[Dow Jones] UBS says the early start of production at Iluka's...

[Dow Jones] UBS says the early start of production at Iluka's (ILU.AU) Jacinth Ambrosia operation and cheaper than expected cost of the project should be viewed positively by the market. Rates ILU a buy and says the company should have strong free cashflow as its capex moves back to sustaining levels. "We remain positive on ILU, highlighting that in 2010 the company will be a fundamentally different company with ILU's earnings to be higher margin due to (Western Australian) zircon production being replaced by (Jacinth Ambrosia) production," UBS says. Target price set at A$4.30; ILU last traded at A$3.40.(APW