Iluka Resources Limited · ASX:ILU
Iluka Resources — Investor Presentation (November 2018)
18 slides from Iluka Resources's investor presentation, Nov 13, 2018
Slide 1: Australian Shareholders Association Presentation
For personal use only Australian Shareholders Association Presentation Iluka Resources Limited Adele Stratton, Chief Financial Officer Melissa Roberts, General Manager – Investor Relations and Commercial Mineral Sands Operations 20 18 WWW.ILUKA.COM l ASX:ILU
Slide 2: Disclaimer – Forward Looking Statements
Disclaimer – Forward Looking Statements For personal use only This presentation has been prepared by Iluka Resources Limited (Iluka). By accessing/attending this presentation y ou acknowledge that y ou hav e read and understood the f ollowing statement. Forward Looking Statements This presentation c
Slide 3: Iluka Resources Limited
Iluka Resources Limited For personal use only • ASX-listed (ASX:ILU) mineral sands company, ~$3.8bn market capitalisation • Largest producer of zircon and leading producer of high-grade titanium dioxide feedstocks • Operations in Australia and Sierra Leone • Royalty asset – BHP Mining Area C, Wester
Slide 4: Asset Profile
Asset Profile For personal use only 60 years experience in exploration, project development, mining, processing and marketing of mineral sands. Virginia, US Rehabilitation MAC Royalty, Australia (mine closed Dec 2016) BHP’s Mining Area C South Australia Jacinth-Ambrosia mine Sierra Leone Gangama dry
Slide 5: Zircon
Zircon For personal use only Zircon is favoured for its opacity, and resistance to water, chemicals, heat and abrasion • Iluka is the largest zircon producer globally (~30% market share) • Broad customer base (~100 customers), with ~60% sales into China Refractory and Foundry (~30% ) Investment cast
Slide 6: Titanium Dioxide Feedstocks
Titanium Dioxide Feedstocks For personal use only Titanium dioxide’s key attributes are its opacity, chemical inertness and UV resistance Global titanium dioxide market ~7.3Mt annually (TiO2 units) used in: • Pigment production (paints, plastics, paper and coatings) – High refractive index + UV prot
Slide 7: High Grade Feedstocks
High Grade Feedstocks For personal use only Iluka operates in the high value, high-grade chloride feedstock market, producing rutile and synthetic rutile • The titanium dioxide feedstock market consists of sulphate process and chloride process feedstocks • Iluka’s high-grade chloride feedstocks prov
Slide 8: Global Mineral Sands Producers
Global Mineral Sands Producers For personal use only Global Zircon Producers High Grade Chloride Titanium Feedstocks1 (2016 Total Production ~1.2mt) (2016 Total Production ~2.5mt TiO2) Others Iluka TiZir 13% 17% Others 3% 23% Iluka 29% Base 3% Cristal 4% TiZir 4% China 9% Cristal 6% Rio Tinto Kenmar
Slide 9: Australian Operations
Australian Operations For personal use only Cataby Project, Western Australia Narngulu MSP, Geraldton • Large chloride ilmenite rich deposit • Processes heavy mineral concentrate into zircon, rutile and tailings • 150kms north of Perth • Mineral processing unit for production of zircon • First produ
Slide 10: International Operations
International Operations For personal use only Sierra Rutile, Sierra Leone • Began operations 1960s • Acquired by Iluka in December 2016 • World’s largest rutile mine • Large, long life operations (~20 years) • 3 mining fronts: Lanti dredge, Lanti dry mine and Gangama • Bulk shipment via Nitti Port,
Slide 11: Business Focus
Business Focus For personal use only Our near-term focus is the delivery of key projects… Cataby development Jacinth-Ambrosia Sierra Rutile – Construction continues on time and – Successfully restarted fourth quarter 2017 – Gangama and Lanti dry mine within budget expansions progressing – Accelerate
Slide 12: Organic Growth Options
Organic Growth Options For personal use only … while developing a portfolio of organic growth options Fine Minerals Project Balranald Pre-feasibility study on the development of fine- • Large, deep, high grade rutile-rich deposit grained WIM deposits in western Victoria • Industry significant source
Slide 13: Sustainability
Sustainability For personal use only H1 2018: Group total recordable injury frequency rate of 2.7 13
Slide 14: Community
Community For personal use only Local communities underpin our operations • Partnership with Far West Coast Aboriginal Corporation, South Australia – 20% indigenous employment target at Jacinth-Ambrosia for Iluka employees (26% reached in 2017) and contractors • 2017 South Australian Premier’s Commu
Slide 15: Mining Area C Royalty Asset
Mining Area C Royalty Asset For personal use only Iluka holds a royalty over iron ore from BHP’s Mining Area C (MAC) hub in WA • BHP’s US$3.4bn South Flank development received board approval in June 2018 • South Flank expansion sits within the MAC royalty area • To replace production from Yandi min
Slide 16: Balance Sheet
Balance Sheet For personal use only Net Debt, Gearing and Funding Headroom $m Gearing % • First half 2018 free cash flow of $226 million 1000 33 • Significant reduction in net debt 850 – ($183m December 2017 to $34m June 2018) 26 700 • Strong balance sheet provides flexibility through the cycle 19 5
Slide 17: Dividend
Dividend For personal use only Dividend Framework Pay a minimum 40% of free cash flow not required for investing or balance sheet activity Distribute maximum practicable available franking credits • Interim dividend of 10 cents per share fully franked declared, representing 19% of H1 free cash flow
Slide 18: For more information contact
For personal use only For more information contact: Melissa Roberts investor.relations@iluka.com +61 (0) 450 398 431 20 18 WWW.ILUKA.COM l ASX:ILU
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