Advisory

Learn MoreFREE TRIAL

Iluka Resources earnings forecasts reduced due to the slower ramp-up profile.

First Rare Earths Offtake Agreement Secured

• Iluka announced a four-year take-or-pay offtake agreement covering approximately 1,200 tonnes of Nd, Pr, Dy and Tb from CY28 onward.
• The contract represents about 10% of planned rare earth production and validates demand for Eneabba’s future output.

Production Ramp-Up Appears Slower Than Expected

• Contracted volumes imply a more gradual production ramp-up than previously forecast.

Eneabba Refinery Funding and Construction De-Risked

• Export Finance Australia confirmed access to the full A$1.65bn non-recourse government loan.
• The refinery is over 50% complete, capital cost remains A$1.7–1.8bn, and commissioning is targeted for mid-2027.

The offtake agreement is a strategic positive that validates Eneabba’s rare earth project, but the market may need to temper expectations around the speed of production ramp-up. Macquarie remains constructive on the longer-term rare earths opportunity.