** Shares of Australian rare-earths miner Iluka Resources ILU.AX fall as much as 2.4% to A$5.05
** Co faces escalating costs and funding challenges for its Eneabba rare earths refinery in Western Australia
** Australia to grant an additional A$400 mln ($255.44 mln) loan to develop its Eneabba rare earths refinery
** Analysts at Citi cut ILU's price target to A$6.10 from A$7.00, maintain "buy" rating
** Citi says update provides more clarity, but uncertainties remain, requiring additional government loans and company investment
** Australian government's increased funding shows commitment, but project profitability is still questionable based on Citi's rare earth price forecasts - brokerage
** Stock down 25.3% this year, as of last close
($1 = 1.5659 Australian dollars)
(Reporting by Roushni Nair in Bengaluru)
((Roushni.Nair@thomsonreuters.com;))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.