Iluka Resources Limited · ASX:ILU
Iluka Resources — Shareholder Meeting (May 2014)
67 slides from Iluka Resources's shareholder meeting presentation, May 28, 2014
Slide 1: Iluka Resources Limited 2014 Annual General Meeting
Iluka Resources Limited 2014 Annual General Meeting Perth, Western Australia 28 May 2014
Slide 2: Please turn off your mobile phone
PLEASE TURN OFF YOUR MOBILE PHONE
Slide 3: Greg Martin, Chairman
Greg Martin Chairman
Slide 4: 2014 Annual General Meeting
2014 Annual General Meeting
Slide 5: Iluka Board of Directors
Iluka Board of Directors Greg Martin David Robb Gavin Rezos Jenny Seabrook Wayne Osborn Stephen Turner Hutch Ranck Marcelo Chairman Managing Chairman Audit & Chair Remuneration Bastos Director Risk Committee & Nomination & CEO Committee
Slide 6: Marcelo Bastos
Marcelo Bastos Member of Audit and Risk Committee
Slide 7: Hutch Ranck
Hutch Ranck Member of Remuneration and Nomination Committee
Slide 8: Wayne Osborn
Wayne Osborn Chairman of Remuneration and Nomination Committee
Slide 9: Stephen Turner
Stephen Turner Member of Audit and Risk Committee
Slide 10: Jenny Seabrook
Jenny Seabrook Chairman of Audit and Risk Committee Member of Remuneration and Nomination Committee
Slide 11: Gavin Rezos
Gavin Rezos Member of Remuneration and Nomination Committee Director of Metalysis Limited
Slide 12: David Robb, Managing Director and CEO
David Robb Managing Director and CEO
Slide 13: Cameron Wilson, Company Secretary
Cameron Wilson Company Secretary
Slide 14: 2014 Annual General Meeting
2014 Annual General Meeting E ’ = a i | Zz >= r
Slide 15: Chairman's Address
Chairman’s Address
Slide 16: Robust Balance Sheet
Robust Balance Sheet • Net debt $207 million (debt facilities $835 million) as at 31 Dec 2013 • Gearing 11.8% $m 11.8 Gearing % 140 10 12 100 5.8 9 6 60 3 20 0 (20) Opening net debt Closing net debt Closing net debt -3 (60) 31 Dec 2012 31 Dec 2013 30 Apr 2014 -6 (100) -9 (96) -12 (140) -15 (180) (16
Slide 17: Continued Investment
Continued Investment • Project evaluation • International exploration • Research and development • Mineral sands market expansion • New technology company, Metalysis International exploration Ceramics tile survey New technology for titanium powder production
Slide 18: Returns to Shareholders
Returns to Shareholders • Dividend payments – interim 5 cents fully franked – final 4 cents fully franked – cumulative 76% free cash flow payout ratio since end of 2010 80 70 60 50 40 Final Interim 30 20 10 0 2010 2011 2012 2013
Slide 19: Chairman's Address
Chairman’s Address
Slide 20: Safety Performance
Safety Performance Loss time injury frequency rate Total recordable injury frequency rate 4 3.8 20 17.7 3.4 18 16.4 3.5 3.1 15.1 16 3 14 2.5 10.5 1.9 12 2 10 1.5 8 4.6 6 1 0.3 4 0.5 2 0 0 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 • Safe Production Leadership programme introduced 2011 • LTIFR
Slide 21: Environmental Performance
Environmental Performance Environmental Incidents 1,200 59 1,000 57 800 No Level 5 Incidents 600 Level 3 & 4 Level 1 & 2 983 400 822 13 200 349 4 4 2 3 76 91 106 76 0 2012 2013 Jan-14 Feb-14 Mar-14 Apr-14 2014 YTD
Slide 22: Rehabilitation
Rehabilitation Eneabba, Mid West, Perth Basin Douglas, Murray Basin
Slide 23: Rehabilitation
Rehabilitation Jacinth-Ambrosia, Eucla Basin Virginia, United States
Slide 24: Environmental Research
Environmental Research • Chair in Vegetation Science and Biogeography, University of Western Australia • Virginia Polytechnic Institute, United States • Other environmental management and rehabilitation partnerships include: – University of Adelaide – Adelaide Botanic Gardens – University of Queensl
Slide 25: South Australian Premier's Awards
South Australian Premier’s Awards Award for Environmental Excellence 2014 Award for Social Inclusion 2013
Slide 26: Socio-economic Contribution
Socio-economic Contribution Employment >1,300 direct jobs > 3,800 indirect jobs former Iluka mine site near Capel, Western Australia $1.1 billion value add ~$150 million in taxation Australian Operations payments and royalties
Slide 27: Chairman's Address
Chairman’s Address
Slide 28: Diversity
Diversity
Slide 29: Diversity
Diversity Western Australian Chamber of Minerals and Energy Women in Resources Awards 2014 Manager, Narngulu Operations Female Operator, North Capel Operation Finalist Outstanding Operator/ Technician/ Trade Woman category
Slide 30: Chairman's Address
Chairman’s Address
Slide 31: Managing Director's Address
Managing Director’s Address
Slide 32: Iluka's Priorities
Iluka’s Priorities • Focus on shareholder returns through the cycle • Flex operations in line with market demand • Maintain strong balance sheet • Continue market development • Preserve and advance mineral sands growth opportunities • Continue to evaluate / pursue corporate growth opportunities • Ac
Slide 33: Iluka's Priorities
Iluka’s Priorities • Focus on shareholder returns through the cycle • Flex operations in line with market demand • Maintain strong balance sheet • Continue market development • Preserve and advance mineral sands growth opportunities • Continue to evaluate / pursue corporate growth opportunities • Ac
Slide 34: Iluka's Priorities
Iluka’s Priorities • Focus on shareholder returns through the cycle • Flex operations in line with market demand • Maintain strong balance sheet • Continue market development • Preserve and advance mineral sands growth opportunities • Continue to evaluate / pursue corporate growth opportunities • Ac
Slide 35: Overview of Market Conditions
Overview of Market Conditions
Slide 36: Zircon Sales
Zircon Sales kt 514 479 370 223 214 2009 2010 2011 2012 2013 Iluka weighted average prices US$/t FOB 2009 2010 2011 2012 2013 Zircon 850 880 1,886 2,080 1,150
Slide 37: High Grade Titanium Dioxide Sales
High Grade Titanium Dioxide Sales Rutile and Synthetic Rutile kt 362 397 258 170 46 240 266 139 168 106 2009 2010 2011 2012 2013 Rutile Synthetic rutile Iluka weighted average prices US$/t FOB 2009 2010 2011 2012 2013 Rutile 540 550 1,174 2,464 1,069 Synthetic rutile 425 450 878 1,771 1,150
Slide 38: Overview of Market Conditions
Overview of Market Conditions
Slide 39: Operational Settings
Operational Settings
Slide 40: Production Flex
Production Flex Zircon production TiO2 production 52% 67% reduction reduction Sales profile Includes rutile and synthetic rutile
Slide 41: Production by Operation
Production by Operation 2013 2014 1 Murray Basin Mining (WRP) Full utilisation Hamilton MSP ~50% utilisation ~80% utilisation Focus on balancing Full utilisation - unit costs & Jacinth-Ambrosia Mining concentrate build inventory position objectives Narngulu MSP ~40% utilisation ~50% utilisation Tutu
Slide 42: Cash Conservation
Cash Conservation Cash costs of production Capital expenditure 40% reduction 63% reduction
Slide 43: Evolution of the Company
Evolution of the Company
Slide 44: Direct Reports
Direct Reports MANAGING DIRECTOR Doug Warden Steve Wickham Matthew Blackwell Alan Tate Chris Cobb Cameron Wilson Head of Resource Chief Operating Officer, Head of Marketing, Chief Financial Officer Head of Alliances, Chief Legal Counsel Development, Mineral Mineral Sands Mineral Sands and Head of St
Slide 45: Sales and Marketing
Sales and Marketing US operations Nashville Jacksonville orth Carolina @ Mining and Processing facility nd Marketing O Warehouse and small lot Rio de Janeiroe @ Corporate/marketing/ exploration office @ Other assets Netherlands Belgium Spain Europe Duhaie Durban ° China @aingdao Shanghai Zhenjiang O
Slide 46: Digital Printing of Ceramics
Digital Printing of Ceramics
Slide 47: Exploration
Exploration Key component of Iluka’s growth strategy
Slide 48: Innovation and Technology
Innovation and Technology
Slide 49: Investment in Technology
Investment in Technology Source: Metalysis
Slide 50: Advance Mineral Sands Growth Opportunities
Advance Mineral Sands Growth Opportunities New Projects SATELLITE DEPOSITS, EUCLA BASIN, SOUTH AUSTRALIA BALRANALD, MURRAY BASIN, NEW SOUTH WALES CATABY, PERTH BASIN, WESTERN AUSTRALIA HICKORY, VIRGINIA, UNITED STATES AURELIAN SPRINGS, NORTH CAROLINA, UNITED STATES SRI LANKA
Slide 51: Managing Director's Address
Managing Director’s Address
Slide 52: Formal Business of the Meeting
Formal Business of the Meeting
Slide 53: Proxies Received for the Meeting
Proxies Received for the Meeting • Proxies received: – 326,228,947 shares – 77.91% of issued shares
Slide 54: Formal Business of the Meeting
Formal Business of the Meeting
Slide 55: Annual Financial Report
Annual Financial Report
Slide 56: Shareholder Questions
Shareholder Questions
Slide 57: Ordinary Resolutions
Ordinary Resolutions
Slide 58: Green Voting Card
Green Voting Card ANNUAL GENERAL MEETING 28 MAY 2014 SHAREHOLDER/PROXYHOLDER ADMISSION & VOTING CARD THE DIRECTORS OF ILUKA RESOURCES LIMITED THANK YOU FOR YOUR ATTENDANCE PLEASE RETAIN THIS CARD UNTIL THE CLOSE OF THE MEETING NINN Please read the instructions on the reverse before voting ILUKA SHAR
Slide 59: Iluka Website
Iluka Website www.iluka.com
Slide 60: Resolution 1: Re-election of Director
Resolution 1 Re-election of Director – Jennifer Seabrook
Slide 61: Resolution 1: Proxies Received
Resolution 1 Re-election of Director – Jennifer Seabrook • Proxies received – for: 324,162,151 – against: 754,467 – proxy’s discretion: 1,312,329 – abstain: 124,433
Slide 62: Resolution 2: Election of Director
Resolution 2 Election of Director – Marcelo Bastos
Slide 63: Resolution 2: Proxies Received
Resolution 2 Election of Director – Marcelo Bastos • Proxies received – for: 321,108,214 – against: 3,786,079 – proxy’s discretion: 1,313,039 – abstain: 146,048
Slide 64: Resolution 3: Adoption of the Remuneration Report
Resolution 3 Adoption of the Remuneration Report
Slide 65: Resolution 3: Proxies Received
Resolution 3 Adoption of Remuneration Report • Proxies received – for: 318,771,210 – against: 5,655,207 – proxy’s discretion: 1,269,754 – abstain: 653,795
Slide 66: Green Voting Card
Green Voting Card ANNUAL GENERAL MEETING 28 MAY 2014 SHAREHOLDER/PROXYHOLDER ADMISSION & VOTING CARD THE DIRECTORS OF ILUKA RESOURCES LIMITED THANK YOU FOR YOUR ATTENDANCE PLEASE RETAIN THIS CARD UNTIL THE CLOSE OF THE MEETING NINN Please read the instructions on the reverse before voting ILUKA SHAR
Slide 67: Iluka Resources Limited 2014 Annual General Meeting
Iluka Resources Limited 2014 Annual General Meeting Perth, Western Australia 28 May 2014