Big mining prepares to shower investors with cash, Dec 27 2017...

Big mining prepares to shower investors with cash, Dec 27 2017
http://www.copyright link/markets/e...to-shower-investors-with-cash-20171215-h05inf
"Most pundits are also bullish on mineral sands, which is good news for ASX-listed producers like Iluka Resources and Base Resources.
Deutsche believes prices for two of the major mineral sands – zircon (which is used in ceramics) and titanium dioxide (which is used as a whitener in paint) – can both rise by a further $US100 per tonne in 2018. But Deutsche analyst Paul Young adds that prices for zircon are already in "incentive pricing" territory, which means new mines could be brought into production and spoil the party before 2020. "We can identify seven highly probable projects that should deliver an additional 240,000 tonnes (of zircon) by 2020," Young says in a note."

On 12th September 2017 Iluka announced an increase in its Zircon Reference Price of US$130/t to US$1,230/t effective from 01 October 2017, for a six month period through to 31 March 2018. Another US$100/t would bring it to US$1,330/t for the remainder of 2018.

FYI, Iluka held an Investor Day briefing on 10th Nov 2017.
Presentation:
https://www.iluka.com/docs/default-...tor-day-presentation-10-nov-2017.pdf?sfvrsn=2
Full transcript:
https://www.iluka.com/docs/default-...script-iluka-investor-day-briefing-10-11-2017

USB Global Research, 10 Nov 2017
"Market tightness remains a key theme. Iluka is the world's largest producer of zircon. With the zircon market moving into deficit, a lack of investment in new projects and a decrease in high quality deposits, Iluka remain confident in increasing market tightness. In the short term Iluka see zircon substitutes as having limited application given the majority face high adoption hurdles, technical limitations and switching costs. A supportive market force has been the growth of digital printing in the tile market which has seen a trend toward better quality products with higher zircon content. This could see traditionally low quality tile markets (India/Brazil) demand more zircon. Pigment demand is anticipated to grow at an 8-10% CAGR with pricing supported by supply side environmental reform in China and growing GDP per capita."