Slide 1: Iluka Resources 2023 Half Year Results Presentation
1 Iluka Resources 2023 Half Year Results Presentation Tom O’Leary, Managing Director Balranald, New South Wales
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: H1 2023 – key features
H1 2023 – key features 3 Financial Operational Strategic Sustainable approach NPAT Focus on optimising SR1 production pause Key projects in Progress across to markets amid global $204 million production and for four months from Execute project pipeline macroeconomic sustainable costs 30 September Ne
Slide 4: H1 2023 – sustainability outcomes
H1 2023 – 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 and Board diversity community closure outcomes decarbonisation pathway relationships 5.1 SPIFR (4.9 in FY 2022) 50
Slide 5: Results overview
Results overview 5 Units H1 2023 H1 20221 % Change $353m Z/R/SR Production kt 368 291 26 Mineral Sands EBITDA Z/R/SR Sales kt 278 348 (20) ($450m H1 2022) Mineral sands revenue $m 712 789 (10) $204m Mineral sands EBITDA $m 353 450 (22) NPAT Mineral sands EBITDA margin % 50 57 (7) ($369m H1 2022) Sha
Slide 6: NPAT and net cash
NPAT and net cash 6 NPAT H1 2023 v H1 2022 $m 400 • Lower sales volumes largely offset by 300 369 higher prices across Iluka’s products 286 66 200 ( 85 ) (98) 46 (10) (15) • Higher unit cost of goods sold with (74) 3 (8) (5) (6) 3 31 (4) 204 100 (14) increased cash costs of production in 2022 flowin
Slide 7: Balance sheet and funding capacity
Balance sheet and funding capacity 7 Iluka has significant funding capacity available for investment across its mineral sands and rare earths business units Mineral Sands Rare Earths (Eneabba Refinery) Group net cash: $343 million A$m A$m Undrawn 1,200 1,200 1,000 1,000 1,158 800 800 Remaining 600 6
Slide 8: Mineral sands operations
Mineral sands operations 8 Iluka adjusts the operating settings of its portfolio to optimise production in response to market conditions, optimise costs and improve cash flow Cataby / South West Jacinth-Ambrosia / Mid West Large chloride ilmenite mine in Western Australia, commissioned in 2019. Ilme
Slide 9: Synthetic rutile – production update
Synthetic rutile – production update 9 Four-month production pause at synthetic rutile kiln 1 (SR1) from October 2023 • SR1 is a premium swing production asset, operated to match market conditions • At present, global macroeconomic uncertainty is leading to more subdued levels of demand for mineral
Slide 10: Markets
Markets Geraldton Port, Western Australia
Slide 11: Markets – zircon
Markets – zircon 11 Price stability in H1 2023 reflects favourable long term industry dynamics, despite uncertain global macroeconomic outlook • H1 2023 sales 134 kt (H1 2022: 187 kt) US$/t Zircon net realised FOB price 1 Result 2,800 ‒ 97kt of zircon sand and 38 kt of zircon in concentrate (ZIC) 2,
Slide 12: Markets – high-grade titanium feedstocks
Markets – high-grade titanium feedstocks 12 ~200ktpa of synthetic rutile over next four years under take-or-pay contracts, providing a high degree of revenue certainty US$/t Rutile and synthetic rutile net realised FOB price1 • H1 2023 synthetic rutile sales 117 kt (H1 2022: 136 kt) Result 2,800 • H
Slide 13: Inventory position
Inventory position 13 Strong production in H1 2023 Finished goods1 and HMC inventory kt • Elevated finished goods inventory value, in part driven by higher $m 600 1,800 inventory unit costs – increased finished goods inventory volume due to additional 1,600 Iluka’s synthetic rutile production capaci
Slide 14: Rare earths market
Rare earths market 14 To deliver sustainable value from Iluka’s rare earths business, the company’s offtake strategy is focussed on achieving recognition of strong ESG credentials and the traceable provenance of products to be refined at Eneabba Average EV motor • Asian Metal index price quoted as m
Slide 15: Projects
Projects Euston, New South Wales
Slide 16: Metallisation – feasibility study
Metallisation – feasibility study 16 Iluka has commenced a study to evaluate the economic and technical viability of a commercial scale rare earth metallisation facility. If commissioned the facility would be one of very few globally and enable Iluka to service a broader range of downstream customer
Slide 17: Balranald – project update
Balranald – project update 17 Balranald is a rutile-rich critical minerals development located in the Riverina district of south western New South Wales. Owing to its relative depth, Iluka is developing Balranald via a novel, internally developed, remotely operated underground mining technology Proj
Slide 18: Eneabba rare earths refinery – project update
Eneabba rare earths refinery – project update 18 Australia’s first fully integrated refinery producing separated light and heavy rare earth oxides. Final investment decision taken April 2022 following agreement of risk sharing arrangement with the Australian Government, including a $1.25 billion non
Slide 19: Supplementary Information
Supplementary Information Jacinth-Ambrosia, South Australia
Slide 20: Deterra Royalties Key Features
Deterra Royalties 20 Key Features Iluka’s 20% interest in ASX listed Deterra Royalties, provides Iluka with an additional source of long-term financial strength Mining Area C royalty receipts (A$m)1 Mining Area C production (Mwmt) 2 264.8 228.0 46.0 13.0 139.5 64 91.9 2.0 126.1 119.0 61.9 145 1.0 67
Slide 21: Supplementary Information – Production, Sales, Revenue and Costs
Supplementary Information – Production, Sales, Revenue and Costs 21 H1 2023 H1 2022 % change Production Zircon kt 166.6 152.7 9.1 Rutile kt 30.8 23.6 30.5 Synthetic rutile kt 170.2 114.4 48.8 Total Z/R/SR production kt 367.6 290.7 26.5 Ilmenite – saleable and upgradeable kt 302.3 259.0 16.7 Monazite
Slide 22: Supplementary Information – Income Statement
Supplementary Information – Income Statement 22 A$ million H1 2023 H1 2022 % change Z/R/SR revenue 661.8 725.2 (8.7) Ilmenite and other revenue 50.5 63.4 (20.3) Mineral sands revenue 712.3 788.6 (9.7) Cash costs of production (306.1) (238.8) (28.2) By-product costs (7.3) (8.8) 17.5 Inventory movemen
Slide 23: Supplementary Information – Reconciliation of non-IFRS information
Supplementary Information – Reconciliation of non-IFRS information 23 Mineral JA/MW C/SW RE US/MB1 Expl & Oth Corp Group Sands Mineral sands revenue 357.5 354.8 - - - 712.3 - 712.3 Freight revenue 19.4 13.7 - - - 33.1 - 33.1 Expenses (140.3) (182.6) - (4.5) (29.5) (356.9) (1.5) (358.4) Share of prof
Slide 24: Supplementary Information - Weighted average received prices
Supplementary Information - Weighted average received prices 24 H1 H2 FY Q1 Q2 H1 US$/tonne FOB 2022 2022 2022 2023 2023 2023 Zircon Premium and Standard 1,855 2,047 1,943 2,053 2,088 2,073 Zircon (all products including zircon in concentrate)1 1,757 1,975 1,850 2,053 1,897 1,946 Rutile (excluding H
Slide 25: For more information contact
25 For more information contact Luke Woodgate, General Manager, Investor Relations and Corporate Affairs investor.relations@iluka.com Capel, Western Australia