Iluka Resources Limited · ASX:ILU
Iluka Resources — Shareholder Meeting (April 2017)
50 slides from Iluka Resources's shareholder meeting presentation, Apr 28, 2017
Slide 1: Iluka Resources Limited 2017 Annual General Meeting
20 17 Iluka Resources Limited 2017 Annual General Meeting 28 April 2017 1
Slide 2: Greg Martin, Chairman
LT) ILUKA Greg Martin Chairman
Slide 3: Safety and venue information
Safety and venue information 3
Slide 4: Safety and venue information
Safety and venue information Please switch off or place your mobile phones on silent 4
Slide 5: Iluka Board of Directors
Iluka Board of Directors Greg Martin Tom O’Leary Jenny Seabrook Hutch Ranck Marcelo Bastos Xiaoling Liu Chairman Managing Director 5
Slide 6: Xiaoling Liu
Xiaoling Liu Audit and Risk Committee Nominations Committee 6
Slide 7: Marcelo Bastos
Marcelo Bastos Audit and Risk Committee Nominations Committee 7
Slide 8: James (Hutch) Ranck
James (Hutch) Ranck Audit and Risk Committee People and Performance Committee Nominations Committee 8
Slide 9: Jenny Seabrook
Jenny Seabrook Chairman, Audit and Risk Committee People and Performance Committee Nominations Committee 9
Slide 10: Tom O'Leary
Tom O’Leary Managing Director and Chief Executive Officer 10
Slide 11: Sue Wilson
Sue Wilson Company Secretary 11
Slide 12: Iluka executive team
Iluka executive team Tom O’Leary Doug Warden Matt Blackwell Rob Hattingh Simon Hay Steve Wickham Sue Wilson Managing Director 12
Slide 13: Annual General Meeting
20 17 Annual General Meeting 13
Slide 14: Chairman's Address
20 CY 17 WuKA Chairman’s Address 14
Slide 15: 2016 Financial and operating performance
2016 Financial and operating performance 15
Slide 16: 2016 Financial performance
2016 Financial performance • (NPAT) of $(224.0) million (2015: $53.5 million) - non-recurring items, lower revenue • Free cash flow generation of $47.3 million • 2016 total dividend payments of 3.0 cent, fully franked • Sierra Rutile acquisition commitment of $389.5 million, including transaction co
Slide 17: Market conditions
Market conditions • Improving market conditions • Zircon sales volumes increased 130 per cent year-to-date, compared to 2016 • Average US$50/tonne zircon price increase • Demand for high grade feedstock favourable • Signs of recovery in pigment market and business conditions 17
Slide 18: Sierra Rutile
Sierra Rutile • Iluka acquired Sierra Rutile Limited on 7 December 2016 • Reserves support of at least 15 years • Operational improvement and production expansion options • Provides flexibility with internal development options • Focus on governance, safety and risk management frameworks 18
Slide 19: Business sustainability
Business sustainability Total recordable injury frequency rate Lost time injury frequency rate decreased 34 per cent decreased 55 per cent *Excludes Sierra Rutile, acquired on 7 December 2016 19
Slide 20: Business sustainability
Business sustainability Clockwise: Rehabilitated native vegetation at Jacinth-Ambrosia, South Australia Native vegetation in mid-west of Western Australia Rehabilitated pastoral land in the Murray Basin, Victoria 20
Slide 21: Governance, Board matters and Managing Director
Governance, Board matters and Managing Director Heavy mineral concentrate, Jacinth-Ambrosia, South Australia 21
Slide 22: Managing Director's Address
20 17 Managing Director’s Address 22
Slide 23: Iluka business focus
Iluka business focus • Create and deliver value for shareholders • Strong capital discipline framework • Counter-cyclical investment • Flex asset production in line with market demand • High standards of safety, environment and sustainability practices 23
Slide 24: Sustainable business review
Sustainable business review • Asset impairments • Increased rehabilitation provisions • Ore reserves adjustment in line with mine plan • Non-production costs reduced to ensure sustainable cost structure 24
Slide 25: Portfolio and priorities
Portfolio and priorities PERTH BASIN EUCLA BASIN MURRAY BASIN SIERRA RUTILE VIRGINIA SRI LANKA Western Australia South Australia Victoria / New South Sierra Leone USA Wales Tutunup South mine Jacinth-Ambrosia mine Concentrate processing Gangama dry mine Rehabilitation Puttulam deposit Cataby deposit
Slide 26: Jacinth-Ambrosia
Jacinth-Ambrosia 26
Slide 27: Sierra Rutile operation
Sierra Rutile operation Operation commencement 1967 Location Bonthe and Moyamba districts in Southern Province Products Rutile, ilmenite and a smaller quantity of zircon in concentrate Mines • Gangama Dry mine • Lanti Dry mine • Sembehun mine Assets • Three wet concentrating plants • Mineral separat
Slide 28: Sierra Rutile
Sierra Rutile • Safety improvements • Operational improvements • Expansion opportunities – Lanti Dry mine – Gangama Dry mine – Sembehun mine 28
Slide 29: Cataby
Cataby • Large chloride ilmenite deposit with associated zircon and rutile production • Estimated life of ~8.5 years • Execute-ready stage 29
Slide 30: Mineral sands market conditions
Mineral sands market conditions Zircon • Strong initial 2017 volumes • Implemented a US$50/tonne price increase from 15 February High grade chloride feedstock • Pigment market enters 2017 with favourable set of factors • Spot price enquiries increasing 30
Slide 31: Mining Area C royalty
Mining Area C royalty • Total contribution of $680 million since mining began • Upside potential subject to BHP Billiton plans − potential for additional MAC volumes to replace production from other depleted mines Mining Area C Sales Volumes and Iluka EBIT Contribution 100 80 60 40 20 0 2002 2003 20
Slide 32: Managing Director's Address
20 17 Managing Director’s Address 32
Slide 33: Formal Business of the Meeting
20 17 Formal Business of the Meeting 33
Slide 34: Proxies received for the meeting
Proxies received for the meeting Proxies received: • 336,301,091 shares • 80.32 per cent of issued shares 34
Slide 35: Formal Business of the Meeting
20 17 Formal Business of the Meeting 35
Slide 36: Speaking and question procedure
Speaking and question procedure 36
Slide 37: Annual Financial Report
Annual Financial Report LT) ILUKA ILUKA 37
Slide 38: Shareholder Questions
20 17 Shareholder Questions 38
Slide 39: Ordinary Resolutions
20 17 Ordinary Resolutions 39
Slide 40: Green Voting Card
Green Voting Card © ILUKA ‘Tluka Resources Limited 8 34.08 65 018 ANNUAL GENERAL MEETING 28 APRIL 2017 SHAREHOLDER/PROXYHOLDER ADMISSION & VOTING CARD. THE DIRECTORS OF ILUKA RESOURCES LIMITED THANK YOU FOR YOUR ATTENDANCE PLEASE RETAIN THIS CARD UNTIL THE CLOSE OF THE MEETING Please read the instru
Slide 41: Resolution 1: Re-election of Jenny Seabrook
Resolution 1: Re-election of Jenny Seabrook Jenny Seabrook Chairman, Audit and Risk Committee People and Performance Committee Nominations Committee 41
Slide 42: Resolution 1
Resolution 1 Re-election of Jenny Seabrook Proxies Received For 334,666,369 Against 896,298 Proxy’s discretion 738,424 Abstain 90,630 42
Slide 43: Resolution 2: Re-election of Marcelo Bastos
Resolution 2: Re-election of Marcelo Bastos Marcelo Bastos Audit and Risk Committee Nominations Committee 43
Slide 44: Resolution 2
Resolution 2 Re-election of Marcelo Bastos Proxies Received For 324,017,721 Against 11,543,933 Proxy’s discretion 745,682 Abstain 84,385 44
Slide 45: Resolution 3: Adoption of Remuneration Report
Resolution 3: Adoption of Remuneration Report Narngulu, Mid West, Western Australia 45
Slide 46: James (Hutch) Ranck
James (Hutch) Ranck Chairman, People and Performance Committee 46
Slide 47: Resolution 3: Adoption of Remuneration Report
Resolution 3: Adoption of Remuneration Report 47
Slide 48: Resolution 3
Resolution 3 Adoption of Remuneration Report Proxies Received For 261,691,471 Against 65,680,665 Proxy’s discretion 712,681 Abstain 8,306,903 48
Slide 49: Green Voting Card
Green Voting Card © ILUKA ‘Tluka Resources Limited 8 34.08 65 018 ANNUAL GENERAL MEETING 28 APRIL 2017 SHAREHOLDER/PROXYHOLDER ADMISSION & VOTING CARD. THE DIRECTORS OF ILUKA RESOURCES LIMITED THANK YOU FOR YOUR ATTENDANCE PLEASE RETAIN THIS CARD UNTIL THE CLOSE OF THE MEETING Please read the instru
Slide 50: Iluka Resources Limited 2017 Annual General Meeting
20 17 Iluka Resources Limited 2017 Annual General Meeting 28 April 2017 50