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MarketScreener Homepage  >  Equities  >  Australian Stock Exchange  >  Iluka Resources Limited    ILU   AU000000ILU1

ILUKA RESOURCES LIMITED

(ILU)
  Report
End-of-day quote. End-of-day quote Australian Stock Exchange - 12/02
5.37 AUD   +0.37%
11/04Mkango Commences Rutile Exploration Programme
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10/23ILUKA RESOURCES LIMITED : Spin off
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10/22Australia shares decline on weak manufacturing survey, fading U.S. stimulus hopes
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After Sydney listing, Australia's Deterra eyes new mining royalty deals

10/22/2020 | 02:33am EST

MELBOURNE, Oct 22 (Reuters) - Set to become Australia's biggest mining royalty company, Deterra Royalties Ltd lists shares in Sydney on Friday with plans to scout for new deals to diversify its portfolio beyond iron ore, its chief executive said on Thursday.

Deterra, being spun off from mineral sands producer Iluka Resources Ltd is expected to join Australia's top 200 listed companies on its market debut, with a valuation of up to A$3 billion ($2.13 billion), according to an estimate from brokerage Shaw & Partners.

The major asset at Deterra - meaning 'from the earth' in Latin - is an iron ore royalties stream from global giant BHP Group's South Flank operations in Western Australia. In royalty streaming, a company pays a miner upfront for part of its metal production.

"Although we won't be limiting our geographic scope, we will be more likely to be focused on opportunities in Australia than offshore," Chief Executive Julian Andrews told a media briefing.

"We will have a fairly broad mandate so we won't be restricting the types of commodities that we look at," he said. Typically streaming companies have tended to focus on precious metals.

Royalty streaming has become popular with miners in recent years as a way to raise capital. For investors, it can offer a way to get exposure to rising metals prices with lower risk than investing directly in a miner.

Already well established in North America, streaming firms are expanding their global footprint. Vancouver's Wheaton Precious Metals Corp is planning a British listing by year-end, potentially the largest metals and mining company to join the London Stock Exchange since Glencore in 2011.

As BHP expands its Mining Area C (MAC), from which Deterra receives royalties, as part of a $2.9 billion South Flank expansion, proceeds are expected to help Deterra fund growth.

In 2019, the royalty earned Iluka A$85 million in revenue, up by 53% on the year before, largely due to higher iron ore prices.

"We will have low debt at inception, but given the cash flow MAC has generated and we would expect it to generate, that provides significant additional capacity to fund opportunities through debt if we need it," Andrews said, adding that Deterra will target 100% payout of net profit in dividends. ($1 = 1.4086 Australian dollars) (Reporting by Melanie Burton; Editing by Kenneth Maxwell)


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
BHP GROUP 1.95% 39.31 End-of-day quote.1.00%
FRANCO-NEVADA CORPORATION 1.42% 172.7 Delayed Quote.28.79%
GLENCORE PLC 1.21% 225.908 Delayed Quote.-5.33%
ILUKA RESOURCES LIMITED 0.37% 5.37 End-of-day quote.-42.26%
LONDON STOCK EXCHANGE PLC -1.39% 8632 Delayed Quote.12.95%
WHEATON PRECIOUS METALS CORP. 0.98% 53.53 Delayed Quote.38.54%
All news about ILUKA RESOURCES LIMITED
11/04Mkango Commences Rutile Exploration Programme
AQ
10/23ILUKA RESOURCES LIMITED : Spin off
FA
10/22Australia shares decline on weak manufacturing survey, fading U.S. stimulus h..
RE
10/22After Sydney listing, Australia's Deterra eyes new mining royalty deals
RE
10/20TALGA RESOURCES : Appoints CEO of European Operations
AQ
08/11ILUKA RESOURCES LIMITED : half-yearly earnings release
04/13MORGAN STANLEY : rates ILU as Equal-weight
AQ
04/09ILUKA RESOURCES : 2020 annual general meeting
AQ
04/03ILUKA RESOURCES : Illuka resources limited - change in iluka 2020 agm arrangemen..
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04/02ILUKA RESOURCES : Change in iluka 2020 agm arrangements
AQ
More news
Financials
Sales 2020 1 004 M 745 M 745 M
Net income 2020 166 M 123 M 123 M
Net Debt 2020 23,4 M 17,4 M 17,4 M
P/E ratio 2020 13,7x
Yield 2020 0,48%
Capitalization 2 269 M 1 675 M 1 684 M
EV / Sales 2020 2,28x
EV / Sales 2021 1,75x
Nbr of Employees 3 427
Free-Float 99,5%
Chart ILUKA RESOURCES LIMITED
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Technical analysis trends ILUKA RESOURCES LIMITED
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 10
Average target price 6,33 AUD
Last Close Price 5,37 AUD
Spread / Highest target 105%
Spread / Average Target 17,8%
Spread / Lowest Target -6,89%
EPS Revisions
Managers
NameTitle
Thomas O’Leary CEO, Managing Director & Director
Gregory John Walton Martin Chairman
Adele Stratton Chief Financial Officer & Head-Development
Dan McGrath Chief Technology Officer & Head-Rare Earths
James Hutchinson Ranck Independent Non-Executive Director