Iluka Sets AUD 0.04 Dividend with March Payment Date

Dividend Announcement Overview

Iluka Resources Limited (ASX: ILU), a key player in the mining sector, has declared an ordinary dividend of AUD 0.04 per share, fully franked at the 30% corporate tax rate. This dividend pertains to the financial reporting period ending 31 December 2024, reflecting the company’s ongoing commitment to returning value to shareholders.

The dividend is scheduled with an ex-dividend date of 4 March 2025, a record date of 5 March 2025, and a payment date on 28 March 2025. The fully franked nature of the dividend means shareholders will receive a credit for the tax already paid by Iluka, enhancing the after-tax return on their investment.

Dividend Reinvestment Plan Details

Iluka continues to offer a Dividend Reinvestment Plan (DRP), allowing shareholders to reinvest their dividends into new shares rather than receiving cash. Notably, the DRP carries no discount on the reinvestment price, which will be calculated as the arithmetic average of the daily volume-weighted average price of Iluka shares over the 10 trading days from 10 March to 21 March 2025.

The DRP is available exclusively to Australian and New Zealand resident shareholders, with the election deadline set for 6 March 2025 at 5:00 pm. New shares issued under the DRP will rank pari passu with existing shares, ensuring equal rights and entitlements.

Implications and Market Context

This dividend announcement signals Iluka’s stable financial position and confidence in its cash flow generation amid a dynamic resources market. The fully franked dividend is a positive indicator for investors seeking income with tax efficiency, especially in a sector often subject to commodity price volatility.

While the dividend amount remains modest, it aligns with Iluka’s historical payout patterns and provides a steady income stream. The absence of any required external approvals or conditions for this dividend further underscores the company’s operational and regulatory stability.

Investors will be watching how the share price responds in the lead-up to the ex-dividend date, as well as the uptake of the DRP, which can influence capital structure and shareholder composition.