. The fair value is recognised as an expense through profit or loss on a
straight-line basis over the vesting period for each respective plan.
The fair value of share rights is determined using a Monte Carlo simulation that takes into account the exercise price, the
term of the share right, the impact of dilution, the share price at grant date and expected price volatility of the underlying
share, the expected dividend yield and the risk free interest rate of the term of the share right. The fair value of the Long
Term Incentive Plan (LTIP - TSR tranche) and Executive Incentive Plan also take into account the Company's predicted share
prices against the comparator group performance at vesting date.
A credit to the share-based payments expense arises where unvested entitlements lapse on resignation or the non-fulfilment
of the vesting conditions that do not relate to market performance. Payroll tax payable on the grant of restricted shares or
share rights is recognised as a component of the share-based payments expense when paid.
The share-based payment expense recognised in profit or loss of $15.3 million (2023: $16.8 million) results from several
schemes summarised below
Schemes
Grant date
Vesting date
Fair value
Shares /
rights at
Expense
2024
Shares /
rights at
Expense
2023
$
31 Dec 2024
$m
31 Dec 2023
$m
STIP (i)
2024
Mar-25
Mar-26/27
5.05
-
1.8
-
-
2023
Mar-24
Mar-25/26
6.6
-
1.5
-
0.4
2022
Mar-23
Mar-24/25
9.53
-
0.7
-
1.8
2021
Mar-22
Mar-23/24
10.1
-
0.1
-
0.6
EIP (ii)
Mar-20/21/22/23/24
Mar-24/25/26/27
6.62
3,079,350
5.6
1,555,528
7.0
Restricted Share Plan (iii)
5.6
7.0
15.3
16.8
(i)
Short Term Incentive Plan (STIP)
The fair value of the STIP is determined as the volume weighted average price of ordinary shares over the five trading days
following the release of the Company’s annual results.
(ii)
Executive Long Term Incentive Plan (LTIP)
Equity awarded under the Executive Incentive Plan is vested on 1 March each year. The number of restricted shares and
performance rights to be awarded is determined based on a volume weighted average market price of Iluka shares for the
five days following the release of the full year results.
The fair value at grant date for the Executive Incentive Plan (EIP) with market vesting conditions takes into account the
exercise price of $nil (2023: $nil), the share price at grant date of $7.15 for KMP other than T O’Leary and $7.99 for T O’Leary
(2023: $11.30), the expected share price volatility (based on historical volatility) of 35% (2023: 40%), the expected dividend
yield of 2.5% (2023: 0%), the risk free rate of return of 3.87% for KMP other than T O’Leary and 3.91% for T O’Leary (2023:
3.16%), and vesting dates for a period of three years commencing one year after the grant date. The fair value of the TSR
tranche also takes into account the Company’s predicted share prices against the comparator group performance at vesting
date. The fair value at grant date for the Executive Incentive Plan (EIP) with non-market vesting conditions is calculated as
volume weighted average market price of Iluka shares for the five days following the end of performance year.
(iii) Restricted share plan
No restricted shares were issued to eligible employees (2023: no restricted shares issued to eligible employees) who
participated in the plan.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
Iluka Resources Limited Annual Report 2024 129
28. POST-EMPLOYMENT BENEFIT OBLIGATIONS
a)
Superannuation plans
All employees of the United States (US) operations are entitled to benefits from the US operations' pension plans on
retirement, disability or death. The US operations have one defined benefit plan and one defined contribution plan.
The defined contribution plan receives an employee's elected contribution and an employer's match-up to a fixed
percentage. Iluka’s legal or constructive obligation is limited to these contributions.
The defined benefit plan provides a monthly benefit based on average salary and years of service. The Group is in the
process of settling the defined benefit superannuation plan. Immediately prior to settlement, Iluka will remeasure plan
assets to their fair values and plan liabilities to their updated carrying values (using applicable actuarial techniques) and any
surplus or deficit that arises will be recognised as an employee cost in profit or loss.
b)
Financial position
At the reporting date, the deficit between the fair value of plan assets and the carrying value of liabilities is $8.3 million
(2023: deficit of $7.7 million), determined with reference to information supplied from the plans' actuarial advisors, and is
included in non-current provisions in note 8.
The table below provides a summary of the net financial position at 31 December for the past five years:
2024
2023
2022
2021
2020
$m
$m
$m
$m
$m
Defined benefit plan obligation
(31.2)
(29.8)
(33.8)
(57.5)
(51.8)
Plan assets
22.9
22.1
26.2
30.9
25.0
Deficit
(8.3)
(7.7)
(7.6)
(26.6)
(26.8)
c)
Defined benefits superannuation expense
In 2024, $0.6 million (2023: $0.9 million) was recognised in expenses for the year in respect of the defined benefit plans.
Other disclosures in respect of retirement benefit obligations required by AASB 119 are not included in the financial report
as the directors do not consider them to be material to an understanding of the financial position and performance of the
Group.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
130 Iluka Resources Limited Annual Report 2024
29. RECONCILIATION OF PROFIT AFTER INCOME TAX TO NET CASH INFLOW FROM
OPERATING ACTIVITIES
Notes
2024
2023
$m
$m
Profit for the year
231.3
342.6
Depreciation and amortisation
9
185.8
161.2
Amortisation of right-of-use assets
10
6.9
6.7
Loss on disposal of property, plant and equipment
6
0.2
3.0
Gain on disposal of property, plant and equipment - US
5
-
(26.9)
Net exchange differences and other
(5.8)
(4.6)
Rehabilitation and mine closure provision discount unwind
8
32.7
31.4
Non-cash share-based payments expense
27
15.3
16.8
Equity accounted share of profit
23
(28.1)
(27.3)
Inventory NRV write-down
14
-
0.5
Changes in rehabilitation provisions for closed sites
8
(5.2)
(4.3)
Borrowing costs on leases
10
0.8
0.8
Change in operating assets and liabilities
(Increase)/decrease in receivables
(22.8)
(8.0)
(Increase) in inventories
(239.7)
(243.1)
(Decrease)/increase in net current tax liability
(20.1)
(27.1)
(Increase) in net deferred tax
(32.1)
(67.3)
Increase/(decrease) in payables
(40.4)
30.9
(Decrease) in provisions
44.5
(95.7)
Net cash inflow from operating activities
123.3
89.6
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
Iluka Resources Limited Annual Report 2024 131
30. KEY MANAGEMENT PERSONNEL
a)
Key Management Personnel
Key Management Personnel of the Group comprise directors of Iluka Resources Limited as well as other specific employees
of the Group who met the following criteria: "personnel who have authority and responsibility for planning, directing and
controlling the activities of the Group, either directly or indirectly."
(i)
Key Management Personnel compensation
The below provides a summary of the remuneration received by Key Management Personnel:
2024
2023
$000
$000
Short-term benefits
5,553
5,980
Post-employment benefits
115
105
Share-based payments
3,979
3,641
Total
9,647
9,726
b)
Transactions with Key Management Personnel
There were no transactions between the Group and Key Management Personnel that were outside of the nature described
below:
(i)
Occurrence was within a normal employee, customer or supplier relationship on terms and conditions no more
favourable than those it is reasonable to expect the Group would have adopted if dealing at arm’s length with an
unrelated individual;
(ii)
information about these transactions does not have the potential to adversely affect the decisions about the
allocation of scarce resources made by users of the financial report, or the discharge of accountability by the Key
Management Personnel; and
(iii) the transactions are trivial or domestic in nature.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
132 Iluka Resources Limited Annual Report 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
31. PARENT ENTITY FINANCIAL INFORMATION
a)
Summary financial information for Iluka Resources Limited
2024
2023
$m
$m
Balance sheet
Current assets
493.2
664.2
Non-current assets
1,910.6 1,745.2
Total assets
2,403.8 2,409.4
Current liabilities
305.6
442.5
Non-current liabilities
1,064.4
980.6
Total liabilities
1,370.0 1,423.1
Net assets
1,033.8
986.3
Shareholders' equity
Contributed equity
1,159.8 1,143.9
Other reserves
2.7
23.5
Profit reserve¹
534.7
482.3
Accumulated loss
(663.4)
(663.4)
1,033.8
986.3
Profit/(loss) for the year
86.5
149.7
Other comprehensive income
Changes in the fair value of cash flow hedges, net of tax
(21.5)
5.0
Share of profit of associate's other comprehensive income
6.4
-
Total comprehensive income
71.4
154.7
¹Profits have been appropriated to a profits reserve for future dividend payments.
b)
Contingent liabilities of the parent entity
The parent had contingent liabilities for performance commitments and guarantees of $4.4 million as at 31 December 2024
(2023: $15.6 million).
c)
Contractual commitments for the acquisition of property, plant or equipment
As at 31 December 2024, the parent entity had contractual commitments for the acquisition of property, plant or equipment
totalling $7.6 million (2023: $33.7 million).
d)
Parent entity financial information
The financial information for the parent entity has been prepared on the same basis as the consolidated financial
statements, except as set out below.
(i)
Investments in subsidiaries
Investments in subsidiaries are accounted for at cost.
(ii)
Tax consolidation legislation
Iluka Resources Limited and its wholly-owned Australian controlled entities have implemented the tax consolidation
legislation as of 1 January 2004. On adoption of the tax consolidation legislation, the entities in the tax consolidation group
entered into a tax sharing agreement which limits the joint and several liability of the wholly-owned entities in the case of a
default by the head entity, Iluka Resources Limited.
Iluka Resources Limited Annual Report 2024 133
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2024
32. RELATED PARTY TRANSACTIONS
The only related party transactions are with Key Management Personnel (refer note 30). Details of material controlled
entities are set out in note 22, and details of the Group's equity accounted associate are set out in note 23. The ultimate
Australian controlling entity and the ultimate parent entity is Iluka Resources Limited.
33. NEW AND AMENDED STANDARDS
New standards and amendments adopted
There are no new or amended accounting standards that required the Group to change its accounting policies in the current
reporting period.
Forthcoming standards and amendments not yet adopted - AASB 18 Presentation and Disclosure in Financial Statements
AASB 18 was issued in June 2024 and replaces AASB 101 Presentation of Financial Statements. The new standard
introduces new requirements for the Statement of Profit or Loss, including:
(i)
new categories for the classification of income and expenses into operating, investing and financing categories,
and
(ii)
presentation of subtotals for “operating profit” and “profit before financing and income taxes”.
Additional disclosure requirements are introduced for management-defined performance measures and new principles for
aggregation and disaggregation of information in the notes and the primary financial statements and the presentation of
interest and dividends in the statement of cash flows. The new standard is effective for annual periods beginning on or after
1 January 2027 and will first apply to the Group for the financial year ending 31 December 2027.
This new standard is not expected to have an impact on the recognition and measurement of assets, liabilities, income and
expenses, however there will likely be changes in how the Statement of Profit or Loss and Statement of Financial Position
line items are presented as well as some additional disclosures in the notes to the financial statements. The Group is in the
process of assessing the impact of the new standard.
134 Iluka Resources Limited Annual Report 2024
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
As at 31 December 2024
BASIS OF PREPARATION
The consolidated entity disclosure statement has been prepared in accordance with subsection 295(A) of the Corporations
Act 2001. The entities listed in the statement are Iluka Resources Ltd and all its controlled entities in accordance with AASB
10 Consolidated Financial Statements.
Name of entity
Type of entity
Place of
incorporation or
formation1
% of issued
capital held2
Australian
resident?3
Place of foreign
residence (if
applicable)4
Ashton Coal Interests Pty Limited
Body corporate
Australia
96%
Yes
N/A
Associated Minerals Consolidated Investments
Trust
N/A
N/A
No
USA
Associated Minerals Consolidated Ltd
Body corporate
Australia
100%
Yes
N/A
Basin Minerals Holdings Pty Ltd
Body corporate
Australia
100%
Yes
N/A
Basin Minerals Limited
Body corporate
Australia
100%
Yes
N/A
Basin Properties Pty Ltd
Body corporate
Australia
100%
Yes
N/A
Glendell Coal Ltd
Body corporate
Australia
100%
Yes
N/A
Gold Fields Asia Ltd
Body corporate
Australia
100%
Yes
N/A
Ilmenite Proprietary Limited
Body corporate
Australia
100%
Yes
N/A
Iluka (Eucla Basin) Pty Ltd
Body corporate
Australia
100%
Yes
N/A
Iluka (UK) Ltd
Body corporate
United Kingdom
100%
No
United Kingdom
Iluka (USA) Investments Inc.
Body corporate
USA
100%
No
USA
Iluka Atlantic LLC
Body corporate
USA
100%
No
USA
Iluka Consolidated Pty Limited
Body corporate
Australia
100%
Yes
N/A
Iluka Corporation Limited
Body corporate
Australia
100%
Yes
N/A
Iluka Eneabba Pty Ltd
Body corporate
Australia
100%
Yes
N/A
Iluka Exploration (Canada) Limited5
Body corporate
Canada
100%
Yes
N/A
Iluka Exploration Pty Limited
Body corporate
Australia
100%
Yes
N/A
Iluka Finance Limited
Body corporate
Australia
100%
Yes
N/A
Iluka International (China) Pty Ltd
Body corporate
Australia
100%
Yes
N/A
Iluka International (ERO) Pty Ltd
Body corporate
Australia
100%
Yes
N/A
Iluka International (Eurasia) Pte. Ltd
Body corporate
Singapore
100%
No
Singapore
Iluka International (Lanka) Pty Ltd
Body corporate
Australia
100%
Yes
N/A
Iluka International (MRO) Pty Ltd
Body corporate
Australia
100%
Yes
N/A
Iluka International (Netherlands) Pty Ltd
Body corporate
Australia
100%
Yes
N/A
Iluka International Trading Pty Ltd
Body corporate
Australia
100%
Yes
N/A
Iluka International Coöperatief U.A.
Body corporate
The Netherlands
100%
No
The Netherlands
Iluka International Limited
Body corporate
Australia
100%
Yes
N/A
Iluka Investments 1 B.V.
Body corporate
The Netherlands
100%
No
The Netherlands
Iluka Lanka P.Q. (Private) Limited
Body corporate
Sri Lanka
100%
No
Sri Lanka
Iluka Lanka Resources (Private) Limited
Body corporate
Sri Lanka
100%
No
Sri Lanka
Iluka Midwest Limited
Body corporate
Australia
100%
Yes
N/A
Iluka Rare Earths Pty Ltd
Body corporate
Australia
100%
Yes
N/A
Iluka RE Investments Pty Ltd
Body corporate
Australia
100%
Yes
N/A
Iluka Resources (TN) LLC
Body corporate
USA
100%
No
USA
Iluka Resources Inc.
Body corporate
USA
100%
No
USA
Iluka Resources Limited
Body corporate
Australia
N/A
Yes
N/A
Iluka Royalties (Australia) Pty Ltd
Body corporate
Australia
100%
Yes
N/A
Iluka Share Plan Holdings Pty Ltd6
Body corporate
Australia
100%
Yes
N/A
Iluka Technology (UK) Ltd
Body corporate
United Kingdom
100%
No
United Kingdom
Iluka Trading (Shanghai) Co., Ltd
Body corporate
China
100%
No
China
Iluka WA Investments Pty Ltd
Body corporate
Australia
100%
Yes
N/A
Iluka Resources Limited Annual Report 2024 135
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
As at 31 December 2024
Name of entity
Type of entity
Place of
incorporation or
formation1
% of issued
capital held2
Australian
resident?3
Place of foreign
residence (if
applicable)4
IR RE Holdings LLC
Body corporate
USA
100%
No
USA
Lion Properties Pty Limited
Body corporate
Australia
100%
Yes
N/A
Neurika Innovations SLU
Body corporate
Spain
100%
No
Spain
NGG Holdings Ltd
Body corporate
Australia
100%
Yes
N/A
PURE Exploration Pty Ltd
Body corporate
Australia
100%
Yes
N/A
PURE Exploration (USA) LLC
Body corporate
USA
100%
No
USA
Renison Limited
Body corporate
Australia
100%
Yes
N/A
Southwest Properties Pty Ltd
Body corporate
Australia
100%
Yes
N/A
Swansands Pty Ltd
Body corporate
Australia
100%
Yes
N/A
The Iluka Resources Limited Executive & Employee
Share Acquisition Plan
Trust
N/A
N/A
Yes
N/A
The Mount Lyell Mining and Railway Company
Limited
Body corporate
Australia
100%
Yes
N/A
The Nardell Colliery Pty Ltd
Body corporate
Australia
100%
Yes
N/A
Western Mineral Sands Proprietary Limited
Body corporate
Australia
100%
Yes
N/A
Western Titanium Limited
Body corporate
Australia
100%
Yes
N/A
Westlime (WA) Limited
Body corporate
Australia
100%
Yes
N/A
Yoganup Pty Ltd
Body corporate
Australia
100%
Yes
N/A
1 This item discloses the place at which the entity was incorporated or formed. It is only required for those entities that are body corporates,
and accordingly, no disclosures have been made for entities that are disclosed as a trust or partnership.
2 If the entity is disclosed as a body corporate, this item states the percentage of the entity’s issued share capital that was held, directly or
indirectly, by Iluka Resources Ltd as at 31 December 2024. This disclosure is not required for entities that are not body corporates.
3 For each entity, this item discloses whether an entity was an Australian resident (within the meaning of the Income Tax Assessment Act
1997) as at 31 December 2024. If an entity is disclosed as not being an Australian resident, the entity was a foreign resident (within the
meaning of the Income Tax Assessment Act 1997) as at 31 December 2024.
4 For entities that were disclosed as a foreign resident in the previous item, this item discloses the jurisdiction outside of Australia in which
the entity was a resident for the purposes of the income tax law of the relevant jurisdiction. For entities that were Australian residents
(within the meaning of the Income Tax Assessment Act 1997) that are also resident in a foreign jurisdiction (i.e. dual resident companies),
the Corporations Act 2001 does not require the disclosure of their places of foreign residence.
5 Iluka Exploration (Canada) Ltd may be considered as a tax resident of both Canada and Australia. A formal determination of tax residency
is currently being undertaken by the Group.
6 luka Share Plan Holdings Pty Ltd is the Trustee for the Iluka Resources Limited Executive and Employee Share Acquisition Plan. There
were no other entities included in the above disclosure that were a trustee of a trust, a partner in a partnership, or a participant in a joint
venture during the year ended 31 December 2024.
136 Iluka Resources Limited Annual Report 2024
DIRECTORS'
DECLARATION
In the directors' opinion:
a)
the financial records of Iluka Resources Limited (‘the company’) and the consolidated entity for the year ended 31
December 2024 have been properly maintained in accordance with the Corporations Act 2001;
b)
the consolidated entity disclosure statement set out on pages 134 to 135 of the annual report, as required by
subsection 295(3A) of the Corporations Act 2001, is true and correct;
c)
the financial statements and the notes to the financial statements of the company and the consolidated entity for
the year ended 31 December 2024:
i.
comply with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional
reporting requirements, and
ii.
give a true and fair view of the group’s financial position as at balance date and of their performance, as
represented by the results of its operations and cash flows, for the year ended on that date; and
d)
at the date of this declaration, there are reasonable grounds to believe that the members of the extended closed
group identified in note 22 will be able to meet any obligations or liabilities to which they are, or may become,
subject by virtue of the deed of cross guarantee described in that note.
Note 2 confirms that the financial statements also comply with International Financial Reporting Standards as issued by
International Accounting Standards Board.
The directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required by section
295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the directors.
Andrea Sutton
Acting Chair
T O’Leary
Managing Director
19 February 2025
Iluka Resources Limited Annual Report 2024 137
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS
For the year ended 31 December 2024
Independent Auditor’s Report
To the shareholders of Iluka Resources Limited
Report on the audit of the Financial Report
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated
with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and
logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by
a scheme approved under Professional Standards Legislation.
Opinion
We have audited the Financial Report of
Iluka Resources Limited (the Company).
In our opinion, the accompanying Financial
Report of the Company gives a true and fair
view, including of the Group’s financial position
as at 31 December 2024 and of its financial
performance for the year then ended, in
accordance with the Corporations Act 2001, in
compliance with Australian Accounting
Standards and the Corporations Regulations
2001.
The Financial Report comprises:
• Consolidated Statement of Financial Position
as at 31 December 2024;
• Consolidated Statement of Profit or Loss,
Consolidated Statement of Comprehensive
Income, Consolidated Statement of Changes
in Equity, and Consolidated Statement of Cash
Flows for the year then ended;
• Consolidated Entity Disclosure Statement and
accompanying basis of preparation as at
31 December 2024;
• Notes, including material accounting policies;
and
• Directors’ Declaration.
The Group consists of the Company and the
entities it controlled at the year-end or from time
to time during the financial year.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Our responsibilities under those standards are further described in the Auditor’s responsibilities for
the audit of the Financial Report section of our report.
We are independent of the Group in accordance with the Corporations Act 2001 and the ethical
requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics
for Professional Accountants (including Independence Standards) (the Code) that are relevant to our
audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in
accordance with these requirements.
Key Audit Matters
Key Audit Matters are those matters that, in our professional judgement, were of most significance in
our audit of the Financial Report of the current period.
This matter was addressed in the context of our audit of the Financial Report as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on this matter.
138 Iluka Resources Limited Annual Report 2024
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS
For the year ended 31 December 2024
Rehabilitation and mine closure provision ($804m)
Refer to Note 8 to the Financial Report
The key audit matter
How the matter was addressed in our audit
The Group has a significant rehabilitation
provision as a consequence of its operational
activities.
The rehabilitation provision is a key audit matter
due to the additional audit effort required by us
for the following reasons:
• The Group’s estimation of future
environmental restoration and rehabilitation
costs is inherently complex; and
• The Group applies significant judgement,
and we exert considerable effort in
gathering persuasive audit evidence on the
expected costs, especially for those costs
to be incurred several years in the future.
The Group’s estimation of the rehabilitation
provision is influenced by:
• The complexity in current environmental
and regulatory requirements, and the
impact to completeness of the
rehabilitation provision;
• The expected environmental remediation
strategy of the Group and the nature of the
costs incorporated into the rehabilitation
provision; and
• The expected timing of expenditure which
is planned to occur several years into the
future, and the associated inflation and
discounting of costs in the present value
calculation of the rehabilitation provision.
The Group uses third party and internal experts
when assessing their obligations for restoration
and rehabilitation activities and associated
estimates of future costs.
We involve our closure specialists to
supplement our senior audit team members in
assessing this key audit matter.
Our procedures included:
• Assessing the basis for recognition and
measurement of the rehabilitation provision for
consistency with environmental and regulatory
requirements and criteria in the accounting
standards;
• Evaluating the methodology applied by the
Group’s internal and third-party experts in
determining the nature and extent of
rehabilitation activities by comparison to
industry practice;
• Critically evaluating the Group’s rehabilitation
provision estimation by:
–
Involving our closure specialists, we
tested key assumptions incorporated into
the financial modelling of closure cost
activities against environmental laws and
regulations and industry guidelines;
–
Compared the planned timing of
rehabilitation activities to the Group’s
strategy and plans for commencement
and completion of rehabilitation activities;
–
Assessing the competence, scope and
objectivity of the Group’s internal and
third party experts used in the
determination of the rehabilitation
provision estimate;
–
Analysed the inflation rate and discount
rate assumptions in the Group’s
rehabilitation provision determination
against published reports for Australian
bond rates and Australian inflation targets.
• Evaluating the completeness of the
rehabilitation provision against the Group’s
analysis of where disturbance requires
rehabilitation and comparing to our
understanding of the Group’s operations;
• Assessing the disclosures in the financial
report using our understanding obtained from
our testing and against the requirements of the
accounting standards. This included evaluating
the current and non-current rehabilitation
provision disclosure for consistency to the
Group’s planned timing of the rehabilitation
expenditure.
Iluka Resources Limited Annual Report 2024 139
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS
For the year ended 31 December 2024
Other Information
Other Information is financial and non-financial information in Iluka Resources Limited’s annual report
which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are
responsible for the Other Information.
Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not
express an audit opinion or any form of assurance conclusion thereon, with the exception of the
Remuneration Report and our related assurance opinion.
In connection with our audit of the Financial Report, our responsibility is to read the Other
Information. In doing so, we consider whether the Other Information is materially inconsistent with
the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially
misstated.
We are required to report if we conclude that there is a material misstatement of this Other
Information, and based on the work we have performed on the Other Information that we obtained
prior to the date of this Auditor’s Report we have nothing to report.
Responsibilities of the Directors for the Financial Report
The Directors are responsible for:
• Preparing the Financial Report in accordance with the Corporations Act 2001, including giving a
true and fair view of the financial position and performance of the Group, and in compliance with
Australian Accounting Standards and the Corporations Regulations 2001;
• Implementing necessary internal control to enable the preparation of a Financial Report in
accordance with the Corporations Act 2001, including giving a true and fair view of the financial
position and performance of the Group, and that is free from material misstatement, whether due
to fraud or error; and
• Assessing the Group and Company’s ability to continue as a going concern and whether the use
of the going concern basis of accounting is appropriate. This includes disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless they
either intend to liquidate the Group and Company or to cease operations, or have no realistic
alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objective is:
• To obtain reasonable assurance about whether the Financial Report as a whole is free from
material misstatement, whether due to fraud or error; and
• To issue an Auditor’s Report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Australian Auditing Standards will always detect a material misstatement when it
exists.
Misstatements can arise from fraud or error. They are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of the Financial Report.
A further description of our responsibilities for the audit of the Financial Report is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/media/bwvjcgre/ar1_2024.pdf. This description forms part of our Auditor’s
Report.
140 Iluka Resources Limited Annual Report 2024
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS
For the year ended 31 December 2024
Report on the Remuneration Report
Opinion
In our opinion, the Remuneration Report of
Iluka Resources Limited for the year ended
31 December 2024, complies with Section
300A of the Corporations Act 2001.
Directors’ responsibilities
The Directors of the Company are responsible for
the preparation and presentation of the
Remuneration Report in accordance with Section
300A of the Corporations Act 2001.
Our responsibilities
We have audited the Remuneration Report
included in pages 57 to 80 of the Directors’ report
for the year ended 31 December 2024.
Our responsibility is to express an opinion as to
whether the Remuneration Report complies in all
material respects with Section 300A of the
Corporations Act 2001, based on our audit
conducted in accordance with Australian Auditing
Standards.
KPMG
Jane Bailey
Partner
Perth
19 February 2025
WORLD'S LARGEST ZIRCON MINE
The Jacinth-Ambrosia operation in South Australia is the
world's largest zircon mine; production commenced in 2009.
Products are processed at Iluka's Narngulu mineral separation
plant in Western Australia.
Iluka Resources Limited Annual Report 2024 141
142 Iluka Resources Limited Annual Report 2024
PHYSICAL,
FINANCIAL AND
CORPORATE
INFORMATION
IN THIS SECTION
Five year summary
144
Operating mines data
147
Ore reserves and mineral resources
148
Shareholder and investor information
153
Corporate information
156
Iluka Resources Limited Annual Report 2024 143
A STRATEGIC HUB
The Eneabba refinery will establish Western Australia as a strategic hub for the
downstream processing of rare earth resources. Preparation and construction
continued during 2024; commissioning is expected in 2027.
144 Iluka Resources Limited Annual Report 2024
FIVE YEAR
SUMMARY
Production volumes (kt)
2024
2023
2022
2021
2020
Production volumes (kt)
- Zircon
227.2
327.0
302.7
324.2
185.2
- Rutile
57.8
52.7
139.1
196.6
172.6
- Synthetic rutile
211.2
259.5
237.6
198.7
227.4
Total Z/R/SR
496.2
639.2
679.4
719.5
585.2
- Ilmenite
398.1
460.6
590.9
563.7
455.9
- Monazite concentrate
-
-
-
57.7
44.4
Sales volumes (kt)
- Zircon
229.9
234.7
333.6
354.7
239.6
- Rutile
45.2
48.3
140.2
207.2
162.1
- Synthetic rutile
200.1
211.0
246.1
305.9
115.8
Total Z/R/SR
475.2
494.0
719.9
867.8
517.5
- Ilmenite
121.3
148.8
218.2
189.6
256.1
- Monazite concentrate
-
-
-
62.4
44.4
Weighted average annual prices (US$/t)
- Zircon (premium and standard)
1,882.0
2,066.0
1,943.0
1,414.0
1,319.0
- Zircon (all products)
1,721.0
1,849.0
1,850.0
1,330.0
1,217.0
Rutile (excluding HYTI and TIC)
1,694.0
1,887.0
1,550.0
1,264.0
1,220.0
Synthetic rutile
1,205.0
1,258.0
Not disclosed
Not disclosed
Not disclosed
Average AUD:USD spot exchange rate (cents)
66.0
66.5
69.5
75.2
69.1
Unit revenue and cash cost ($/t)
2024
2023
2022
2021
2020
Revenue per tonne Z/R/SR sold (A$/t)
2,196
2,314
2,215
1,593
1,625
Unit cash costs of production per tonne Z/R/SR
produced excluding by-products
1,298
947
938
777
918
Unit cost of goods sold per tonne of Z/R/SR
1,190
1,040
1,031
916
1,032
Iluka Resources Limited Annual Report 2024 145
Summary financials ($m)
2024
2023
2022
2021
2020
Z/R/SR revenue
1,043.4
1,143.2
1,416.3
1,381.9
841.0
Ilmenite and other revenue
85.1
95.1
107.5
103.9
106.0
Revenue from operations
1,128.5
1,238.3
1,523.8
1,485.8
947.0
Cash costs of production
(644.0)
(605.2)
(508.3)
(579.2)
(558.7)
Inventory movement - cash costs of production
179.9
185.8
29.1
(67.0)
142.3
Restructure and idle capacity charges
(35.3)
(20.1)
(12.5)
(33.4)
(20.9)
Government royalties
(35.1)
(47.1)
(47.2)
(38.0)
(22.3)
Marketing and selling costs
(32.5)
(27.4)
(29.0)
(34.4)
(27.7)
Asset sales and other income
0.9
23.9
0.9
2.0
(1.5)
Corporate and other costs
(48.6)
(42.6)
(61.4)
(64.3)
(54.6)
Major projects, exploration and innovation
(40.0)
(52.3)
(49.1)
(45.2)
(62.3)
Mineral sands EBITDA
477.3
581.8
549.4
633.9
342.0
Mining Area C EBITDA
-
-
-
-
81.1
Underlying Group EBITDA¹
498.8
609.1
879.0
652.3
423.1
Rehabilitation and holding costs for closed sites
5.2
4.3
(11.1)
60.8
7.2
Demerger loss and transaction costs
-
-
-
-
(13.3)
Depreciation and amortisation
(192.2)
(167.8)
(144.6)
(171.2)
(184.8)
Inventory movement - non-cash production costs
48.2
51.7
9.9
(12.6)
39.9
Gain on demerger of Deterra Royalties
-
-
-
-
2,260.1
Net interest and finance charges
6.5
12.3
3.1
(5.7)
(7.1)
Income tax (expense) benefit
(94.0)
(128.9)
(212.8)
(139.1)
(95.5)
Net profit/(loss) after tax for the period (NPAT)
231.3
342.6
588.5
365.7
2,410.0
Operating cash flow
252.2
346.7
681.7
527.7
183.8
Capital expenditure (capex) - Mineral Sands
(271.8)
(160.7)
(141.8)
(53.6)
(71.2)
Free cash (outflow) inflow² ($m)
(288.1)
(159.6)
430.6
299.6
36.3
Net (debt) cash
(114.6)
225.4
488.6
294.8
50.2
Capital and Dividends
2024
2023
2022
2021
2020
Ordinary shares on issue (millions)
427.9
426.0
424.5
422.0
422.8
Dividends per share in respect of the year (cents)
4
4
20
24
2
Franking level %
100
100
100
100
100
Opening year share price ($)³
6.64
9.65
9.76
6.58
4.70
Closing year share price ($)³
5.04
6.60
9.53
9.73
6.49
146 Iluka Resources Limited Annual Report 2024
Financial ratios
2024
2023
2022
2021
2020
Underlying Group EBITDA/revenue margin %
44.2
49.2
57.4
43.9
41.2
Mineral sands EBITDA/revenue margin %
42.3
47.0
55.4
42.7
36.1
Basic earnings (loss) per share (cents)
54.1
80.5
138.6
86.7
570.4
Free cash flow per share (cents)
(67.5)
(37.5)
100.0
71.0
9.0
Return on shareholders' equity %4
10.2
17.1
32.8
25.9
283.7
Return on capital %5
21.7
41.8
88.8
69.1
311.3
Gearing (net debt/net debt + equity) %
(including non-recourse debt facility)
4.6
n/a
n/a
n/a
n/a
Financial position as at 31 December ($m)
Total assets
3.741.4
3,330.8
3,001.8
2,636.2
2,361.7
Total liabilities
(1,381.0)
(1,172.3)
(1,107.0)
(1,041.6)
(1,069.4)
Net assets
2,360.4
2,158.5
1,894.8
1,594.6
1,292.3
Shareholders' equity
2,360.4
2,158.5
1,894.8
1,594.6
1,292.3
Net tangible asset backing per share ($)
4.24
3.80
3.27
2.60
3.00
Employees (at 31 December 2024)
2024
2023
2022
2021
2020
Full-time equivalent employees
971
1035
950
3,252
3,354
Iluka Ore Reserves and Mineral Resources
2024
2023
2022
2021
2020
Mineral Resources In Situ HM million tonnes
194
171
176
185
119
Ore Reserves In Situ HM million tonnes
17.5
18.4
9.0
10.6
11.2
HM Grade (%) Ore Reserves
5.6
5.5
5.6
5.8
5.7
Assemblage (%)6
Zircon
16
17
17
17
17
Rutile
5
5
3
3
3
Ilmenite
40
41
53
55
55
Monazite + xenotime
2.7
2.6
2
2
-
Notes:
(1) Underlying Group EBITDA excludes non-recurring adjustments including write-downs, Sierra Rutile Limited transaction costs, the gain on the demerger of Deterra Royalties, and changes to
rehabilitation provisions for closed sites.
(2) Free cash flow is determined as cash flow before any debt refinance costs, proceeds/repayment of borrowings and dividends paid in the year.
(3) Share prices prior to November 2020 have been adjusted by a factor of 0.51 for the capital reduction from the Deterra Royalties demerger.
(4) Calculated as NPAT for the year as a percentage of the average monthly shareholders’ equity over the year.
(5) Calculated as EBIT for the year as a percentage of average monthly capital employed for the year.
(6) Mineral assemblage is reported as a percentage of the in situ heavy mineral content of the Ore Reserve.
Iluka Resources Limited Annual Report 2024 147
OPERATING
MINES DATA
Mineral Sands
Summary financials ($m)
2024
2023
Zircon
Overburden moved kbcm
17,495
19,777
Ore mined kt
19,128
22,221
Ore fed/treated kt
19,004
19,832
Ore treated grade HM %
5.1%
4.5%
VHM treated grade %
4.4%
4.1%
Finished product1 kt
Zircon
227.2
326.9
Rutile
57.8
52.7
Ilmenite (saleable/upgradeable)
398.1
460.6
Synthetic rutile produced
211.2
259.5
Notes:
(1) Finished product includes material from heavy mineral concentrate (HMC) initially processed in prior period
EXPLANATORY COMMENTS ON TERMINOLOGY
Overburden moved (bank cubic metres) refers to material moved to enable mining of an ore body.
Ore mined (thousands of tonnes) refers to material moved containing heavy mineral ore.
Ore treated grade HM % refers to percentage of heavy mineral (HM) in the ore processed through the mining unit.
VHM treated grade % refers to percentage of valuable heavy mineral (VHM) - titanium dioxide (rutile and ilmenite), and zircon in the ore processed
through the mining unit.
Finished product is provided as an indication of the finished production (zircon, rutile, ilmenite – both saleable and upgradeable) attributable to the
VHM in HMC production streams from the various mining operations. Finished product levels are subject to recovery factors which can vary. The
difference between the VHM produced and finished product reflects the recovery level by operation, as well as processing of finished material/
concentrate in inventory. Ultimate finished product production (rutile, ilmenite, and zircon) is subject to recovery loss at the processing stage – this may
be in the order of 10%.
Ilmenite is produced for sale or as a feedstock for synthetic rutile production. Typically, 1 tonne of upgradeable ilmenite will produce between 0.56 to
0.60 tonnes of synthetic rutile. Iluka also purchases external ilmenite for its synthetic rutile production process.
148 Iluka Resources Limited Annual Report 2024
ORE RESERVES AND
MINERAL RESOURCES
HM ORE RESERVES
ILUKA HM ORE RESERVE BREAKDOWN BY COUNTRY, REGION AND JORC CATEGORY
AT 31 DECEMBER 2024
Summary of Ore Reserves for Iluka(1,2,3,6)
HM Assemblage(4)
Country
Region
Ore
Reserve
Category
Ore
Tonnes
Millions
In Situ
HM
Tonnes
Millions
HM
Grade
(%)
Ilmenite
Grade
(%)
Zircon
Grade
(%)
Rutile
Grade
(%)
(M+X)(7)
Grade
(%)
Change
HM
Tonnes
Millions
Australia
Eucla Basin
Proved
33
0.8
2.5
23
50
5
0.3
Probable
0
0.0
1.4
14
59
2
1.0
Total
Eucla Basin
34
0.8
2.5
23
50
5
0.3
(0.3)
Murray Basin
Proved
-
-
-
-
-
-
-
Probable
183
9.9
5.4
29
17
6
2.6
Total
Murray Basin
183
9.9
5.4
29
17
6
2.6
-
Perth Basin
Proved
61
4.1
6.7
57
11
4
3.4
Probable
33
2.6
8.1
62
12
2
2.4
Total
Perth Basin(5)
94
6.7
7.2
59
11
3
3.0
(0.7)
Total
Proved
94
4.9
5.2
51
17
4
2.9
Total
Probable
216
12.5
5.8
36
16
5
2.6
Grand Total
311
17.4
5.6
40
16
5
2.7
(1.0)
Notes:
(1) Competent Person - Ore Reserves: A Walkenhorst (MAusIMM).
(2) Ore Reserves are a sub-set of Mineral Resources.
(3) Rounding may generate differences in last decimal place.
(4) Mineral assemblage is reported as a percentage of in situ HM content.
(5) Rutile component in Perth Basin South West operations is sold as a leucoxene product.
(6) The quoted figures are stated as at 31 December 2024 and have been depleted for all production conducted to this date.
(7) M+X comprise rare earth element bearing minerals monazite + xenotime.
Ore Reserves are estimated using all available geological and relevant drill hole and assay data, including mineralogical sampling and test work
on mineral recoveries and final product qualities. Ore Reserve estimates are determined by the consideration of all of the ‘Modifying Factors’ in
accordance with the JORC Code 2012 guidelines and, for example, may include, but are not limited to, product prices, mining costs, metallurgical
recoveries, environmental consideration, access and approvals. These factors may vary significantly between deposits.
For the year ending 2024, HM Ore Reserves decreased by 1.0Mt HM associated with mining depletion and adjustments, and are down from 18.4Mt HM
to 17.5Mt HM.
The main factors contributing to the movement in Iluka’s HM Ore Reserves during 2024 include:
• The Eucla Basin Ore Reserves decreased by 0.30Mt HM associated with mining depletion, pit optimisation and re-design at Jacinth (-0.04Mt HM)
and Ambrosia (-0.25Mt HM)
• The Perth Basin Ore Reserves decreased by 0.68Mt HM as a result of mine depletion, pit optimisation and adjustment at Cataby (-0.74Mt HM) and
Tutunup (-0.02Mt HM) and additional tailings stockpiled at the MSP By-Product Stockpile deposit (+0.07Mt HM)
Iluka Resources Limited Annual Report 2024 149
HM ORE RESERVES MINED AND ADJUSTED
ILUKA HM ORE RESERVES MINED AND ADJUSTED BY COUNTRY AND REGION
AT 31 DECEMBER 2024
Summary of Ore Reserve Depletion(1)
Country
Region
Category
In Situ
HM
Tonnes
Millions
2023
In Situ
HM
Grade
(%)
2023
In Situ
HM
Tonnes
Millions
Mined
2024
In Situ
HM
Tonnes(2)
Millions
Adjusted
2024
In Situ
HM
Tonnes
Millions
2024
In Situ
HM
Grade
(%)
2024
In Situ
HM
Tonnes(3)
Millions
Net
Change
Australia
Eucla Basin
Active Mines
1.1
2.6
(0.3)
-
0.8
2.6
(0.3)
Non-Active Sites
0.1
2.3
-
-
-
1.5
-
Total
Eucla Basin
1.2
2.6
(0.3)
-
0.8
2.5
(0.3)
Murray Basin
Active Mines
-
-
-
-
-
-
-
Non-Active Sites
9.9
5.4
-
-
9.9
5.4
-
Total
Murray Basin
9.9
5.4
-
-
9.9
5.4
-
Perth Basin
Active Mines
5.1
5.6
(0.6)
(0.1)
4.4
5.6
(0.7)
Non-Active Sites
2.3
15.0
-
0.1
2.3
15.3
0.1
Total
Perth Basin
7.4
7.0
(0.6)
-
6.7
7.2
(0.6)
Total
Active Mines
6.2
4.7
(0.9)
(0.1)
5.2
4.7
(1.0)
Total
Non-Active Sites
12.3
6.1
-
-
12.2
6.1
0.1
Total
Ore Reserves
18.5
5.5
(0.9)
(0.1)
17.4
5.6
(0.9)
Notes:
(1) Rounding may generate differences in last decimal place.
(2) Adjusted figure includes write-downs and modifications in mine design.
(3) Net change includes depletion by mining and adjustments.
150 Iluka Resources Limited Annual Report 2024
HM MINERAL RESOURCES
ILUKA MINERAL RESOURCE BREAKDOWN BY COUNTRY, REGION AND JORC CATEGORY
AT 31 DECEMBER 2024
Summary of Mineral Resources for Iluka(1,2,3)
HM Assemblage(4)
Country Region
Mineral
Resource
Category
Material
Tonnes
Millions
In Situ
HM
Tonne
Millions
In Situ HM
Grade
(%)
Ilmenite
Grade
(%)
Zircon
Grade
(%)
Rutile
Grade
(%)
(M+X)(6)
Grade
(%)
Change
HM
Tonnes
Millions
Australia
Eucla Basin
Measured
167
4
2.5
35
39
3
0.2
Indicated
90
9
9.7
69
17
2
0.4
Inferred
44
2
5.4
62
18
2
0.3
Total
Eucla Basin
301
15
5.1
58
23
2
0.3
(0.4)
Murray Basin
Measured
234
15
6.4
40
16
7
2.3
Indicated
558
40
7.1
46
15
10
2.1
Inferred
1,412
72
5.1
34
14
6
2.2
Total
Murray Basin
2,204
127
5.7
38
15
8
2.2
24.1
Perth Basin
Measured
462
27
5.9
58
10
5
1.1
Indicated
283
15
5.4
53
10
5
1.0
Inferred
192
9
4.9
55
9
5
0.7
Total
Perth Basin(5)
937
51
5.5
56
10
5
1.0
(0.8)
Total
Measured
863
46
5.4
50
15
5
1.4
Total
Indicated
931
64
6.8
50
14
8
1.6
Total
Inferred
1,648
83
5.1
37
14
6
1.9
Grand Total
3,443
193
5.6
45
14
6
1.7
22.9
Notes:
(1) Competent Person - Mineral Resources: B Gibson (MAIG).
(2) Mineral Resources are inclusive of Ore Reserves.
(3) Rounding may generate differences in last decimal place.
(4) Mineral assemblage is reported as a percentage of the in situ HM component.
(5) Rutile component in Perth Basin South West operations is sold as a leucoxene product.
(6) M+X comprise the rare earth element bearing minerals monazite + xenotime.
Mineral Resources are estimated using all available and relevant geological, drill hole and assay data, including mineralogical sampling and test work
on mineral and final product qualities. Mineral Resource estimates are determined by consideration of geology, HM cut-off grades, mineralisation
thickness versus overburden ratios and consideration of the potential mining and extraction methodology, and are prepared in accordance with the
guidelines of the 2012 JORC Code. These factors may vary significantly between deposits.
For the year ending 31 December 2024, Mineral Resources increased by 22.9Mt HM net of mining depletion and adjustments (exploration discovery,
development and write-down), up from 171Mt HM to 194Mt HM. The change in Mineral Resources for 2024 was driven by:
• Eucla Basin Mineral Resources decreased by 0.4Mt HM as a result of mining depletion and adjustment at Ambrosia (-0.4Mt HM)
• Murray Basin Mineral Resources increased by 24.1Mt HM as a result of reporting the inaugural Mineral Resource estimate at Goschen South
(+23.6Mt HM) and as a result of re-modelling at Castaway (+0.03Mt HM), Earl (+0.07Mt HM), Kerribee (+0.05Mt HM), Koolaman (+0.13Mt HM) and
Yalong (+0.14Mt HM)
• Perth Basin Mineral Resources decreased by 0.8Mt HM as a result of re-estimation, mining depletion and write-down at Cataby and Cataby ROM
(-0.82Mt HM), additional tailings stockpiled at Eneabba (+0.07Mt HM), and write-down at Adamson (-0.05Mt HM)
Iluka Resources Limited Annual Report 2024 151
HM MINERAL RESOURCES MINED AND ADJUSTED
ILUKA MINERAL RESOURCES MINED AND ADJUSTED BY COUNTRY AND REGION
AT 31 DECEMBER 2024
Summary of Mineral Resource Depletion(1)
Country
Region
Category
In Situ
HM
Tonnes
Millions
2023
In Situ
HM
Grade
(%)
2023
In Situ
HM
Tonnes
Millions
Mined
2024
In Situ
HM
Tonnes(2)
Millions
Adjusted
2024
In Situ
HM
Tonnes
Millions
2024
In Situ
HM
Grade
(%)
2024
In Situ
HM
Tonnes(3)
Millions
Net
Change
Australia
Eucla Basin
Active Mines
2
1.8
(0.3)
(0.1)
2
1.8
(0.4)
Non-Active Sites
13
7.2
-
-
13
7.2
-
Total
Eucla Basin
15
4.9
(0.3)
(0.1)
15
5.1
(0.4)
Murray Basin
Active Mines
-
-
-
-
-
-
-
Non-Active Sites
102
6.5
-
24.1
126
5.7
24.1
Total
Murray Basin
102
6.5
-
24.1
126
5.7
24.1
Perth Basin
Active Mines
12
4.2
(0.6)
(0.2)
11
4.1
(0.8)
Non-Active Sites
41
6.1
-
0.0
41
6.1
0.0
Total
Perth Basin
53
5.5
(0.6)
(0.2)
52
5.5
(0.8)
Total
Active Mines
14
3.4
(0.9)
(0.3)
13
3.4
(1.2)
Total
Non-Active Sites
156
6.4
-
24.1
180
5.9
24.1
Total
Mineral Resources
171
6.0
(0.9)
23.8
194
5.6
22.9
Notes:
(1) Rounding may generate differences in last decimal place.
(2) Adjusted figure includes write-downs and updates to the Mineral Resource estimates.
(3) Net difference includes depletion by mining and adjustments.
152 Iluka Resources Limited Annual Report 2024
ANNUAL STATEMENT OF MINERAL RESOURCES AND ORE RESERVES
The Annual Statement of Mineral Resources and Ore Reserves as at 31 December 2024 and presented in this report has been prepared in accordance
with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2012 Edition (the JORC Code 2012) and ASX
listing Rules and as disclosed in various public announcements released through the ASX.
COMPETENT PERSONS
STATEMENT
The information in this report that relates to
Mineral Resources is based on information
compiled by Mr Brett Gibson, who is
a Member of the Australian Institute of
Geoscientists (MAIG). The information in
this report that relates to Ore Reserves
is based on information compiled by Mr
Andrew Walkenhorst, who is a Member of the
Australasian Institute of Mining and Metallurgy
(MAusIMM). Mr Gibson and Mr Walkenhorst
are full-time employees of Iluka Resources
Limited.
Mr Gibson and Mr Walkenhorst each have
sufficient experience that is relevant to the
styles of mineralisation and types of deposits
under consideration and to the activity which
is being undertaken to qualify as a Competent
Person as defined in the 2012 Edition of the
‘Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves’,
the JORC Code 2012 Edition. Mr Gibson and
Mr Walkenhorst consent to the inclusion in this
report of the matters based on this information
in the form and context in which it appears.
The information in this report that relates to
specific Mineral Resources and Ore Reserves
is based on and accurately reflects reports
compiled by Competent Persons as defined in
the JORC Code 2012 for each of the company
regional business units. Each of these persons
is a full-time employee of Iluka Resources
Limited or its relevant subsidiaries, holds
equity securities in Iluka Resources Limited,
and is entitled to participate in Iluka’s executive
equity incentive plan, details of which are
included in Iluka’s 2024 Remuneration Report.
All of the Mineral Resource and Ore Reserve
figures reported represent estimates as at
31 December 2024. All tonnes and grade
information has been rounded, hence small
differences may be present in the totals. All of
the Mineral Resource information is inclusive
of Ore Reserves (ie Mineral Resources are not
additional to Ore Reserves).
MINERAL RESOURCES AND
ORE RESERVES CORPORATE
GOVERNANCE
Iluka has an established governance process
supporting the preparation and publication of
Mineral Resources and Ore Reserves which
includes a series of structures and processes
independent of the operational reporting
through business units and product groups.
The Audit and Risk Committee has in its remit
the governance of Mineral Resources and
Ore Reserves. This includes an annual review
of Mineral Resources and Ore Reserves at
a group level, as well as review of findings
and progress from the Group Resources and
Reserves internal review program within the
regular meeting schedule.
Mineral Resources and Ore Reserves are
estimated by Iluka personnel or suitably
qualified independent personnel using
industry standard techniques and supported
by internal guidelines for the estimation and
reporting of Mineral Resources and Ore
Reserves.
All Mineral Resource and Ore Reserve
estimates and supporting documentation are
reviewed by Competent Persons employed
by Iluka. If there is a material change in the
estimate of a Mineral Resource, the Modifying
Factors for the preparation of Ore Reserves,
or reporting an inaugural Mineral Resource or
Ore Reserve and if it is considered prudent
to have an external review, then the estimate
and supporting documentation in question is
reviewed by a suitably qualified independent
Competent Person.
The Iluka Mineral Resource and Ore Reserve
position is reviewed annually by a suitably
qualified independent Competent Person prior
to publication and the governance process is
also audited by an independent body (KPMG).
Iluka has continued the development of
internal systems and controls to comply
with JORC (2012) guidelines in all external
reporting, including the preparation of all
reported data by or under the supervision
of suitably qualified Competent Persons as
members of the Australasian Institute of Mining
and Metallurgy (AusIMM), the Australian
Institute of Geoscientists (AIG) or Recognised
Overseas Professional Organisations
(ROPOs).
The governance process has been supported
by a number of process improvements and
training initiatives over recent years, including
a web-based group reporting and sign-off
database, annual internal Competent Person
reviews, and Competent Person development
and training.
Iluka Resources Limited Annual Report 2024 153
SHAREHOLDER AND
INVESTOR INFORMATION
As at 31 January 2025
AUSTRALIAN SECURITIES EXCHANGE LISTING
Iluka’s shares are listed on the Australian Securities Exchange (ASX) Limited. The company is listed as Iluka Resources Limited with an ASX code
of ILU.
SHARES ON ISSUE
The company had 428,249,335 shares on issue as at 31 January 2025. A total of 634,858 ordinary shares are restricted pursuant to the Directors,
Executives and employees share acquisition plan, equity incentive plan, and employee share plan.
SHAREHOLDINGS
There were 26,725 shareholders. Voting rights, on a show of hands, are one vote for every registered holder and on a poll are one vote for each share
held by registered holders.
DISTRIBUTION OF SHAREHOLDINGS
Range
Total holders
Units
% Units
1 - 1,000
14,952
5,706,200
1.33
1,001 - 5,000
8,806
21,292,016
4.97
5,001 - 10,000
1,698
12,495,732
2.92
10,001 - 100,000
1,199
26,535,766
6.20
100,001 - 1,000,000
54
13,769,254
3.22
1,000,001 over
16
348,450,367
81.37
Rounding
(0.01)
Total
26,725
428,249,335
100.00
UNMARKETABLE PARCELS
Minimum Parcel Size
Holders
Units
Minimum $ 500.00 parcel at $4.4200 per unit
114
3,848
231,840
154 Iluka Resources Limited Annual Report 2024
TOP 20 SHAREHOLDERS (NOMINEE COMPANY HOLDINGS)
Rank
Name
Units
% Units
1
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
154,899,002
36.17
2
CITICORP NOMINEES PTY LIMITED
77,678,451
18.14
3
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
67,649,505
15.80
4
BNP PARIBAS NOMINEES PTY LTD
9,235,375
2.16
5
BNP PARIBAS NOMS PTY LTD
7,601,596
1.78
6
UBS NOMINEES PTY LTD
7,140,345
1.67
7
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
6,160,036
1.44
8
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
4,033,531
0.94
9
NATIONAL NOMINEES LIMITED
3,810,627
0.89
10
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
2,235,297
0.52
11
BNP PARIBAS NOMINEES PTY LTD
2,142,275
0.50
12
CITICORP NOMINEES PTY LIMITED
1,340,391
0.31
13
MR THOMAS O'LEARY
1,219,369
0.28
14
R O HENDERSON (BEEHIVE) PTY LTD
1,120,000
0.26
15
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
1,103,567
0.26
16
BNP PARIBAS NOMINEES PTY LTD
1,081,000
0.25
17
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
805,967
0.19
18
SOLIUM NOMINEES (AUSTRALIA) PTY LTD
793,057
0.19
19
TOM HADLEY ENTERPRISES PTY LTD
750,000
0.18
20
NETWEALTH INVESTMENTS LIMITED
704,130
0.16
Top 20 holders of ORDINARY FULLY PAID SHARES (Total)
351,503,521
82.08
Total remaining holders balance
76,745,814
17.92
SUBSTANTIAL SHAREHOLDERS
(As provided in disclosed substantial shareholder notices to the company)
Shareholder
Shareholdings
% of
issued
capital
Cooper Investors Pty Ltd
33,274,786
7.8%
Perpetual Investment Management Limited
31,068,928
7.3%
Tyndall Asset Management
21,600,035
5.0%
CALENDAR OF EVENTS
Date
Event
19 February 2025
Announcement of Financial Results
11 March 2025
Close of Director nominations for AGM
30 April 2025 2:00pm (WST)
Close of acceptances of proxies for AGM
2 May 2025 2:00pm (WST)
Annual General Meeting
All dates are indicative and subject to change. Shareholders are advised to check with the company to confirm timings.
Iluka Resources Limited Annual Report 2024 155
KEY SHAREHOLDER INFORMATION
ILUKA WEBSITE: WWW.ILUKA.COM
To assist those considering an investment in the company, the investors and media section of the Iluka website contains key shareholder information,
which includes the calendar of events. This site contains information on Iluka’s products, marketing, operations, ASX releases, and financial and
quarterly reports. It also contains links to other sites, including the share registry.
INVESTOR RELATIONS ENQUIRIES
Investor Relations
Level 17, 240 St Georges Terrace
Perth, Western Australia, 6000
Telephone: +61 8 9360 4700
Email: investor.relations@iluka.com
DIVIDENDS
Iluka’s Board of Directors typically makes a determination on dividend payments twice each year. Iluka introduced a dividend reinvestment plan (DRP)
in 2018.
SHARE REGISTRY SERVICES
Shareholders who require information about their shareholdings, dividend payments or related administrative matters should contact the company’s
share registry:
Computershare Investor Services Pty Ltd
Level 17, 221 St Georges Terrace,
Perth, Western Australia, 6000
Telephone: 1300 733 043 (within Australia)
or +61 3 9415 4801 (outside Australia)
Facsimile: +61 3 9473 2500
Postal address:
GPO Box 2975,
Melbourne, Victoria, 3001
Website: www.investorcentre.com/au
ANNUAL REPORTS AND EMAIL NOTIFICATION OF MAJOR ACCOUNTS
Shareholders can elect to receive a printed copy of the annual report and/or receive an email notification related to major company events. Please
contact Computershare. Each enquiry should refer to the shareholder number which is shown on holding statements and dividend statements
156 Iluka Resources Limited Annual Report 2024
CORPORATE
INFORMATION
CORPORATE INFORMATION
Company Details
Iluka Resources Limited
ABN: 34 008 675 018
Company secretary
Ben Martin, Nigel Tinley
Registered office
Level 17
240 St Georges Terrace
Perth, Western Australia
6000
Postal address
GPO Box U1988
Perth, Western Australia
6845
Phone
+61 8 9360 4700
Facsimile
+61 8 9360 4777
Website
www.iluka.com
The site contains information on Iluka’s products, marketing, operations, ASX releases and financial and quarterly
reports. It also contains links to other sites, including the share registry.
NOTICE OF ANNUAL GENERAL MEETING
Iluka’s 70th Annual General Meeting of Shareholders (AGM) will be held as a physical meeting at the Theatrette, Mezzanine level, 240 St Georges
Terrace, Perth, Western Australia, on Friday 2 May 2025, commencing at 2:00pm (WST).
If it becomes necessary or appropriate to make alternative arrangements for the holding of the AGM, Iluka will ensure that Shareholders are given as
much notice as possible via the ASX platform and www.iluka.com.
Shareholders are encouraged to lodge proxy votes in advance of the meeting to ensure that their voting instructions will be received and votes cast
even if they cannot attend on the day.
CLOSE OF NOMINATIONS
All nominations for election as a director at the 70th Annual General Meeting of Shareholders must be received in writing, no later than
Tuesday 11 March 2025 in order to be valid under IIuka’s constitution.
FORWARD-LOOKING STATEMENTS
This document contains certain statements which constitute ‘forward-looking statements’.
Often, but not always, forward-looking statements can generally be identified by the use of forward-looking words such as ‘may’, ‘will’, ‘expect’, ‘plan’,
‘believe’, ‘estimate’, ‘anticipate’, ‘outlook’, ‘guidance’, ‘target’, ‘ambition’, or similar expressions, and may include, without limitation, statements regarding
the plans, strategies and objectives of management; anticipated production and production potential; estimates of future capital expenditure or
construction commencement dates; expected costs or production outputs; estimates of future product supply, demand and consumption; statements
regarding future product prices; statements regarding climate change (including those relating to future demands and uses for Iluka’s products, Iluka’s
targets and ambitions, technological developments and other external enablers, and climate, environmental and energy transition scenarios); and
statements regarding the expectation of future Mineral Resources and Ore Reserves.
These forward-looking statements reflect Iluka’s expectations at the date of this report and reflect judgements, assumptions, estimates and other
information available as at the date of this document and/ or the date of Iluka’s planning processes. They are not guarantees or predictions of future
performance or statements of fact. The information is based on Iluka’s forecasts and as such is subject to variation related to, but not restricted to,
economic, market demand/supply and competitive factors.
There are inherent limitations with scenario analysis and it is difficult to predict which, if any, of the scenarios might eventuate. Scenarios do not
constitute definitive outcomes or probabilities, and scenario analysis relies on assumptions that may or may not be, or prove to be, correct and may or
may not eventuate. Scenarios may also be impacted by additional factors to the assumptions disclosed.
Iluka Resources Limited Annual Report 2024 157
Forward-looking statements are only predictions and are subject to known and unknown risks, uncertainties, assumptions, contingencies and other
important factors, many of which are beyond Iluka’s control, that could cause the actual results, performances or achievements of Iluka to differ
materially from future results, performances or achievements expressed, projected or implied by such forward-looking statements. The information
contained in this report has not been prepared as financial or investment advice. Readers are cautioned not to place undue reliance on these forward-
looking statements, particularly in light of the time horizons which this document discusses and the inherent uncertainty in possible policy, regulatory,
market and technological developments in the future.
Except as required by applicable laws or regulations, Iluka does not undertake to publicly update or review any forward-looking statements, whether
as a result of new information or future events. Iluka cautions against reliance on any forward-looking statements or guidance, particularly in light of the
current economic climate and the significant volatility, uncertainty and disruption arising in connection with current global geopolitical tensions and the
ongoing impacts of COVID-19.
Information on likely developments in the Group’s business strategies, prospects, financial position and operations for future financial years and the
expected results that could result in unreasonable prejudice to the Group (for example, information that is commercially sensitive, confidential or could
give a third party a commercial advantage) has not been included below in this report. The categories of information omitted include forward-looking
estimates and projections prepared for internal management purposes, information regarding Iluka’s operations and projects which are developing and
susceptible to change, and information relating to commercial contracts.
NON-IFRS FINANCIAL INFORMATION
This document contains non-IFRS financial measures including cash production costs, non-production costs, mineral sands EBITDA, Underlying
Group EBITDA, EBIT, free cash flow, and net debt amongst others. Iluka management considers these to be key financial performance indicators of the
business and they are defined and/or reconciled in Iluka’s annual results materials and/or annual report. Non-IFRS measures have not been subject to
audit or review. All figures are expressed in Australian dollars unless stated otherwise.
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