Micron

Posted on | by Leon Hinde | Leave a Comment on Micron

Micron’s gross margin, the profit left after accounting for the cost of goods sold, jumped to 84.9% in the third quarter from 74.9% in the prior period and 39% a year earlier. Margins topped analyst estimates.

Net income during the quarter was $28.24 billion, or $24.46 per share, versus $1.89 billion, or $1.68 per share in the year-ago period.

While all four of Micron’s business units saw revenue multiply, the most explosive growth was in the core data center business, where sales climbed more than sevenfold to $11.5 billion from $1.53 billion in the same period a year ago. In addition to memory, Micron also recorded over $5 billion in data center solid state drive revenue, the company said in a presentation.

Cloud memory was up over 300% to $13.77 billion.

The company’s mobile and client business unit saw a 250% growth in revenue to $11.52 billion, and even memory for automotive and embedded applications more than quadrupled to $4.63 billion in sales.

Iluka

Posted on | by Leon Hinde | Leave a Comment on Iluka

Iluka Resources earnings forecasts reduced due to the slower ramp-up profile.

First Rare Earths Offtake Agreement Secured

  • Iluka announced a four-year take-or-pay offtake agreement covering approximately 1,200 tonnes of Nd, Pr, Dy and Tb from CY28 onward.
  • The contract represents about 10% of planned rare earth production and validates demand for Eneabba’s future output.

Production Ramp-Up Appears Slower Than Expected

  • Contracted volumes imply a more gradual production ramp-up than previously forecast.

Eneabba Refinery Funding and Construction De-Risked

  • Export Finance Australia confirmed access to the full A$1.65bn non-recourse government loan.
  • The refinery is over 50% complete, capital cost remains A$1.7–1.8bn, and commissioning is targeted for mid-2027.

The offtake agreement is a strategic positive that validates Eneabba’s rare earth project, but the market may need to temper expectations around the speed of production ramp-up. Macquarie remains constructive on the longer-term rare earths opportunity.