Slide 1: Iluka Resources 2022 Full Year Results Presentation
1 Iluka Resources 2022 Full Year Results Presentation Tom O’Leary, Managing Director 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: Sustainability outcomes
Sustainability outcomes 3 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 18% Decrease in Group 24% Representation of Cultu
Slide 4: Case Study: Iluka's Flora Restorer
4 Case Study: Iluka’s Flora Restorer Iluka received the 2022 Golden Gecko Award for Environmental Excellence for the bespoke seeding machine ‘Flora Restorer’ Investment and commitment to More than doubled the annual Supports mine rehabilitation at field research trials proved the area rehabilitated
Slide 5: FY 2022 Key Features
5 FY 2022 Key Features Financial Operational Strategic Record revenue NPAT Australian Key synthetic rutile Eneabba rare Balranald FID underpinned by $589 million operations at contracts agreed earths refinery Capital cost2 - A$480m sustainable approach maximum settings approved Net cash NPV2 - A$400
Slide 6: Results overview
Results overview 6 Units FY 2022 FY 2021 % Change Z/R/SR Production kt 679 720 (6) $917m Z/R/SR Sales kt 720 868 (17) Mineral Sands EBITDA ($634m FY 2021) Mineral sands revenue $m 1,727 1,486 16 ▲ ▲ $589m Mineral sands EBITDA $m 917 634 45 Mineral sands EBITDA margin % 53 43 23 ▲ NPAT Share of p
Slide 7: NPAT and net cash
NPAT and net cash 7 $m 800 403 28 111 31 8 11 700 15 Underlying NPAT FY 2021 vs FY 2022 27 600 ( 10 ) (8) ( 91 ) ( 74 ) 500 ( 170 ) 597 • Demand reflected in higher prices 400 achieved across all of Iluka’s products, 300 despite lower volumes 200 315 100 • Lower US$ exchange rate (70 cents vs 0 75 c
Slide 8: Balance sheet and funding capacity
Balance sheet and funding capacity 8 Net debt (cash), MOFA and gearing1 Eneabba Rare Earths Refinery Funding2 $m $m Gearing % 1,200 800 30 600 1,000 Undrawn 20 400 1,209 10 800 200 0 - 600 -200 400 Remaining (10) -400 180 (20) 200 -600 (45) 41 20 -800 (30) - H1 17 H2 17 H1 18 H2 18 H1 19 H2 19 H1 20
Slide 9: Deterra Royalties Key Features
Deterra Royalties 9 Key Features Mining Area C royalty receipts (A$m)1 Mining Area C production (Mwmt) 264.8 46.0 139.5 91.9 2.0 126.1 61.9 145 1.0 96.0 67.6 89.1 29.2 30.8 34 56.6 30 46.9 62.7 28.2 41.2 92.7 96.0 49.2 44.0 48.4 31.4 25.9 29.8 27.6 28.4 26.4 2018 2019 2020 2021 2022 2023 2018 219 20
Slide 10: Iluka's capital management approach
Iluka’s capital management approach 10 Significant funding capacity and disciplined approach to capital management Mineral sands Deterra Royalties stake Rare earths Debt Framework No net debt through the investment cycle Strong cash flow generation - average cash inflow over Deterra royalty stream s
Slide 11: Iluka's five-year financial performance
Iluka’s five-year financial performance 11 Iluka’s track record demonstrates strong financial performance, despite varying market conditions and macroeconomic events A$m Mineral sands Revenue, EBITDA and Margin1 Cash Flow and Dividends3 A$m cps 2,000 60% 800 160 1,800 50% 700 140 1,600 600 120 1,400
Slide 12: Markets
Markets Customers prioritising security of supply
Slide 13: Markets – zircon
Markets – zircon 13 Demand resilient in FY 2022 despite global macroeconomic and geopolitical uncertainty • FY 2022 sales 334kt (FY 2021: 355kt) US$/t Zircon net realised FOB price1 Result ‒ Q4 2022 sales of 80kt up 27% on Q3 2022 sales 2,800 ‒ zircon in concentrate (ZIC) sales 100kt 2,400 2,000 • Q
Slide 14: Markets – high-grade titanium feedstocks
Markets – high-grade titanium feedstocks 14 Strong, demonstrated level of customer interest for high grade feedstocks produced by Iluka in Australia • FY 2022 sales 386kt (FY 2021: 513kt) Result US$/t Rutile net realised FOB price 1 ‒ SRL demerged in August 2022 2,800 2,400 Pricing • FY 2022 rutile
Slide 15: Markets – synthetic rutile contracts
Markets – synthetic rutile contracts 15 Offtake commitments for synthetic rutile increased to ~200ktpa contracted under ‘take or pay’ arrangements for the next four years • Commissioned in December 2022 SR1 restart ‒ produced 7kt of synthetic rutile in Q4 2022, in line with targeted kt Synthetic rut
Slide 16: Inventory position and industry evolution
Inventory position and industry evolution 16 Disciplined production responses an encouraging evolution for the mineral sands and downstream opacifier and pigment industries. This serves to reduce volatility, with positive implications for many through the supply chain $m Finished goods1 and HMC inve
Slide 17: Operations
Operations Exclusively Australian production base configured at maximum settings Cataby, Western Australia
Slide 18: Mineral sands operations
Mineral sands operations 18 Iluka adjusts the operating settings of its portfolio to optimise production in response to market conditions, optimise costs and improve cash flow. In FY 2022, the company maintained maximum operating settings, improved recoveries and delivered continuous improvement acr
Slide 19: Projects
Projects Unlocking Australian critical minerals Capel, Western Australia
Slide 20: Project pipeline
Project pipeline 20 Breadth across mineral sands and rare earth product suite … … and depth at various stages of execution High Grade Atacama1 Zircon Titanium Balranald1 Euston1 SR1 kiln South West1 restart Wimmera Eneabba refinery Rare Earths 1. These potential developments will contribute, to a gr
Slide 21: Balranald – final investment decision
Balranald – final Investment decision 21 Project overview Located in the Riverina district of south western New South Wales. The project is focused on the rutile and zircon rich West Balranald deposit. Owing to its relative depth (approximately 60 metres below surface), Iluka has over several years
Slide 22: Wimmera – definitive feasibility study approved
Wimmera – definitive feasibility study approved 22 Project overview 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. Technical challenge of physical sep
Slide 23: Eneabba rare earths refinery – execution
Eneabba rare earths refinery – execution 23 Project overview A fully integrated refinery producing separated light and heavy rare earth oxides. Final investment decision taken April 2022 following agreement of risk sharing arrangement with the Australian Government, including a $1.25 billion non-rec
Slide 24: Supplementary Information
Supplementary Information Supplementary Information Narngulu, Narngulu, Western Western Australia Australia
Slide 25: Outlook for 2023 and historic results (excluding SRL)
Outlook for 2023 and historic results (excluding SRL) 25 2021 2022 Key Parameters 20231 Comments (excludes SRL) (excludes SRL) Annual production Zircon kt 320 299 300 Production includes 60kt ZIC Rutile2 kt 67 55 55 Includes HYTI from Jacinth Ambrosia Synthetic Rutile kt 199 238 305 SR2 MMO in H2 To
Slide 26: Outlook for 2023
Outlook for 2023 26 Key Parameters 2021 2022 2023 Comments Other cash costs ($m) Ilmenite concentrate and by-product costs 20 13 15 Restructure, idle costs and other non-production 33 15 35 SR2 major maintenance outage for 2 months Major projects, exploration and innovation 45 37 65 Includes $20m ex
Slide 27: Supplementary Information – Production, Sales, Revenue and Costs
Supplementary Information – Production, Sales, Revenue and Costs 27 2022 2021 % change Production Zircon kt 302.7 324.2 (6.6) Rutile kt 139.1 196.6 (29.2) Synthetic rutile kt 237.6 198.7 19.6 Total Z/R/SR production kt 679.4 719.5 (5.6) Ilmenite – saleable and upgradeable kt 590.9 563.7 4.8 Monazite
Slide 28: Supplementary Information – Summary Group Results
Supplementary Information – Summary Group Results 28 $ million 2022 2021 % change Mineral sands revenue 1,727.4 1,485.8 16.3% Mineral sands EBITDA 916.8 633.9 44.6% Mineral sands EBITDA margin % 53.1% 42.7% n/a Share of profit from associate (Deterra) 29.6 18.4 60.9% Underlying group EBITDA1 946.4 6
Slide 29: Supplementary Information – Income Statement
Supplementary Information – Income Statement 29 A$ million 2022 2021 % change Z/R/SR revenue 1,594.5 1,381.9 15.4 Ilmenite and other revenue 132.9 103.9 27.9 Mineral Sands Revenue 1,727.4 1,485.8 16.3 Cash costs of production (650.1) (579.2) (12.2) Inventory movement - cash 27.0 (67.0) n/a Restructu
Slide 30: Supplementary Information – Reconciliation of non-IFRS information
Supplementary Information – Reconciliation of non-IFRS information 30 Mineral JA/MW C/SW US/MB SRL Rare Earths Expl & Oth Sands Corp Group Mineral sands revenue 778.9 753.4 0.4 203.6 - (8.9) 1,727.4 - 1,727.4 AASB 15 freight revenue 58.6 28.9 - - - - 87.5 - 87.5 Expenses (325.1) (329.4) (8.1) (137.2
Slide 31: Supplementary Information - Weighted average received prices
Supplementary Information - Weighted average received prices 31 H1 Q3 Q4 H2 FY FY US$/tonne FOB 2022 2022 2022 2022 2022 2021 Zircon Premium and Standard 1,855 2,038 2,054 2,047 1,943 1,414 Zircon 1,757 1,950 1,994 1,975 1,850 1,330 (all products including zircon in concentrate)1 Rutile 1,506 1,654
Slide 32: For more information contact
32 For more information contact Luke Woodgate, Group Manager, Investor Relations and Corporate Affairs investor.relations@iluka.com Jacinth-Ambrosia, South Australia