Iluka Resources Limited · ASX:ILU
Iluka Resources — SA Resources & Energy Investment Conference 2012
28 slides from Iluka Resources's conference presentation, Apr 30, 2012
Slide 1: Iluka's Eucla Basin Operation & Opportunities
Iluka’s Eucla Basin Operation & Opportunities SA Resources & Energy Investment Conference Robert Porter, General Manager, Investor Relations 30 April 2012 1
Slide 2: Disclaimer
Disclaimer Forward-looking Statements This presentation contains information that is based on projected and/or estimated expectations, assumptions and outcomes. These forward-looking statements are subject to a range of risk factors associated, but not exclusive, with potential changes in: • exchang
Slide 3: Iluka 2011 – Key Features
Iluka 2011 – Key Features • New Iluka = Group EBITDA ~$1.0bn, NPAT and FCF > $0.5bn, ROE > 40% • Balance sheet = net cash • 55 cents final dividend (fully franked); 75 cents full year dividend • Excellent production performance - integrated and flexible production base • Transformational marketing o
Slide 4: Iluka's Operations
Iluka’s Operations Western Australia - processing hub for Jacinth-Ambrosia concentrate - mining in Mid West & South West - 4 synthetic rutile kilns (2 idled) Murray Basin, Victoria/NSW - major rutile and zircon province - mineral separation plant – Hamilton - multiple deposits Eucla Basin, South Aus
Slide 5: Jacinth-Ambrosia
Jacinth-Ambrosia • Jacinth-Ambrosia development a key feature of Iluka’s transformation • Lost time injury free since construction in 2009 • No breaches of environmental licence conditions • High-quality, capital-efficient operation • Part of Iluka’s integrated and flexible production base • Executi
Slide 6: Summary Physical Characteristics
Summary Physical Characteristics Jacinth-Ambrosia HM mineral resources1 8.19 million tonnes HM ore reserves2 6.38 million tonnes Avg ore reserve HM grade 4.5% Avg HM ore assemblage 50% zircon 28% ilmenite 5% rutile Development capex $390 million (original budget $420 million) Expected mine life At l
Slide 7: Jacinth-Ambrosia Ore Reserve Changes
Jacinth-Ambrosia Ore Reserve Changes ~24% increase in HM reserves since commencement of mining HM Jacinth‐Ambrosia Ore Reserve History ‐ HM Mt 7.00 6.50 0.05 0 6.00 0.68 0.72 0.77 0.75 5.50 6.42 6.37 6.40 6.38 5.00 4.50 4.00 '09 '09 '09 '10 '10 '10 '11 '11 '11 31 Dec '11 Ore Mining Ore Ore Mining Or
Slide 8: Operational Overview
Operational Overview Mining • Located within Yellabinna and Nullarbor Regional reserves • First mining on mixed use reserves in South Australia • Initial mining of Jacinth with mining unit plant move to Ambrosia planned in ~2018 • Total area disturbed by mining and infrastructure – 610 hectares 8
Slide 9: Project Overview
Project Overview Dozer trap Red loam White strand • Ore pushed by dozer into mobile mining unit plant (dozer trap) • 200m x 100m ore blocks • Mining unit capacity up to 1400 tph • Slurry (-10 mm) pumped to wet concentrator plant & secondary screening at concentrator (-2 mm) 9
Slide 10: Scope of Operation
Scope of Operation • Jacinth deposit J-A Processing Facility - 900m wide by 5 km long - Minimal overburden - strip ratio 0.5:1 - Ore at average thickness of 20 metres • Mining unit plant in pit:1400tph • Wet concentrator:1000tph • HMC production:120tph • Fly-in-fly-out from Ceduna / Adelaide • Accom
Slide 11: Workforce Development and Diversity
Workforce Development and Diversity Iluka Work 70 employees • Local 34 (48%) • Far West Coast 11 (16%) • Indigenous 12 (17%) Contract Work Force (Exact Mining and Kalari Transport) 89 employees: • Local 36 (40%) • Indigenous (Exact) 9 (10%) • Far West Coast 12 (13%) • Families relocated (Kalari) 8 (
Slide 12: Indigenous Relations
Indigenous Relations • Native Title Agreement - Far West Coast Native Title Claimant Group - employment targets - education and training opportunities • Scholarship - Immanuel College • Joint ventures established - Far West Coast, Iluka and Exact • Business development assistance 12
Slide 13: Enhanced Production Project
Enhanced Production Project • Iluka’s production enhancement options are extensive - 11 subject to detailed evaluation • Production options subject to funding and internal evaluation & all external approvals/stakeholder agreements • Scoping/feasibility studies for Eucla Basin deposits - Atacama, Typ
Slide 14: Zircon Production Scenarios
Zircon Production Scenarios Jacinth-Ambrosia a key component • Potential to increase production in response to demand growth, or • Potential to extend current production levels significantly • No account of enhancements due to: - utilisation of starting-period inventories - exploration success or te
Slide 15: Eucla Basin Tenements
Eucla Basin Tenements 40 thousand square kilometres 15
Slide 16: Eucla Basin Exploration
Eucla Basin Exploration 2011 summary • The exploration strategy is two fold - to find brownfield HM resources close to J-A - discover new stand alone deposits • Expenditure ~$8.9m • 96,000m of aircore drilled • 8200km2 radiometric and magnetic airborne survey • 2011 regional exploration highlights -
Slide 17: 2011 Exploration Focus Areas
2011 Exploration Focus Areas 2011 areas of drilling 17
Slide 18: Jacinth - Ambrosia Brownfields
Jacinth - Ambrosia Brownfields Recent exploration results • Two target styles (within 15km of J-A) - Jacinth style (zircon-rich strands) - Typhoon style (ilmenite dominated strands) • Discovery of Atacama 20111 • Discovery of Sonoran ~9km south east of J-A2 • Atacama Resource increased by 4.3 mt of
Slide 19: Airborne Geophysics
Airborne Geophysics Expanding the search space • Radiometrics used to detect HM at surface • Completed 9,500km2 airborne survey to date • High resolution magnetic and radiometric data • Flight height of 20m with 100m line spacing • Evaluation of magnetic data for Non HM targets • FALCONTM Gravity su
Slide 20: Eucla Basin Exploration
Eucla Basin Exploration 2012 activities • 66% greenfields drilling - within 100km of J-A and Tripitaka - Maralinga area • 34% project drilling at Tripitaka and Atacama • 33% expenditure increase to ~$12m • 33% increase in metres to ~120,000m 20
Slide 21: 2012 Exploration Focus Areas
2012 Exploration Focus Areas 2011 areas of drilling 2012 areas of drilling 21
Slide 22: Exploration Rehabilitation
Exploration Rehabilitation Photo monitoring Re-growth comparison over 4 years June 2007 May 2011 May 2011 22
Slide 23: Eucla Basin Mineral Resources
Eucla Basin Mineral Resources • Together; Sonoran, Atacama and Typhoon deposits add 11.3 million tonnes of HM • Original HM Resource for Jacinth-Ambrosia was 9.5 million tonnes of HM EUCLA BASIN MINERAL RESOURCE BREAKDOWN BY DISTRICT, DEPOSIT AND JORC CATEGORY AT 31 DECEMBER 2011 Summary of Mineral
Slide 24: Regional Development Scoping Studies
Regional Development Scoping Studies • Multiple potential development options • Integrated project management team established • Ability to utilise Jacinth-Ambrosia facilities • Challenges of remoteness, infrastructure, water, regulatory approvals • Tripitaka – new development options to be investig
Slide 25: Conclusion
Conclusion • Jacinth-Ambrosia represents a high-quality, flexible operation • Reserve upgrade maintained economic life of 10 years + • Significant expansion possibilities (10 years+) from defined Resources • Track record of exploration success • Significant increase in Eucla Basin exploration commit
Slide 26: Iluka Resources Limited
Iluka Resources Limited For further information, please contact: Robert Porter General Manager, Investor Relations [email protected] +61 3 9600 0807 / +61 (0) 407 391 829 www.iluka.com
Slide 27: Eucla Basin Resources
Eucla Basin Resources EUCLA BASIN MINERAL RESOURCE BREAKDOWN BY DISTRICT, DEPOSIT AND JORC CATEGORY AT DECEMBER 31 2011 Summary of Mineral Resources for Eucla Basin 2011 2010 Diff 2011 HM Assemblage( 2 ) Mineral Material InSitu InSitu InSitu HM Clay Ilmenite Zircon Rutile District Deposit Resource T
Slide 28: Eucla Basin Reserves
Eucla Basin Reserves EUCLA BASIN ORE RESERVE BREAKDOWN BY DISTRICT, DEPOSIT AND JORC CATEGORY AT DECEMBER 31 2011 Summary of Ore Reserves for Eucla Basin 2011 2010 Diff 2011 HM Assemblage(2 ) Overburden Ore InSitu InSitu InSitu HM Clay Ilmenite Zircon Rutile Ore Reserve District Deposit Volume Tonne
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