Iluka Resources Limited · ASX:ILU
Iluka Resources — Macquarie Australia Conference 2023
30 slides from Iluka Resources's conference presentation, May 4, 2023
Slide 1: Iluka Resources (ASX:ILU) Macquarie Australia Conference
1 Iluka Resources (ASX:ILU) Macquarie Australia Conference 3-4 May 2023 Eneabba, Western Australia
Slide 2: Disclaimer
Disclaimer 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 presentation includes forward-looking statements reflecting Iluka’s current expectations. These statemen
Slide 3: A global critical minerals company
3 A global critical Critical minerals for everyday life Operational experience minerals company Zircon, titanium and rare earths are used in an array of everyday applications and are Over 70 years of critical minerals exploration, mining, processing, marketing and critical for sustainable developmen
Slide 4: Mineral sands and rare earths operations and projects in Australia
Mineral sands and rare earths operations and projects in Australia 4 Narngulu Iluka processing Projects Processing: zircon, rutile, ilmenite Eneabba rare earths, rutile, 1. Balranald rare earths zircon, ilmenite 4 refining rare earths, zircon, 2. Wimmera ilmenite, rutile 3 1 rutile, rare earths, 2 3
Slide 5: 2022 achievements
2022 achievements 5 Financial Operational Strategic Sustainable Record revenue of $1,727 million Mines and processing facilities at Eneabba rare earths refinery Western Australian Government maximum operational settings approved Golden Gecko Award for Sustainable zircon and rutile price Environmenta
Slide 6: Mineral Sands
Mineral Sands 6 Western Australia Capel,
Slide 7: A mature, cash generating business with a strong balance sheet
7 A mature, cash generating business with a strong balance sheet Iluka sources and uses of cash flow Average 2018-2022 1 Cash generating mineral sands business Five year annual average operating cash flow: $485 million Cash sources Cash uses Mining Area C / ~A$540 million 2 Net cash position Deterra
Slide 8: Mineral sands markets
Mineral sands markets 8 Iluka’s portfolio of high grade, high quality critical minerals products produced in Australia delivers secure, reliable supply to customers globally Titanium - Titanium - Zircon Synthetic Rutile Rutile 2022 sales = 330kt1 2022 sales = 246kt1 2022 sales = 57kt1 Market share =
Slide 9: Mineral sands production outlook
Mineral sands production outlook 9 kt JA grade decline impact from 300 2025, partially offset by Balranald development Group Z/R/SR production forecast to be maintained at ~600ktpa over next three years 200 Zircon Iluka has proven record of delivering projects to maintain supply 100 JA + Cataby Balr
Slide 10: Zircon-in-concentrate optionality
Zircon-in-concentrate optionality 10 Iluka’s zircon-in-concentrate (ZIC) provides strategic flex supply to zircon market Iluka zircon-in-concentrate sales kt Timing and volume of • ZIC is a lower grade zircon product 100 sales based on strategic • Sold strategically as swing production into the mark
Slide 11: Rare Earths
Rare Earths 11
Slide 12: Building a globally significant rare earths refinery
Building a globally significant rare earths refinery 12 Funded via strategic risk sharing Producing separated rare earth Integrated refinery producing partnership with the Australian oxides essential for global separated light and heavy rare earth Government, including a $1.25 billion electrificatio
Slide 13: Rare earths needed for electrification of global economy
Rare earths needed for electrification of global economy 13 Demand for renewable energy technology demand to deliver the global electrification transition will require a significant increase in rare earth magnet oxides Global demand for magnet rare earth oxides (Nd, Pr, Dy, Tb) kt 300 Wind power dem
Slide 14: Rare earths supply for global electrification
Rare earths supply for global electrification 14 Supply of magnet REOs from the Eneabba refinery will form an important part of Western and likeminded supply chains for global electrification NdPr oxide 2022 global supply1 Global supply and demand for magnet rare earth oxides (Nd, Pr, Dy, Tb) Total
Slide 15: Importance of heavy rare earths in permanent magnets
15 Importance of heavy rare earths in permanent magnets Magnet applications, operating temperature and heavy rare earth content1 EV motor contains ~1.5kg of NdFeB HDD, CD, Holding, Appliances, High performance EV/HEV traction magnets (or ~0.5kg NdPr oxide) DVD, sensors industrial motors, appliances,
Slide 16: Iluka's refinery has feed rich in heavy rare earths
Iluka’s refinery has feed rich in heavy rare earths 16 Eneabba stockpile ~1 million tonnes of high grade rare earth Magnet REO contribution to REO basket value @ 2022 prices concentrate, readily available at surface US$ of magnet REO per kg of REO Refinery could be filled for ~5 years with 70 stockp
Slide 17: Growth
Growth Eneabba, Western Australia
Slide 18: Project pipeline with growth and sustaining options
Project pipeline with growth and sustaining options 18 • Executed • Future events 2023 2024 2025 2026 2027 2028 1 Eneabba rare earths refinery Fully integrated rare earth refinery, producing separated rare earth oxides. EXECUTE • Scheduled commissioning 2025 Project execution Balranald Rutile and zi
Slide 19: Iluka's future potential revenue mix
Iluka’s future potential revenue mix 19 Historically, Iluka’s revenue has been derived primarily from its mineral sands business The company’s future potential revenue mix is strongly weighted to rare earths 1 2 3 4 Balranald Eneabba rare earth Northern Minerals Potential Wimmera rutile-zircon mine
Slide 20: Supplementary Information
Supplementary Information
Slide 21: Deterra Royalties 20% stake an additional source of value
Deterra Royalties 20% stake an additional source of value 21 Key Features Iluka’s valuable Deterra Royalties stake provides increased long Iluka owns 20% of ASX-listed Deterra Royalties term financial strength (ASX:DRR) Cornerstone asset: Mining Area C (MAC) iron ore royalty Iluka’s dividend framewo
Slide 22: Disciplined approach to capital management
Disciplined approach to capital management 22 Mineral sands Deterra Royalties stake Rare earths Debt Framework No net debt through the investment cycle Strong cash flow generation – average operating cash flow Deterra royalty stream benefiting from production growth over five years of $485 million E
Slide 23: Simplified Eneabba refinery flowsheet and circuit capacities
Simplified Eneabba refinery flowsheet and circuit capacities 23 1 2 3 3 Cracking and leaching Purification 2 Separation and finishing • Blend of feed concentrate based on feed availability • Only selected circuits most relevant for modelling purposes shown NdPr • SX circuit capacities are applied wi
Slide 24: Iluka's refinery has feed rich in heavy rare earths
Iluka’s refinery has feed rich in heavy rare earths 24 Magnet REO contribution to basket value @ 2022 prices REO assemblages and prices US$ of magnet REO Northern MP per kg of REO Iluka Browns Materials 2022 prices 70 Iluka Wimmera Iluka Range Lynas Mountain US$/kg REO Eneabba1 WIM1001 Balranald1 Wo
Slide 25: Iluka's market position
Iluka’s market position 25 Iluka is a leading global producer of zircon and high grade titanium feedstocks; the company’s rare earths diversification is expected to make a meaningful contribution to the sustainable supply of rare earths, with commissioning scheduled for 2025 High grade titanium Zirc
Slide 26: Market position – detail
Market position – detail 26 High grade titanium Zircon 2022 global synthetic rutile supply 2022 global rutile supply 2022 global chloride slag supply 2022 global zircon supply (775kt TiO2) (485kt TiO2) (1,700kt TiO2) (1,200kt) Iluka 7% Other Iluka Other China 7% 28% 11% QIT Iluka China Other 11% Oth
Slide 27: Iluka 2022 sales detail
Iluka 2022 sales detail 27 Titanium feedstocks Zircon (Iluka products: rutile, synthetic rutile and ilmenite) Industry demand Iluka sales1 Industry demand Iluka sales1 Titanium Welding Other Other Other Welding 4% 3% Refractory 3% metal 5% 2% and foundry 7% Ceramics 12% Refractory 48% and foundry 29
Slide 28: Iluka's strategic partnerships for rare earths
Iluka’s strategic partnerships for rare earths 28 Through strategic partnerships and collaboration, Iluka has de-risked its rare earths diversification financially and technically; and enhanced its future product offering for valuable heavy rare earths • Risk sharing partnership includes A$1.25 bill
Slide 29: Eneabba Mineral Resource and Ore Reserve
Eneabba Mineral Resource and Ore Reserve 29 HM Assemblage(2) Mineral Material In Situ HM Clay Ilmenite Zircon Rutile M+X Deposit Resource Tonnes HM Tonnes Grade Grade Grade Grade Grade Grade Category(1) mt kt (%) (%) (%) (%) (%) (%) MSP By-Product Measured 0.68 0.57 84.0 3 32 26 - 21.4 Stockpile Ind
Slide 30: For more information contact
30 For more information contact Luke Woodgate, Group Manager, Investor Relations and Corporate Affairs investor.relations@iluka.com Cataby, Western Australia
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