Slide 1: Iluka's Exploration & Resource Development Capability
For personal use only TZMI 2011 Congress Iluka’s Exploration & Resource Development Capability Doug Warden General Manager, Exploration & Resource Development 11 November 2011
Slide 2: Disclaimer – Forward Looking Statements
Disclaimer – Forward Looking Statements For personal use only Forward Looking Statements This presentation contains forward-looking statements that are subject to risk factors associated with exploring for, developing, mining, processing and sale of minerals. Forward-looking statements include those
Slide 3: Iluka's Exploration & Resource Development Objective
Iluka’s Exploration & Resource Development Objective For personal use only “To create and deliver value for shareholders” By: “Discovering and commercialising Tier 1 and 2 ore bodies and finding economic extensions to existing ore bodies” 3
Slide 4: Contents
Contents For personal use only 1 Iluka’s Exploration Team 2 Australian Presence 3 International Presence 4 Exploration Track Record 5 Mineral Resources & Ore Reserves & Iluka’s Production Capability 4
Slide 5: Iluka's Exploration Team
Iluka’s Exploration Team 340+ years of experience For personal use only • 31 geologists • 340 years of experience, 160 years of which is in mineral sands • dedicated exploration teams in: Eucla Basin Murray Basin Perth Basin Americas Project Generation • “Explorer of the Year” in 2006 for
Slide 6: Contents
Contents For personal use only 1 Iluka’s Exploration Team 2 Australian Presence 3 International Presence 4 Exploration Track Record 5 Mineral Resources & Ore Reserves & Iluka’s Production Capability 6
Slide 7: Eucla Basin
For personal use only Eucla Basin 7
Slide 8: Eucla Basin 2011
Eucla Basin 2011 For personal use only • 2011 expenditure: ~$9m • 90,000m drilled • Highlights: Typhoon and Atacama; discovery of Sonoran Prospect; high zircon confirmed in the Maralinga area; non HM targets identified in magnetic survey. 8
Slide 9: Eucla Basin 2012 Areas of Focus
Eucla Basin 2012 Areas of Focus For personal use only 2012 focus areas: • 66% greenfields drilling, focussing: within 100km of JA and Tripitaka; and the Maralinga area. • Tripitaka & Atacama resource upgrade drilling • 33% expenditure increase to ~$12m • 33% increase in metres to ~120,000m 9
Slide 10: Murray Basin
For personal use only Murray Basin 10
Slide 11: Murray Basin 2012 Areas of Focus
Murray Basin 2012 Areas of Focus For personal use only • 66% greenfields drilling, focussing: new search spaces Gippsland & Otway Basin Central region of Murray Basin • Focus around existing resources to define any remaining potential e.g. Balranald / Nepean region • 28% expenditure increase to
Slide 12: Perth Basin
For personal use only Perth Basin 12
Slide 13: Contents
Contents For personal use only 1 Iluka’s Exploration Team 2 Australian Presence 3 International Presence 4 Exploration Track Record 5 Mineral Resources & Ore Reserves & Iluka’s Production Capability 13
Slide 14: International Presence
International Presence For personal use only 14
Slide 15: Contents
Contents For personal use only 1 Iluka’s Exploration Team 2 Australian Presence 3 International Presence 4 Exploration Track Record 5 Mineral Resources & Ore Reserves & Iluka’s Production Capability 15
Slide 16: Iluka Exploration: A History of Discovery
Iluka Exploration A History of Discovery For personal use only Iluka Exploration - History of Discovery HM Resource (Mt) 80 70 60 50 40 30 20 10 0 Tutunup/Tut. Kulwin shorelines Old Hickory Balranald Brownfield Cataby Brink Eneabba Tripitaka WRP deposits Ambrosia shorelines Yoganup additions Euston
Slide 17: Jacinth Ambrosia Tier Discovery
Jacinth Ambrosia Tier 1 Discovery For personal use only 17
Slide 18: Mineral Resources Additions
Mineral Resources Additions For personal use only Total Mineral Resources Added by Year - 2002-10* HM (Mt) 70 8 60 1 4 10 (2) 50 6 40 14 64 30 14 20 10 10 - 2002 2003 2004 2005 2006 2007 2008 2009 2010 Cum Total * Exclusive of Production and Divestment • Refer to the Iluka website www.iluka.com for
Slide 19: Ore Reserves Additions
Ore Reserves Additions For personal use only Total Ore Reserves Added by Year - 2002-10* HM (Mt) 25 2 1 1 20 9 15 4 23 (1) 10 3 (2) 6 5 - 2002 2003 2004 2005 2006 2007 2008 2009 2010 Cum Total * Exclusive of Production and Divestment. • Refer to the Iluka website www.iluka.com for ASX releases and i
Slide 20: Exploration Expenditure
Exploration Expenditure For personal use only A$m Iluka Exploration Expenditure 40 35 30 25 20 15 10 5 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20
Slide 21: Contents
Contents For personal use only 1 Iluka’s Exploration Team 2 Australian Presence 3 International Presence 4 Exploration Track Record 5 Mineral Resources & Ore Reserves & Iluka’s Production Capability 21
Slide 22: Conversion of Mineral Resources to Ore Reserves
Conversion of Mineral Resources to Ore Reserves For personal use only • Breakdown of Mineral Resources for Iluka* • Breakdown of those Mineral Resources used for conversion to Ore Reserves* Proportion of Mineral Resources and Ore Reserves Mt HM by JORC Category for Iluka * 120 100 80 60 40 20 ‐ Tota
Slide 23: Iluka's Production Potential
Iluka’s Production Potential For personal use only Old Aurelian Options in Potential Hickory Springs (US) (US) Mineralisation n ra tio plo .a. Eneabba Nepean Atacama Typhoon Ex 35m p ture deposits (MB) (EB) (EB) ~$ din pe ex + Options in Mineral Resources t& West Old d uc al Balranald Hickory BEFN T
Slide 24: Key Focus of Iluka's Production Options
Key Focus of Iluka’s Production Options For personal use only Alignment with objective: create and deliver value for shareholders Financial metrics - IRR, payback period, unit costs/margins, ROC, NPV and Market considerations – assessment of implications for supply/demand under various scenarios Opt
Slide 25: Enhanced Production Overview
Enhanced Production Overview For personal use only • Extensive assessment of production response options - 30+ opportunities identified - 10+ subject to detailed evaluation • Focus on zircon and rutile • Further work on technical, regulatory and other delivery risk factors required • Decision on hig
Slide 26: Potential Implications for Ilmenite Production and SR Kilns
Potential Implications for Ilmenite Production and SR Kilns For personal use only • Subject to the economics of RZ expansion options, Iluka has the potential to produce sufficient ilmenite to support a 4 kiln operation* • Additional chloride ilmenite available for expansion of upgrading capacity and
Slide 27: Conclusion
Conclusion For personal use only • Large, very experienced exploration team with a global focus • A track record of discovery • Exploring in ‘Elephant Country’ for RZ deposits (eg. Eucla and Murray Basins) • Significant ramp up in activity levels planned (~$35m - $40m in 2012) • Iluka has a very lar
Slide 28: Closing Slide
For personal use only Closing Slide Iluka Resources Limited For further information, contact: Robert Porter Closing Statement General Manager Investor Relations robert.porter@iluka.com +61 3 9600 0807 / +61 (0) 407 391 829 www.iluka.com