Iluka Resources Limited · ASX:ILU
Iluka Resources — 2019 Ruidow Zirconium Conference
14 slides from Iluka Resources's conference presentation, May 22, 2019
Slide 1: 2019 Ruidow Zirconium Conference
1 2019 Ruidow Zirconium Conference Xu Ye, Zircon Sales Manager China Iluka Resources Ltd Cataby, Western Australia
Slide 2: Disclaimer – Forward Looking Statements
Disclaimer – Forward Looking Statements 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 document provides an indicative outlook for the Iluka business in the 2019
Slide 3: Outline
Outline 3 Zircon Global Market Chinese Zircon Market Supply Situation Iluka’s Market Approach Iluka’s Assets Support to Chinese Industry
Slide 4: Global Zircon Market
Global Zircon Market 4 Iluka sees the zircon market as being broadly balanced during 2019… Global Supply Global Demand • Significant inventory depletion in recent years • H2 2018 saw softer apparent demand • Existing producers’ mines are mature and grade decline is • Global trade environment affecti
Slide 5: Chinese Zircon Market – Applications
Chinese Zircon Market – Applications 5 Key Features Ceramics Fused Zirconia Soft real estate and influencing Stable demand domestic consumption, slower exports Zirconium Chemicals Foundry Refractory Stable demand, Signs of slowing down in 2Q Robust level of orders production affected by throughout a
Slide 6: Chinese Zircon Market – Environmental Situation
Key Features Chinese Zircon Market – Environmental Situation 6 • Waste emissions: stringent requirements and continued inspections • Customs implementing stewardship on dangerous material • Stronger voice for the Industry • Iluka supports positive changes in China
Slide 7: Zircon Global Supply Situation
Zircon Global Supply Situation 7 Key Features Lack of quality mineral sands projects, particularly with high zircon assemblage, and depletion of current operations (which includes Iluka) Global Zircon Supply Outlook kt Market broadly Supply tipping 1500 balanced in point from 2020 Structural deficit
Slide 8: Iluka's Market Approach – Balancing Demand with Flex
Iluka’s Market Approach – Balancing Demand with Flex 8 Iluka’s response to market conditions3 Iluka’s Zircon Production and Sales kt • Gap filled by inventory release in 2017 and 2018 400 Production 1 Zircon sand ZIC ZIC flex Sales • Inventories at normal levels in 2019 350 • Guided 2019-2021 zircon
Slide 9: Iluka's Market Approach – Sustainable Pricing Model
Iluka’s Market Approach – Sustainable Pricing Model 9 Sustainable pricing based on value-in-use Iluka’s Zircon Reference Price has delivered Zircon Pricing Model sustainable price growth Reference price Iluka Reference Price introduced in 2016 US$/t 1,800 extended to 3Q19 • Provides transparency for
Slide 10: Iluka's Assets – Current Portfolio
Iluka’s Assets – Current Portfolio 10 60 years experience in mineral sands exploration, project development, mining, processing and marketing AMSTERDAM LONDON ANTWERP NEWCASTLE NULES CINCINNATI CASTELLON VIRGINIA RALEIGH QINGDAO ZHENJIANG SHANGHAI XIAMEN GUJARAT SIERRA LEONE PUTTALAM PORT KLANG SING
Slide 11: Iluka's Assets – Projects
Iluka’s Assets – Projects Zr 11 Key Features Cataby, Western Australia Ambrosia, South Australia Major works: Early mine move 2 in-pit mining units $265-275m Capex Smooths production to partially offset grade decline Wet concentrator Completed on budget and Power, water, roads, camp on schedule High
Slide 12: Iluka Support to Chinese Zircon Processing Industry
Iluka Support to Chinese Zircon Processing Industry 12 Key Features Value in use Global pricing logistics Sustainable network approach Direct marketing Industry and customer monitoring relationships and analysis Product Reputation innovation for quality, and technical consistency support and deliver
Slide 13: Iluka Support to Chinese Zircon Processing Industry
Iluka Support to Chinese Zircon Processing Industry 13 Key Features TECHNICAL ENVIRONMENTAL SERVICE
Slide 14: Thank You
THANK YOU