Iluka Resources Limited · ASX:ILU
Iluka Resources — Shareholder Meeting (May 2012)
59 slides from Iluka Resources's shareholder meeting presentation, May 23, 2012
Slide 1: 2012 Annual General Meeting
Iluka Resources Limited 2012 Annual General Meeting Perth, Western Australia 23 May 2012
Slide 2: Mr John Pizzey, Chairman
Mr John Pizzey Chairman vy ILUK >
Slide 3: Stephen Turner
Stephen Turner vy ILUKA
Slide 4: Jenny Seabrook
Jenny Seabrook Chairperson of the Audit and Risk Committee 4
Slide 5: Gavin Rezos
Gavin Rezos vy ILUKA
Slide 6: David Robb, Managing Director and CEO
David Robb Managing Director and CEO 6
Slide 7: Iluka 2012 Annual General Meeting
Iluka 2012 Annual General Meeting
Slide 8: Formal Proceedings of Meeting
Formal Proceedings of Meeting
Slide 9: Proxies Received for Meeting
Proxies Received for Meeting Proxies received 301.7 million shares 72.05% of issued shares 9
Slide 10: Formal Proceedings of the Meeting: Financial Statements
Formal Proceedings of the Meeting Financial Statements 10
Slide 11: Chairman's Address
\ Chairman’s Address
Slide 12: Key Features of 2011 Results
Key Features of 2011 Results Revenues 75% to $1.6 billion Net Profit After Tax 1400% to $541.8 million Operating Cash Flow 330% to $706 million Free Cash Flow 870% to $589.6 million Return on Capital 54.9% versus 5.0% Return on Equity 42.5% versus 3.2% Net Cash/Net Debt $156.7 million
Slide 13: Shareholder Returns
Shareholder Returns Share price appreciation 70% Total annual dividend of 75 cents per share Full year dividend 55 cents fully franked 13
Slide 14: Chairman's Address
\ Chairman’s Address
Slide 15: Managing Director's Address
Managing Director’s Address
Slide 16: Features of the 2011 Financial Year
Features of the 2011 Financial Year
Slide 17: Production vs Guidance/Sales
Production vs Guidance/Sales kt 700 600 500 400 300 200 100 0 Zircon Rutile Synthetic Rutile Production Guidance Sales 17
Slide 18: Total and Unit Cash Costs of Production
Total and Unit Cash Costs of Production A$t Z/R/SR A$m 700 600 600 500 500 400 400 300 300 200 200 100 100 0 0 2010 Actual 2011 Guidance 2011 Actual 2010 Actual 2011 Guidance 2011 Actual Total Cash Costs of Production Unit Cash Costs of Production 18
Slide 19: Increased production
Increased production 19
Slide 20: Tutunup South, Western Australia
Tutunup South, Western Australia 20
Slide 21: Eneabba, Western Australia
Eneabba, Western Australia 21
Slide 22: Zircon Pricing
0 400 800 1,200 1,600 2,000 2,400 2,800 3,200 1Q 2010 US $/t 2Q 2010 Zircon Pricing 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q2012 22
Slide 23: High Grade Titanium Dioxide Pricing: Rutile
High Grade Titanium Dioxide Pricing Rutile US $/t 2,800 2,400 2,000 1,600 1,200 800 400 0 Weighted 1H 2011 2H 2011 1H 2012 Average 2010 23
Slide 24: High Grade Titanium Dioxide Pricing: Synthetic Rutile
High Grade Titanium Dioxide Pricing Synthetic Rutile US $/t 2,400 2,000 1,600 1,200 800 400 0 Weighted 1H 2011 2H 2011 1H 2012 Average 2010 24
Slide 25: Z/R/SR Production, Unit Cash Costs and Revenue
Z/R/SR Production Unit Cash Costs and Revenue kt $/t 350 2,100 300 1,800 250 1,500 200 1,200 150 900 100 600 50 300 0 0 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Zircon Rutile SR Cash cost of production $/t Z/R/SR Revenue $/t Z/R/SR 25
Slide 26: Features of the 2011 Financial Year
Features of the 2011 Financial Year 26
Slide 27: Net Profit After Tax 2011 versus 2010
Net Profit After Tax 2011 versus 2010 $m 900 736.5 800 45.5 35.6 12.2 16.6 4.1 700 (13.7) (84.4) (52.1) (5.6) 600 541.8 500 (215.1) 400 300 200 64.3 100 36.1 (38.1) 0 2010 Mix Volume Price FX Ilm & Oth Unit Min Sand D&A Impair MAC Corp Interest Tax 2011 NPAT Costs Other NPAT 27
Slide 28: Net Debt to Net Cash Movement
Net Debt to Net Cash Movement $m 600 90.3 500 706.2 (23.6) (10.9) (12.5) 400 3.9 300 (142.5) (21.3) 200 156.7 (117.0) (3.3) 100 0 Opening Operating MAC Exploration Interest Tax Capex Asset Sales Share Dividends FX on Debt Closing Net Net Debt Cash Flow Royalty Purchase Cash -100 -200 -300 (312.6) 28
Slide 29: Features of the 2011 Financial Year
Features of the 2011 Financial Year 29
Slide 30: Safe Production Leadership
Safe Production Leadership 30
Slide 31: Safety Performance
Safety Performance 5 Lost Time Injury Frequency Rate (LTIFR) 20 Total Recordable Injury Frequency Rate (TRIFR) 4 15 3 10 2 5 1 0 0 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 80 Injury Severity Rate 60 40 20 0 31 Jan-1
Slide 32: Exploration Commitment
Exploration Commitment Increased exploration expenditure commitment 50% to >$35 million International exploration programme 32
Slide 33: Exploration - South Australia
Exploration - South Australia 33
Slide 34: Increase in Ore Reserves and Mineral Resources
Increase in Ore Reserves and Mineral Resources - Ore Reserves 13% after 2011 depletions - Mineral Resources 6% after depletions and adjustments 34
Slide 35: Jacinth-Ambrosia Ore Reserve Changes
Jacinth-Ambrosia Ore Reserve Changes ~24% increase in HM reserves since commencement of mining HM Mt 7.00 6.50 0.72 0.75 (0.05) 0.00 6.00 5.50 (0.68) (0.77) 6.42 6.37 6.40 6.38 5.00 4.50 4.00 '09 Ore '09 Mining '09 Ore '10 Ore '10 Mining '10 Ore '11 Ore '11 Mining '11 Ore 31 Dec '11 Reserve Deplet
Slide 36: Enhanced Production Project
Enhanced Production Project Zircon Production Potential Rutile Production Potential 36
Slide 37: Opportunities in the Eucla Basin
Opportunities in the Eucla Basin 37
Slide 38: Virginia, United States
J ILUKA Virginia, United States
Slide 39: Woornack, Rownack and Pirro (WRP)
Woornack, Rownack and Pirro (WRP) First Concentrate Production - May 2012 39
Slide 40: Relocation of Mining Equipment
Relocation of Mining Equipment Kulwin to WRP 40
Slide 41: Product and Technical Development
Product and Technical Development 41
Slide 42: Titanium Feedstock Products
Titanium Feedstock Products Titanium Feedstocks 2011 = 6.7Mt 100% Rutile (95% TiO2) 90% Synthetic Rutile (SR) (90 - 95% TiO2) 80% Upgraded Chloride Slag (UGS) (95% TiO2) Chloride Market 70% Chloride Slag (80 - 90% TiO2) 3.6Mt 60% 50% Chloride Ilmenite and Leucoxene (60 - 70% TiO2) 40% 30% Sulphate S
Slide 43: Features of the 2011 Financial Year
Features of the 2011 Financial Year 43
Slide 44: Mineral Sands Market Conditions: Zircon
Mineral Sands Market Conditions Zircon 44
Slide 45: Mineral Sands Market Conditions: Titanium Dioxide
Mineral Sands Market Conditions Titanium Dioxide 45
Slide 46: Iluka's Priorities
J ILUKA lluka’s Priorities
Slide 47: Balanced Geographic Revenue Mix
Balanced Geographic Revenue Mix 2010 2011 2012 (budget) Other Asia Other Other Asia China (other) (other) China China Asia (other) North North Europe Europe America Europe North America America Regional % 2010 2011 2012 Budget China 25 28 22 North America 25 21 27 Europe 20 29 27 Asia (other) 19 21
Slide 48: Balanced Product Revenue Mix
Balanced Product Revenue Mix Zircon vs High Grade TiO2 Revenues 2010 2011 2012 (budget) 36% 36% ~55% 64% ~45% 64% Zircon High-grade TiO2 / R / SR Based on received 2010 and 2011 prices, 2012 sales guidance Assumes 2012 beginning prices for full year 2012 Excludes revenue from ilmenite, by-prod
Slide 49: Iluka's Priorities
J ILUKA lluka’s Priorities
Slide 50: Chairman's Address (continued)
Chairman’s Address (continued)
Slide 51: Shareholders' Questions
Shareholders’ Questions
Slide 52: Ordinary Resolutions
\y Ordinary Resolutions
Slide 53: Re-election of Director: Mr John Pizzey
Re-election of Director Resolution 1 – Re-election of Director – Mr John Pizzey 53
Slide 54: Re-election of Director: Proxies Received
Re-election of Director Resolution 1 – Proxies Received For: 300,778,328 Against: 174,684 54
Slide 55: Re-election of Director: Mr Gavin Rezos
Re-election of Director Resolution 2 – Re-election of Director – Mr Gavin Rezos 55
Slide 56: Re-election of Director: Proxies Received
Re-election of Director Resolution 2 – Proxies Received For: 300,491,959 Against: 454,325 56
Slide 57: Adoption of Remuneration Report
Adoption of Remuneration Report Resolution 3 – Adoption of Remuneration Report 57
Slide 58: Adoption of Remuneration Report: Proxies Received
Adoption of Remuneration Report Resolution 3 – Proxies Received For: 285,759,617 Against: 15,051,636 58
Slide 59: 2012 Annual General Meeting
Iluka Resources Limited 2012 Annual General Meeting Perth, Western Australia 23 May 2012