Iluka Resources Limited · ASX:ILU
Iluka Resources — Rare Earths Industry Association Conference 2024
17 slides from Iluka Resources's conference presentation, Jun 19, 2024
Slide 1: Iluka Resources
Iluka Resources Diversifying the rare earths supply chain
Slide 2: Disclaimer
Disclaimer 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 statements
Slide 3: Sustainable, Established Australian Assets, Over 70 Years of Experience
Sustainable A safe, responsible and sustainable supplier of critical minerals Established Australian Assets The world’s largest zircon mine Significant mineral processing and separation facilities Over 70 Years of Experience Iluka is a globally significant producer of zircon and high grade titanium
Slide 4: Rare earth supply chain dominated by China's vertical integration
Rare earth supply chain dominated by China’s vertical integration China accounts for approximately ~90% of all rare earth oxide production globally; and effectively 100% of all heavy rare earth oxide production Global market share of rare earth supply chain (2023 estimate) China U.S. Europe Other 10
Slide 5: Extensive government initiatives for critical minerals security
Extensive government initiatives for critical minerals security Minerals Security Partnership Catalyse public and private investment in responsible critical minerals supply chains globally Australia, Canada, Estonia, Finland, France, Germany, India, Italy, Japan, Norway, the Republic of Korea, Swede
Slide 6: Current price settings for rare earths are not sustainable
Current price settings for rare earths are not sustainable Western RE producers quarterly net operating cash flow vs PrNd price* China has consolidated its rare earths enterprises, forming two mega conglomerates, enhancing China’s pricing power $200 Lynas MP Materials PrNd price $180 $160 Net Operat
Slide 7: Lessons from opaque markets
Lessons from opaque markets High Grade Titanium Feedstocks • $270m Iluka Cataby mine project executed underpinned by binding offtake agreements for 85% of forecast production • Few titanium mines under construction; long approval and construction lead times - planning essential to bring sufficient v
Slide 8: An alternative pricing mechanism
An alternative pricing mechanism • Parties set floor and ceiling price boundaries to apply throughout the contract term • Prior to each delivery period, parties negotiate a final price within the boundaries for that period • Delivery period negotiation process and limited termination rights incentiv
Slide 9: Strong demand fundamentals
Strong demand fundamentals Global demand forecasts vary on market penetration of renewable energy technologies; materially higher amounts of Nd, Pr, Dy and Tb will be required Global demand for PrNd (kt)1 Electric Vehicles Wind Power Other Sectors2 Total 171kt 93kt 83kt 62kt 63kt 45kt 53kt 33kt 26kt
Slide 10: Eneabba rare earths refinery
Eneabba rare earths refinery Funding & State of the art Exceptional Recycling & construction facility location reuse Supported by the Flexible design to process Located 150km south of Zero-liquid discharge refinery Australian Government a range of feedstocks with Geraldton Port; and design; closed c
Slide 11: The Eneabba stockpile is a low carbon source of rare earths
The Eneabba stockpile is a low carbon source of rare earths. It contains enough rare earths to produce ~58,000t of permanent magnets 11
Slide 12: A rare earths processing hub
A rare earths processing hub All of Iluka’s deposits contain rare earths; each of our mining developments will contribute feedstock to the Eneabba refinery SCOPING PRELIMINARY DEFINITIVE PROJECT OPERATIONAL PARTNERSHIPS FEASIBILITY STUDY FEASIBILITY STUDY EXECUTION • Typhoon • Atacama • Wimmera • Ba
Slide 13: A rare earths processing hub
A rare earths processing hub All of Iluka’s deposits contain rare earths; each of our mining developments will contribute feedstock to the Eneabba refinery SCOPING PRELIMINARY DEFINITIVE PROJECT OPERATIONAL PARTNERSHIPS FEASIBILITY STUDY FEASIBILITY STUDY EXECUTION • Typhoon • Atacama • Wimmera • Ba
Slide 14: A secure supply of heavy rare earths
A secure supply of heavy rare earths Magnet REO contribution to basket value @ Adamas 2025-30 prices US$ of magnet REO per kg of REO Nd Eneabba stockpile 70 ~1 million tonnes of high grade concentrate, rich in light and heavy rare Pr earths. Readily available at surface. 60 Tb Refinery could be fill
Slide 15: A secure supply of heavy rare earths
A secure supply of heavy rare earths Magnet REO contribution to basket value @ Adamas 2025-30 prices US$ of magnet REO 2030 Global Demand Dy/Tb per kg of REO Nd 70 Other Pr 60 ~35% of 2030 demand of global Wind Tb refined Dy-Tb forecast to come from E-Mobility E-Mobility 50 e-Mobility requirements a
Slide 16: Partnerships and risk mitigation
Partnerships and risk mitigation Through strategic partnerships and collaboration, Iluka has de-risked its rare earths diversification financially and technically Risk sharing partnership includes a A$1.25 billion non-recourse Preeminent source of Western expertise for rare earths loan through the C
Slide 17: Sustainability and security of supply
Sustainability and security of supply 17 - Guaranteed supply of both light and heavy rare earths • Low risk development, supported by the Australian Government • Multi decade supply options – Iluka has a stockpile and pipeline of projects for rare earths • Strategic infrastructure asset – flexible d
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