Iluka Resources Limited · ASX:ILU
Iluka Resources — UBS Investor Conference 2004
13 slides from Iluka Resources's conference presentation, Jun 30, 2004
Slide 1: Iluka – Company Update
Iluka – Company Update UBS Investor Conference Presentation Sydney – 30 June 2004
Slide 2: Commitments since mid-2002
Commitments since mid-2002 ¬ Maximise returns from the existing business through: ¬ cost reductions & operational efficiency improvements ¬ USA operations profitability turnaround ¬ development of the Lulaton project in Georgia USA and CRL’s Enterprise deposit in Australia ¬ Growing the mineral sand
Slide 3: Cost reductions and operational efficiencies achieved
Cost reductions and operational efficiencies achieved ¬ 2003 achievements ¬ A$24 million pre-tax benefits through cost savings ¬ operational efficiency improvements - additional 211,000 tonnes of HMC and 84,000 tonnes of finished product ¬ 2004 targets ¬ A$35 million in pre-tax benefits through cost
Slide 4: USA profitability turnaround achieved
USA profitability turnaround achieved USA Production ¬ USA operations recorded a 300,000 significant loss in 2002 250,000 ¬ 2003 activities 200,000 ¬ business improvement projects substantially k tonnes 150,000 complete end 2003 ¬ final commissioning of Old 100,000 Hickory/relocation of MC1 complete
Slide 5: New developments – Lulaton project completed
New developments – Lulaton project completed ¬ A$66 million investment in ¬ Lulaton mine Kentucky Virginia OLD HICKORY ¬ 1,000 tonne/hr wet Tennessee North Carolina concentrator Mississippi South Carolina ¬ Construction Q3 2003 to Q1 Alabama Georgia 2004 LULATON ¬ First production achieved in GREEN
Slide 6: New developments – Enterprise 1st stage completed
New developments – Enterprise 1st stage completed Amity Mine Rehab ¬ A$25 million investment to ¬ modify Ibis concentrator Dunwich Loading Facility Yarraman ¬ build/install a thickener Mine Bayside Mine ¬ plus site infrastructure Rehab Pacific Ocean ¬ Upgrade now complete Moreton Bay Enterprise Ibis
Slide 7: New developments – Murray Basin 1st stage committed
New developments – Murray Basin 1st stage committed ¬ Up to three R & Z projects planned by 2010 ¬ Douglas committed ¬ capex - A$270 m ¬ first production Q4 2005 ¬ KWR commitment mid--2006 mid ¬ expected capex A$150 -$200m ¬ first production Q3 2007 ¬ Euston emerging as 3rd project focus area ¬ low
Slide 8: Additional mid-west zircon production
Additional mid-west zircon production ¬ A$8.5 million investment in mobile equipment to process intermediate zircon stockpiles/tailings in the mid-west ¬ Processing of 323,000 tonnes of stockpile material over 32 months (starting in 2005) delivers ¬ 104,000 tonnes of accelerated zircon production ¬
Slide 9: Indicative zircon production profile
Indicative zircon production profile 600 ¬ MW stockpiles includes ¬ additional production Tonnes 000's 400 ¬ improved recoveries 200 ¬ Murray Basin and MW stockpiles provide short-term growth 0 ¬ Potential for 2004 2005 2006 2007 2008 expansion of Murray Basin (e.g. Existing Ops MB MW stockpiles Eus
Slide 10: Indicative rutile production profile
Indicative rutile production profile 400 ¬ Rutile production enhanced from 2005 Tonnes 000's ¬ Murray Basin more than offsets 200 forecast decline in MW rutile grades ¬ Potential for expansion of Murray Basin (e.g. 0 Euston) post 2007 2004 2005 2006 2007 2008 not yet included Existing Ops MB
Slide 11: Iluka's position in the Eucla Basin
Iluka’s position in the Eucla Basin ¬ Current exploration activities include South Australia ¬ Drilling at granted tenements on Eyre Peninsula (pink) ¬ Tenement applications in progress (green) Fowlers Bay ¬ Joint venture Ceduna with Adelaide Resources (blue) ARL ARL ARL ARL Tenement ARL ARL Tenemen
Slide 12: Development of High-grade SR Technology
Development of High-grade SR Technology ¬ New high-grade SR technology defined ¬ no showstoppers identified by independent technical review ¬ Feed guaranteed by Murray Basin development ¬ test work completed on Murray Basin ilmenite ¬ Potential sales profile aligned with production ~ 2008 ¬ Site sel
Slide 13: Concluding comments
Concluding comments ¬ Iluka has delivered or made substantial progress on its commitments to date ¬ Performance of the existing business has been improved through ¬ cost reductions ¬ additional market share from development projects and incremental production gains, and ¬ operational profitability i