Mineral sands operator ILU reported an ok result in July but in our opinion not one to justify the $10.50 price at the time, we continue to believe some risks remain with the company’s future growth projects in an environment that has seen miners struggle in terms of profitability/progress of new ventures just as ILU embarks on a large rare-earths project. We believe ILU will again offer solid risk/reward into further weakness back towards $9.
- We sold our ILU position in June above $11.60 on valuation grounds, this looks justified with the stock now -17% lower.
MM likes ILU back around $9
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