Yesterday saw mineral sands operator ILU fall -4.4% in line with weakness across the resources sector although it did bounce strongly from its intra-day low, the company is specifically dealing with the news that subsidiary Sierra Rutile is planning a 6-month break due to a number of business issues specifically arising since COVID. We still like the business and the “reflation trade” but as bond yields threaten to break lower MM feels patience is required when it comes to entry levels, even with the stock already 12% below its 2021 high.
MM likes ILU around $7
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