Mineral sands operator ILU has traded strongly considering the sell-off in China-facing resource stocks post Beijing’s lacklustre growth targets for 2023. The stock initially dipped after last month’s earning report although we felt it reported a resilient market environment despite the broader macro outlook. The removal of China’s COVID restrictions should eventually have a positive impact on the market need for zircon plus ILU’s high-grade TiO2 feedstock is also in demand while inventories across the sector remain low
- We continue to like ILU, especially as it outperforms several other resource names in 2023.
MM remains long and bullish ILU targeting a break of $12
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