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.
The post Iluka (ASX:ILU) share price boosts 10%, hits new 52-week high appeared first on The Motley Fool Australia.
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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.
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