Iluka Resources Limited · ASX:ILU
Iluka Resources — Investor Day (May 2025)
73 slides from Iluka Resources's investor day presentation, May 5, 2025
Slide 1: Iluka Resources Investor Briefing
Iluka Resources (ASX:ILU) Investor Briefing 5 May 2025
Slide 2: Disclaimer
Disclaimer 2 This release has been prepared by Iluka Resources Limited (Iluka). By accessing this release you acknowledge that you have read and understood the following statement. This release includes forward-looking statements reflecting Iluka’s current expectations. These statements are expresse
Slide 3: Agenda
Agenda 3 1 Introduction Tom O’Leary 2 Mineral sands Shane Tilka and Matt Blackwell 3 Rare earths Adele Stratton and Dan McGrath Break 4 Value drivers and group capital management Adele Stratton 5 Summary and Q&A Tom O’Leary Jacinth Ambrosia, South Australia
Slide 4: Today's speakers
Today's speakers 4 Tom O’Leary Shane Tilka Matt Blackwell Dan McGrath Adele Stratton Managing Director and Chief Operating Officer, Head of Major Projects and Chief Financial Officer and Head of Rare Earths Chief Executive Officer Mineral Sands Marketing Head of Development
Slide 5: A global critical minerals company
5 Critical minerals Operational experience A global Zircon, titanium and rare earths are Over 70 years of critical minerals critical minerals used in a wide range of consumer and industrial applications and are essential for urbanisation, exploration, mining, processing, marketing and rehabilitation
Slide 6: Iluka's investment proposition
Iluka’s investment proposition 6 Mineral sands An established business with a record of attractive margins and cash generation Complementary Rare earths businesses An emerging, unique business with significant growth exposure and risk protection 20% stake in Deterra Royalties Provides dividend certa
Slide 7: Mineral Sands - Operations and Production
Y ILUKA Mineral Sands - Operations and Production -
Slide 8: Integrated production overview
Integrated production overview 8 Mining and Cataby Jacinth-Ambrosia Balranald1 Eneabba Stockpile2 concentrating Western Australia South Australia New South Wales Western Australia Narngulu Mineral Separation Plant Separation Western Australia Capel Processing Plant Eneabba Rare Earths Refinery Proce
Slide 9: Mining and concentrating operations
Mining and concentrating operations 9 Iluka employs a long-term cadence of mine development to manage its markets and service customer requirements • Capital allocation decisions are assessed based on expected returns under a range of scenarios – as well risk, market, portfolio and industry factors
Slide 10: Processing and refining operations
Processing and refining operations 10 Iluka has an integrated portfolio of mining, processing and refining assets, which underpins the company’s competitive advantage • Enables value uplift from producing processed finished goods in Australia • Additional processing and refining capacity is preserve
Slide 11: Narngulu mineral separation plant
Narngulu mineral separation plant 11 The Narngulu mineral separation plant is one of the largest mineral separation facilities globally • Capable of accepting heavy mineral concentrate (HMC) feedstock from various mines • Currently processes feedstock from Jacinth-Ambrosia and Cataby (Balranald from
Slide 12: Capel processing plant
Capel processing plant 12 The Capel processing plant comprises two synthetic rutile kilns – SR1 and SR2 • Synthetic rutile is produced by processing chloride ilmenite in a kiln • This removes the iron content and increases the titanium dioxide content from ~55% to ~92% • Iluka’s conversion yield for
Slide 13: Mineral sands production potential
Mineral sands production potential 13 Rutile to feature more prominently in sales mix with Balranald 250 200 SR1 is optional swing capacity that can be turned on relatively quickly, 150 Zircon3 pending market conditions kt 100 50 0 2026 2027 2028 2028 Cataby Jacinth-Ambrosia Balranald ZIC Group Z/R/
Slide 14: Mineral sands outlook for 2025
Mineral sands outlook for 2025 14 2025 Outlook Cash cost of production by activity Production 20251 Cash costs of production (Z/R/SR) 20251 Zircon sand kt 165 Concentrating A$m 220 32% Zircon in concentrate kt 60 Mining A$m 175 26% Rutile2 kt 50 Synthetic rutile A$m 90 13% Synthetic Rutile kt 220 Tr
Slide 15: Safety and environment
Safety and environment 15 9MW solar farm commissioned at Cataby As at 31 March 2025 403ha of land rehabilitated Over $1.2 million in (2024) community donations, 3.5MW solar farm at 2.6 SPIFR sponsorships and education Jacinth-Ambrosia Serious Potential Incident partnerships Frequency Rate (3.3 in FY
Slide 16: Mineral Sands
Mineral Sanc |!
Slide 17: Iluka's marketing approach
Iluka’s marketing approach Delivering sustainable prices; Hub and spoke distribution 17 negotiated with customers model; warehouses based on value in use and positioned close to key Key to the delivery of sustainable value other factors markets • Non-exchange traded products marketed directly to cus
Slide 18: Iluka's market position
Iluka’s market position 18 High grade titanium feedstocks Zircon 2024 global high-grade titanium supply1 2024 global zircon supply (total market = ~3.3mt TiO2 units) (total market = ~1.2mt) Iluka 7% Iluka 20% SR1 production capacity2 3% Other Other 90% 80% 1. Includes rutile, leucoxene, synthetic ru
Slide 19: Iluka's sales book
Iluka’s sales book 19 High grade titanium feedstocks Zircon Iluka products: rutile1 and synthetic rutile Iluka products: zircon sand and zircon-in-concentrate Industry demand Iluka sales Industry demand Iluka sales Welding and Welding and other Other Other other 2% 4% 4% Refractory and Titanium meta
Slide 20: Chloride titanium feedstocks supply and demand
Chloride titanium feedstocks supply and demand 20 Titanium feedstocks market likely to remain balanced over near term. Additional investment required to sustain supply through late 2020s 4,000 4,000 • Growth in Chinese chloride slag production the major industry evolution over past decade 3,000 3,00
Slide 21: Global pigment market anti-dumping duties
Global pigment market anti-dumping duties 21 The response to China’s pigment expansion Pigment industry trade flows are undergoing change via anti-dumping duties Europe • 14-40% duties on Chinese There are potential opportunities for Iluka, with the company’s pigment imports from June 2024 major TiO
Slide 22: Pigment demand and GDP
Pigment demand and GDP 22 Increasing opportunities for growth in developing nations Pigment intensity of use (2000-2023) 4.50 China, India, Middle East, Africa and 4.00 South America have the potential for relatively high growth as real 3.50 Pigment demand per capita (kg) GDP per capita continues to
Slide 23: Pricing outcomes – titanium feedstocks
Pricing outcomes – titanium feedstocks 23 Iluka’s disciplined marketing approach delivers sustainable pricing outcomes while balancing the need to meet customers’ needs and deliver sales revenue. Rutile price post Sierra Rutile demerger (2022) reflects increased sales into the niche welding market I
Slide 24: Zircon supply and demand
Zircon supply and demand 24 ~45% of total zircon market supply comes from major suppliers Iluka, Rio Tinto and Tronox 1,400 1,200 1,000 • Zircon demand typically ranges from 1.1Mtpa -1.2Mtpa • High quality separated zircon sand remains in limited supply with ~60% of total supply from Iluka and Trono
Slide 25: Zircon qualities vary significantly
Zircon qualities vary significantly 25 Zircon products produced from mineral separation plants in China typically have different quality profiles to rest of world zircon production. Demand for premium zircon remains consistent Some industry applications require premium zircon In other applications,
Slide 26: Pricing outcomes – zircon
Pricing outcomes – zircon 26 Iluka’s disciplined marketing approach delivers sustainable pricing outcomes while balancing the need to meet customers’ needs and deliver sales revenue Iluka’s zircon (premium and standard) price 2,100 1,900 1,700 1,500 US$/t 1,300 1,100 900 700 500 Zircon (premium and
Slide 27: Market update
Market update 27 Zircon Titanium Dioxide Feedstock • Q1 zircon sand sales of 48kt • Q1 synthetic rutile sales of 34kt • Total zircon sales of 67kt (including ZIC) • Weighted average realised price for synthetic rutile of US$1,138/tonne • Weighted average realised Q1 price of US$1,698 per tonne1 • Q1
Slide 28: Mineral Sands - Major Projects
Gg ILUKA Mineral Sands = Major Projects -
Slide 29: Integrated operations and project pipeline
Integrated operations and project pipeline 29 Resource EUCLA BASIN MURRAY BASIN PERTH BASIN Reserve Processing Capel Facility PRODUCING Jacinth-Ambrosia Narngulu Cataby EXECUTE Balranald Eneabba DEVELOP Wimmera1 Tutunup Jacinth-Ambrosia SELECT extensions Note: Mineral Resources are inclusive of Ore
Slide 30: Balranald, New South Wales
Balranald, New South Wales 30 Owing to its relative depth, Iluka is developing the Balranald deposit via an internally developed, remotely operated underground mining technology • On track for commissioning H2 2025 • Initial mine life of ~9.5 years with potential upside • Capital investment of $600m
Slide 31: Balranald video
Balranald video 31 www.iluka.com/operations-resource-development/resource-development/balranald Eneabba, Western Australia Eneabba, Western Australia
Slide 32: Wimmera, Victoria
Wimmera, Victoria 32 Wimmera is a potential multi-decade source of both rare earths and zircon – including the highly valuable heavy rare earths dysprosium and terbium 25+ year supply of rare earths • Iluka holds several deposits in western Victoria • WIM100 deposit is the initial focus of the Wimme
Slide 33: Jacinth-Ambrosia Extensions, South Australia
Jacinth-Ambrosia Extensions, South Australia 33 Opportunities to extend life of Jacinth-Ambrosia province beyond 2028 • Iluka holds four satellite deposits adjacent to current Jacinth-Ambrosia operations • The Typhoon and Sonoran deposits are located within close proximity to JA (~5km) – study comme
Slide 34: Rare Earths
Slide 35: Why do they matter?
Why do they matter? 35 Essential for economy Key light (Nd, Pr) and heavy (Dy, Tb) Primary applications include electric Demand is forecast to increase rare earths are a critical component and hybrid vehicles, robotics, materially of the permanent magnets used in automation, defence systems, and ele
Slide 36: Demand set to increase materially
Demand set to increase materially 36 Global demand forecasts vary on market penetration, substitution and magnet composition Even low forecasts imply demand increases of 45-50% for both light and heavy magnet rare earth oxides over the next decade Global demand for magnet rare earth oxides – NdPr an
Slide 37: China's increasing restrictions on rare earths
China’s increasing restrictions on rare earths 37 China accounts for ~90% of all rare earth oxide production; ~100% of heavy rare earth oxide production; 91% of rare earth metallisation; and 89% of rare earth magnet production 2022 – Chinese Government interview (Yue Tan) with domestic Global market
Slide 38: Heavy rare earths reliance
Heavy rare earths reliance 38 Effectively 100% of the world’s heavy rare earths processing is controlled by China, which imports concentrates from Asia, Africa and Australia1 • Heavy rare earths enable permanent magnets to operate at high temperatures; essential for many automotive, defence, robotic
Slide 39: Eneabba rare earths stockpile
Eneabba rare earths stockpile 39 All of Iluka’s deposits contain rare earths; since the early 1990s Iluka has stockpiled rare earth minerals produced as a co-product of the company’s mineral sands processing operations • The Eneabba stockpile contains ~1 million tonnes of material rich in both light
Slide 40: A rare earths refining hub in Australia
A rare earths refining hub in Australia 40 Stockpile Water recovery Purification Cracking and leaching Solvent extraction Concentrator plant (Operational) Product finishing Control room and NPI facilities Reagents Max Rare Earth Capacity NdPr Oxide Capacity Dy/Tb Oxide Capacity 23,000 tpa 5,500 tpa
Slide 41: Longevity and future feed sources
Longevity and future feed sources 41 A strategic infrastructure asset with multiple internal and external feed source options Iluka’s Eneabba stockpile Third parties 1 million tonnes of material rich in light and heavy rare earths The Eneabba refinery is capable of processing a broad range of feedst
Slide 42: Refinery update
Refinery update 42 Confidence in project capital cost estimate driven by awarded packages tracking closely to budget and significant remaining contingency, growth and escalation allowances • Commissioning in 2027; total estimated capital cost remains at $1.7-1.8 billion • Spent and committed expendi
Slide 43: Refinery update
Refinery update 43 Significant work completed on and off-site • All major infrastructure in place (power, water, gas, roads etc) • All major equipment packages awarded • Detailed earthworks conclude in H1 2025 • Concrete works are underway Ion exchange vessels Thickener Roaster kiln Spiral heat exch
Slide 44: Refinery process and flowsheet
Refinery process and flowsheet 44 Kiln 3 • Blend of feed concentrate based on feed availability • Refinery will process concentrates only • Only selected circuits most relevant for modelling purposes shown • 2 operates at ~1,100°C) Low temperature ~300°C operation (Iluka’s synthetic rutile kiln • SX
Slide 45: Key personnel and operational readiness
Key personnel and operational readiness 45 Iluka has processed and marketed industrial minerals for over 70 years The company is implementing operational readiness plans in line with the schedule for Eneabba’s commissioning, including detailed planning and personnel assignment Dan McGrath B.Sc (Math
Slide 46: Value Drivers - Risk Sharing and Returns
Y ILUKA Value Drivers - Risk Sharing and Returns -
Slide 47: Capital structure
Capital structure 47 Iluka’s partnership with the Australian Government includes a limited equity contribution from the company; flexible debt that is non-recourse to the mineral sands business; and preferential cash flows Finalised funding December 2024 $1,650 million1 Critical Minerals Facility lo
Slide 48: Cash flow waterfall
Cash flow waterfall 48 Cash flow waterfall preferences cash flow to Iluka equal to scheduled debt repayments Illustrative cash flow waterfall1 Project cash flows Cash flows waterfall priority Cash flows $m ILU cash flows Loan servicing Up to $81m p.a. Cash distributions of $81m preferential distribu
Slide 49: Refining costs
Refining costs 49 A secure, globally competitive, Western supplier of separated rare earth oxides, with full product provenance. Resilient in the event of a low price environment Refining costs1 • Cracking, leaching and purification and separation and finishing costs are ~80% variable Labour, camp a
Slide 50: Market development
Market development 50 Iluka is pursuing bilateral offtake agreements that are independent of the China-controlled Asian Metals Index Conceptual pricing mechanism Agreed negotiating windows can vary across the contract period but are confirmed at commencement of the contract Features 1. Parties set f
Slide 51: Integral to electrification
Integral to electrification 51 Electric and hybrid vehicle market outlooks continue to support demand for rare earths • Market shift towards plug-in-hybrid vehicles continues to support demand for NdFeB permanent magnets • Rare earths are a small but integral part of an EV motor: 1-2kg • Rare earths
Slide 52: Project and equity returns
Project and equity returns 52 Strong project economics and equity returns to Iluka Based on a range of internally available feedstock (Scenario A); significant upside from improved utilisation over 35-year refinery longevity (Scenario B). Equity returns to Iluka reflect preferential cash flow waterf
Slide 53: Group Capital Management
G ILUKA Group Capital Management
Slide 54: Iluka's capital management approach
Iluka’s capital management approach 54 Iluka operates two distinct businesses with two distinct balance sheets Mineral sands Rare earths Low leverage and low financial risk High leverage and yet low financial risk Target: no net debt through the investment cycle Target: high leverage due to flexible
Slide 55: Mineral sands business
Mineral sands business 55 History of consistent margins and operating cash flow generation across a range of market conditions Mineral Sands: Operating cash flow and EBITDA margins1 Operating cash flow EBITDA margins A$ millions $800 60% 55% $700 $711 47% 50% 44% 45% $600 43% 42% $594 36% 40% $500 $
Slide 56: Mineral sands inventory position
Mineral sands inventory position 56 Mineral sands business holds ~A$1 billion of finished goods and work in progress inventory Z/R/SR finished goods and HMC inventory 700 1,600 Inventory held at cost on the balance Z/R/SR kt HMC kt sheet 600 1,400 As at 31 Dec 2024: • ~$487 million total work in pro
Slide 57: Rare earths capital management
Rare earths capital management 57 Rare earths business will be highly leveraged, with significant downside risk protection through non-recourse debt • Eneabba refinery fully funded in partnership Rare earths2 with Australian Government A$m – $1,650m non-recourse EFA facilities $1,800 • Limited equit
Slide 58: Rare earths balance sheet
Rare earths balance sheet 58 Low risk, non-recourse Australian Government funding and limited Iluka equity contribution de-risks rare earths business investment Eneabba Refinery - Iluka Equity Contributions Annual Total AU$ Million AU$ Million $120 $414m $450 $400 $100 $350 $80 $300 $250 $60 $200 $4
Slide 59: Group balance sheet
Group balance sheet 59 History of successfully utilising funding options for major capital developments with rapid deleveraging Group balance sheet – reported net cash (debt) position 800 2019 Cataby development 600 400 2016 2024 & 2025 SRL acquisition Balranald development 200 0 (200) (400) 2022 -
Slide 60: Deterra Royalties: additional financial strength and dividend certainty
Deterra Royalties: additional financial strength and dividend certainty 60 Iluka’s dividend framework is to Iluka owns 20% of ASX-listed Deterra Royalties (ASX:DRR) Market cap: $1.98 billion1 distribute 100% of all cash received Asset carrying value A$443 million and asset tax cost base is nil (A$0)
Slide 61: Deterra Royalties timeline for Iluka
Deterra Royalties timeline for Iluka 61 Deterra Royalties stake provides additional financial strength and dividend certainty . MAC Royalties annual payments to Iluka $100 180 Iron ore Annual price (US$) receipts $90 160 A$ Million MAC Royalty receipts MAC production $80 volume (mwmt) 140 $70 120 $6
Slide 62: Group dividend framework
Group dividend framework 62 Deterra stake provides stability to dividend framework during times of increased mineral sands business investment Dividend framework Dividends per share A$ 50c cents/share Mineral sands 45c 45c Minimum of 40% of free cash 8c flow from the mineral sands 40c business not r
Slide 63: Summary
Slide 64: Iluka's investment proposition
Iluka’s investment proposition 64 Mineral sands An established business with a record of attractive margins and cash generation Complementary Rare earths businesses An emerging, unique business with significant growth exposure and risk protection 20% stake in Deterra Royalties Provides dividend cert
Slide 65: Q&A
Slide 66: For more information contact
66 For more information contact Luke Woodgate, General Manager, Investor Relations and Corporate Affairs investor.relations@iluka.com
Slide 67: Appendix
G ILUKA Appendix
Slide 68: Chinese state influence on rare earth prices
Chinese state influence on rare earth prices 68 2006 - 2011 2016 2022 2024 In 2006, China allowed 59 domestic Together with the China Northern Rare Consolidation of three of the Big Six China production quotas listed and Sino-foreign producers to export Earth Group in the north, China’s entire state
Slide 69: Illustrative production scenarios
Illustrative production scenarios 69 The Eneabba refinery is being developed as a multi-decade infrastructure asset capable of processing a range of feedstocks1 with optionality on feed to deliver highly valuable separated rare earth oxides NdPr and DyTb Rare earth concentrate feed (ktpa) NdPr (ktpa
Slide 70: Production optionality and illustrative scenarios
Production optionality and illustrative scenarios 70 Eneabba refinery potential feedstock options Illustrative scenarios assumptions Eneabba will be capable of processing a wide range of feedstocks Production and economic scenarios presented on basis of internal Iluka developments and secured that a
Slide 71: Eneabba refinery flowsheet and circuit capacities (worked example)
Eneabba refinery flowsheet and circuit capacities (worked example) 71 1 2 3 3 Cracking and leaching Purification 2 Separation and finishing • Blend of feed concentrate based on feed availability NdPr • Only selected circuits most relevant for modelling purposes shown • SX circuit capacities assume a
Slide 72: Mineral Resource and Ore Reserves Compliance Statement
Mineral Resource and Ore Reserves Compliance Statement 72 Mineral Resources and Ore Reserves Estimates As an Australian company with securities listed on the Australian Securities Exchange (ASX), Iluka is subject to Australian disclosure requirements and standards, including the requirements of the
Slide 73: Mineral Resource and Ore Reserve
Mineral Resource and Ore Reserve 73 MSP by-product stockpile Mineral Resource and Ore Reserve Selected TREO assemblages HM Assemblage2 Monazite Eneabba Balranald Wimmera Mineral Material In situ HM Clay Ilmenite Zircon Rutile + Lanthanum 22% 21% 18% Deposit Resource tonnes HM tonnes Grade Grade Grad