Iluka Resources Limited · ASX:ILU
Iluka Resources — Smithers Boston Conference 2018
21 slides from Iluka Resources's conference presentation, Oct 5, 2018
Slide 1: Smithers Boston Conference
Smithers Boston Conference Robert Gibney – GM TiO2 Sales Iluka Resources Limited (ASX:ILU) 20 18 WWW.ILUKA.COM l ASX:ILU
Slide 2: Disclaimer – Forward Looking Statements
Disclaimer – Forward Looking Statements This presentation has been prepared by Iluka Resources Limited (Iluka). By accessing/attending this presentation you acknowledge that you have read and understood the following statement. Forward Looking Statements This presentation contains certain statements
Slide 3: Iluka's Product Portfolio
Iluka’s Product Portfolio Zircon Premium grade zircons for ceramic tiles and sanitary ware Specialty grade zircons for chemical and refractory Zacura range for foundry and investment casting Titanium High grade titanium feedstocks for chlorination High purity titanium feedstocks for welding consumab
Slide 4: Industry Dynamics
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Slide 5: Industry Challenges Of Current Market
Industry Challenges Of Current Market MULTIPLE PRODUCTION DISRUPTIONS ACROSS NEW PROJECT SUPPLY FEEDSTOCK CHALLENGES INDUSTRY VALUABLE HEAVY MINERAL GRADE AND ASSEMBLAGE DECLINE SUSTAINABLE DYNAMICS 5
Slide 6: High Grade Titanium Dioxide Supply/Demand
High Grade Titanium Dioxide Supply/Demand • Supply–demand overlaid with swing capacity not requiring additional mine investment • Subject to price rises inducing brownfields investment, the high grade market has sufficient supply capacity to meet demand to 2019 − This idle capacity has existed for f
Slide 7: Global Mineral Sands Production
Global Mineral Sands Production While ilmenite is the largest mineral by volume, Zircon, Rutile and upgraded feedstock such as SR provide the value Mineral Sands Mineral Sands Mineral Sands by Volume by Volume by Value as Mined as Finished Product as Finished Product* (2016 ~7.6mt) (2016 ~7.6mt) Rut
Slide 8: Valuable Heavy Mineral Decline
Valuable Heavy Mineral Decline Global Mineral Sands Resources Assemblage HM Grade RZ Assemblage Iluka’s assessment of industry ore bodies 5% 15% • Trash component in heavy mineral grade increasing 4% 12% • Rutile and zircon assemblage falling Industry challenge 3% 9% • Need technical solutions for u
Slide 9: New Project Supply Challenges
New Project Supply Challenges Unconventional deposits requiring technical solutions (eg. fine minerals, depth, product quality) Zircon and rutile typically induced as by-products of ilmenite projects Iluka evaluates many projects and will remain disciplined in allocating capital. Limited high zircon
Slide 10: Business Focus
Business Focus Operational Expansion and excellence improvements Sustainable Marketing strategy development 10
Slide 11: Iluka's Asset Base
Iluka’s Asset Base 60 years experience in exploration, project development, mining, processing and marketing of mineral sands. Western Australia Synthetic rutile kiln Cataby project Virginia, US Rehabilitation (mine closed Dec 2016) South Australia Jacinth-Ambrosia mine Legend Sierra Leone Gangama d
Slide 12: Project Updates – Cataby and SRL
Project Updates – Cataby and SRL Significant efforts underway to meet customer demand Western Australia Synthetic rutile kiln Cataby project Sierra Leone Gangama dry mine Lanti dredge & dry mine Sembehun deposits 12
Slide 13: Synthetic Rutile (SR)
Synthetic Rutile (SR) • Two SR kilns located at Capel, 122 miles south of Perth – SR 2 currently running at full capacity, SR 1 idle – Products include: - SR Premium 91.5% TiO2 - SR Standard 89.5% TiO2 - Activated Carbon • SR 2 Kiln: – Capacity of 210ktpa SR and 20ktpa Activated Carbon – Record run
Slide 14: Activated Carbon (AC)
Activated Carbon (AC) • High quality coal based AC produced from SR2 operations − Iluka AC products certified in Europe and USA (NSF & EN standards) - Potable Water - Food decolourisation - Industrial applications • Channel to market through bulk sales to major AC manufacturers and distributors • Si
Slide 15: Cataby
Cataby • Large, chloride-ilmenite rich deposit, 110 miles north of Perth – Underpins continued synthetic rutile production at Capel – Offtake secured for 85% of SR production for minimum four years – Conventional mineral sands development • All works progressing on-time and on-budget – Accommodation
Slide 16: Sierra Rutile Expansion Profile
Sierra Rutile Expansion Profile • Sierra Rutile expansion occurs across three mining fronts • Initial Sembehun development includes infrastructure early works for road and bridge construction • Mine moves from Lanti and Gangama are required to maintain expanded production levels Concentrator1 2017 2
Slide 17: Sierra Rutile – Near Mine Exploration
Sierra Rutile – Near Mine Exploration Near Mine Exploration Target1 Sierra Rutile deposits Consolidation and interrogation of historical SRL drilling data highlighted the Pejebu Exploration Target Pejebu Exploration Target is 15 – 20 Mt HM at 0.9% to 1.1% in situ rutile grade Potential 135 to 220 th
Slide 18: High Grade Titanium Market – Sustainable Returns
High Grade Titanium Market – Sustainable Returns
Slide 19: 2018 Titanium Feedstock Market
2018 Titanium Feedstock Market Rutile prices increasing, historical lag to pigment prices Rutile premium Index Oct 2015 = Pigment up ~55% 100 to May 18 US$/t 160 1,100 150 Rutile up ~44% from 1,000 Q4 16 to H2 18 140 Pigment price bottomed in 900 130 October 2015 2015-16 price Current price 120 800
Slide 20: Summary
Summary 1. Feedstock supply will remain constrained in the near to medium term 2. Iluka investing heavily in new projects to meet customer demand – most since 2008 3. Challenge for Iluka and industry – sustainable returns 20
Slide 21: For more information contact
For more information contact: Robert Gibney – GM TiO2 Sales robert.gibney@iluka.com www.iluka.com Synthetic rutile kiln, Western Australia