I have just finished reading the prospectus that can be found at the Iluka Website......dated 19/3/08. It's pages 108 to 122 that interest us....."Mineral Sands Overview"
Salient points:-
Iluka...produces synthetic TiO2 feedstock between 88 % and 95 % grade....527 K/t which is 66% of world output.They also produce Rutile,Chloride & Sulphate Ilmenite which are part of the same market.
Their standard pricing grade is 92.5 % for which they have pricing power and able to lift prices > 2.5 % yearly.
The market is considered to be expanding slightly greater than the 3.5 % long term average.
Amazingly the prospectus does not consider APG exists and therefore not a competitive threat.
BUT the BEST news concerns zircon.
Strong growth @ 4.5 % (2 X normal) predicted right through to 2015. While zircon prices have surged recently......Iluka expects the recent long term average (4.5 %) to hold as a minimum.
In my humble opinion we will therefore see a positive Australian Zircon feasibility study and APG will process the ilmenite from the WIM 150. They supply into China and that section of the market demand is up 15 %
Forget the food....make space for some Matuse Sparkling Rose
Think I'm showing my age with that one.
APG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
