Iluka Resources Limited · ASX:ILU
Iluka Resources — TZMI Congress Shanghai 2015
17 slides from Iluka Resources's conference presentation, November 2015
Slide 1: Zircon Use in Ceramics – Emergent Trends
Zircon Use in Ceramics – Emergent Trends Simon Hay – General Manager Zircon Sales TZMI Congress Shanghai November 2015
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: Zircon Use in Ceramics – Emergent Trends
Zircon Use in Ceramics – Emergent Trends • Iluka’s annual ceramic tile study – methodology – 2014 study results • Emergent ceramic tile trends – digital printing – digital glazes – large-format and thin tiles • Comparison of zircon versus alumina • Conclusion 3
Slide 4: Iluka's annual tile study
Iluka’s annual tile study Ceramics industry characteristics • Massive, fragmented, dynamic • Consumes ~50% of zircon globally • Wide variety of tile types, designs • Innovation a constant Roof/building/ Home/office Bathroom/lifestyle Kitchen/utilities construction • Difficult to gain insights into z
Slide 5: Tile study methodology
Tile study methodology REGION-SPECIFIC MULTIPLE CONTACT POINTS SAMPLE ACQUISITION Features of regional Industry reports, field interviews across industry supply Acquire samples in the field and obtain production details production considered chain & network, phone interviews, retailer visits, etc. (
Slide 6: Tile study methodology
Tile study methodology Scope continues to broaden Desktop Prepare Verify plan Field Tile market sampling with acquisition testing study plan experts • 2012 study started with 270 samples from China Data • 2013 study expanded to 600 samples from 8 countries analysis • 2014 study – over 900 samples co
Slide 7: Methodology
Methodology Ceramic tile categories Crystal-jade and microlite tiles Glazed porcelain tiles Polycrystalline porcelain tiles Soluble salt porcelain tiles • Manufacturing techniques and zircon usage differ across types • Detailed categorisation is crucial to form accurate views on trends 7
Slide 8: 2014 Tile Study Results
2014 Tile Study Results China: tile mix Key results • The rise of digital printing is changing the tile product mix • Significant growth of glazed porcelain and rustic tiles is evident • Coming at the expense of polished porcelain and soluble salt tiles Impact on zircon • Median zircon content of Ch
Slide 9: 2014 Tile Study Results
2014 Tile Study Results China: zircon intensity of use Glazed porcelain, rustic and crystal jade tiles • Show a chair-shaped profile • A minimum level of zircon • Below which difficult to substitute out Year on year trends • Increasing zircon intensity of use for all (ex-glazed ceramic) • Statistica
Slide 10: 2014 Tile Study Results
2014 Tile Study Results China: top tile producers Key results • Detailed look into top Chinese ceramic producers (by volume and brand popularity) • These producers use higher zircon loadings • Majority of product types showed greater zircon loadings in 2014 vs 2013 Top Chinese Tile Poly-crystalline
Slide 11: 2014 Tile Study Results
2014 Tile Study Results Europe and India • European loadings stable and higher than Asia • Continual improvement in product design in Europe – finding new ways to differentiate – large-nozzle inkjets an enabler • Indian zircon loadings generally higher than China – high adoption rate of digital prin
Slide 12: Digital printing and glazing trends
Digital printing and glazing trends • Digital decoration continues to evolve • Surface decoration materials – increasing quantities applied from 30-40 to 1000+ g/sqm – improved colour intensity and aesthetic flexibility Spanish tile, mosaic design • Larger particle size: from sub-micron to more than
Slide 13: Large-format and thin tile trends
Large-format and thin tile trends • Trend towards larger format tiles – dimensions up to 1.6 m x 4.8 m – large-format crystal tile products in Europe (similar to crystal jade) – high-end products, higher zircon content • Thin porcelain tiles (3-6 mm) ~ 4.8 m – surface decoration previously hampered
Slide 14: Zircon versus alumina
Zircon versus alumina Value-in-Use Study 86 • Comparative technical study completed in 2015 5.0 % Zircon 7.5 % Alumina • Confirms the superior performance of zircon 85 • More alumina needed for the same whiteness 84 – approx. 50-70% more L* 83 • Alumina has other technical limitations 82 – requires
Slide 15: Zircon versus alumina
Zircon versus alumina Practical considerations in China ceramics • Chinese tile producers generally prefer to use zircon opacifier • Alumina-based substitutes considered ‘inferior’ – problems to meet tile product specifications • Plant practical considerations support continued use of zircon over al
Slide 16: Conclusion
Conclusion • Iluka’s Proprietary Ceramic Tile Study now into its fourth edition – robust process – Iluka continues to invest in understanding downstream industries / zircon end-uses – substantial change in tile product mix driven by digital decoration – mostly positive results for zircon consumption
Slide 17: Iluka Resources Limited
lluka Resources Limited For more information contact: Dr Robert Porter, General Manager Investor Relations robert.porter@iluka.com +61 3 9225 5008 / +61 (0) 407 391 829 www.iluka.com