Interesting development. The royalty is pure economic rent and is extremely valuable. It has been a fantastic stabiliser of the volatile mineral sands business.
Nothing is forever. It makes sense to consider cashing in chips now BHP is fully committed to Area C and IO prices are high.
I earlier dismissed separation as this was presented as 'simplifying' ILU and trousering cash.
Nor does ILU need the money, with the Quarterly showing net debt at $89m, down from $142m June 30.
Perhaps ILU has its eye on a takeover of eg Base Resources to broaden and deepen its offering.. Sale of the royalty would more than fund any such initiative.
Ash
Ann: Review of Mineral Sands Operations & Mining Area C Royalty, page-2
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Last
$7.79 |
Change
-0.075(0.95%) |
Mkt cap ! $3.359B | |||
| Open | High | Low | Value | Volume |
| $7.86 | $7.89 | $7.75 | $2.557M | 326.7K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 18 | 2893 | $7.78 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $7.79 | 2654 | 18 |
View Market Depth
| Last trade - 12.44pm 21/05/2024 (20 minute delay) ? |
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Last
$7.79 |
Change
-0.075 ( 1.06 %) |
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| Open | High | Low | Volume | ||
| $7.88 | $7.89 | $7.76 | 238167 | ||
| Last updated 13.03pm 21/05/2024 ? | |||||
| ILU (ASX) Chart |