Iluka Resources Limited · ASX:ILU
Iluka Resources — TZMI TiO2 Congress 2019
17 slides from Iluka Resources's conference presentation, May 17, 2019
Slide 1: Value For Customers – Value For Investors
1 Value For Customers – Value For Investors Matthew Blackwell, Head of Marketing and Procurement Cataby, Western Australia
Slide 2: Disclaimer – Forward Looking Statements
Disclaimer – Forward Looking Statements 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 document provides an indicative outlook for the Iluka business in the 2019
Slide 3: Key Features: Deliver Sustainable Value
Deliver Key Sustainable Value Features 3 Strong Market Quality Mineral Sands Project Pipeline Fundamentals Assets Mineral sands demand linked to Australia and Sierra Leone operations Sustaining and growth projects in urbanisation, rising living standards, Product mix weighted to premium Australia, S
Slide 4: Iluka's Asset Portfolio
Iluka’s Asset Portfolio 4 60 years experience in mineral sands exploration, project development, mining, processing and marketing AMSTERDAM LONDON ANTWERP NEWCASTLE NULES CINCINNATI CASTELLON VIRGINIA RALEIGH QINGDAO ZHENJIANG SHANGHAI XIAMEN GUJARAT SIERRA LEONE PUTTALAM PORT KLANG SINGAPORE OPERAT
Slide 5: Quality Mineral Sands Operations
Quality Key Mineral Sands Operations Features 5 Cataby, Jacinth-Ambrosia, Sierra Rutile, Western Australia South Australia Sierra Leone • Large chloride ilmenite rich deposit • World’s largest zircon mine • Began operations 1960s • 150km north of Perth • Discovered in 2004, mining commenced 2010 • A
Slide 6: Marketing Model of Value Creation
Iluka’s Key Marketing Model of Value Creation Features 6 Focus on delivering sustainable prices Hub and spoke distribution model Prices negotiated with customers based on Warehouses positioned close to key markets value in use and other factors Value in use Global Multilingual / multinational salesf
Slide 7: High Grade Titanium Feedstock Advantage
High Grade Titanium Feedstock Advantage Key Features • Natural rutile and synthetic rutile have a higher titanium grade than other feedstocks • Iluka’s high grade products considered to have high ‘value in use’ for pigment producers High grade feedstock advantages in pigment production: Lower ore Lo
Slide 8: Valuable Heavy Mineral Decline
Valuable Heavy Mineral Decline Assemblage of Global Mineral Sands Resources R/Z HM Grade Trash Assemblage 5% component 15% The mineral sands industry challenge: increasing 1. Need technical solutions for unconventional 4% 12% ore bodies and product specifications 3% 9% 2. Exploration to find better
Slide 9: Zircon Structural Deficit
Zircon Key Market Structural Deficit Features 9 Lack of quality mineral sands projects, particularly with high zircon assemblage, and depletion of current operations (which includes Iluka) Global Zircon Supply Outlook kt Market broadly Supply tipping 1500 balanced in point from 2020 Structural defic
Slide 10: High Grade Titanium Deficit
HighFeatures Key Grade Titanium Deficit 10 Absent a supply side response, High Grade Chloride feedstock production starts to decrease from 2019…. Global High Grade Chloride Titanium Feedstocks Supply Outlook* kt TiO2 units Market broadly Supply tipping 3500 balanced in point from 2019 TZMI forecasts
Slide 11: High Grade Titanium Deficit
HighFeatures Key Grade Titanium Deficit 11 Absent a supply side response, High Grade Chloride feedstock production starts to decrease from 2019…. ….Yet even if feedstock was available to restart today’s idled capacity, and Jazan ramped up, supply still fails to keep up with predicted demand. Global
Slide 12: High Grade Titanium Pricing Dynamics
HighFeatures Key Grade Titanium Pricing Dynamics 12 Recent decoupling of rutile and pigment prices due to supply tightness in very high grade feedstock market 1. Pigment and rutile prices have historically 2. Pigment price growth eased in 2018 while rutile 3. Rutile market dynamics no longer mimic o
Slide 13: Sustainable Pricing Model
Sustainable Pricing Model 13 Sustainable pricing based on value in use Zircon Pricing Model Titanium Pricing Model Iluka introduced Zircon Reference Price in 2016 Titanium feedstock prices negotiated with each • Provides transparency for customers customer • Actual price paid function of location, q
Slide 14: Pipeline of Growth Projects
Pipeline Key of Growth Projects Features 14 Ambrosia, Wimmera, Atacama, Eneabba Mineral Sands South Australia Victoria South Australia Recovery, Western Australia Other Mine move to Ambrosia brought Zircon and rare earth project Satellite deposit to existing J-A Zr forward to 2019 to smooth zircon p
Slide 15: Contracting Approach
Iluka’s Key Contracting Approach Features 15 We seek a shared commitment to the future Collaborating with our customers we have re-set the contracting landscape • Moved away from the value-destructive ‘cap and collar’ agreements of the past • Focused on mechanisms that move with the market • Custome
Slide 16: Key Features: Deliver Sustainable Value
Deliver Key Sustainable Value Features 16 Strong Market Quality Mineral Sands Project Pipeline Fundamentals Assets Mineral sands demand linked to Australia and Sierra Leone operations Sustaining and growth projects in urbanisation, rising living standards, Product mix weighted to premium Australia,
Slide 17: Value For Customers – Value For Investors
17 Value For Customers – Value For Investors Matthew Blackwell, Head of Marketing and Procurement Cataby, Western Australia