Iluka Resources Limited: Offtake inked: welcome A$1.65bn funding. No new production outlook

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Iluka Resources Limited: Offtake inked: welcome A$1.65bn funding. No new production outlook

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Iluka Resources Limited

Offtake inked: welcome A$1.65bn funding.

No new production outlook

Reiterate Rating: NEUTRAL | PO: 8.40 AUD | Price: 7.25 AUD

First offtake inked. Highlights complexity of feed sources. 23 June 2026

We view ILU’s 4yr 1.2kt REO offtake for the refinery as a de-risking event unlocking Equity

access to the full A$1.65bn non-recourse loan. We note the offtake is linked to the

Eneabba stockpile feed component only and thus do not view this as a read-through to

the refinery’s production outlook. The contracted volume represents ~10% of our FY28– Key Changes

31 production ramp from “Eneabba stockpile” which is only ~5.5% of the 5.5ktpa NdPr (A$) Previous Current

nameplate. As outlined in Feedstock deep dive (see note), Eneabba stockpile is the only 2028E EPS 0.39 0.38

“ready” and de-risked feedstock. Remaining supply from Balranald/Wimmera/3rd party 2028E EBITDA (m) 708.4 702.7

LIN is yet to be delivered and ramps progressively over time. Our base case incorporates

all feed stock (ex-NTU). ILU is targeting 50% of refinery REO with offtake contracts and Chen Jiang >>

balance index exposure. We expect further agreements with OEMs in CY27 & CY28. Research Analyst

Merrill Lynch (Australia)

11% sell off overdone: more than one feedstock +61chen_jiang@bofa.com2 9226 5771

ILU lost ~A$380m of mcap /~11% following its first offtake update, we think driven in Kate McCutcheon >>

part by: i) confusion over offtake volume from Eneabba stockpile vs. refinery production ResearchMerrill LynchAnalyst(Australia)

outlook including all “feedstock”; ii) lack of pricing transparency i.e. no disclosed price +61 2 9226 5728

kate.mccutcheon@bofa.com