Iluka Resources Limited · ASX:ILU
Iluka Resources — Citi Mining Exploration Day 2017
17 slides from Iluka Resources's conference presentation, Jun 27, 2017
Slide 1: Iluka Resources Limited – Citi Mining Exploration Day
Iluka Resources Limited Citi Mining Exploration Day Michael Fechner, Manager – Exploration and Geology Sydney, 27 June 2017
Slide 2: Disclaimer – Forward Looking Statements
Disclaimer – Forward Looking Statements Forward Looking Statements This presentation contains certain statements which constitute “forward-looking statements”. These statements include, without limitation, estimates of future production and production potential; estimates of future capital expenditu
Slide 3: Mineral sands - part of everyday life
Mineral sands - part of everyday life Iluka’s products, titanium dioxide and zircon, are used in an increasing array of applications - home, workplace, medical, lifestyle and industrial uses Roof / Home / Bathroom / Kitchen / Automotive Sporting Health care / Aircraft / Building / Office Lifestyle U
Slide 4: Iluka Overview
Iluka Overview Objective – to create and deliver value for shareholders Values – commitment, integrity and responsibility • ~$3.5 billion market capitalisation (listed on Australian Securities Exchange) • Largest global producer of zircon; major producer of high grade titanium dioxide • ~2,500 direc
Slide 5: Iluka portfolio
Iluka portfolio PERTH BASIN EUCLA BASIN MURRAY BASIN SIERRA RUTILE VIRGINIA SRI LANKA Western Australia South Australia Victoria / New South Sierra Leone USA Wales Tutunup South mine Jacinth-Ambrosia mine Concentrate processing Gangama dry mine Rehabilitation Puttulam deposit Cataby deposit (suspend
Slide 6: Mineral Resources and Ore Reserves
Mineral Resources and Ore Reserves Ore Reserves (proven and probable) as at 31 December, 2016 Area Ilmenite Mt Rutile Mt Zircon Mt Eucla Basin 1.1 0.2 1.9 Perth Basin 7.7 0.5 1.1 Sierra Leone - 3.9 - Total 8.8 4.6 3.0 Mineral Resources (inclusive of reserves) as at 31 December, 2016 Area Ilmenite Mt
Slide 7: Iluka’s Exploration Advantage
Iluka’s Exploration Advantage 1. Focus and rigour - Iluka Discovery System » Drives early decisions, collaboration and challenge of ideas » Prospectivity, time and cost and strategic alignment Exploration Decision Framework • Target products aligned to business needs • IDS tools ensure only the best
Slide 8: Iluka’s Exploration Advantage
Iluka’s Exploration Advantage 2. Track record of delivering significant organic growth » Target HM province scale discoveries » Opened up the Murray Basin and Eucla Basin » Sierra Rutile Limited…our next opportunity to add Reserves Discovery Hole at Jacinth, South Australia, 2004 Jacinth Mine Site –
Slide 9: Iluka’s Exploration Advantage
Iluka’s Exploration Advantage 3. Focused funding of project generation and innovation (>25 years) » Experienced, specialised HM exploration team » 25+ year global exploration database and continuous learning » Focus on Innovation that delivers discovery of mines Aeromagnetic image over the Woornack
Slide 10: Historical Exploration Expenditure
Historical Exploration Expenditure Generative International Exploration Generative Exploration Resource Drilling and Regional Aust. Exploration New Commodities (MB EB) MB J-A Acquisition Discovery SRL Acquisition Updated • Discoveries result in significant activity (drilling) and spend strategy and
Slide 11: Exploration 2017 – a year of transition
Exploration 2017 – a year of transition • Team has transitioned to a more focused, leaner model • Aligned with Strategic Business Review (late 2016) • Approximately half the budget and headcount c.f. 2016 Exploration Budget 2016 vs 2017 Geology Team numbers 25 60 50 A$ millions 20 Employees 40 15 30
Slide 12: Maintaining the Exploration Advantage
Maintaining the Exploration Advantage • Given the change, how have we preserved our Exploration advantage? » Retained and funding only the best projects » Core geological team and knowledge » New approaches to early stage projects (partnering) » Divesting non-core rights e.g. Gold, Base Metals Proje
Slide 13: Exploration Projects
Exploration Projects Foothills Project: • Rutile target Kazakhstan: Commodore • Innovative model • MB style zircon targets Project: • ~10,000m drilling • Secured key lease (in progress) agreements (Q2) SRL: • Integration • Increase Reserves • Near Mine and Brownfield (2017+) Development: • Tenement
Slide 14: Sierra Rutile Limited (SRL), Sierra Leone
Sierra Rutile Limited (SRL), Sierra Leone • Excellent opportunity for Iluka • World leading rutile deposits • Integration of SRL team • Shared learnings – 50 years knowledge • Drive to add Ore Reserves (near mine) 14
Slide 15: Kazakhstan
Kazakhstan • 66,000 km2 of exploration search space • Targeting a new zircon rich province • Greenfield stage • Drilling underway 15
Slide 16: Conclusions
Conclusions • A specialised Exploration capability with a discovery track record • Increased focus on core products and lean, efficient exploration • Active globally in province scale greenfield projects • Rare opportunity at SRL to improve Resources and add Reserves 16
Slide 17: Iluka Resources Limited
Iluka Resources Limited For more information contact: Adele Stratton General Manager, Finance, Investor Relations and Corporate Affairs Adele.stratton@iluka.com +61 415 999 005 www.iluka.com