Slide 1: Investing in our Future in Mineral Sands
Iluka Investing in our Future in Mineral Sands Committed to the Industry and our Customers Intertech Cannes, France February 2005 Steve Ward Iluka Resources Ltd
Slide 2: Presentation Outline
Presentation Outline ? Strategy ? Achievements to Date & The Shape of Things to Come ? Industry Outlook
Slide 3: Vision, Values and Behaviours
Vision, Values and Behaviours « The sort of company we are — our “Corporate Brand” * Our Vision — “We aspire to be the pre-eminent global industrial minerals company” « Our current focus is most definitely on pre-eminence in mineral sands # From our Values — “Integrity and reputation, delivery of pr
Slide 4: Strategy Development
Strategy Development * Our Corporate Strategy encompasses all parts of the Business * We have considered the views, requirements and preferences of a number of stakeholders as we have developed the strategy # We have listened carefully to our customers as one of the key stakeholders and responded to
Slide 5: Our Strategy Road Map
Our Strategy Road Map
Slide 6: Our Marketing Strategy
Our Marketing Strategy Strategy is to positively differentiate by supplying customer preferred high quality products with excellent customer service For Titanium minerals, profitable growth focus is based on very high grade (90%+ TiO,) chloride feedstocks (Synthetic Rutile & Natural Rutile) with chl
Slide 7: Capital Markets Positioning - Background
Capital Markets Positioning - Background ILUKA # Market Cap US$1.1 billion, Australian SX No 125 * Total Shareholder Returns have been below our targets * Our business is challenged by: - the US$-AUD$ exchange rate - the competitive titanium minerals market - declining grades and assemblages in West
Slide 8: Capital Markets Positioning - Results and Future
© Capital Markets Positioning — Results and Future ILUKA # We have set financial targets for the total business and for specific operating areas » Aim is to significantly improve Total Shareholder Return * Our performance is on the right track, but there is some way to go: a AUD$m 2003 2004 Pretax P
Slide 9: Achievements - Horizon One - Improve Existing Assets
© ILUKA Achievements — Horizon One — Improve Existing Assets Our approach has been to improve business profitability by: - a self help improvement program called Margins Matter “MnM” with focus on costs and productivity - focus on operational excellence and syndication of best practices throughout t
Slide 10: Achievements - Horizon One - Improve Existing Assets
© ILUKA Achievements — Horizon One — Improve Existing Assets Results Include: « A most successful MnM program which has delivered substantial cos savings and productivity improvements for very limited investment: - increased throughputs - improved mineral recoveries - reduced costs of raw materials
Slide 11: Achievements - Horizon One - Improve Existing Assets (Western Australia)
© Achievements — Horizon One — Improve Existing Assets ILUKA Western Australia - Record Synthetic Rutile production in 2004 despite planned major maintenance outage - Approximately 50kt of additional capacity added from kiln efficiency/throughput gains. Very low capital investment was required. Psse
Slide 12: Achievements - Horizon One - Improve Existing Assets (USA)
© ILUKA Achievements — Horizon One — Improve Existing Assets USA - Business turned around and profitable again - Mining in Florida upgraded and successful new investment in Georgia - Virginia capacity increased by almost 33% in the last 18 months (post the previous expansion) via MnM and other low c
Slide 13: Achievements - Horizon One - Improve Existing Assets (CRL)
© Achievements — Horizon One — Improve Existing Assets ILUKA CRL - Successful upgrade to Ibis dredge (on time, lower than budgetted) - Transition to new ore body (Enterprise) well underway - Supplementary dry mining introduced successfully Psseesiaet| a
Slide 14: Way Forward - Horizon Two - Growth Within Mineral Sands
Way Forward - Horizon Two - Growth Within Mineral @ Sands ILUKA Iluka has an increasing portfolio of growth options Western Australia Synthetic Rutile 50kt + from existing operations Murray Basin Douglas, KWR, Euston and beyond, Rutile & Zircon Eucla Basin Zircon, Rutile & Chloride Ilmenite NewGen S
Slide 15: Way Forward - Horizon Two - Murray Basin
Way Forward - Horizon Two — Growth Within Mineral @ Sands ILUKA Murray Basin - Douglas Mine and Mineral Separation Plant approx 40% complete - On time and on cost despite challenges - Mining unit/Concentrator completion Q2 2005 - Mineral Separation Plant completion early Q4 2005 Lot i 8 - KWR and Eu
Slide 16: Way Forward - Horizon Two - NewGenSR
Way Forward - Horizon Two — Growth Within Mineral Sands NewGenSR - Very high grade (95% +TiO,) Synthetic Rutile produced from a wide range of ilmenties - Project development continues - PFS in progress with major review in H2 2005 - Current focus on: site selection capital optimization commercializa
Slide 17: Way Forward - Horizon Two - Eucla
Way Forward - Horizon Two — Growth Within Mineral Sands Eucla High Zircon content (55%) provides flexibility for our other Titanium minerals projects Also notable Rutile ~500kt and Chloride Ilmenite ~1300kt ental Railway — pr Eyre Highwaye! Tegra DDvatins 250K fb rinerat peposse LI] O Aiiuka a Oh, a
Slide 18: Horizon Three - Other Opportunities
© Horizon Three — Other Opportunities ILUKA « There are ultimate limitations to what Iluka can achieve in the Mineral Sands Industry: - total industry size - regulatory constraints on possible acquisitions - customer preferences for more than one supplier « Our current strategy focus is the Mineral
Slide 19: Capability Development
Capability Development « Significant people development programs * Growing major capital project delivery track record * Demonstrated business turnaround and improvement skills # Increasingly successful exploration expertise « Business Processes overhauled and new support systems implemented
Slide 20: Industry Outlook
© ILUKA Industry Outlook « Titanium minerals is a difficult and challenging industry. Currently, nearly all suppliers are not making adequate returns « The Titanium minerals market will remain very competitive well into the next decade with oversupply of Chloride Slag in particular « There will cont
Slide 21: Industry Outlook Global Economic Boom
Industry Outlook 2 Global Economic Boom * Most commodities, bulk raw materials and chemicals are doing well with significant price increases * In mineral sands, zircon and pig iron are following this pattern. Titanium minerals remain under pressure # Inthe pigment industry, despite reported maximum
Slide 22: Summary
Summary Iluka has refreshed its strategy in the last two years * Tluka is totally committed to the mineral sands industry # Tluka is determined to meet the challenges that confronts it and improve profitability and grow * Tluka has a growth program with an increasing number of exciting options * Tlu