Slide 1: Iluka Resources 2023 Full Year Results
1 Iluka Resources 2023 Full Year Results 21 February 2024 Cataby, Western Australia
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: Full year 2023 – sustainability outcomes
3 Full year 2023 – sustainability outcomes Iluka’s purpose is to deliver sustainable value Zero fatalities and Improve employee Strengthen Optimise mine Set and deliver Iluka’s reduce injuries diversity community closure outcomes decarbonisation pathway relationships 65% decrease in TRIFR to 50% wom
Slide 4: Full year 2023 key features
Full year 2023 key features Financial Operational Strategic Financial result delivered in subdued demand Synthetic rutile Marketing Capital expenditure of $281m environment production approach focused Investing in projects to deliver future growth Revenue $1,238 million flexibility on value • $161 m
Slide 5: Results overview
Results overview 5 Units Full year 2023 Full year 20221 % Change Z/R/SR Production kt 639 591 8 $582m Z/R/SR Sales kt 494 633 (22) Mineral Sands EBITDA Mineral sands revenue $m 1,238 1,524 (19) Mineral sands EBITDA $m 582 849 (32) $343m Mineral sands EBITDA margin % 47 56 (16) NPAT Share of profit i
Slide 6: Underlying NPAT FY 2023 vs FY 2022
Underlying net profit 6 $m 700 8 600 500 600 50 84 9 400 (2) ( 178 ) ( 20 ) 300 ( 86 ) ( 12 ) (2) ( 18 ) ( 18 ) ( 71 ) 343 200 100 0 Price Volume Unit COGS Unwind & other 31 December 2022 Mix Major Projects Deterra 31 December 2023 Corporate Services Tax Ilm, monazite & other Idle & other Discontinu
Slide 7: Cash flow and balance sheet: Group excluding rare earths
Cash flow and balance sheet: 7 Group excluding rare earths (mineral sands, Deterra and other) Mineral sands operations generate strong cash flow, funding growth projects. Significant funding available, facilities undrawn 2023 free cash out flow $69 million Cash flow 31-Dec-22 to 31-Dec-23 $m 900 345
Slide 8: Cash flow and balance sheet: Rare earths
Cash flow and balance sheet: 8 Rare earths $121 million capital expenditure on bulk earthworks and camp, funded in partnership with Australian Government $m 100 Cash flow 31-Dec-22 to 31-Dec-23 50 • Capital expenditure of $121 million 4 • Iluka equity contribution of $35 million 0 -50 (83) 35 -100 3
Slide 9: Deterra Royalties Key Features
Deterra Royalties 9 Key Features Mining Area C royalty receipts (A$m)1 Mining Area C production (Mwmt) Run rate with South Flank = 265 145 mwmt2 228 46 13 140 64 62 92 2 126 119 118 1 68 89 29 31 34 57 30 47 118 63 61 41 93 96 49 28 31 44 48 26 30 28 28 26 2018 2019 2020 2021 2022 2023 2024 2018 201
Slide 10: Operations
Operations Operational settings set in line with market conditions Cataby, Western Australia
Slide 11: Mineral sands operations
Mineral sands operations 11 Iluka continues to demonstrate market discipline by prioritising the value of our products while managing production and inventory Cataby / South West Jacinth-Ambrosia / Mid West Large chloride ilmenite mine in Western Australia, commissioned in 2019. Ilmenite Jacinth-Amb
Slide 12: Markets
Markets Prioritising the value of our products Geraldton port, Western Australia
Slide 13: Markets – zircon
Markets – zircon 13 Global economic activity levels and subdued conditions in key markets resulted in lower sales over 2023 US$/t Zircon (premium and standard) net realised FOB price 147kt 87kt 2,400 Zircon sand sales Zircon-in-concentrate sales 2,000 (2022: 234kt) (2022: 96kt) 1,600 1,200 US$2,066/
Slide 14: Markets – high-grade titanium feedstocks
Markets – high-grade titanium feedstocks 14 Take-or-pay synthetic rutile contracts provide high degree of revenue certainty. Rutile sales targeted to welding market 211kt 48kt US$/t Rutile sales 1 and net realised FOB price 2 kt Synthetic rutile sales Rutile1 sales 200 (2022: 246kt) (2022: 57kt) 2,4
Slide 15: Downstream pigment market update
Downstream pigment market update 15 Industry announcements in pigment market indicate improving conditions in 2024, following market discipline in subdued market Western pigment prices 1 US$/t Tronox market outlook for 2024 We expect 2024 to see a reversal of several of the trends for the last 18 4,
Slide 16: Inventory position
16 Inventory position Finished goods inventory build reflects prioritisation of the value of our products and managing production and inventory. Continued production discipline demonstrated through SR1 production pause Heavy mineral concentrate (HMC) remains at low level $m Finished goods1 and HMC i
Slide 17: Projects
Projects Progressing key developments Eneabba, Western Australia
Slide 18: Eneabba rare earths refinery – progress update
Eneabba rare earths refinery – progress update 18 Significant workstreams progressed in 2023 ahead of • 2023 capital expenditure of $121 million Front End Engineering Design (FEED) completion, • Bulk earthworks and ground improvement activities completed expected in Q1 2024 • Operational camp constr
Slide 19: Balranald – project update
Balranald – project update 19 Balranald is a rutile-rich critical minerals development located in the Riverina district of south western New South Wales. Owing to its relative depth, Iluka is developing Balranald via a novel, internally developed, remotely-operated underground mining technology Fina
Slide 20: Wimmera – definitive feasibility study progressing
Wimmera – definitive feasibility study progressing 20 A large, fine-grained deposit in Western Victoria providing a potential multi-decade source of both zircon and rare earths – including the highly valuable heavy rare earths dysprosium and terbium Work continuing on processing solution for higher
Slide 21: Supplementary Information
Supplementary Information Jacinth-Ambrosia, South Australia
Slide 22: Outlook for 2024
Outlook for 2024 22 2023 2023 Key Parameters 20221 20243 Comments reported restated2 Production Reduced heavy mineral from Jacinth-Ambrosia associated with lower grade. Zircon sand kt 211 240 n/a 160 Narngulu operating rates reduced to prioritise value of our products by managing production and inve
Slide 23: Outlook for 2024
Outlook for 2024 23 2023 2023 Key Parameters 20221 20243 Comments reported restated2 Other cash costs ($m) By-product costs 13 11 11 10 Restructure, idle costs and other non-production 13 20 18 25 SR1 costs included in idle capacity in 2024 Includes $17 million for exploration; $16 million for Chief
Slide 24: Supplementary Information – Production, Sales, Revenue and Costs
Supplementary Information – Production, Sales, Revenue and Costs 24 2023 20221 % change Production Zircon sand kt 239.5 211.0 14 ZIC2 kt 87.5 87.7 - Rutile3 kt 52.7 55.1 (4) Synthetic rutile kt 259.5 237.6 9 Total Z/R/SR production kt 639.2 591.4 8 Ilmenite – saleable and upgradeable kt 460.6 556.1
Slide 25: Supplementary Information – Summary Group Results
Supplementary Information – Summary Group Results 25 $ million 2023 2022 % change Mineral sands revenue 1,238.3 1,523.8 (19) Mineral sands EBITDA 581.8 849.4 (32 Mineral sands EBITDA margin % 47% 56% (16) Share of profit from associate (Deterra) 27.3 29.6 (8) Underlying group EBITDA1 609.1 879.0 (32
Slide 26: Supplementary Information – Income Statement
Supplementary Information – Income Statement 26 $ million 2023 2022 % change Z/R/SR revenue 1,143.2 1,416.3 (19) Ilmenite and other revenue 95.1 107.5 (12) Mineral sands revenue 1,238.3 1,523.8 (19) Cash costs of production (605.2) (508.3) (19) By-product costs (11.2) (12.7) 12 Inventory movement -
Slide 27: Supplementary Information – Reconciliation of non-IFRS information
Supplementary Information – Reconciliation of non-IFRS information 27 Mineral $m JA/MW C/SW RE US/MB Expl & Oth Corp Group Sands Mineral sands revenue 611.8 626.5 - - - 1,238.3 - 1,238.3 Freight revenue 31.1 21.6 - - - 52.7 - 52.7 Expenses (234.2) (333.7) - 13. 0 (13.0.) (567.9) (59.5) (627.4) Share
Slide 28: Supplementary Information - Weighted average received prices
Supplementary Information - Weighted average received prices 28 US$/tonne FOB Q1 23 Q2 23 Q3 23 Q4 23 H1 23 H2 23 FY 22 FY 23 Zircon premium and standard 2,053 2,088 2,062 2,0451 2,073 2,054 1,943 2,066 Zircon (all products, including zircon-in- 2,053 1,897 1,787 1,658 1,946 1,718 1,850 1,849 concen
Slide 29: For more information contact
29 For more information contact Luke Woodgate, General Manager, Investor Relations and Corporate Affairs investor.relations@iluka.com Cataby, Western Australia