Australia's Iluka falls as Eneabba refinery costs bite; Citi cuts PT

Iluka Resources

09/12/2024 04:36

** Shares of Australian rare-earths miner Iluka Resources
 ILU.AX  fall as much as 2.4% to A$5.05
    ** Co faces escalating costs and funding challenges for its
Eneabba rare earths refinery in Western Australia 
    ** Australia to grant an additional A$400 mln ($255.44 mln)
loan to develop its Eneabba rare earths refinery 
    ** Analysts at Citi cut ILU's price target to A$6.10 from
A$7.00, maintain "buy" rating
    ** Citi says update provides more clarity, but uncertainties
remain, requiring additional government loans and company
investment
    ** Australian government's increased funding shows
commitment, but project profitability is still questionable
based on Citi's rare earth price forecasts - brokerage
    ** Stock down 25.3% this year, as of last close



($1 = 1.5659 Australian dollars)

 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.Nair@thomsonreuters.com;))