Iluka Resources Limited · ASX:ILU
Iluka Resources — Bank of America Global Metals, Mining and Steel Conference 2022
24 slides from Iluka Resources's conference presentation, May 17, 2022
Slide 1: Iluka Resources Limited (ASX:ILU) Bank of America Global Metals, Mining and Steel Conference
Iluka Resources Limited (ASX:ILU) Bank of America Global Metals, Mining and Steel Conference 17-19 May 2022 1
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: A global critical minerals company
Operational experience Over 70 years of critical minerals exploration, mining, processing, marketing and rehabilitation, with a pipeline of quality projects to meet growing demand A global critical Critical minerals for minerals everyday life company Zircon, titanium and rare earths are used in an a
Slide 4: Iluka's evolution
Iluka’s evolution 4 Rare earths refinery approved Risk sharing partnership with Australian Government Rare earths Global mineral sands operations Iluka’s future business A globally competitive source of Australian and Sierra Leone secure, sustainable rare earths mineral sands assets Australian Proje
Slide 5: Critical minerals for everyday life
Critical minerals for everyday life 5
Slide 6: Mineral sands and rare earth markets
Mineral sands and rare earth markets 6 Short term dynamics Long term global trends High grade • Downstream inventories low • New supply limited by few quality projects • titanium • High grade increasing plant yields Jurisdictional supply risks • • Urbanisation and rising living standards Move to hig
Slide 7: Market position
Market position 7 Iluka is one of the world’s largest producers of zircon and a significant supplier of high grade titanium feedstocks; the company’s rare earths diversification is expected to make a meaningful contribution to the sustainable supply of rare earths from 2025 High grade titanium Zirco
Slide 8: Operations and key financials
Operations and key financials 8 Narngulu Jacinth processing Ambrosia 2021 group mine production Rare earths Processing: zircon, rutile 2% Mining: ilmenite, zircon, rutile Synthetic Rutile Eneabba 27% Zircon rare earths 731kt 44% Sierra Rutile Leone 27% Mining, processing: rare earths 2021 key financ
Slide 9: Sierra Rutile demerger
Sierra Rutile demerger 9 Strong strategic rationale Allows focus on distinct strategies of each business while maximizing the potential of Sierra Rutile’s assets, providing shareholders flexibility and delivering value Iluka to demerge recognition of Sierra Rutile’s quality assets Sierra Rutile to Q
Slide 10: Project pipeline
Project pipeline 10 Breadth across mineral sands and rare earth product suite … … and depth at various stages of execution High Grade Atacama1 Zircon Titanium Balranald1 Euston1 SR1 kiln South West1 restart Wimmera Eneabba refinery Rare Earths 1. These potential deposits will contribute, to a greate
Slide 11: Project pipeline – leveraging technology
Project pipeline – leveraging technology 11 Leveraging technical and development expertise to deliver commercial outcomes for Australian Resources Balranald, New South Wales High grade, rutile rich deposit at depth of ~50 metres. Technology focus: low impact, underground mining technology to access
Slide 12: Rare earth diversification – delivering value from competitive advantage
Rare earth diversification – delivering value from competitive advantage 12 Iluka’s disciplined approach to Rare earth bearing minerals are capital allocation delivers value co-products of mineral sands. through collaboration, Iluka has over 70 years’ experience partnerships and risk sharing in deve
Slide 13: Eneabba – a fully integrated rare earths refinery
Eneabba – a fully integrated rare earths refinery 13 01 02 03 04 05 06 07 CARS EXPLORATION, CRACKING & SEPARATION & COMPONENT MODERN DEVELOPMENT, CONCENTRATING METALLISATION LEACHING FINISHING MANUFACTURE MANUFACTURING MINING MONAZITE MIXED RARE SEPARATED RARE RARE EARTH PERMANENT MOTORS & ORE CONCE
Slide 14: Eneabba refinery fully funded – partnership with Australian Government
Eneabba refinery fully funded – partnership with Australian Government 14 Iluka Contribution Australian Government Contribution Refinery Equity-like contribution of Eneabba stockpile $1.25 billion non-recourse loan facility + $200 million cash equity funding: risk sharing Stockpile contribution incl
Slide 15: Refinery overview
Refinery overview 15 Refinery advantaged by fully integrated design and Eneabba Using only the Eneabba stockpile, refinery cash flows3 provide a solid brownfields location, enabling minimal environmental impact economic return, with significant upside potential associated with the refinery’s longevi
Slide 16: Iluka's capital management approach
Iluka’s capital management approach 16 1 Mineral sands business + Deterra Royalties stake (20%) 2 Rare earths business • Strong cash flow generation from mineral sands operations to fund project pipeline • Facility term up to 16 years • Net cash of $295 million as at 31 December 2021 • Loan is non-r
Slide 17: Sustainability pillars
Sustainability pillars 17 Iluka’s purpose is to deliver sustainable value Our goal is to be a safe, responsible and sustainable supplier of critical minerals Trusted by our people and communities Responsible for our environment Operate in and provide products for a low carbon world To recognise that
Slide 18: Iluka Resources Limited (ASX:ILU)
Iluka Resources Limited (ASX:ILU) For more information contact Luke Woodgate, Group Manager, Investor Relations and Corporate Affairs investor.relations@iluka.com 18
Slide 19: Supplementary information
Supplementary information
Slide 20: Pricing assumptions – Adamas Intelligence September 2021
Pricing assumptions – Adamas Intelligence September 2021 20 US$/kg US$/kg 140 1,800 1,600 120 1,400 100 1,200 80 1,000 60 800 600 40 400 20 200 - - 2028 2032 2022 2038 2021 2022 2023 2024 2025 2026 2027 2029 2030 2031 2033 2034 2035 2036 2037 2038 2039 2040 2021 2023 2024 2025 2026 2027 2028 2029 20
Slide 21: Mineral Resource and Ore Reserves Compliance Statement
Mineral Resource and Ore Reserves Compliance Statement 21 Mineral Resources and Ore Reserves Estimates As an Australian company with securities listed on the Australian Securities Exchange (ASX), Iluka is subject to Australian disclosure requirements and standards, including the requirements of the
Slide 22: Mineral Resource and Ore Reserves
Mineral Resource and Ore Reserves 22 HM Assemblage(2) Mineral Material In Situ HM Clay Ilmenite Zircon Rutile Monazite Xenotime Deposit Resource Tonnes HM Tonnes Grade Grade Grade Grade Grade Grade Grade Rare earth oxide assemblage Category(1) mt kt (%) (%) (%) (%) (%) (%) (%) MSP By-Product Measure
Slide 23: Market position - detail
Market position - detail 23 High grade titanium Zircon 2021 global synthetic rutile supply 2021 global rutile supply 2021 global chloride slag supply 2021 global zircon supply (700kt TiO2) (500kt TiO2) (1,300kt TiO2) (1,200kt) Other Iluka 3% 13% Other Iluka China 9% QIT Iluka Other 26% Other 28% Ukr
Slide 24: Iluka 2021 sales detail
Iluka 2021 sales detail 24 Titanium feedstocks Zircon (Iluka products: rutile, synthetic rutile and ilmenite) Industry demand Iluka sales Industry demand Iluka sales Titanium Titanium metal Other Welding 4% metal Other Other Refractory 4% 2% 3% 5% Welding 5% and foundry 7% 10% Refractory and foundry
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