Iluka Resources
(ASX:ILU) reports today that they are looking to review the corporate and capital structure of Iluka’s two principal businesses – mineral sands operations and the Mining Area C royalty (MAC).
The company is considering a structural separation of MAC by way of demerger.
MAC’s earnings contribution to Iluka will ultimately be dependent on a range of factors including iron ore pricing and the USD:AUD exchange rate.
BHP has stated that, with the development of South Flank, the intended capacity from the expanded MAC hub will increase dramatically.
Shares in Iluka Resources
(ASX:ILU) trading 3.2 per cent higher at $9.09.
