Iluka Resources Ltd (ASX: ILU) shares were trading higher after the company announced a major funding development as well as a new deal to supply rare earths to a global automotive company.

Project funding secured

The company said in a statement to the ASX that Export Finance Australia (EFA) had confirmed that Iluka would have full access to a $1.65 billion non-recourse loan to build its Eneabba rare earths refinery in Western Australia.

Iluka also said that Civmec Ltd (ASX: CVL) had been awarded the contract for the structural, mechanical, piping, electrical, and instrumentation works to complete the refinery’s construction.

The company said regarding the financing:

Iluka anticipates Tranche 1 of this funding, comprising $1.25 billion, will be fully drawn at the end of 2026, at which point the refinery is expected to be 75% complete. EFA has confirmed availability of the remaining $400m to complete Eneabba’s construction. Commissioning of the refinery is scheduled for mid 2027.

Regarding the offtake agreement, Iluka said it had struck a multi-year agreement to supply magnet rare earth oxides (neodymium, praseodymium, dysprosium, and terbium) to the global automotive company.

Iluka said further:

The offtake agreement is take-or-pay; commences in 2028 for an initial term of four years; and represents approximately 10% of Iluka’s planned production over that period, being 1,200t of magnet rare earth oxides (Nd, Pr, Dy and Tb). Offtake volumes are in line with the commissioning (2027) and ramp up timeline for the Eneabba refinery. The agreement sets pricing at the higher of minimum and market-linked prices for each product to balance the dual risks of downside price volatility and security of supply. Iluka’s minimum revenue over the contract period is US$155 million.3 Assuming industry forecast pricing, Iluka’s revenue over the contract period would be US$172 million.

Iluka said the identity of the automotive company was commercial in confidence.

Managing Director Tom O’Leary said the offtake agreement was a particularly important milestone for the company’s rare earths business.

He added:

Our first rare earths customer is a globally recognised automotive company and I am delighted that Iluka has been entrusted to deliver refined critical minerals as part of its supply chain. We look forward to a collaborative and successful partnership. Beyond being Iluka’s first, the agreement is significant in that it encompasses the full suite of light and heavy magnet rare earth oxides and contains minimum prices agreed between commercial parties that are independent of those backed by governments.

Mr O’Leary said the deal “demonstrates increasing recognition of Iluka’s position as a credible, vertically integrated supplier, with diverse feedstock sources spanning internal operations and third-parties. Discussions with other prospective customers are ongoing”.

Shares trading higher

Iluka shares were 2.2% higher at $8.31 in early trade. Civmec shares were steady at $1.98.

The post Which rare earths miner has locked in a $1.65 billion funding deal? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. 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 Scott Phillips.

BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) shares have been on fire over the past 12 months.

Thanks largely to their exposure to the booming copper price, the mining giants have hit record highs in recent weeks.

One ASX copper share that is nowhere near its high is Aeris Resources Ltd (ASX: AIS).

But it might not stay that way for long if Bell Potter is on the money with its recommendation.

What is the broker saying about this ASX copper share?

Bell Potter notes that Aeris Resources is close to completing its acquisition of Peel Mining Ltd (ASX: PEX). This will give it ownership of the Mallee Bull and Wirlong copper projects. It said:

The Scheme of Arrangement by which AIS has acquired 100% of Peel Mining (PEX, not rated) has become effective. The transaction gives AIS ownership of the Mallee Bull and Wirlong copper projects which contain a combined Resource of 10.6Mt @ 1.85% Cu for 197kt contained Cu. They sit within a ~150-200km trucking radius of Tritton. Combined with the current Resource at Tritton this is a total Resource of 29.5 Mt @ 1.73% Cu for 511kt contained Cu. Consideration is all scrip, comprising the issue of 300.0m shares to PEX shareholders and is expected to complete on 1 July 2026.

It sees a lot of positives from the deal, highlighting that it adds development optionality and derisks production. The broker explains:

The strategic rationale is to significantly increase AIS’ Cobar region resource base, materially extending the mine life at Tritton, adding development optionality and derisking production. The high-grade Mallee Bull deposit is the subject of a maiden Ore Reserve Estimate (ORE) to be released in 1QFY27 and contribute to an updated life-of-mine (LOM) plan for Tritton.

Additionally, we expect an updated ORE for the Constellation deposit, as well as Resource extensions at Avoca Tank and Budgerygar deposits where recent drilling has intersected ore-grade mineralisation significantly below the current Resource at Avoca Tank and thicker than expected mineralisation within in the Budgerygar Inferred Resource. These acquisitions and exploration successes are providing more visibility on mine life at Tritton than at any time since its initial development.

Major upside potential

According to the note, Bell Potter has retained its buy rating and 90 cents price target on the ASX copper share.

Based on its current share price of 40.2 cents, this implies potential upside of 120% for investors over the next 12 months.

Speaking about its investment thesis, the broker said:

We make no material changes to our valuation with this update. We continue to look to AIS’ quarterly production performance and updates on the development of the Constellation deposit at Tritton for key near-term catalysts. AIS is a copper-dominant producer, with its near-term outlook highly leveraged to the copper price and increasing production at Tritton.

Tritton is a strategic regional asset with corporate appeal and capacity to leverage value from stranded assets, in our view. With upside to our Target Price supported by growing free cash flow and low valuation multiples it remains a key pick for CY26. Our Target Price of $0.90/sh is unchanged and we maintain our Buy recommendation.

The post Forget BHP and Rio Tinto, this ASX copper share could rise 100%+ appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Viva Energy Group Ltd (ASX: VEA) share price is in focus after the company announced the successful restart of its Residue Catalytic Cracking Unit at the Geelong Refinery, with production set to return to over 90% of normal capacity following April’s fire. For April and May 2026, the Geelong Refining Margin was US$23.9 per barrel from a refining intake of 6.5 million barrels.

What did Viva Energy Group report?

• Restart of the Residue Catalytic Cracking Unit (RCCU) at Geelong Refinery, restoring production to over 90% of normal capacity
• Geelong Refining Margin (GRM) averaged US$23.9 per barrel for April and May 2026
• Refining intake reached 6.5 million barrels over the two-month period
• Alkylation unit remains offline, impacting gasoline production from LPG by-product
• Assessment of Alkylation unit repair or replacement options is underway

What else do investors need to know?

Viva Energy’s swift action means most refining operations are now back online, significantly boosting capacity after April’s incident. However, the Alkylation unit, which helps turn LPG into gasoline, will remain offline through 2027; the company is currently assessing its options to either repair or replace this equipment.

The incident has also prompted a detailed investigation, with early findings pointing to a failure in the Alkylation unit’s piping as the cause. Insurance discussions for property damage and business interruption are ongoing, helping to manage financial impacts.

What’s next for Viva Energy Group?

Viva Energy is prioritising the repair or replacement of the Alkylation unit, but expects Geelong Refinery will operate at slightly reduced capacity into 2027. The restart of the RCCU should help the company improve refining margins and product yields as it returns to normal operations.

The company will continue its investigation into the incident’s cause and work closely with insurers as part of its recovery plan.

Viva Energy Group share price snapshot

Over the past 12 months, Viva Energy shares have declined 1%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Viva Energy Group: Geelong Refinery nears full capacity after fire appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. 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 Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.