Iluka Resources Limited · ASX:ILU
Iluka Resources — Bank of America Global Metals, Mining & Steel Conference 2021
20 slides from Iluka Resources's conference presentation, May 19, 2021
Slide 1: Iluka Resources
Iluka Resources Bank of America Global Metals, Mining & Steel Conference Tom O’Leary, Managing Director 18-20 May 2021 Capel, Western Australia
Slide 2: Disclaimer and Compliance Statements
Disclaimer and Compliance Statements 2 This presentation has been prepared by Iluka Resources Limited (Iluka). By accessing this presentation you acknowledge that you have read and understood the following statement. This document provides an indicative outlook for the Iluka business in the 2021 fin
Slide 3: Delivering Sustainable Value
Delivering Sustainable Value 3 Disciplined Performance in 2020 Well Placed for 2021 Promising Future • Prioritised safety of people and communities • Net cash position and significant funding headroom • Emerging position in rare earths • Operational settings flexed to market conditions • Positive in
Slide 4: Sustainable Development
Sustainable Development 4 Key Pillars of Iluka’s Sustainability Approach Health and Safety 2020 TRIFR 2.8 TCFD alignment (2019: 2.9) Year 2 of 3 Our People Our Communities Environmental Stewardship Governance and Integrity 28% 584 Indigenous Employment at hectares Value Creation Jacinth-Ambrosia reh
Slide 5: Mineral Sands and Rare Earths – Critical Minerals, Part of Everyday Life
Mineral Sands and Rare Earths – Critical Minerals, Part of Everyday Life 5
Slide 6: Disciplined Performance in 2020
Disciplined Performance in 2020 6 $423m Group EBITDA Mineral sands business has consistently delivered solid margins Mineral sands $2,410m EBITDA margin (%) 50% Reported NPAT 40% Includes profit of Deterra Royalties demerger 30% $151m 20% Underlying NPAT 10% $50m 0% 2016 2017 2018 2019 2020 Net Cash
Slide 7: Zircon Market Update
Zircon Market Update 7 Quick return of Chinese tile manufacturers shortly after Global Zircon Production Chinese New Year and recovery in other markets contributed to a strong start to 2021 2019 2020 Iluka Iluka 26% 15% • Iluka’s Q1 zircon sales strong in seasonally weaker quarter 1.2mt1 1.0mt1 • Ch
Slide 8: Global Zircon Use
Global Zircon Use 8 AMERICAS EUROPE INDIA CHINA REST OF ASIA GLOBAL DEMAND FUNDAMENTALS US has diversified end Italy and Spain are major Small but rapidly growing Highly diverse market - PACIFIC uses in industrial ceramic producers ceramics market major tile producer, Vietnam, Indonesia and machiner
Slide 9: High Grade Titanium Feedstock Market Update
High Grade Titanium Feedstock Market Update 9 Titanium pigment accounts for around 90% of end use Global High Grade Feedstock Production demand and, commencing H2 2020, this market has 2020 Iluka rebounded strongly 13% • DIY market has remained strong throughout H2 2.7mt1 2020 and in early 2021; tra
Slide 10: Operational Flexibility
Operational Flexibility 10 Iluka has a portfolio of operations weighted towards premium zircon and high-grade titanium products. Operational configuration is geared to: optimise production in response to market conditions; minimise costs and improve cash flow; and maintain flexibility in line with m
Slide 11: Rare Earths Diversification
Rare Earths Diversification 11 Iluka is developing an emerging position in rare earth elements, based on world class assets at Eneabba, Western Australia and Wimmera, Victoria The company has a long history of mining, processing and value addition - rare earths are a logical diversification Highligh
Slide 12: Rare Earths Diversification
Rare Earths Diversification 12 Eneabba Phase One Eneabba Phase Two Potential further development Operational Under construction Feasibility study Eneabba, Western Australia
Slide 13: Rare Earth Markets Overview
Rare Earth Markets Overview 13 Sc La Ce Pr Nd Pm Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Y What are rare earth elements? Light Rare Earths Heavy Rare Earths • 17 elements that are critical enablers of modern technologies • Relatively common in nature but often in low concentrations, making extraction and proc
Slide 14: Eneabba Deposit Assemblage
Eneabba Deposit Assemblage 14 Eneabba is the highest grade operational rare earths deposit (stockpile) globally with high assemblage of valuable neodymium and praseodymium. Eneabba Rare Earth Oxide Elements and Value % of Rare Earth Rare Earth Oxide % of Rare Earth Oxide Price2 Oxide Value Assemblag
Slide 15: Rare Earth Market Outlook
Rare Earth Market Outlook 15 Support for rare earth demand and prices from electrification of transport and renewable energy technologies Forecast Passenger EVs Forecast Wind Power Forecast NdPr Oxide Market Monthly Monazite Price (60% TREO) vs Eneabba Annual Eneabba REO Price Installation Balance R
Slide 16: Eneabba Production and Financial Parameters
Eneabba Production and Financial Parameters 16 Phase 11 Phase 21 Capex <$10 million ~$35 million Average annual production cash costs ~$4 million $35-40 million Payback period ~6 months <1 year 16-20ktpa 90% monazite concentrate Average annual production ~50ktpa 20% monazite-zircon concentrate 7-9kt
Slide 17: Project Pipeline
Project Pipeline 17 The company develops and progressively gates projects towards execution subject to: i. improving confidence and satisfaction with the risk-return attributes; ii. continued strategic alignment; and iii. sequencing to take advantage of economic and market outlook. ASSESS SELECT DEV
Slide 18: Project Pipeline
Project Pipeline 18 Eneabba, Western Australia Balranald, New South Wales Wimmera, Victoria Sembehun, Sierra Leone The Eneabba project involves the Balranald and Nepean are two rutile- Wimmera is a large-scale deposit with The Sembehun group of deposits are extraction, processing and sale of a rich
Slide 19: Deterra Royalties Holding
Deterra Royalties Holding 19 Iluka holds a 20% stake in Deterra Royalties (ASX:DRR), the largest ASX-listed resource focused royalty company. Deterra Royalties was created from the demerger of Iluka’s royalty business in October 2020. Highlights of Iluka’s Deterra Royalty holding Mining Area C sales
Slide 20: For more information contact
For more information contact Luke Woodgate, Group Manager Investor Relations and Corporate Affairs Investor.relations@iluka.com
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