The deal with Eramet is a very smart move and makes it an...

The deal with Eramet is a very smart move and makes it an investment that pension funds can and will move into now that the company has been substantially De-risked


1) Guarantees to market that Grande Cote will come into production.


2) Locks in the sale of almost all the ilmenite (which can be difficult to sell).... so suddenly we can include the revenue from illmenite in valuations.

..... On my calcs that pays for all the development and extraction costs ..... = zircon extraction FOC


3) Unlike so many mines this is a 20 year + revenue stream doing something that is relatively low risk ..... ideal for pension funds


Where does that leave us re: sharevalue ?
On my cals if we're loooking at anything less than $10.57 it's still a buy ! .... Yes I know the book build is starting at $6.00 .... in my book that's a gift.

Of course we also have to add the risk of upstream elements at the Norwegian plant ... but we also get the additional margin to compensate.

NB: My calcs also ignore the relative re-rating of zircon in P/E terms at Iluka compared with MDL !


I'm certainly happy with Jeff Williams work here
... Thankyou Jeff