Iluka Resources Limited · ASX:ILU
Iluka Resources — Mineral Sands Conference 2016
17 slides from Iluka Resources's conference presentation, Mar 15, 2016
Slide 1: Iluka Resources Limited – Mineral Sands Conference
Iluka Resources Limited Iluka’s Iluka Operations Resources- Creating and delivering value to shareholders Steve Gavin Wickham Swart 2014 Half Year Results Chief Operating General Manager,Officer Major Projects and Engineering David Robb, Managing Director Mineral AustmineSands Conference Smart Minin
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: Sustainable Development
Sustainable Development Land rehabilitation, Jacinth-Ambrosia, South Australia • Increase in TRIFR – higher occurrence of minor injuries/first aid – redoubled focus • Strong safety culture/performance evidenced by safe synthetic rutile kiln restart • Excellent land rehabilitation progress – third co
Slide 4: Business Overview
Business Overview • Principal objective – to create and deliver value for shareholders • Largest producer of zircon; major producer of high grade titanium dioxide • Operations at multiple locations • Mineral sands projects at advanced stages of evaluation • International marketing presence • Industr
Slide 5: Balance Sheet
Balance Sheet Net Debt, Gearing and Funding Headroom $m Gearing % 1,200 60 1,000 50 800 40 600 30 400 20 200 10 0 0 -200 -10 1H 10 2H 10 1H 11 2H 11 1H 12 2H 12 1H 13 2H 13 1H 14 2H 14 1H 15 2H 15 Total facilities Netdebt Net cash(cash) Gearing • Differentiated industry position – balance sheet stre
Slide 6: Commitment to Mineral Sands
Commitment to Mineral Sands FINANCIAL FOCUS Growth Options / Focus Areas Other Growth Market Development Mineral Sands Exploration Technology, R&D, Sustainability Options Customer Offer Projects Resource Development Innovation Other Growth Options Potential acquisitions, mergers and joint ventures t
Slide 7: Commitment to Internal Project Development
Commitment to Internal Project Development Cataby, Western Australia Balranald, New South Wales Eucla Basin, South Australia Aurelian Springs/Hickory, United States Puttalam, Sri Lanka 7
Slide 8: Industry Dynamics
Industry Dynamics • Subdued market demand • Growth exists, but not in all segments and geographies • Industry cash flow and balance sheet pressures – some distressed selling – debt/equity restructuring • New project underperformance • Industry sustaining capital expenditure requirement large (~$1.6
Slide 9: Iluka Position
Iluka Position • Strong balance sheet (zero debt) • Business running efficiently, safely and sustainably • 2015 year-on-year production and sales volume growth • Margins stable and healthy, free cash flow generation • Maintaining a balance in use of cash flow between ‒ investing to secure options fo
Slide 10: Operational Focus – Flexibility, Execution and Unit Costs
Operational Focus – Flexibility, Execution and Unit Costs 2009 Eneabba idled Capel Dry Plant idled SR 1 and SR 4 idled Kulwin constructed Jacinth-Ambrosia constructed 2010 Kulwin and Jacinth-Ambrosia ramped up 2011 Eneabba restarted Tutunup South commenced 2012 Kulwin and Douglas – end of commercial
Slide 11: Operational Focus – Flexibility, Execution and Unit Costs
Operational Focus – Flexibility, Execution and Unit Costs 2009 Eneabba idled Capel Dry Plant idled SR 1 and SR 4 idled Kulwin constructed Jacinth-Ambrosia constructed 2010 Kulwin and Jacinth-Ambrosia ramped up 2011 Eneabba restarted Tutunup South commenced 2012 Kulwin and Douglas – end of commercial
Slide 12: 2016 Jacinth-Ambrosia
2016 Jacinth-Ambrosia • Mining and concentrating suspended for 18 - 24 months from 16 April • Enables HMC and finished good to be drawn down in advance of expected zircon supply issue • Contribution to reduction of zircon inventory “overhang” – potential positive for zircon market dynamics • Product
Slide 13: Unit Costs and Unit Revenue – 2016 Trend
Unit Costs and Unit Revenue – 2016 Trend Production, Revenue per tonne Sold and Unit Cash Costs / COGS $1136/t $1030/t $862/t $780/t $668/t $558/t • 2016 trend - lower cash costs of production; lower unit cash costs 13
Slide 14: 2016 Production Settings
2016 Production Settings 2015 2016 Jacinth-Ambrosia mining 100% utilisation Mining and Concentrating suspended from 16 April South Australia Concentrate to be processed at Hamilton and Narngulu mineral separation plants Murray Basin mining WRP mine idled March at end of commercial life Concentrate c
Slide 15: Industry Supply Considerations
Industry Supply Considerations • Short term factors – inventory and surplus upgrading capacity in hands of major producers – fresh capital (~1.6 billion) required to sustain production – balance sheet issues for several industry players • Supply forecasts need to allow for: – assemblage decline impa
Slide 16: Iluka Characteristics - 2016
Iluka Characteristics - 2016 • Iluka well placed for current global conditions – strong balance sheet, margins, cash flow generation realisable from inventory drawdown • Bias to act counter-cyclically and deploy capital • Iluka 2016 characteristics – Z/R/SR sales volumes may be higher than 2016 prod
Slide 17: Iluka Resources Limited – Contact
Iluka Resources Limited For more information contact: 2014 Half Year Results Dr. Robert Porter General Manager Investor Relations and Corporate Affairs David Robb, Managing Director rob.porter@iluka.com +61 Alan(0)Tate, 407 391 829 Financial Officer Chief 22 August 2014