Iluka Resources (ASX:ILU) flags demerger of BHP iron ore royalties

Company News

by Rachael Jones

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.
 

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