Iluka Resources Limited · ASX:ILU
Iluka Resources — BMO Global Metals, Mining and Critical Minerals Conference 2023
27 slides from Iluka Resources's conference presentation, Feb 28, 2023
Slide 1: Iluka Resources
1 Iluka Resources BMO Global Metals, Mining and Critical Minerals Conference Tom O’Leary, Managing Director 28 February 2023 Cataby, 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 Critical minerals for Operational experience A global critical everyday life Zircon, titanium and rare earths are Over 70 years of critical minerals used in an array of everyday exploration, mining, processing, minerals company applications and are critical for marketing and rehabilitation, with a
Slide 4: Sustainability outcomes
Sustainability outcomes 4 Iluka’s purpose is to deliver sustainable value Zero fatalities and Improve employee Strengthen Optimise mine Set and deliver Iluka’s reduce injuries diversity community closure outcomes decarbonisation pathway relationships 18% Decrease in Group 24% Representation of Cultu
Slide 5: FY 2022 Key Features
5 FY 2022 Key Features Financial Operational Strategic Record revenue NPAT Australian Key synthetic rutile Eneabba rare Balranald FID underpinned by $589 million operations at contracts agreed earths refinery Capital cost2 - A$480m sustainable approach maximum settings approved Net cash NPV2 - A$400
Slide 6: Iluka's capital management approach
Iluka’s capital management approach 6 Significant funding capacity and disciplined approach to capital management Mineral sands Deterra Royalties stake Rare earths Debt Framework No net debt through the investment cycle Strong cash flow generation - average cash inflow over Deterra royalty stream se
Slide 7: Iluka's five-year financial performance
Iluka’s five-year financial performance 7 Iluka’s track record demonstrates strong financial performance, despite varying market conditions and macroeconomic events A$m Mineral sands Revenue, EBITDA and Margin1 Cash Flow and Dividends3 A$m cps 2,000 60% 800 160 1,800 50% 700 140 1,600 600 120 1,400
Slide 8: Deterra Royalties Key Features
Deterra Royalties 8 Key Features Mining Area C royalty receipts (A$m)1 Mining Area C production (Mwmt) 264.8 46.0 139.5 91.9 2.0 126.1 61.9 145 1.0 96.0 67.6 89.1 29.2 30.8 34 56.6 30 46.9 62.7 28.2 41.2 92.7 96.0 49.2 44.0 48.4 31.4 25.9 29.8 27.6 28.4 26.4 2018 2019 2020 2021 2022 2023 2018 219 20
Slide 9: Operations and projects in Australia
Operations and projects in Australia 9 Narngulu Iluka processing Projects Processing: zircon, rutile, ilmenite Eneabba rare earths, rutile, zircon, 1. Balranald rare earths ilmenite 4 refining rare earths, zircon, 2. Wimmera ilmenite, rutile 3 1 rutile, rare earths, zircon, 2 3. Euston ilmenite Refi
Slide 10: Mineral Sands
Mineral Sands Customers prioritising security of supply
Slide 11: Markets – zircon
Markets – zircon 11 Demand resilient in FY 2022 despite global macroeconomic and geopolitical uncertainty • FY 2022 sales 334kt (FY 2021: 355kt) US$/t Zircon net realised FOB price 1 Result ‒ Q4 2022 sales of 80kt up 27% on Q3 2022 sales 2,800 ‒ zircon in concentrate (ZIC) sales 100kt 2,400 2,000 •
Slide 12: Markets – high-grade titanium feedstocks
Markets – high-grade titanium feedstocks 12 Strong, demonstrated level of customer interest for high grade feedstocks produced by Iluka in Australia • FY 2022 sales 386kt (FY 2021: 513kt) Result US$/t Rutile net realised FOB price 1 ‒ SRL demerged in August 2022 2,800 2,400 Pricing • FY 2022 rutile
Slide 13: Markets – synthetic rutile contracts
Markets – synthetic rutile contracts 13 Offtake commitments for synthetic rutile increased to ~200ktpa contracted under ‘take or pay’ arrangements for the next four years • Commissioned in December 2022 SR1 restart ‒ produced 7kt of synthetic rutile in Q4 2022, in line with targeted kt Synthetic rut
Slide 14: Inventory position and industry evolution
Inventory position and industry evolution 14 Disciplined production responses an encouraging evolution for the mineral sands and downstream opacifier and pigment industries. This serves to reduce volatility, with positive implications for many through the supply chain $m Finished goods1 and HMC inve
Slide 15: Balranald – final investment decision
Balranald – final Investment decision 15 Project overview Located in the Riverina district of south western New South Wales. The project is focused on the rutile and zircon rich West Balranald deposit. Owing to its relative depth (approximately 60 metres below surface), Iluka has over several years
Slide 16: Rare Earths
Rare Earths Australia’s first fully integrated refinery
Slide 17: Exponential global demand
Exponential global demand 17 Despite anticipated production increase, there is forecast to be a global deficit of ~7,700 tonnes p.a. of NdPr oxide by 2025, increasing to ~20,000 tonnes p.a. by 2030 Forecast global NdPr oxide production-demand balance and inventory levels Forecast electric vehicle Fo
Slide 18: Eneabba rare earths refinery – execution
Eneabba rare earths refinery – execution 18 Beneficiation Plant Refinery Stockpile (Phase 2) (Phase 3) Operational Under construction Screening Plant (Phase 1) Operational Note: Image is a representation of the Eneabba rare earths refinery (Phase 3) • A fully integrated refinery producing separated
Slide 19: Iluka's strategic partnerships for rare earths
Iluka’s strategic partnerships for rare earths 19 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 with Australian Gove
Slide 20: Iluka's rare earths feedstocks
Iluka’s rare earths feedstocks 20 Eneabba stockpile feedstock ▪ Contains both light and heavy rare earths ▪ 1.0 million tonnes of Mineral Resource stockpile rich in high grade rare earth bearing minerals, readily available at surface1 ▪ No mining infrastructure required, reducing time and cost for p
Slide 21: Wimmera – definitive feasibility study approved
Wimmera – definitive feasibility study approved 21 Project overview A large, fine-grained deposit in Western Victoria providing a potential multi-decade source of both zircon and rare earths – including the highly valuable heavy rare earths dysprosium and terbium. Technical challenge of physical sep
Slide 22: Magnet rare earth oxide value per kilo
Magnet rare earth oxide value per kilo 22 Magnet REO contribution to basket value REO assemblages and prices Lynas Northern Mt Weld MP Iluka Browns (Central Materials 2022 prices Iluka Wimmera Iluka Range Lanthanide Mountain US$/kg REO Eneabba1 WIM1001 Balranald1 Wolverine2 Deposit) 3 Pass 4 (Adamas
Slide 23: Supplementary Information
Supplementary Information Supplementary Information Narngulu, Narngulu, Western Western Australia Australia
Slide 24: Iluka's market position
Iluka’s market position 24 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 25: Market position - detail
Market position - detail 25 High grade titanium Zircon 2021 global synthetic rutile supply 2021 global rutile supply 2021 global chloride slag supply 2021 global zircon supply (700kt TiO2) (500kt TiO2) (1,300kt TiO2) (1,200kt) Other Iluka 3% 13% Other Iluka China 9% QIT Iluka Other 26% Other 28% Ukr
Slide 26: Iluka 2021 sales detail
Iluka 2021 sales detail 26 Titanium feedstocks Zircon (Iluka products: rutile, synthetic rutile and ilmenite) Industry demand Iluka sales Industry demand Iluka sales Titanium Titanium metal Other Welding 4% metal Other Other Refractory 4% 2% 3% 5% Welding 5% and foundry 7% 10% Refractory and foundry
Slide 27: For more information contact
27 For more information contact Luke Woodgate, Group Manager, Investor Relations and Corporate Affairs investor.relations@iluka.com Jacinth-Ambrosia, South Australia
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