Is mineral sands operator Iluka (ILU) concerning you?
Hi James and the team! I noticed you are cutting Strandline due to Mineral Sands looking a bit questionable. Does Iluka fall into that category as well? Thanks Kim
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Answer
Hi Kim,
The simple answer is yes, whenever a position moves into a loss we aren’t happy especially if we have no plans/intention to increase our exposure.
The Mineral Sands company has recovered almost 15% from the post result sell-off on concerns around global growth plus at a similar time global pigment producer Chemours provided a disappointing update downgrading full year guidance by ~6%, this does deliver a mildly concerning read through for ILU.
However for now we intend to run this position in-line with our positive outlook towards both the market and commodities in general.
