Shareholder analysis guide for Iluka resources

1.1 Summary of the business Short description of the main operations of the business and the services or products that they offer Describe what is the business main profit source If they have multiple revenue sources, investigate, and summarise them Summarise in table or diagrams DO NOT reproduce material from website or annual reports

1.2 Chairman/Directors message Assessing the tone of the message, determine the potential target audience Compare chairmans message with 3 other companies (not in the same industry or sector)

1.3 Profile of an investor of the company Describe who would be a typical investor of your chosen company in terms of income vs capital growth long vs short term informed vs uninformed In your assessment, make comparisons to 3 companies (in other sectors) to substantiate your reasoning. For example, if you think the investor is looking for dividend income, the company must be paying substantially more than other companies. Use graphs and charts to illustrate.

1.4 Identify non-marginal investors To assess a company, we need to consider the future cash flow of the business; its sustainability and profitability. This is an important element of the analysis work. However, future cash flows must be discounted using the appropriate rate. CAPM is often used as an approximation for the rate. However, when there is a significantly high percentage of non-marginal investors, other methods must be Page 5 of 16 employed. In this assignment, we are only going to compare CAPM with DGM. Your investigation into the type of investors of your company will assist in determining whether CAPM should be relied upon. Focus your attention on identifying non-marginal investors; founders, insiders, directors, related companies like suppliers. Provide evidence of your research. Individual names, family trusts, private companies (mostly), share plans and DRPs are all non-marginals. When there is a high percentage of non-marginal investors, other calculation methods (such as DGM) must be considered on top of CAPM. No marks are awarded for identifying marginal investors. Nominees, custodians, banks and investment companies are all marginal investors; ignore them. Make sure you create a table listing the percentage of marginal vs non-marginal and then discuss. % of Marginal % of Non-marginal Top 20 shareholders Remaining shareholders State clearly your assumptions of investors outside the top 20.