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How much higher is Iluka going to go!?I have just read their '2011 AGM Chairman and Managing Director's Addresses' which was released on 30th May. I took out all the good points and bad points and summarised them like this:Good:-Expect significantly improved financial results over 2011 and 2012, and beyond.-The company’s cash flow generation is much stronger. This has enabled debt to bereduced. Our net debt has reduced from $312 million at the 31 December 2010 to $247 million at the end of April.-Expect significantly improved financial performance from this year forward, including much stronger cash flows and, with this, the opportunity for strong returns to shareholders.-As demand has recovered, Iluka has increased zircon prices on five separate occasions from 1 April 2010. The weighted average received price over this period to the end of the June quarter of 2011 has doubled, to an average received price in this quarter of close to US$1,600/tonne.-For high grade titanium supply, the main avenue we have is the reactivation of idled synthetic rutile kilns.-Other sources of ilmenite include the Tutunup South mine in Western Australia, which isexpected to come into production next month and be a major part of the feed source forSR kiln 2, and the potential reactivation of mining at Eneabba in the Mid West to providenot only ilmenite, but zircon and rutile over a period of a few years.-We will spend more on exploration activities – particularly greenfield exploration.From a recent average of $20 million annual exploration, the expenditure planned for this year will be closer to $25 million and move towards $30 million per annum.-Another is in development of a new product, acid soluble SR, which – as distinctfrom our current synthetic rutile products which are used in the chloride pigment process – may be able to be utilised in the sulphate pigment process, which comprises some 45 per cent of the pigment market.-We have a solid in-country presence in the world’s largest zircon market – ChinaBad:-With the pricing momentum being achieved, it is probable that new raw material projects will be induced. However, as we see it, for both high grade titanium and for zircon, there is not a well defined pipeline of projects, let alone committed, funded or commenced new mines, which will materially impact supply over the medium term.Prior to 2010, Iluka seemed to be a mess, with very erratic profits and no real direction. Now, things appear to be getting much better and the directors are committed to expanding their company and profits. They have made a big turn around.I'm waiting for their 2011 annual report to come out and, if profits are still increasing and everything seems to be still on track, I will invest in them.Does anyone else think that Iluka has a bright future?Dash.
How much higher is Iluka going to go!?
I have just read their '2011 AGM Chairman and Managing Director's Addresses' which was released on 30th May. I took out all the good points and bad points and summarised them like this:
Good:
-Expect significantly improved financial results over 2011 and 2012, and beyond.
-The company’s cash flow generation is much stronger. This has enabled debt to be
reduced. Our net debt has reduced from $312 million at the 31 December 2010 to $247 million at the end of April.
-Expect significantly improved financial performance from this year forward, including much stronger cash flows and, with this, the opportunity for strong returns to shareholders.
-As demand has recovered, Iluka has increased zircon prices on five separate occasions from 1 April 2010. The weighted average received price over this period to the end of the June quarter of 2011 has doubled, to an average received price in this quarter of close to US$1,600/tonne.
-For high grade titanium supply, the main avenue we have is the reactivation of idled synthetic rutile kilns.
-Other sources of ilmenite include the Tutunup South mine in Western Australia, which is
expected to come into production next month and be a major part of the feed source for
SR kiln 2, and the potential reactivation of mining at Eneabba in the Mid West to provide
not only ilmenite, but zircon and rutile over a period of a few years.
-We will spend more on exploration activities – particularly greenfield exploration.
From a recent average of $20 million annual exploration, the expenditure planned for this year will be closer to $25 million and move towards $30 million per annum.
-Another is in development of a new product, acid soluble SR, which – as distinct
from our current synthetic rutile products which are used in the chloride pigment process – may be able to be utilised in the sulphate pigment process, which comprises some 45 per cent of the pigment market.
-We have a solid in-country presence in the world’s largest zircon market – China
Bad:
-With the pricing momentum being achieved, it is probable that new raw material projects will be induced. However, as we see it, for both high grade titanium and for zircon, there is not a well defined pipeline of projects, let alone committed, funded or commenced new mines, which will materially impact supply over the medium term.
Prior to 2010, Iluka seemed to be a mess, with very erratic profits and no real direction. Now, things appear to be getting much better and the directors are committed to expanding their company and profits. They have made a big turn around.
I'm waiting for their 2011 annual report to come out and, if profits are still increasing and everything seems to be still on track, I will invest in them.
Does anyone else think that Iluka has a bright future?
Dash.
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