Why the Iluka Resources Limited share price is heading higher

Mineral Sands explorer Iluka Resources Limited (ASX: ILU) shares are up today to $10.43 at the time of writing after the release of its full year results on February 27.

Iluka announced a net loss of $172 million for the year to December 2017, but earnings were up with underlying EBITDA increasing 140% on the previous corresponding period to $361 million.

Iluka is involved in the exploration, project development, operation and marketing of mineral sands, with projects in Australia, Sierra Leone and the US.

Although Iluka reported a net loss last year also, the company has reduced its loss by $52 million on the previous corresponding period, with a 40% up-tick in revenue to just over $1 billion a step in the right direction.

US President Donald Trump has recently called on Australia to help with a potential “global rare earths crisis”, which could give companies like Iluka a boost as worldwide demand for scarce minerals such as zircon rises.

Fundamentals look solid for Iluka going forward and if the company can capitalise on any move by Trump to leverage Australian rare earths miners and lessen China’s monopoly on minerals – used for anything from iPhones to missile guidance systems – its movements in the next year will certainly be worth watching.

The Iluka share price has risen steadily over the last 12 months, tracking up from $6.50 at this time last year with shareholders being rewarded for loyalty by a final dividend of 25c per share fully franked and the announcement of a new dividend reinvestment plan.

The Richest Man Alive Invests in This

The richest man in the world has just launched a $100 million investment fund and investors who don't take note could miss out on a massive opportunity.

And it isn't by sheer luck. He did it by looking to the future and investing in the big ideas of tomorrow.

This could be your chance to get in on the ground floor!

Click here to discover more!

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.