Iluka (ASX:ILU) share price boosts 10%, hits new 52-week high

Investors have been snapping up shares in the international mineral and sands company today.

| More on:
Commodities premium ASX shares Female miner and male miner stand in open mine pit surveying the area

Image source: Getty Images

The Iluka Resources Ltd (ASX: ILU) share price set a new 52-week high today, reaching a top of $9.27 intraday before pulling back slightly.

At the time of writing, Iluka shares are swapping hands for $9.01, 10% in the green.

Today’s gains build on an extended run for Iluka shares in 2021 so far, which have posted a return of 36% at the time of writing, compared to the S&P/ASX 200 Index (ASX: XJO)’s 9.9%.

So what has Iluka been up to lately?

There has been no market-sensitive news for Iluka today that can be attributed directly to today’s share price movements.

However, Bloomberg LP reports that shares in the international sands and minerals producer have jumped this morning on the back of Rio Tinto Limited (ASX: RIO)’s force majeure on customer contracts at its Richards Bay Minerals interests, due to escalating safety concerns.

Both companies are among the world’s biggest producers of titanium dioxide, and according to Bloomberg, today’s jump in Iluka’s share price reflects expectations Iluka may benefit from Rio’s downtime.

In addition, Bloomberg LP also reports that JP Morgan’s Global Natural Resources Fund added Iluka to its investments back on 22 June.

The Global Natural Resources Fund has returned 34% in the past year, and added 639,590 Iluka shares as shown by its disclosure.

Moreover, on 28 June, Vysarn Ltd (ASX: VYS) said in a statement that its subsidiary Pentium Hydro had secured a goods and services contract with Iluka, valued at $1.7 million.

The contract is a variation to the original drilling services contract announced back in January 2020.

Iluka share price snapshot

The Iluka share price has gained 107% in the last 12 months, and on current prices the company has a market capitalisation of more than $3.4 billion.

Iluka shares have a 52-week range of $4.50–$9.27, a spread of more than 100%.

Iluka shares also trade at a price-to-earnings ratio (P/E) of around 33, and the company pays an annual dividend of 10 cents per share.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares