Iluka Resources Limited · ASX:ILU
Iluka Resources — Citi Mining Exploration Day 2016
17 slides from Iluka Resources's conference presentation, Jun 27, 2016
Slide 1: Citi Mining Exploration Day
Iluka Resources Limited Citi Mining Exploration Day Victor Hugo, General Manager – Exploration and Geology Sydney, 27 June 2016
Slide 2: Disclaimer – Forward Looking Statements
Disclaimer – Forward Looking Statements Forward Looking Statements This presentation contains certain statements which constitute “forward-looking statements”. These statements include, without limitation, estimates of future production and production potential; estimates of future capital expenditu
Slide 3: Objective – to create and deliver value for shareholders
Iluka Resources Limited Objective – to create and deliver value for shareholders • ~A$2.4 bn market capitalisation; 6th ranked Australian resource company • Leading position in mineral sands industry ‒ largest producer of zircon – market share ~35% ‒ significant high grade titanium dioxide feedstock
Slide 4: Balanced Apportionment of 2015 Cash Flow
Balanced Apportionment of 2015 Cash Flow 2015 Operating Cash Flow Usage ($m) 20% Exploration & Technology Innovation & Technology $28.0 Debt Reduction $75.5 Exploration $27.7 Tapira Free Cash Flow $2.7 $155m Capex $62.3 Fully Franked Dividends $79.5 Metalysis $4.1 Net cash inflow from operating acti
Slide 5: Reserves and Resources
Iluka Reserves and Resources Reserves (proven and probable) as at 31 December, 2015 Area Ilmenite Mt Rutile Mt Zircon Mt Eucla Basin 1.1 0.2 2.0 Perth Basin 9.9 0.8 1.7 Other1 1.2 0.4 0.4 Total 12.2 1.4 4.1 Resources (inclusive of reserves) as at 31 December, 2015 Area Ilmenite Mt Rutile Mt Zircon M
Slide 6: Reserves and Resources
Reserves and Resources Single largest reserve is 5 Mt of combined R,Z,I Besides Sri Lanka, single largest resource is 10 Mt of combined R,Z,I Grade (% R,Z,I) Strand deposits Dunal deposits Size (tonnes of ore) 6
Slide 7: Reserves and Resources
Reserves and Resources Single largest reserve is 5 Mt of combined R,Z,I Besides Sri Lanka, single largest resource is 10 Mt of combined R,Z,I Grade (% R,Z,I) Strand deposits Iluka’s discoveries Dunal deposits Size (tonnes of ore) 7
Slide 8: Strong focus on Tier 1 discovery
Tier 1 Focus Strong focus on Tier 1 discovery • Long life (> 20 years life) • Valuable – makes a return through the bottom of the cycle Grade (% R,Z,I) Strand deposits Iluka’s next discovery Dunal deposits Size (tonnes of ore) 8
Slide 9: Iluka Discovery System
Iluka Discovery System Project Generation Project Validation Prospect Scale Pipeline Target Identification Prospect Scale Deposit Target Testing Definition Country Risk 3rd Supporting Low Party tools and Med systems High x y Geological Framework, Target Ranking, Metrics System 9
Slide 10: Historical Exploration Expenditure
Historical Exploration Expenditure 10
Slide 11: Exploration – Global Activities
Iluka Exploration Global Activities Evaluated Withdrew Geophysics 2H 2016 Geophysics 1H 2016 Drilling, 1H 2016 Evaluated Withdrew Drilling 1H 2016 Recon 1H 2016 Geophysics Review Drilling, 2H 2016 Drilled 1H 2016 11
Slide 12: Canning Basin, WA, Australia
Canning Basin, WA, Australia • Targeting coarse-grained, zircon-rich deposits • Searching along the palaeo-coastline • Second stage of drilling from June 2016 Broome 12
Slide 13: Kazakhstan
Kazakhstan Iluka GINs • 66,000 km2 of exploration search space granted • Targeting rutile and zircon rich deposits, similar in style to Murray Basin • Second stage of aero-geophysics to start in July, 2016 • Drilling to follow in H2, 2016 13
Slide 14: The need to consider unconventional targets
The need to consider unconventional targets ♦ Conventional ♦ Unconventional 14
Slide 15: Project Generation – New Search Space
Project Generation – New Search Space Foothills Prospect – ilmenite / rutile • Farm-in with Vior Inc. • New search space, hard rock • Massive ilmenite-rutile accumulations • Rutile focus, up to 45% in samples Ilmenite • First pass geophysics - H1, 2016 • Field mapping over summer Foothills Project Q
Slide 16: Conclusions
Conclusions • Iluka has large resource inventory • Inventory currently lacks a true Tier 1 HM resource • Our purpose in Iluka Exploration is to find that Tier 1 resource • We have changed where and how we explore to achieve this goal - Largely greenfields exploration weighted - Shift from Australia
Slide 17: For more information contact
Iluka Resources Limited For more information contact: Dr Robert Porter, General Manager Investor Relations robert.porter@iluka.com +61 (0)3 9225 5008 / +61 (0) 407 391 829 www.iluka.com