Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hi MM, One more question. You seem to be quite positive on ILU's prospects/potential, while also mentioning a few times that you expect it to trade between $6 and $8 in 2024. What are your concerns and bear thesis, so to speak, that would potentially lead the share price to regress to around $6 over the next half year or so? Thanks Darren
Hi Darren,
We are long ILU in our Active Growth Portfolio hence our preferred scenario is not ILU retraces towards $6 but after falling almost 50% from its 2023 high we must be conscious that the market is going to need some solid news to regain investors full confidence.
Last week ILU delivered an average result from a production point of view, the mineral sands company delivering revenue of $268m which was well short of expectations. Encouragingly the stock has taken the news reasonably well, “not falling on the small miss”, a big improvement on its price action in the second half of 2023. Also, there were some positive signs in the commentary, particularly out of Europe, we are looking for ILU to improve through 2024 as optimism about the Chinese economy gathers momentum.
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