With Kumba (majority owned by Anglo) sniffing around Ticor and BHP keeping two directors on the WMR board, one of who is a mineral sands specialist, one could be thinking there is a bit of interest in the air at the moment for mineral sand take overs.
Really there are only three possible reasons for the rocketing ILU share price at the moment:
1. Speculation over recently commenced drilling program in the Eucla. (Doubt this is the case given that Iluka would have its hands full focussing on infill drilling their two finds and not going out to increase there reserves at this point)
2. With the $9bill in cash sitting in resource focussed WMR investors/ managed funds, there's been some buying in ILU.
3. One of the majors is considering ILU as a possible buy. Maybe BHP are thinking ILU's ready made customers, expertise and newly found Eucla deposits would make a nice fit with their recently accuired Corridor Sands.
My tip is on point 3 - maybe with a bit of 2 but only cause everyone buying is also thinking of 3! Will be interesting to see how this one pans out.
Summertime
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