Canaccord initiates coverage on Australia's Iluka Resources with 'hold'

Iluka Resources

23/02/2023 04:33

** Analysts at Canaccord Genuity initiate coverage on
Australia's Iluka Resources  ILU.AX  with a "hold" rating and
price target of A$11
    ** Brokerage estimates co's key saleable mineral sands
production at 645KT for CY2023, down 5% y/y
    ** Says co is developing the country's first integrated rare
earths facility in Western Australia
    ** Says first rare earth oxide production targeted in 2025
    ** Sees significant long-term value in co's asset base as it
builds the integrated rare earths hub
    ** Says potential capex blowout at facility and
lower-than-expected mineral sands pricing amid softer macro
backdrop might weigh on co's shares in the short term
    ** ILU shares jump as much as 2.1%
    ** Stock up 10.2% this year, as of last close
 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))