ILU +7.19%: A strong quarterly production update today from the leading mineral sands company globally with their products being used in all sorts of applications, from paints to tiles, batteries and many essential things in between. Prices remained high as supply stayed tight, a theme we expect to continue over the medium term even though Chinese property has been weak. Moreover, CY22 has seen Iluka announce and commence delivering on two major portfolio moves, the first a pivot into Rare Earths (think Lynas) and the 2nd the demerger of Sierra rutile which was acquired in 2016 but now will be jettisoned as the company focuses on its Australian mineral sand and the new rare earth business. Today’s positive commentary on the pricing environment is also good for Strandline (STA), a position we have in the Emerging Companies portfolio which is now only ~4mths away from the first production.
MM is bullish ILU
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