Iluka Resources Limited · ASX:ILU
Iluka Resources — TZMI Congress China Day 2015
24 slides from Iluka Resources's conference presentation, Nov 19, 2015
Slide 1: Investing in China's Future
2015 TZMI China Day www.iluka.com l ASX: ILU Investing in China’s Future 投资中国的未来 November 19, 2015 1
Slide 2: Disclaimer – Forward Looking Statements
Disclaimer – Forward Looking Statements Forward Looking Statements This presentation contains certain statements which constitute “forward-looking statements”. These statements include, without limitation, estimates of future production and production potential; estimates of future capital expenditu
Slide 3: Mineral Sands – Part of Everyday Life
Mineral Sands – Part of Everyday Life 矿砂 – 日常生活的一部分 3
Slide 4: Iluka's Approach
Iluka’s Approach 澳禄卡的方法 Objective: Create and deliver value for shareholders 目标：创造和传递价值给股东 Three key aspects: 三个关键方面： • flex asset operation in line with market demand • 灵活的资产业务与市场需求一致 • preserve and advance growth opportunities • 保护和推进增长的机会 • act counter cyclically where appropriate • 适当的时候采取行动以抵消市
Slide 5: Company Overview
Company Overview 公司概况 • Largest producer of zircon in the world • 世界最大的锆英砂生产商 • Significant high grade titanium dioxide producer (rutile and synthetic rutile) • 重要的高品位钛矿生产商 （金红石和人造金红石） • ~10 years reserve life; resources1 ~ 5 times reserves • 十年的储量寿命；净储量 ～ 5倍于储量 • Royalty from BHP Billiton's Mining
Slide 6: International Customer Support
International Customer Support 国际客户支持 Includes market / industry analysis 6
Slide 7: Freight Advantage
Freight Advantage 货运优势 Kenya ~23 days Senegal ~39 days Portland South Africa ~20 days ~25 days WA ~15 days Chart shows indicative sea days from selected mineral sands producing countries to China. Source: Iluka 7
Slide 8: Project Development Options
Project Development Options 项目发展的选择 Balranald, New South Wales Eucla Basin Satellite Deposits, South Australia Cataby, Western Australia Puttalam, Sri Lanka 8
Slide 9: SR2 Up and Running
SR2 Up and Running 人造金红石开炉生产 • SR2 start up in late March 2015 • 人造金红石二厂于2015年三月晚些时候开炉生产 – Zero recordable safety incidents – 生产事故零纪录 – On time – 准时 – On budget – 按计划 – On specification – 按质量 – Ahead of forecast on production volumes – 超出生产的预测 9
Slide 10: Asset Operation Flex – Results
Asset Operation Flex – Results 资产业务的灵活 – 结果 • Recent market conditions challenging, but Iluka has maintained: • 最近的市场环境具有挑战性，但是澳禄卡依然保持着： – free cash flow generation – 产生现金流 – balance sheet strength – 强健的报表 – inventory monetisation potential – 库存变现的潜力 – production reactivation capability (at low / ap
Slide 11: Global Grade and Assemblage Challenges
Global Grade and Assemblage Challenges 全球矿的品位和矿藏的挑战 HM Grade Mineral assemblage in resources RZ Assemblage 5.0% 15% 13% Trash Sulphate Ilmenite 4.0% 12% Chloride Ilmenite Rutile (and other high grade TiO2) 3.0% 9% 9% Zircon Combined RZ in HM (RHS) 6% 2.0% 6% • Trash component in Heavy Mineral Grade
Slide 12: Exploration
Exploration 开采 • Consistently and well funded exploration programme ~$20 million per annum • 持续并且有很好资金保障的开采项目 – 每年两千万澳币 • Gated approach to exploration expenditure • 门控的方法来应对开采的支出 • Mineral sands exploration in Australia • 在澳洲的矿砂开采 − testing new concepts in mature basins − 在成熟的盆地测试新的概念 • Increasing
Slide 13: China TiO2 Feedstock Market
China TiO2 Feedstock Market 中国钛原料市场 Peter Slyth Vice President TiO2 Sales - Asia
Slide 14: China TiO2 Industry Overview
China TiO2 Industry Overview中国钛工业进展 Plants & TiO2 Feedstocks工厂及钛原料 • China’s titanium industry consists of over 250 plants; 中国钛工业有大约250家工厂 – Existing Sulphate Pigment, Ti-Sponge, Welding, Fe-Ti plants 现有硫酸法钛白，海绵钛，焊接，钛铁工厂 – Linked with upgraded products; RI, Sulphate Slag, Chloride Slag, Merchant TiC
Slide 15: China TiO2 Feedstock Flowchart
China TiO2 Feedstock Flowchart 中国钛原料流程图 FY 2014 Current Ti-Feedstocks Chloride Opportunity Future Opportunity • Panzhihua ilmenite (3600kt) • SR/Slag Imports • Imported ilmenite (1900kt) rutile (31kt) 91-93% • Imported Zr-Ti Tailings rutile (40kt) Domestic Domestic & Imports & Imports Imports Import
Slide 16: China TiO2 Feedstocks
China TiO2 Feedstocks 中国钛原料 FY 2014 • China requires 2.7m tpa of TiO2 feedstock units 中国钛原料需求270万吨Ti • Sulphate pigment is the dominant end product accounting for 80% of TiO 2 units 硫酸法钛白对钛原料需求占主导，大约80%钛（以钛单独计算） • China is partly self-sufficient in ilmenite but also requires high quality TiO2 中国钛矿部分
Slide 17: China Ilmenite Imports vs Domestic Supply
China Ilmenite Imports vs Domestic Supply中国 进口钛矿与国产矿对比 2011-2014 • China’s domestic ilmenite market share is increasing versus imported ilmenite 相比进口矿，国产矿份额增加 • African suppliers are replacing Vietnamese and Indian imports 非洲供应逐渐取代越南和印度进口量 • Ilmenite imports are increasingly chloride slag feedstocks
Slide 18: China Chloride TiO2 Feedstocks
China Chloride TiO2 Feedstocks 中国氯化钛原料 Chloride Market Share 氯化市场份额 • Chinese slag 90-92% TiO2 supplies 86% of China’s existing chloride market 国产高钛渣和加工天然金红石可以满足86%传统旧的氯化技术需求 • Rutile/synthetic rutile are increasingly important to feed China’s new fluid-bed chloride plants 天然/人造金红石将对新的沸腾氯化钛白发展越来越重要
Slide 19: Chloride Pigment Process
Chloride Pigment Process 氯化法钛白粉生产流程 Plant Economics – Value in Use 工厂经济——使用价值 • Majority of chloride pigment plants target a “head grade” between 88% and 92% 绝大部分的氯化法钛白粉工厂的目标品位在88%-92%之间 • Feedstocks have unique characteristics – requiring extensive testing and optimization: 原料具有独特性——要求大量的测试和优化 – va
Slide 20: Fluid Bed Comparison
Fluid Bed Comparison 沸腾氯化对比 TiCl4 TiCl4 Capel SR. Rounded Chinese slag. Angular grains, few fines particles, high fines Capel人造金红石，球 中国高钛渣，角粒结构， 状颗粒，很少微粉 微粉多 Bed expanded Bed static, poor fluidization 膨胀床 Ore + Ore + 固定床，流态化差 Coke Coke Better gas/particle contact Coarse fractions settled to base 更好的
Slide 21: Comparing Iluka SR to Slag
Comparing Iluka SR to Slag 澳禄卡人造金红与高钛渣的比较 SR Chinese Chinese Low CaO + MgO. Premium Slag ≈ 92 Slag ≈ 94 Less bed stickiness and TiO2 92.1 92.0 94.6 duct deposits 镁，钙低，较少的板结和灰 Al2O3 1.14 1.90 1.41 尘沉积 CaO + MgO 0.33 1.37 1.88 Fe(t) 3.6 3.34 2.86 MnO 1.00 1.41 1.67 Lower waste generated P2O5 0.03 0.01
Slide 22: China Chloride Feedstock Market
China Chloride Feedstock Market 中国氯化原料市场简介 • Chinese government 5-yr plan very supportive of the chloride industry 中国政府的五年计划鼓励氯化工业发展 • However, two key barriers are;然而，面临两个屏障 • Fluid-bed chloride technology沸腾氯化技术 • Lack of suitable domestic high grade TiO2 feedstocks >90% TiO2 高品质钛原料 • China’s domes
Slide 23: Iluka – Investing in China's Future
Iluka – Investing in China’s Future 澳禄卡-投资中国的未来 • Establishment of Iluka China Technical Center – opening 2016 成立澳禄卡中国技术中心 – 2016年开业 • Regular technical visits to customer production facilities – deepen collaboration 经常技术拜访客户的生产线 – 加深合作 • Educate customers on Iluka’s resources, expertise, investment
Slide 24: Iluka Resources Limited
Iluka Resources Limited www.iluka.com For more information, contact: Mr. Peter Slyth Peter.slyth@Iluka.com 24