Iluka Resources Limited · ASX:ILU

Iluka Resources — AJM Conference 2005

18 slides from Iluka Resources's conference presentation, May 2005

  1. Slide 1: Iluka Resources Limited: Developing a Global Mineral Sands Portfolio

    Iluka Resources Limited Developing a Global Mineral Sands Portfolio AJM Conference David Grant Melbourne, May 2005 Chief Financial Officer

  2. Slide 2: Marketing Strategy

    Marketing Strategy ƒ Strategy is to positively differentiate Iluka by supplying customer preferred high quality products with excellent customer service ƒ For titanium minerals, profitable growth focus is based on very high grade (90%+ TiO2) chloride feedstocks (synthetic rutile & natural rutile) wi

  3. Slide 3: Strategy Road Map

    Strategy Road Map Capital Markets Positioning Horizon One: Horizon Two: Horizon Three: Improve Growth within Other Existing Assets Mineral Sands Opportunities Capability Development Systems, Style and Staff

  4. Slide 4: Capital Markets Positioning - Background

    Capital Markets Positioning - Background ƒ Market Cap A$1.4 billion ƒ Historically Total Shareholder Returns have been below our targets ƒ Our business is challenged by: ƒ the US$-AUD$ exchange rate ƒ the competitive titanium minerals market ƒ declining grades and assemblages in Western Australian o

  5. Slide 5: Achievements - Horizon One - Improve Existing Assets

    Achievements - Horizon One - Improve Existing Assets Our approach has been to improve business profitability by: ƒ a self help business improvement program called Margins Matter “MnM” which focuses on costs and productivity ƒ focus on operational excellence and syndication of best practices througho

  6. Slide 6: Achievements - Horizon One - Improve Existing Assets

    Achievements - Horizon One - Improve Existing Assets Results include: ƒ The MnM program which has delivered substantial cost savings and productivity improvements for very limited investment: ƒ increased throughputs ƒ improved mineral recoveries ƒ reduced costs of raw materials ƒ more efficient use

  7. Slide 7: Achievements - Horizon One: Western Australia

    Achievements - Horizon One - Improve Existing Assets Western Australia ƒ Approximately 50kt p.a. of additional SR capacity progressively added ƒ Mitigating some of the impacts of Eneabba grade decline ƒ Two new mines coming on-stream in mid-2005 SR Production 500,000 400,000 k tonnes 300,000 200,000

  8. Slide 8: Achievements - Horizon One: USA

    Achievements - Horizon One - Improve Existing Assets USA ƒ Business turned around and profitable again ƒ Mining in Florida upgraded and successful new investment in Georgia ƒ Virginia capacity increased by almost 33% in the last 18 months USA Production 500,000 400,000 300,000 k tonnes 200,000 100,0

  9. Slide 9: Achievements - Horizon One: CRL

    Achievements - Horizon One - Improve Existing Assets CRL ƒ Successful upgrade to Ibis dredge (on time, lower than budgetted) ƒ Transition to new ore body (Enterprise) well underway ƒ Supplementary dry mining introduced successfully

  10. Slide 10: Way Forward - Horizon Two: Development Pipeline

    Way Forward - Horizon Two - Growth Within Mineral Sands Development Pipeline Murray Basin Wagerup Douglas Committed & Gingin Project mines A$270m projects A$63m 2005 2006 2007 2008 Beyond Projects KWR Euston Project Project Eucla Basin to be approved Northern Northern Zircon New Gen SR Project (indi

  11. Slide 11: Mineral Sands

    Way Forward - Horizon Two - Growth Within Mineral Sands

  12. Slide 12: Douglas Project - Murray Basin

    Way Forward - Horizon Two - Growth Within Mineral Sands Douglas Project - Murray Basin ƒ Douglas Mine and Mineral Separation Plant approx 50% complete at the end of April ƒ Mining on schedule – ore body exposed ƒ EPC construction 2-3 months behind schedule due to the construction boom ƒ Mining unit/

  13. Slide 13: KWR/Euston Projects - Murray Basin

    Way Forward - Horizon Two - Growth Within Mineral Sands KWR/Euston Projects - Murray Basin ƒ Both KWR and Euston projects are being actively pursued ƒ Approval timeframe and de-watering are key challenges ƒ Mining test pit work well advanced ƒ Either or both projects could come on line H2 2007 ƒ Fin

  14. Slide 14: Eucla Basin Exploration

    Way Forward - Horizon Two - Growth Within Mineral Sands Eucla Basin Exploration Western Australia South Australia Gas Coal Fields ƒ 60,000 sq km of granted Fields tenements and tenement Coober Pedy Challenger applications Transcontinental Railway Olympic Dam Beverley ƒ 28,818 metres drilled in 2004

  15. Slide 15: Eucla Basin Project Zircon Market Opportunity

    Way Forward - Horizon Two - Growth Within Mineral Sands Eucla Basin Project Zircon Market Opportunity 1,600 ƒ Project team established 1,500 Eucla Basin 1,400 opportunity ƒ Scoping study completed 1,300 '000s tonnes 1,200 ƒ Range of development 1,100 options being considered 1,000 900 ƒ Eucla Basin

  16. Slide 16: NewGenSR

    Way Forward - Horizon Two - Growth Within Mineral Sands NewGenSR ƒ Very high grade (95% +TiO2) Synthetic Rutile produced from a wide range of ilmenties ƒ Project development continues ƒ PFS in progress with major review in H2 2005 ƒ Current focus on: ƒ site selection ƒ capital optimisation ƒ commerc

  17. Slide 17: Horizon Three - Other Opportunities

    Horizon Three - Other Opportunities ƒ There are ultimate limitations to what Iluka can achieve in the mineral sands industry due to: ƒ total industry size ƒ regulatory constraints on possible acquisitions ƒ customer preferences for more than one supplier ƒ Current strategic focus is on the mineral s

  18. Slide 18: Concluding Comments

    Concluding Comments ƒ Strategy fine-tuned over the past two years ƒ Iluka remains totally committed to the mineral sands industry ƒ Iluka is determined to meet the challenges that confronts it and improve profitability and grow ƒ Focus is zircon and very-high grade (90%+ TiO2) chloride feed-stocks w

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