Seriously considering getting in at current SP......according to Morningstar:
We maintain our AUD 12 per share fair value estimate. Iluka is undervalued, with demand near cycle lows. Approximately AUD 3 per share of value is underpinned by excess inventories and royalties from BHP’s Mining Area C. Zircon should benefit from new applications, such as printed tiles, while titanium dioxide feedstocks should improve with the ongoing industrial recovery in the United States and Europe. Demand for paint should grow with US activity and is an important titanium dioxide end market. The narrow moat is underpinned by low-cost, high-grade mines and the Mining Area C iron ore royalty, which provides high returns, but mine life is insufficient for a wide economic moat. High fair value uncertainty reflects cyclical prices and the importance of future development projects to the fair value.
ILU Price at posting:
$5.23 Sentiment: Buy Disclosure: Not Held
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