18/04/2024 09:07

Iluka Resources Ltd (ILU) $7.24

ILU has been in the mineral sands business for many years, but now it has added a major rare earth string to its bow via its Eneabba rare earth refinery project. After a challenging 2023, the mineral sands industry appears to have stabilised, with sentiment improving in most areas. We believe downgrades have gone too far, which could see the stock rapidly “pop” ~10%.

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12/04/2024 09:04

Iluka Resources Ltd (ILU) $7.44

ILU is one of a few “quasi-plays” on the Chinese economy, which has slowly started to show signs of stabilisation after a very tough few years. We believe its $6-8 trading range is likely to prevail for most of 2024; hence, we may tweak our position accordingly.

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19/03/2024 09:05

Iluka Resources (ILU) $7.12

ILU has almost halved from its mid-2023 high, illustrating the cyclical nature of the Materials Sector, but yesterday, it regained some of its mojo after the Chinese data releases.

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12/03/2024 09:03

Iluka Resources (ILU) $6.71

ILU fell another -3.7% on Monday as it continues to struggle after the initial buying following its FY24 result. This was tempered by Macquarie, which downgraded ILU on valuation grounds following its February release. This stock is highly correlated with China's economic turnaround, which has proven anaemic at best, and in a similar fashion to WDS, we can see it getting a little worse in the short term.

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28/02/2024 09:40

Iluka Resources Ltd (ILU) $6.64

Mineral sands operator ILU, on the surface, delivered a solid FY24 result considering the tough backdrop facing the company, which the market initially embraced, sending the stock to fresh 5-month highs before surrendering all of the gains plus a few per cent more. ILU reported group earnings 7% higher than market consensus, which translated to stronger group profit, around 20% above market expectations.

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21/02/2024 17:21

Iluka Resources (ILU) $7.63

ILU +5.63%: A good FY24 result from ILU given the very challenging backdrop they’re navigating, pretty much on all fronts. FY net profit after tax (NPAT) of $343m was a big ~20% beat to expectations while they also narrowed capex guidance for their rare earths refinery, albeit at the top of their guided range.

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08/02/2024 08:58

Iluka Resources Ltd (ILU) $7.23

We bought ILU for our Active Growth Portfolio on Wednesday, believing the mineral sands and future rare earth provider is a low-risk play on an improving Chinese economy having almost halved in less than 12-months – note, we only allocated 4%, allowing room to tweak higher if we witness another dip down towards the $6 area, assuming, of course, our outlook remains constructive.

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07/02/2024 09:43

Active Growth Portfolio – Amendment

We are buying a resource stock in the Active Growth Portfolio

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30/01/2024 09:19

Iluka Resources Ltd (ILU) $7.27

ILU has enjoyed a strong few weeks, and after almost halving from its 2023, we like the risk/reward towards the stock while also believing it has less downside than many in the sector who have run hard, i.e. it’s a relatively defensive play in the Resources Sector. We believe ILU has found a low; it’s a great proxy to play an improvement in the Chinese economy.

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25/01/2024 09:23

Iluka Resources Ltd (ILU) $7.19

Mineral sands and future rare earth operator ILU rallied +8.5% yesterday, and it's likely to take some solace from the surprise stimulus out of Beijing. Last month, ILU announced a material uplift in capex costs for their refinery of rare earths, plus the start of production was pushed from CY25 to CY26, but the stock has rallied through the bad news and is up +8.9% year-to-date. As we said recently, we believe there is a lot of bad news now built into the ILU share price, and a sharp bounce back above $8 wouldn’t surprise us; this might not have been bullish enough!

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