Iluka shares soar
- 01 December, 2011 11:26
Iluka Resources (ASX:ILU) shares have soared this morning, following news that the European Central Bank and the central banks of the UK, Japan, Switzerland and Canada had reduced interbank loan expenses to ensure the free-flow of currency. The move reduces market fears that there will be a repeat of the credit crunch of 2008.
The positive news from around the globe, reinforced Iluka's recent announcement that trains would be running permanently between its mine in the Mallee and its processing plant in Hamilton. After a successful trial, introduction of the train will reduce transport expense and relieve pressure on local roads from Iluka’s trucks.
The company acknowledged an uncertain outlook for mineral sands pricing with general uncertainty around Europe and China, but expects strong demand for high grade titanium dioxide feedstocks as well as zircon, with few quality suppliers available.
Iluka shares were trading at $15.38 by mid-morning, a rise of over 5.3%