Iluka Resources Limited · ASX:ILU
Iluka Resources — Sierra Rutile — Ruidow Conference 2016
18 slides from Iluka Resources's conference presentation, May 2016
Slide 1: Ruidow Conference May 2016
RUIDOW CONFERENCE MAY 2016 May 2016
Slide 2: Disclaimer
DISCLAIMER Forward-Looking InformaBon This document may contain forward-looking statements. These forward-looking statements are made as of the date of this document and Sierra RuBle Limited (the “Company”) does not intend, and does not assume any obligaBon, to update these forward-looking statement
Slide 3: Contents
CONTENTS SIERRA RUTILE – THE LEADING GLOBAL RUTILE PRODUCER ENTERING A NEW ERA MARKET DRIVEN GROWTH POTENTIAL CONCLUSION May 2016 Presented at Ruidow, Nanjing
Slide 4: The Sierra Rutile Story
THE SIERRA RUTILE STORY Leading ruBle producer(1) • Leading global producer • Ru;le focus • Premium product for pigment, sponge, and welding Historical ProducBon • FiQy year anniversary, 140,000 740 FiQy year mine life Annual Ru;le Porduc;on (tonnes) 120,000 720 • Produc;on Cash Cost ($/t ru;le) 700
Slide 5: Going From Strength to Strength
GOING FROM STRENGTH TO STRENGTH Gangama Dry Mine produc2on raises capacity in H2 2016 160,000 800 140,000 700 ced in r u- le produ 13% 120,000 CAGR = 600 Produc-on Cash Cost ($/tonne ru-le) CAGR = -3% Annual Ru-le Produc-on (tonnes) 100,000 in unit cash c ost 500 80,000 400 60,000 300 40,000 20,000
Slide 6: Working for Sierra Leone
WORKING FOR SIERRA LEONE Significant contribu2on made in 2015 to the local community 2015 Highlights > Constructed a primary school for the local community > Significant ongoing support towards Sierra Leone’s efforts pre and post Ebola > Local technical college, sponsored by Sierra Ru;le, provides educ
Slide 7: Sierra Rutile Managed Supply Chain - Power Plant to Port
SIERRA RUTILE MANAGED SUPPLY CHAIN - POWER PLANT TO PORT Mining and IniBal Processing Wet Mining Unit Single Plant LanB Dredge Bucket ladder Mineral Dredge Separa;on Plant Wet plant Dry Mining Units LanB Dry Mine Earth SRL Managed Port moving Gangama Dry Mine equipment Dedicated Contract Mining port
Slide 8: Entering a New Era
SIERRA RUTILE – THE LEADING GLOBAL RUTILE PRODUCER ENTERING A NEW ERA MARKET DRIVEN GROWTH POTENTIAL CONCLUSION May 2016 Presented at Ruidow, Nanjing
Slide 9: Steady Progression with Definite Milestones
STEADY PROGRESSION WITH DEFINITE MILESTONES Lan- dry mine Gangama Dry Mine constructed on -me and financed and on budget Achieved construc-on started Mineral Separa-on Plant Record annual capacity increased to produc-on and cash 200ktpa costs achieved flexibility to meet customer ru;le requirements fo
Slide 10: Benefits of Moving from Four to Six Mining Sources
BENEFITS OF MOVING FROM FOUR TO SIX MINING SOURCES Bolt-on dry mining expansions provide throughput flexibility and allows for staged capital Mid 2016 Configura-on Future Configura-on* Lan; dry mining (Exists Today) 500tph Gangama Lan- 500tph Phase One Dredge 250tph Contract 500tph 500tph Lan- Dry Mine
Slide 11: Gangama Heralds the Next Phase
GANGAMA HERALDS THE NEXT PHASE Construc2on complete. Commissioning underway. Project progressing on 2me and on-budget May 2016 Presented at Ruidow, Nanjing
Slide 12: Gangama Commissioning in Progress
GANGAMA COMMISSIONING IN PROGRESS May 2016 Presented at Ruidow, Nanjing
Slide 13: Market Driven Growth Potential
SIERRA RUTILE – THE LEADING GLOBAL RUTILE PRODUCER ENTERING A NEW ERA MARKET DRIVEN GROWTH POTENTIAL CONCLUSION May 2016 Presented at Ruidow, Nanjing
Slide 14: Debottleneck Mining to Maximise Contribution
DEBOTTLENECK MINING TO MAXIMISE CONTRIBUTION SRL commiPed to suppor2ng future customer ru2le needs GUINEA LocaBon Of OperaBons • Infrastructure in place Ø Power plant SIERRA LEONE Ø Mineral SeparaBon Plant Moyamba Ø Port Freetown Ø Mining and exploraBon Bo Ø Mining friendly jurisdicBon Gbangbatok •
Slide 15: 50+ Years at Current Production Rates
50+ YEARS AT CURRENT PRODUCTION RATES Well-Posi2oned To Supply Customers’ future Needs 1.20% Bubble Size: In-situ Contained Ru-le Resource Sierra Ru;le, 8.2 Mt 1.00% 0.80% Ru-le Grade (%) Base Resources, 0.60% 0.8 Mt Iluka, 0.40% 10.3 Mt Kenmare, 0.20% 4.4 Mt MDL, 0.3 Mt – – 25 50 75 100 125 150 Ru-
Slide 16: Market-Led Flexibility Is Key Strategic Pillar
MARKET-LED FLEXIBILITY IS KEY STRATEGIC PILLAR 250,000 Sales Poten;al (2) Produc;on Capacity 200,000 Ru-le (tonnes) 150,000 Market-Led Planning 100,000 50,000 - 2016 2017 2018 2019 2020 Market led Flexible Disciplined Value Innova2ve Long-term Developed Cost control. Crea2ve Evalua;ng customer flexib
Slide 17: Optimised Long-Term Mine Plan
OPTIMISED LONG-TERM MINE PLAN Produc-on Forecast(1) 250,000 Lan; Dredge Lan; DM Contract Mining Gangama Sembehun duced Addi;onal Dry Mining Units pr o ru-le • Lan; and Gangama 11% in 200,000 CAGR = • Managed capex d - le produce = 9% in ru • Short lead ;mes CA G R 150,000 Sembehun • PFS • 1,000 tph
Slide 18: Conclusion
CONCLUSION P > Leading global ru-le producer commi[ed to customers’ future ru-le needs P > Only producer focused solely on customers’ ru-le requirements P > Ready to deliver on market driven growth P > Posi-oned – financially and technically – to deliver today and tomorrow P > New era sees mul-ple fle