Iluka Resources Limited (ILU)

Welcome to InvestSMART

You are currently viewing our site as a guest, which gives you limited access to our site features. By signing up for a free membership, you will receive our Investment Opportunity newsletters and have access to additional features for finding and comparing managed funds and shares. Registration is fast and simple, so please:

Sign Up Today Ľ it's FREE! Already a member? Login now!

General Information
Company Name: Iluka Resources Limited
Stock Code: ILU
GICS Sub-Industry: Diversified Metals & Mining
Market Cap ($M): 2,943
Equiv. Shares (M): 419

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
$ 7.030 $ 6.980 $ 7.070 $ 6.970 $ 7.030 4,139,776 0%

Current Broker Consensus Recommendation more
Recommendation: Strong Buy (1.25)
Recommendation Date: 12th Nov 2014
Brokers Surveyed: 4

Company Overview

Business Description:
Iluka Resources Limited (ILU) is involved in the exploration, project development, operation and marketing of mineral sands. Operations are located in Australia and the United States. For FY13, overall production volumes of Zircon, Rutile and Synthetic Rutile (Z/R/SR) are 471,100t. The current ore reserves are 28.97Mt and mineral resources of 122.7Mt.

Strategy Analysis:
Iluka¬īs objective is to create and deliver value for shareholders through exploration and innovation. The focus is on large, high quality, long life operations. The company seeks to meet customer needs though investment in high quality production sources, product and technical development as well as providing price leadership in mineral sand products to allow sustainable customer profitability. Iluka Resources reported NPAT down 33% to $363.2m for the year ended 31 December 2012. Revenues from ordinary activities were $1.15bn, down 29.5% from last year. Sales volumes year-on-year were significantly lower, with combined zircon, rutile and synthetic rutile sales volumes down 52.9% at 488.9 thousand tonnes compared to 1,038.1 thousand tonnes in 2011. Lower sales volumes were influenced by a combination of external factors, including: low demand associated with global economic conditions and fragile business confidence levels; inventory de-stocking and lower levels of zircon usage in tile manufacturing in China. Basic EPS was 87.1 cents compared to 130.1 cents last year. Net operating cash flow was $250.6m compared to $749.5m last year. The final dividend declared was 10.0 cents, taking the full year dividend to 35.0 cents compared with 75.0 cents last year.

Financial Summary
Year to Dec NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2015  F 248.7 59.4 171.5 11.8 30.0 4.3 100.0
2014  F 91.6 21.9 -3.8 32.1 15.0 2.1 100.0
2013  A 95.2 22.7 -73.9 44.6 9.0 0.9 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2013 A 2014 F 2015 F 2013 A 2014 F 2015 F 2013 A 2014 F 2015 F
BHP Billiton (BHP) $103,095 M 0.1223 -0.1577 0.0963 12.0045 14.2527 13.0007 4.00 4.51 4.69
Iluka Resources (ILU) $2,943 M -0.6600 -0.9279 11.0995 22.9214 318.0995 26.2902 1.28 1.97 3.69
PanAust (PNA) $1,092 M -0.7034 0.2650 0.4907 25.1098 19.8495 13.3152 3.91 3.14 4.03
Rio Tinto (RIO) $25,017 M 0.5848 -0.2966 0.0923 7.4766 10.6289 9.7303 3.74 4.18 4.47
Sims Metal Management (SGM) $2,126 M 3.0215 1.0051 0.3254 30.8675 15.3949 11.6154 0.96 2.66 4.03

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
ILU 1.88 144.6 1.91 10.00 3.45
Market 0.91 15.3 1.20 1.77 1.55
Sector 0.66 12.2 0.75 0.98 2.52

Name Position Start Date
Mr David Alexander Robb Chief Executive Officer,Managing Director 18 August 2006
Mr Gavin John Rezos Non-Executive Director 20 June 2006
Mrs Jennifer (Jenny) Anne Seabrook Non-Executive Director 21 May 2008
Mr James Hutchison Ranck Non-Executive Director 01 January 2013
Mr Wayne Geoffrey Osborn Non-Executive Director 26 March 2010
Mr Marcelo Bastos Non-Executive Director 20 February 2014
Mr Gregory John Walton Martin Non-Executive Director,Non-Executive Chairman 01 January 2013

Name Position
Alan Tate Chief Financial Officer and Head of Strategy and Planning
Steve Wickham Chief Operating Officer, Mineral Sands
Cameron Wilson Company Secretary
Chris Cobb Head of Alliances, New Ventures and Royalties
Matthew Blackwell Head of Marketing, Mineral Sands
Doug Warden Head of Resource Development, Mineral Sands
Nigel Tinley Joint Company Secretary

Substantial Shareholders
Holding Name
29,710,433 (7.10%) MFS Investment Management Limited
21,590,918 (5.18%) Northcape Capital Pty Ltd
40,111,686 (9.58%) BlackRock Group
35,898,163 (8.57%) Schroder Investment Management Australia Limited
21,225,646 (5.07%) RS Global Natural Resources Fund
46,095,678 (11.00%) M & G Investment Management Limited
59,744,987 (14.27%) RS Investment Management Co LLC

Calendar of Events
Date Event
15 October 2015 Report (Quarterly)
21 August 2015 Report (Interim)
15 July 2015 Report (Quarterly)
29 April 2015 Report (Annual)
24 March 2015 Report (Annual)
20 February 2015 Report (Prelim)
15 January 2015 Report (Quarterly)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at


Trade Shares Online from $19.95^
Free Guides

The SMH Guide to Leveraged Trading using CFDs

An educational booklet that outlines the different types of Contracts for Difference (CFDs) available in Australia.

More details...


Australian Share Market - Close Up

CMC Markets 11/11/2014 | The Australian share market is in a decision zone - and trading from here may set the direction for the rest of the year.

Prices slashed - everything must go!

Nick Swales, Regional Director, Newcastle Office, Rathbones 27/10/2014 | ‚ÄúIf you want to have a better performance than the crowd, you must do things differently from the crowd.‚ÄĚ Sir John Templeton.

Aussie share market bulls now have company

Ric Spooner (Chief Market Analyst, CMC Markets) 20/10/2014 | Today, Australian investors will not have to go it alone buying stocks as they did for much of last week. Bargain hunters this morning will be supported by the morale boosting encouragement of a 3% turnaround in the German Dax and a 264 point rally in the Dow Jones.

The Importance of Ignoring the Noise of the Market

Carl Richards, director of investor education at the BAM Alliance 17/10/2014 | ‚ÄúAs odd as it may sound, the sooner you start treating your investments like you treat life, the happier you‚Äôll be with the outcome.‚ÄĚ

You only dance twice

William H. Gross, Janus Capital Group 16/10/2014 | ‚ÄúFinancial markets are artificially priced. In the bond market, there is nothing normal about a three year German Bund yielding ‚Äúminus‚ÄĚ 10 basis points.‚ÄĚ

The Big Picture - Australia 200 Index

CMC Markets 8/10/2014 | Share market indices around the globe are breaking down. While analysts cast around for reasons, it‚Äôs clear that a time factor is in play. Simply put, many investors ‚Äúfeel‚ÄĚ a correction is overdue. How low could it go?


Sponsored Links