Morningstar cautious on Iluka Resources on Cataby mine pause, subdued demand

Iluka Resources

11/09/2025 22:13

** Morningstar cuts its fair value estimate for Iluka Resources ILU.AX by 4% to A$8.80, citing expectations of lower near-term earnings

** ILU placed its Cataby mine in Western Australia on "care and maintenance" for a year from December due to subdued mineral sands demand

** Market didn't like the news (mine's placement under care and maintenance) even though ILU's actions are "sensible" and in line with its strategy to flex production and manage inventory - Morningstar

** ILU shares are "cheap", as investors see subdued demand to continue and are sceptical that the company's rare earths refinery will be profitable - Morningstar

** Five of 10 analysts rate the stock "buy", five rate "hold"; their median price target is A$6.20, according to data compiled by LSEG

** Stock fell 15.3% in the previous two sessions, but is up 8.5% YTD, as of last close

(Reporting by Anjali Singh in Bengaluru)

((anjali.singh2@thomsonreuters.com;))