Iluka Resources Limited · ASX:ILU
Iluka Resources — TZMI Congress 2019
15 slides from Iluka Resources's conference presentation, Nov 13, 2019
Slide 1: Iluka - Addressing supply in the medium term
1 Iluka - Addressing supply in the medium term Iluka Resources Limited Matthew Blackwell, Head of Major Projects, Engineering & Innovation 13 November 2019 Move to Ambrosia, South Australia
Slide 2: Disclaimer and Compliance Statement
Disclaimer and Compliance Statement 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 fina
Slide 3: Zircon and High Grade Titanium Markets
Zircon and High Grade Titanium Markets
Slide 4: Zircon Market Outlook
Zircon Market Outlook 4 Key Features Global Zircon Supply and Demand Outlook – Existing Operations1 kt Illustrative Short term demand softness … 1500 Demand CAGRs 2019-23 Demand CAGR 2013-19 ~1.6% TZMI 2.7% • Business confidence affected by trade tensions and @ 1.5% CAGR global economic uncertainty
Slide 5: Pigment Market Outlook
Pigment Market Outlook 5 Recent Global Pigment Price Cycles Analysis Iluka’s Iluka’s Pigment Pigment Demand Demand Model Model Long Term Pigment Demand Linked to Industrial Production Demand recovery + capacity utilization • Uses a range of economic indicators Industry consultant TiPMC shows link of
Slide 6: High Grade Titanium Supply Outlook
High Grade Titanium Supply Outlook 6 Key Features Positive dynamics in high grade Global Rutile Supply Outlook titanium market kt TiO2 Supply tipping • Long term demand underpinned by pigment market 800 point from 2017 growth and rising living standards • Rutile and other very high grade feedstocks
Slide 7: Implications for Industry
Implications for Industry 7 • Economic growth, urbanisation and technology advances support long term demand • Supply tightness in zircon and high grade titanium market developing / already evident ‒ recent mine closures, grade decline and short mine life of operations contribute to supply outlook •
Slide 8: 2019 Projects Delivered
2019 Projects Delivered 8 Key Features Zircon / Rutile / Rutile Rutile Zircon / Rutile Synthetic Rutile Synthetic Rutile Cataby, Gangama Lanti Expansion, Ambrosia Mine SR2 Kiln Major Western Australia Expansion, Sierra Leone Move, Maintenance Sierra Leone South Australia Outage, Western Australia •
Slide 9: Pipeline of Growth Projects
Pipeline of Growth Projects 9 Key Features Atacama, Wimmera, Eneabba Mineral Sands South Australia Victoria Recovery, Western Australia Satellite deposit to existing J-A operation Zircon and rare earth project Other Zr Pre-feasibility study progressing Potential to add material zircon Pre-feasibilit
Slide 10: Pipeline of Growth Projects
Pipeline of Growth Projects 10 2019 Historic Global Zircon and Rutile Supply Projects 2020-2022* 2022-2024* 2025+* Producing Cataby Ambrosia Sembehun Eneabba Australian near- Gangama Atacama mine deposits Lanti SR1 restart Balranald Sierra Rutile Zircon kt, Rutile kt TiO2 Wimmera exploration potenti
Slide 11: Project Funding
Project Funding Cataby, Western Australia
Slide 12: Strong Balance Sheet Position
Strong Balance Sheet Position 12 • Iluka has funded recent projects (including Cataby, Sierra Rutile expansions) and Sierra Rutile acquisition (Dec 2016) from cash flows and debt • As at end September had modest net debt and gearing (net debt $89 million, 6.9% gearing ratio) • Retain significant fun
Slide 13: Iluka Mineral Sands Business
Iluka Mineral Sands Business 13 Key Features Recently announced formal review has commenced to determine most appropriate corporate and capital structure of two principal businesses – Mineral Sands and Mining Area C Royalty • A number of significant issues to be considered as part of the review and
Slide 14: Deliver Sustainable Value
Deliver Sustainable Value 14 Key Features 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 a
Slide 15: Iluka Resources Limited
15 Iluka Resources Limited www.iluka.com Ore trial at Ambrosia, South Australia