ILU - Iluka Resources

[finicky]

Iluka celebrates funding win​

"Iluka Resources is partnering with the Federal Government to deliver its Eneabba rare earths refinery in Western Australia.

The partnership aligns with the government’s ‘Future Made in Australia’ agenda, supporting the achievement of policy objectives related to supply chain resilience and facilitating an Australian rare earths industry.
Iluka concluded the refinery’s front-end engineering and design back in December 2023, announcing an increase in the capital cost to $1.7–1.8 billion.
This funding gap has been the topic of discussion between Iluka and the Federal Government throughout 2024.
Now, the Federal Government has agreed to contribute an additional $400 million, with Iluka contributing another $214 million cash equity.

The funding is conditional to securing offtake agreements the Federal Government deems satisfactory and delivering positive outcomes in line with the Future Made in Australia plan.

“We expect the Eneabba refinery to deliver substantial, sustainable value over several decades – that is why Iluka is investing significant shareholder funds in this opportunity,” Iluka managing director Tom O’Leary said.

“This is a strategic infrastructure asset that puts Iluka and Australia at the forefront of global electrification, the creation of new and resilient critical minerals supply chains, and the establishment of a rare earths industry that is genuinely independent.”

Iluka celebrates funding win

Iluka Resources is partnering with the Federal Government to deliver its Eneabba rare earths refinery in Western Australia.

www.australianmining.com.au

Not Held

 

[mullokintyre]

Iluka celebrates funding win​

"Iluka Resources is partnering with the Federal Government to deliver its Eneabba rare earths refinery in Western Australia.

The partnership aligns with the government’s ‘Future Made in Australia’ agenda, supporting the achievement of policy objectives related to supply chain resilience and facilitating an Australian rare earths industry.
Iluka concluded the refinery’s front-end engineering and design back in December 2023, announcing an increase in the capital cost to $1.7–1.8 billion.
This funding gap has been the topic of discussion between Iluka and the Federal Government throughout 2024.
Now, the Federal Government has agreed to contribute an additional $400 million, with Iluka contributing another $214 million cash equity.

The funding is conditional to securing offtake agreements the Federal Government deems satisfactory and delivering positive outcomes in line with the Future Made in Australia plan.

“We expect the Eneabba refinery to deliver substantial, sustainable value over several decades – that is why Iluka is investing significant shareholder funds in this opportunity,” Iluka managing director Tom O’Leary said.

“This is a strategic infrastructure asset that puts Iluka and Australia at the forefront of global electrification, the creation of new and resilient critical minerals supply chains, and the establishment of a rare earths industry that is genuinely independent.”

Iluka celebrates funding win

Iluka Resources is partnering with the Federal Government to deliver its Eneabba rare earths refinery in Western Australia.

www.australianmining.com.au

Not Held

And yet the SP is down 11 % on the news.
perhaps because the wording means that the government can veto any export to China which is the reason for having the plant in the first place - we have seen how China will impose tariffs and other bull**** scenarios to block beef, coal lobsters, wine etc.
I have taken a small piece of the action to keep in the bottom drawer.
Mick

 

[finicky]

Still have my doubts about the chart, almost posted on it yesterday. My subjective targets are lower.
Eneabba strikes me as a very high risk undertaking, even with govt support, and is for patient investors anyway.
Would be happy as a shareholder - which I'm not yet - to have no reliance on CCP China in any way whatsoever as they're FOS.

Not Held

 

[divs4ever]

And yet the SP is down 11 % on the news.
perhaps because the wording means that the government can veto any export to China which is the reason for having the plant in the first place - we have seen how China will impose tariffs and other bull**** scenarios to block beef, coal lobsters, wine etc.
I have taken a small piece of the action to keep in the bottom drawer.
Mick

damned laptop locked up while trying to lower my buy order , so it got filled @$4.68

damn clown designer has a sealed battery in a laptop making a HARD shut down very difficult ( without using a hammer )

anyway i guess the top up order @ $4.68 wasn't so bad

am still restoring the locked up laptop , thank goodness for paranoia , i had a backup lappie right at my elbow ( but too late to change the order )

BTW a ban might not be so bad , WES is a little interested in processing REE minerals in Australia

( i hold WES and ILU)

 

[finicky]

Market Matters afternoon report:

• Iluka (ILU) -6.9% hit after reporting a weaker than hoped December quarter, though volumes are improving.

Not Held

 

[qldfrog]

Market Matters afternoon report:

• Iluka (ILU) -6.9% hit after reporting a weaker than hoped December quarter, though volumes are improving.

Not Held

My dog among the dog of the year today...

 

[finicky]

ILU worst ASX 200 performer today - via Market Matters

 

[qldfrog]

ILU worst ASX 200 performer today - via Market Matters

View attachment 191843

A dog is a dog..
Owned via dogs of the asx...

 

[divs4ever]

A dog is a dog..
Owned via dogs of the asx...

yes the venture into REE is taking it's toll ,

and other economic factors aren't helping either

sub $4 in the near term , perhaps

( i hold )

but starting to get very cautious averaging down on it

this is starting to feel like OZ minerals where i was DEEP under-water before finally getting a good average before the turn-around

a BIG danger is investors forcing management changes

 

[finicky]

Market Matters afternoon report:
... there was a big turnaround in Iluka (ILU) +3.95% from early weakness

Agree (I've rung them), and that's a bullish engulfing candle on heightened daily volume. This follows a daily bullish hammer candle marking the prior swing low. Maybe the LOW is in? Has something been happening with Zircon prices? My IMA stock - in the same field - is up a lttle today too.

ILU Not Held

DAILY

 

[finicky]

Iluka has almost sunk to my long speculated worst case target- viz $4
Yet the weekly chart is not showing any obvious reversal signs?

Not Held

WEEKLY

 

[finicky]

Dear Diary - Bought 1,000 ILU @ 3.42

Long range buy as I think there's something in the narrative that Western rare earth projects will benefit from China's weaponization of their monopoly over supply. Also Iluka's resource holds a little of the most under supplied rare earths - the heavy Terbium and Dysprosium earths.
The federal government is supporting the project.
Meanwhile should continue to be profitable with the Zircon and Rutile?
Iluka has been a good manager and I don't forget the beneficial spin-off of Deterra.

Chart-wise it has now exceeded my worst long term downside target but positive signs are faint.

Held
Possible add
Not a recommendation

DAILY

 

[finicky]

Iluka was the biggest mover on tge ASX 200 yesterday.
From Iluka's (ILU) Qtrly update today:

 

[rcw1]

Iluka was the biggest mover on tge ASX 200 yesterday.
From Iluka's (ILU) Qtrly update today:

View attachment 197619

Great news that @finicky.
Is their funds available to pay for the refinery?

Kind regards
rcw1

 

[finicky]

Apparently @rcw1 (sorry to be vague but I haven't closely considered it) - I do know that the federal government is heavily backing it with a massive loan which I think is non recourse and likely doesn't have strict covenants. More than one 3rd party entity would be wanting this to succeed, I think of the U.S government as one possibility in my fevered imaginings. But no doubt there are corporations who desperately need a supply ex China. But don't quote me as I made half of it up ex tempore*
*extempore:
extempore
/ɪkˈstɛmp(ə)ri,ɛkˈstɛmp(ə)ri/
adjective
spoken or done without preparation.
"an extempore speech"

 

[finicky]

@rcw1 They do already operate with a lot of debt. According to CommSec synopsis this was the situation at end Dec 2024.
Don't know if this already includes debt for works at Eneabba.
It's high risk, as let's face it, these things usually go over budget and processing rare earths seems way more complicated and expensive than most minerals and we don't have Chinese expertise. But on the other side of the ledger the share price has recently plumbed a 5 year low.

They do have strong cash reserves and inventory (CommSec slide)

Balance Sheet:
Total Debt (m) Long Term Debt (m) Shareholders Equity (m)
$1,381.00 ($9.50 Interest) $278.70 (11% of capital) $2,360.00 (89% of capital)

 

[finicky]

AI Overview

The Iluka Eneabba rare earths refinery project has secured $1.65 billion in funding, primarily from the Australian government, with Iluka Resources contributing $414 million in cash equity. This funding covers a significant portion of the project's capital costs, which have increased to $1.7-1.8 billion. The government's contribution includes an initial $1.25 billion non-recourse loan and an additional $400 million. Iluka is also contributing an additional $214 million in cash equity on top of the original $200 million.

Breakdown of Funding:

• Australian Government:
  • Initial loan: $1.25 billion
    
    
  • Additional loan: $400 million
    
    
  • Total: $1.65 billion
    
• Iluka Resources:
  • Initial cash equity: $200 million
    
    
  • Additional cash equity: $214 million
    
    
  • Total: $414 million
    

Project Details:

• The Eneabba refinery is Australia's first fully integrated rare earths refinery.
  
  
• It will produce separated rare earth oxide products (Praseodymium, Dysprosium, Neodymium, and Terbium).
  
  
• These products are used in permanent magnets for various applications, including electric vehicles and clean energy.
  
  
• The refinery is part of Australia's Critical Minerals Strategy, aiming to build a domestic rare earth materials supply chain.

 

[divs4ever]

They do have strong cash reserves and inventory (CommSec slide)

and resource stockpiles ( some already processed , and some above ground ready to be processed in case of extraction disruptions )

now one issue they have is relatively steady sales income

 

[rcw1]

AI Overview

The Iluka Eneabba rare earths refinery project has secured $1.65 billion in funding, primarily from the Australian government, with Iluka Resources contributing $414 million in cash equity. This funding covers a significant portion of the project's capital costs, which have increased to $1.7-1.8 billion. The government's contribution includes an initial $1.25 billion non-recourse loan and an additional $400 million. Iluka is also contributing an additional $214 million in cash equity on top of the original $200 million.

Breakdown of Funding:

• Australian Government:
  • Initial loan: $1.25 billion
    
    
  • Additional loan: $400 million
    
    
  • Total: $1.65 billion
• Iluka Resources:
  • Initial cash equity: $200 million
    
    
  • Additional cash equity: $214 million
    
    
  • Total: $414 million

Project Details:

• The Eneabba refinery is Australia's first fully integrated rare earths refinery.
  
  
• It will produce separated rare earth oxide products (Praseodymium, Dysprosium, Neodymium, and Terbium).
  
  
• These products are used in permanent magnets for various applications, including electric vehicles and clean energy.
  
  
• The refinery is part of Australia's Critical Minerals Strategy, aiming to build a domestic rare earth materials supply chain.

nice, thanks for that info your the bestest @finicky . Certainly, the funding side of things looking pretty good. Overseas contracts and suitable product to refine all squared away would be challenging... Two years away, to have all the infrastructure in place will take some doing ... but hey they got the cash!!! rcw1 will watch this one closely.

Have traded, not holding.

Kind regards
rcw1

 

[divs4ever]

nice, thanks for that info your the bestest @finicky . Certainly, the funding side of things looking pretty good. Overseas contracts and suitable product to refine all squared away would be challenging... Two years away, to have all the infrastructure in place will take some doing ... but hey they got the cash!!! rcw1 will watch this one closely.

Have traded, not holding.

Kind regards
rcw1

yes the long wait has me concerned a LOT of things can happen in the next two years

this could easily become a take-over target ( cash finances and resources stock-piled ) the perfect recipe for a leveraged buy-out

i hold ILU ( just saying )

after watching the take-over of Rinker ( remember them ? ) i could see the whole thing ( effectively bought out with their own cash stockpile )