ILU - Iluka Resources

[finicky]

ILU worst ASX 200 performer today - via Market Matters

 

[qldfrog]

ILU worst ASX 200 performer today - via Market Matters

View attachment 191843

A dog is a dog..
Owned via dogs of the asx...

 

[divs4ever]

A dog is a dog..
Owned via dogs of the asx...

yes the venture into REE is taking it's toll ,

and other economic factors aren't helping either

sub $4 in the near term , perhaps

( i hold )

but starting to get very cautious averaging down on it

this is starting to feel like OZ minerals where i was DEEP under-water before finally getting a good average before the turn-around

a BIG danger is investors forcing management changes

 

[finicky]

Market Matters afternoon report:
... there was a big turnaround in Iluka (ILU) +3.95% from early weakness

Agree (I've rung them), and that's a bullish engulfing candle on heightened daily volume. This follows a daily bullish hammer candle marking the prior swing low. Maybe the LOW is in? Has something been happening with Zircon prices? My IMA stock - in the same field - is up a lttle today too.

ILU Not Held

DAILY

 

[finicky]

Iluka has almost sunk to my long speculated worst case target- viz $4
Yet the weekly chart is not showing any obvious reversal signs?

Not Held

WEEKLY

 

[finicky]

Dear Diary - Bought 1,000 ILU @ 3.42

Long range buy as I think there's something in the narrative that Western rare earth projects will benefit from China's weaponization of their monopoly over supply. Also Iluka's resource holds a little of the most under supplied rare earths - the heavy Terbium and Dysprosium earths.
The federal government is supporting the project.
Meanwhile should continue to be profitable with the Zircon and Rutile?
Iluka has been a good manager and I don't forget the beneficial spin-off of Deterra.

Chart-wise it has now exceeded my worst long term downside target but positive signs are faint.

Held
Possible add
Not a recommendation

DAILY

 

[finicky]

Iluka was the biggest mover on tge ASX 200 yesterday.
From Iluka's (ILU) Qtrly update today:

 

[rcw1]

Iluka was the biggest mover on tge ASX 200 yesterday.
From Iluka's (ILU) Qtrly update today:

View attachment 197619

Great news that @finicky.
Is their funds available to pay for the refinery?

Kind regards
rcw1

 

[finicky]

Apparently @rcw1 (sorry to be vague but I haven't closely considered it) - I do know that the federal government is heavily backing it with a massive loan which I think is non recourse and likely doesn't have strict covenants. More than one 3rd party entity would be wanting this to succeed, I think of the U.S government as one possibility in my fevered imaginings. But no doubt there are corporations who desperately need a supply ex China. But don't quote me as I made half of it up ex tempore*
*extempore:
extempore
/ɪkˈstɛmp(ə)ri,ɛkˈstɛmp(ə)ri/
adjective
spoken or done without preparation.
"an extempore speech"

 

[finicky]

@rcw1 They do already operate with a lot of debt. According to CommSec synopsis this was the situation at end Dec 2024.
Don't know if this already includes debt for works at Eneabba.
It's high risk, as let's face it, these things usually go over budget and processing rare earths seems way more complicated and expensive than most minerals and we don't have Chinese expertise. But on the other side of the ledger the share price has recently plumbed a 5 year low.

They do have strong cash reserves and inventory (CommSec slide)

Balance Sheet:
Total Debt (m) Long Term Debt (m) Shareholders Equity (m)
$1,381.00 ($9.50 Interest) $278.70 (11% of capital) $2,360.00 (89% of capital)

 

[finicky]

AI Overview

The Iluka Eneabba rare earths refinery project has secured $1.65 billion in funding, primarily from the Australian government, with Iluka Resources contributing $414 million in cash equity. This funding covers a significant portion of the project's capital costs, which have increased to $1.7-1.8 billion. The government's contribution includes an initial $1.25 billion non-recourse loan and an additional $400 million. Iluka is also contributing an additional $214 million in cash equity on top of the original $200 million.

Breakdown of Funding:

• Australian Government:
  • Initial loan: $1.25 billion
    
    
  • Additional loan: $400 million
    
    
  • Total: $1.65 billion
    
• Iluka Resources:
  • Initial cash equity: $200 million
    
    
  • Additional cash equity: $214 million
    
    
  • Total: $414 million
    

Project Details:

• The Eneabba refinery is Australia's first fully integrated rare earths refinery.
  
  
• It will produce separated rare earth oxide products (Praseodymium, Dysprosium, Neodymium, and Terbium).
  
  
• These products are used in permanent magnets for various applications, including electric vehicles and clean energy.
  
  
• The refinery is part of Australia's Critical Minerals Strategy, aiming to build a domestic rare earth materials supply chain.

 

[divs4ever]

They do have strong cash reserves and inventory (CommSec slide)

and resource stockpiles ( some already processed , and some above ground ready to be processed in case of extraction disruptions )

now one issue they have is relatively steady sales income

 

[rcw1]

AI Overview

The Iluka Eneabba rare earths refinery project has secured $1.65 billion in funding, primarily from the Australian government, with Iluka Resources contributing $414 million in cash equity. This funding covers a significant portion of the project's capital costs, which have increased to $1.7-1.8 billion. The government's contribution includes an initial $1.25 billion non-recourse loan and an additional $400 million. Iluka is also contributing an additional $214 million in cash equity on top of the original $200 million.

Breakdown of Funding:

• Australian Government:
  • Initial loan: $1.25 billion
    
    
  • Additional loan: $400 million
    
    
  • Total: $1.65 billion
• Iluka Resources:
  • Initial cash equity: $200 million
    
    
  • Additional cash equity: $214 million
    
    
  • Total: $414 million

Project Details:

• The Eneabba refinery is Australia's first fully integrated rare earths refinery.
  
  
• It will produce separated rare earth oxide products (Praseodymium, Dysprosium, Neodymium, and Terbium).
  
  
• These products are used in permanent magnets for various applications, including electric vehicles and clean energy.
  
  
• The refinery is part of Australia's Critical Minerals Strategy, aiming to build a domestic rare earth materials supply chain.

nice, thanks for that info your the bestest @finicky . Certainly, the funding side of things looking pretty good. Overseas contracts and suitable product to refine all squared away would be challenging... Two years away, to have all the infrastructure in place will take some doing ... but hey they got the cash!!! rcw1 will watch this one closely.

Have traded, not holding.

Kind regards
rcw1

 

[divs4ever]

nice, thanks for that info your the bestest @finicky . Certainly, the funding side of things looking pretty good. Overseas contracts and suitable product to refine all squared away would be challenging... Two years away, to have all the infrastructure in place will take some doing ... but hey they got the cash!!! rcw1 will watch this one closely.

Have traded, not holding.

Kind regards
rcw1

yes the long wait has me concerned a LOT of things can happen in the next two years

this could easily become a take-over target ( cash finances and resources stock-piled ) the perfect recipe for a leveraged buy-out

i hold ILU ( just saying )

after watching the take-over of Rinker ( remember them ? ) i could see the whole thing ( effectively bought out with their own cash stockpile )

 

[rcw1]

yes the long wait has me concerned a LOT of things can happen in the next two years

this could easily become a take-over target ( cash finances and resources stock-piled ) the perfect recipe for a leveraged buy-out

i hold ILU ( just saying )

after watching the take-over of Rinker ( remember them ? ) i could see the whole thing ( effectively bought out with their own cash stockpile )

yeah lots of things could happen ... but hey that's the nature of the beast bloke ... Tom O'Leary would need to be on his game. Expect that though.

Kind regards
rcw1

 

[rcw1]

Analysts' ratings changes

Iluka (ILU) raised to overweight; price target at $4.75: JPMorgan

 

[finicky]

FWIW
Iluka Raised to Overweight at JPMorgan; PT A$4.75

Held
Got a low ball bid in

 

[finicky]

From Iluka's website:

 

[rcw1]

FWIW
Iluka Raised to Overweight at JPMorgan; PT A$4.75

Held
Got a low ball bid in

Hey there @finicky when you have a chance take a peak at the previous post
.. .

Kind regards
rcw1

 

[divs4ever]

From Iluka's website:

i bet the long-term holders of LYC and choking with laughter and frustration at this whitewash

there MIGHT have been processing in Australia if WES had taken over LYC

but here we are strangled by paperwork and red-tape again .. and 'the environment ' still reigns supreme in political thinking

( i hold ILU and WES )