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Iluka Resources is a leading global mineral sands miner. It is the largest global producer of zircon, and the third- largest producer of titanium dioxide feedstock (rutile, synthetic rutile) behind Rio Tinto and Tronox. Low zircon costs are underpinned by the high-grade Jacinth-Ambrosia mine in South Australia but reserve life is less than 10 years. The Sierra Rutile operations in Sierra Leone lack a cost advantage but expansions should bring some scale economies. A 20% shareholding in Deterra Royalties brings exposure to the high-quality Mining Area C iron ore royalty. The shareholding brings a modest high-quality cash flow and gives Iluka some financial flexibility.
Perth, WA, 6000, Australia