Iluka Resources Limited · ASX:ILU
Iluka Resources — TZMI Virtual Congress 2020
17 slides from Iluka Resources's conference presentation, November 2020
Slide 1: Evolution – TZMI Virtual Congress
Evolution TZMI Virtual Congress November 2020 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. The information is provided to assist sophisticated investors with the modelling of the company, but should n
Slide 3: The (Mineral Sands) World is Changing
The (Mineral Sands) World is Changing 3 Increasing barriers to global Declining grades at existing Reduced exploration budgets trade mines Increased operating risk – Increased sustainability focus - Supply chain disruption and sovereign, political, carbon emissions, recycling, increased cost of ship
Slide 4: Mineral Sands Markets
Mineral Sands Markets
Slide 5: Zircon Market in 2020
Zircon Market in 2020 5 Key Features Demand • Widespread shutdowns of key industries during Feb-May 2020 due to COVID-19 • Tile manufacturers gradually restarted over course of the year ‒ China operating rates estimated at ~60% of pre-pandemic levels ‒ Europe, India and South American producers ramp
Slide 6: Zircon Market Outlook
Zircon Market Outlook 6 Key Features Demand • Demand recovery underway and forecast to continue into 2021 • Rate of recovery uncertain Supply • Supply side constraints evident in 2017/2018 eased over 2019/20 • No new supply brought on in 2020 ‒ mines continued to deplete • Limited projects with mean
Slide 7: High-Grade Titanium Feedstock Market in 2020
High-Grade Titanium Feedstock Market in 2020 7 Key Features Demand • Impact of COVID has been mixed across markets • After a solid Q1 pigment demand declined in Q2 by ~20%, despite strong performance of DIY and packaging applications • Pigment customers reduced capacity utilisation rates and pulled
Slide 8: High-Grade Titanium Feedstock Outlook
High-Grade Titanium Feedstock Outlook 8 Key Features Demand • Pigment market has historically had large demand and inventory swings, 2021 could be a strong rebound year • Longer term continued growth in chloride pigment, especially in China, expected to support demand levels • High grade feedstocks
Slide 9: Iluka's Response in 2020
Iluka’s Response in 2020 Jacinth-Ambrosia, South Australia
Slide 10: COVID-19 Response
COVID-19 Response 10 Iluka’s first priority is the safety and wellbeing of its people, their families, and the communities in which the company operates. Iluka has maintained operations across all sites and marketing and logistics channels have remained open. Iluka’s Approach and Response Health and
Slide 11: Mineral Sands Operational Configuration
Mineral Sands Operational Configuration 11 Portfolio of operations weighted towards premium zircon and high-grade titanium products. 2020 operational configuration based on: optimising production based on market conditions; minimising costs and improving cash flow; and maintaining flexibility in lin
Slide 12: Adapting to a Changing Marketplace
Adapting to a Changing Marketplace Capel, Western Australia
Slide 13: Demerger of Deterra Royalties and Iluka's Focus
Demerger of Deterra Royalties and Iluka’s Focus 13 Key Features The demerger of Deterra Royalties has created two separate ASX-listed businesses – Iluka will continue to be a global leader in the mineral sands industry while Deterra Royalties will be the largest ASX-listed resources focused royalty
Slide 14: Quality Project Pipeline to Meet Customer Future Needs
Quality Project Pipeline to Meet Customer Future Needs 14 Iluka develops and gates projects in a disciplined manner towards execution subject to acceptable progress in the following areas: (i) confidence in satisfactory project risk-return attributes, (ii) high level of strategic alignment, and (iii
Slide 15: Zircon Market Evolution
Zircon Market Evolution 15 Key Features Impact of Increasing Environmental Regulations • China’s strict enforcement of radiation limits limiting some supply • Industry responding with new standardised levels ‒ Zircon Industry Association role to develop industry benchmarks and engage in industry deb
Slide 16: High-Grade Titanium Feedstock Evolution
High-Grade Titanium Feedstock Evolution 16 Key Features Lowering Environmental Impact Across Value Chain • Feedstock producers and customers facing higher environmental standards • Industry will need to work together to address: ‒ lowering carbon footprint ‒ reducing energy consumption ‒ where appro
Slide 17: For more information contact
For more information contact: Matthew Blackwell, Head of Major Projects and Marketing Matthew.Blackwell@iluka.com Capel, Western Australia