Iluka Resources Limited

Company Overview: Iluka Resources Limited (ASX: ILU) is an explorer, miner, and producer of the critical minerals such as zircon and high-grade titanium dioxide (TiO₂) feedstocks (rutile and synthetic rutile). It is also planning to develop a rare earths business. ILU undertakes mining operations at the Jacinth-Ambrosia project in Australia and is involved in the rehabilitation of previous operations in the US.

Iluka Resources Limited

ILU Details

Recent Developments:

Q1FY22 (Ended March 2022) Results: Total Z/R/SR production for Q1FY22 amounted to ~180.0kt versus ~125.3kt in Q1FY21.

The following table presents the Historical Trend of Key Financials:

Key Metrics: The company has been improving its level of current ratio since FY18 and exhibited increase in ROE from 10.5% in FY20 to 25.3% in FY21.

Top 10 Shareholders: The top 10 shareholders collectively form ~46.76% of the total shareholdings. Perpetual Investment Management Limited holds the maximum number of shares with ~8.58% shareholding, followed by Yarra Funds Management Limited with ~5.03%, as depicted in the chart below. 

Key Risks:

Outlook Highlights: 

Valuation Methodology: EV/Sales Multiple Based Relative Valuation (Illustrative)

Stock Recommendation:

ILU Daily Technical Chart, Data Source: REFINITIV

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decision should be made depending on the investors’ appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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