Iluka Resources (ASX:ILU) has surpassed its full-year production targets for 2025, buoyed by a powerful 25% growth in fourth-quarter output.
Total production of zircon, rutile, and synthetic rutile reached 559,000 tonnes, comfortably outstripping the company's guidance of 495,000 tonnes.
This operational win was primarily fueled by optimised processing at Eneabba, North Capel, and Narngulu, which helped drive unit cash costs down to $1,054 per tonne—well below previous forecasts.
However, the production milestone was overshadowed by the announcement of $565 million in pre-tax exceptional items.
This includes a $350 million non-cash impairment, largely tied to the suspension of the Cataby mine and synthetic rutile kiln 2 due to sluggish market demand.
Additionally, the company flagged a $215 million inventory write-down as product values dipped below their weighted average cost.
Despite these charges, Iluka's mineral sands business still generated $976 million in revenue for the year, as the company pivots its focus toward the Balranald Project and its Eneabba rare earths refinery for 2026.