Morningstar cuts fair value estimate for Australia's Iluka after co withdraws guidance

Iluka Resources

19/10/2025 20:02

** Analysts at Morningstar reduce fair value estimate for Iluka Resources ILU.AX to A$8.50/shr from A$8.80/shr on lower near-term synthetic rutile sales volumes

** Pigment is the primary source of synthetic rutile demand, and global construction and housing markets remain weak - investment research firm

   ** On Friday, the rare earths miner withdrew guidance for synthetic rutile sales due to an asset purchase deal between China's LB Group and co's customer Venator

** We think the likely outcome of negotiations with Venator and other customers is that Iluka will agree not to enforce its rights under its take-or-pay contracts in return for these customers moving some of their commitments to later years - Morningstar

** Investment research firm sees co's synthetic rutile inventory to now likely increase in 2025

** Stock up 60.4% YTD, as of last close

 (Reporting by Shivangi Lahiri)