0000 GMT - Iluka's agreement with Australia on extra funding for the Eneabba rare earths refinery has given investors some clarity on the project's financing and economics, "but significant uncertainties remain," says Citi analyst Paul McTaggart. "While the Australian government's increased funding support demonstrates commitment, we remain skeptical about the refinery generating an attractive NPV given Citi rare-earth pricing assumptions," McTaggart says. He reckons there needs to be a substantial improvement in rare earths prices or the creation of an ex-China rare earths market to make the refinery a worthwhile investment. That said, the 10% selloff in Iluka's stock Friday does make Iluka's risk-reward more attractive, McTaggart says. Citi adds a high-risk rating to its buy call and cuts its target to A$6.10 from A$7.00. Iluka is up 0.2% at A$4.94. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
(END) Dow Jones Newswires
December 08, 2024 19:01 ET (00:01 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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