Credit Suisse notes zircon and rutile sales were strong and revenue was the highlight of the March quarter. Prices were maintained in line with the prior quarter, ahead of the price rise announced for the June quarter. This was offset by weak performance at Sierra Rutile.
The broker continues to expect Sierra Rutile will leak cash, as production declined to 26,000t in the March quarter and operations continue to experience difficulties.
Underperform rating maintained as Credit Suisse asserts there are plenty of unknowns around growth options. Target is $5.70.
Sector: Materials.
Target price is $5.70.Current Price is $7.39. Difference: ($1.69) – (brackets indicate current price is over target). If ILU meets the Credit Suisse target it will return approximately -30% (excluding dividends, fees and charges – negative figures indicate an expected loss).
