Iluka Resources Ltd

ILU: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$6.40	Fprf	Fbmsclpvbg

Mineral Sands Demand and Prices a Tailwind for Iluka Resources, Raising Our FVE 14%

Mathew Hodge

Aug 31, 2021

No-moat rated Iluka Resources has rapidly emerged from last year’s challenges with soft product demand and sales volumes. The near- to medium-term outlook appears much stronger now than we previously thought. We had expected the overhang of inventory, built up through the period of COVID-19-induced weakness, to unwind over a couple of years, but it mostly unwound in the first half of 2021. The increase in sales volumes, along with robust prices, underpinned the 14% increase in first-half 2021 net profit after tax to AUD 129 million compared with the first half of 2020.

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