Iluka Resources (ASX:ILU) shares closed 8.2% higher at A$5.69 on Wednesday 28 October 2026, among the best performers in the ASX 200, according to IBTimes. The mineral sands and rare earths producer said its Eneabba refinery in Western Australia is 65% complete and on budget.
What Iluka reported
According to Iluka’s September quarter review:
| Metric | Sep quarter 2026 | Sep quarter 2025 |
|---|---|---|
| Mineral sands revenue | A$219M | A$142M |
| Zircon, rutile and synthetic rutile sales | 115.2kt | 64.4kt |
| Zircon, rutile and synthetic rutile production | 76.1kt | 123.8kt |
| Realised zircon sand price | US$1,685/t | n/a |
Production fell, with Iluka’s synthetic rutile kilns still idle. Year-to-date mineral sands revenue is A$651 million, down 6.9% on last year.
Mineral sands net debt fell to A$249 million at 30 September, from A$273 million at 30 June. Iluka expects its zircon sand price to rise to about US$1,825 a tonne in the December quarter.
The Eneabba refinery
The refinery is the key focus for many Iluka investors. According to the review:
- Progress: 65% complete at the end of September
- Cost: A$1.24 billion spent so far, within the A$1.7 billion to A$1.8 billion estimate
- Metals: Iluka produced dysprosium and terbium metal to specification and bought equipment for 200 tonnes a year of capacity
The project is backed by a A$1.65 billion non-recourse government loan, according to Reuters via Yahoo Finance. The first A$1.25 billion tranche is expected to be fully drawn by the end of 2026.
Rare earths stocks also rallied after the federal government revamped its critical minerals policy to support local refining, according to ABC News. Arafura Rare Earths rose more than 10%.
The insider angle: the chair is back in profit
Iluka’s directors have bought shares on market, according to Market Index records:
| Director | Date | Shares | Price | Gain at A$5.69 |
|---|---|---|---|---|
| James Mactier (Chair) | 19 Feb 2026 | 50,000 | A$5.50 | +3% |
| Andrea Sutton | 7 May 2025 | 15,000 | A$4.12 | +38% |
| Peter Smith | 8 and 14 May 2025 | 12,139 | A$4.10 to A$4.14 | +38% |
Mactier spent about A$275,000 on his purchase. He also chairs Regis Resources.
Even after Wednesday’s jump, Iluka shares are down about 16% over the past year.
What Iluka investors should watch
- Eneabba progress, with first rare earths production the key milestone
- Zircon prices in the December quarter
- Director trades in Appendix 3Y notices after the rally
- Government support for rare earths refining
Bottom line
Iluka’s mineral sands business is recovering and its rare earths refinery is two-thirds built. With the chair buying this year, insiders appear confident. Rival Lynas Rare Earths shows how quickly sentiment in the sector can change.
