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ILU, ILUKA RESOURCES LIMITED
mullokintyre
post Posted: Jan 14 2021, 11:02 AM
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In Reply To: nipper's post @ Jan 14 2021, 11:00 AM

Yeah, probably too late for the rest of us.
PE of 46 says most of the gains have already been priced in.
I presume the construction of a REE plant will require a cap raising of some sort.
perhaps I will look at it again then.
Mick



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nipper
post Posted: Jan 14 2021, 11:00 AM
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A rally in the ILU share price coincided with a note by Goldman Sachs, which quantified the possible upside if Iluka moved ahead to build a processing plant.

The miner recently confirmed that it was looking at constructing a rare earth refinery at Eneabba in Western Australia. The move downstream will allow Iluka to capture more of the value chain, which should give a boost to its revenue and profit margins.

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Notwithstanding the permitting and technical challenges, our analysis shows that if ILU were to expand into downstream refining of monazite into a rare earth oxides, this could increase the value of the Eneabba & Wimmera projects to c. A$1.2bn, said Goldman Sachs.

That equates to a $2.70 a share uplift to the Iluka share price and the broker has upgraded its 2025 earnings per share (EPS) forecast on the stock by 45%. This in turn prompted Goldman to up its price target on the Iluka share price by 22% to $7.20 a share.

Iluka is the worlds largest producer of zircon with a around a 30% share of the market. Its also a significant producer of high-grade titanium dioxide (TiO2) feedstock.

The miner now has the potential to be a significant producer of rare earths as it plans to increase sales of rare earths to 9,000 tonnes a year from the second half of 2021. This will be done via the ramp-up of the Eneabba Phase 2 project,

The development of the Wimmera project could then take Iluka to 15,000 tonnes a year, or around 10% of the global market share, by 2025 or 2026.

This isnt the only reason why Goldman is urging investors to buy the ASX stock today. It believes Ilukas zircon and TiO2 sales will bounce by 20% this year with improving global demand for ceramics and pigment, with a belief that there will be a supply deficit of zircon this year due to falling global supply.

Motley Fool



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
blacksheep
post Posted: Nov 1 2019, 11:18 AM
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In Reply To: blacksheep's post @ Oct 31 2019, 01:25 PM

FWIW - SP however down 5.21% currently at $8.91/share - days range $8.79 - $9.16,
Macquarie increases price target on MAC demerger
William McInnes

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Macquarie has lifted its price target on Iluka Resources, saying the potential for the demerger of its MAC royalty business overshadowed a mixed third quarter result.

The broker retained its 'outperfom' recommendation on the stock but increased its price target from $9.50 to $10.00.

"Revenue for the quarter of $253 million was 22 per cent lower than we had expected," Macquarie analysts said.

"The weaker revenue result was largely attributable to the sales mix and volumes, with 3QCY19 prices for rutile of $US1,152 a tonne and zircon of $US1,364 a tonne within 2 per cent of our forecasts."

The broker did note the potential of the MAC royalty demerger, with a review underway to assess to the possibility.

Macquarie said based on the lower net debt and rolling forward its valuation had driven a 5 per cent increase in its price target.

https://www.shortman.com.au/stock?q=ilu
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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Oct 31 2019, 01:25 PM
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In Reply To: nipper's post @ Oct 21 2019, 06:59 AM

Iluka ponders MAC demerger
William McInnes
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Iluka Resources has commences a formal review into the corporate and capital structure of Iluka’s two principal businesses – mineral sands operations and the Mining Area C royalty (MAC).

The decision comes following a significant increase in the current and future materiality of MAC's contribution to Iluka's overall valuation.

MAC, which is operated by BHP Billiton on a revenue based royalty, is expected to deliver 135 million wet metric tonnes of iron ore per annum when it reaches full capacity in 2023.

The review will investigate a range of options for Iluka, including a review of its corporate and capital structure, dividend policies and a structural separation of MAC by way of demerger. Capital requirements, business plans, management structures, and cost and tax implications will also be examined as part of the review.

"The MAC area is a high grade, low cost iron ore asset with a tier one operator in BHP," said Iluka managing director Tom O'Leary.

"Thanks to the South Flank development, it has significant growth in expected cash flows. In addition, further growth in the value of MAC is possible given the potential for the development by BHP of deposits within the area covered by the royalty agreement.”

The company also reported its quarterly results, which showed increased rutile and zircon production and rising revenue.

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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington

Said 'Thanks' for this post: early birds  
 
nipper
post Posted: Oct 21 2019, 06:59 AM
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With ILU bouncing along the bottom, bigger players look to be getting twitchy.(nothing like a Corporate Action for an artificial lift ..... and then they can move onto something else )
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Mineral sands miner Iluka Resources is under pressure to spin off a valuable iron ore royalty in a move that could unlock about $2 billion for shareholders.

Street Talk understands a number of high-profile fund managers including L1 Capital, Tribeca Investment Partners and Perpetual Investments believe the evergreen royalty tied to iron ore production at BHP Billiton's Mining Area C (MAC) in Western Australia is materially undervalued in the wider Iluka corporate structure.

The shareholders are expected to ramp up pressure on Iluka to consider a demerger, which would separate the iron ore royalty from its wider mineral sands operations.

Sell-side analysts value the royalty at as much as $2 billion – and the shareholders think it could be worth even more given the quality of the counterparty (BHP) and movements in bond yields. The royalty ensures Iluka 1.232 per cent of Australian denominated revenue from MAC and a one-off payment of $1 million per million tonne increase in annual capacity....

https://www.afr.com/street-talk/l1-capital-...20191020-p532ee




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: early birds  
 
blacksheep
post Posted: Oct 5 2019, 03:40 PM
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TiO2 WORLD SUMMIT: Iluka eyes rare earth diversification
By WILLIAM CLARKE
Published: Friday, 04 October 2019

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Iluka Resources, the world's top zircon producer, believes there are opportunities to explore in the rare-earth refining sector, a senior executive told Fastmarkets at the TiO2 World Summit in Berlin on Tuesday September 2.

The company will focus on, "new products," Robert Gibney, general manager of titanium dioxide sales at Iluka Resources, said at the summit, as part of the company's investments in rare earth capacity.

Iluka’s development of rare-earth refining capacity is the next step in its diversification away from titanium dioxide (TiO2)..

https://www.indmin.com/Article/3897553/TiO2...sification.html
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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 


nipper
post Posted: Sep 20 2019, 03:42 PM
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In Reply To: blacksheep's post @ Jul 2 2019, 03:41 PM

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Mineral Sands

To ascertain broader market trends in the pigment industry Morgan Stanley reviews the Chinese mineral sands industry. The rutile exposure of Iluka Resources (ILU) is concentrated in western markets yet the broker’s channel checks suggest its sales into China are receiving a premium relative to the second half reference price and could rise by around US$100/t over the next three months.

The company’s first-half high-grade rutile reference price was US$1107/t and its commentary indicated a 6-8% rise in the rutile and synthetic rutile prices is expected in the second half. Meanwhile, China’s ilmenite is sufficient to supply its market and there is almost no imported high-quality ilmenite stocks.

China’s domestic market continues to be affected by fluctuations in the currency, impacting the import price of titanium ore and export price of titanium dioxide. Globally, Morgan Stanley observes demand for titanium dioxide declined slightly in the second quarter of 2019 as China’s exports to the US fell, offset by an increase in exports to other markets.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: early birds  
 
blacksheep
post Posted: Jul 2 2019, 03:41 PM
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Iluka waste pit yields rare earths - The Australian
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Mineral sands giant Iluka Resources is quietly plotting a low-key entry into the rare earths market after winning permission from the West Australian government to export a concentrate carrying rare earth ore from its mothballed Eneabba mine

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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Oct 23 2018, 11:12 AM
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QUOTE
Iluka Resources Limited (Iluka) advises that its Sierra Leone subsidiary, Sierra Rutile Limited (SRL), has
temporarily halted mining operations as a result of unlawful strike action taken by a contingent of its
operational workforce. The strike action has been peaceful. Mining was halted to ensure the continued
safety of SRL employees and the integrity of its assets.

Management has engaged with employees and union officials to understand the rationale for the strike
action, as well as with ministers and senior officials of the Government of Sierra Leone to seek assistance
in resolving the dispute.

The strike action is not in accordance with Sierra Leonean law. SRL has a clear grievance process in
place and this has not been utilised prior to strike action being taken.

At SRL’s request, the Minister for Labour has travelled to site and met with employees on 22 October in
order to progress a return to work.

The strike action will impact full year rutile production for 2018. SRL’s rutile production to 30 September
2018 was 93.4 thousand tonnes; and SRL could achieve a maximum of ~135 thousand tonnes of rutile
production for 2018, dependent on when the strike action is resolved. A broader production update will be
provided in Iluka’s Quarterly Review, which is scheduled for release to the market on Wednesday
24 October, after which an investor call has been scheduled.

Iluka is focused on achieving an appropriate resolution to the strike action and will keep the market
informed of progress toward that resolution.

https://www.shortman.com.au/stock?q=ilu
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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Aug 20 2018, 09:51 PM
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In Reply To: blacksheep's post @ Aug 20 2018, 03:48 PM

Looks like Paradice Investment Management were buyers on the way down last week - bought 944,755 shares on the 16th

https://www.asx.com.au/asxpdf/20180820/pdf/...h7y466g58f0.pdf



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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
 


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