Iluka Resources Limited · ASX:ILU
Iluka Resources — TZMI 2009 Congress
38 slides from Iluka Resources's conference presentation, Oct 22, 2009
Slide 1: Iluka Resources – Past, Present and Future
Iluka Resources – Past, Present and Future TZMI 2009 Congress David Robb, Managing Director 22 October 2009
Slide 2: Disclaimer – Forward Looking Statements
Disclaimer – Forward Looking Statements This document contains forward-looking statements that are subject to risk factors associated with exploring for, developing, mining, processing and sale of minerals. Forward-looking statements include those containing such words as anticipate, estimates, shou
Slide 3: South African Origins
South African Origins Cecil John Rhodes (1853 - 1902) Charles Rudd (1844 -1916)
Slide 4: Australian Origins
Australian Origins George Renison Bell (1890 - 1958)
Slide 5: Antarctica
Antarctica’
Slide 6: Iluka 1998
lluka 1998 ILUKA ILUKA 43.1% _ Australian Overseas CRE pe Non-Mineral Mineral Sands | | Mineral Sands Mineral Sands. Sands * Capel Mining and *Green Cove Springs *North Stradbroke — * Koba Tin (Indonesia) Processing (WA) (Florida, USA) Island (QId) (75%) *Eneabba Mining *Old Hickory *Sierra Rutile ¢
Slide 7: Iluka 2009
Iluka 2009 P S Total Shareholder Return G t Create en itm In and Deliver te m g Value for Shareholders m r it Co y Responsibility B C A C Customer Employee Value Resources Achievement Leadership P E
Slide 8: Industry Demand Drivers
Industry Demand Drivers Global GDP vs Pigment since 1972 Pigment/US paint GDP grow th grow th 10.0% 20% 7.5% 15% 5.0% 10% 2.5% 5% 0.0% 0% -2.5% -5% -5.0% -10% -7.5% -15% -10.0% -20% 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 GDP Pigment (kt) US Paint Source: IMF, Access Economi
Slide 9: Pigment
Pigment Major Producers Revenue Results % Total Revenue Change (YoY) 20% 10% 0% -10% -20% -30% -40% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 07 07 07 07 08 08 08 08 09 09 07 07 07 07 08 08 08 08 09 09 07 07 07 07 08 08 08
Slide 10: Ceramics
Ceramics Opacifier Pricing Trends Nominal US$ / t 1500 1200 900 600 300 0 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 Opacifier (Europe FOB) Zircon (Australian FOB) Flour (Europe FOB) Source: TZMI and Roskill
Slide 11: Pigment
Pigment Major Producers Chloride Plants Sulfate Plants 2008 Capacity = 3,166 kt Pigment 2008 Capacity = 2,764 kt Pigment Various Huntsman 10% 14% Kronos DuPont Cristal Global 12% 33% 6% Tronox 4% Kronos 5% Tronox 17% Huntsman Various 6% 71% Cristal Global 22% Source: TZMI
Slide 12: ILUKA
ILUKA
Slide 13: Key Demand Drivers
Key Demand Drivers Latest GDP Growth Forecasts Annual Growth Global GDP Growth 6% 5% 3% 2% 0% -2% -3% 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Global GDP Growth 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 IMF (Octob
Slide 14: Economic Update
-15 -10 -5 0 5 10 15 20 25 30 0 4 8 12 16 Jan-90 Mar-90 China (%) Jan-92 (%) Mar-92 Annual Growth Annual Growth Jan-94 Mar-94 Jan-96 Mar-96 Jan-98 Mar-98 Source: NSBC, Dragonomics, UBS, CFLP Jan-00 Mar-00 Economic Update GDP Jan-02 Mar-02 Jan-04 Mar-04 Electricity Generating Capacity Jan-06 Mar-06 J
Slide 15: Industry Demand Drivers
Industry Demand Drivers Pigment/Person vs GDP/Capita (1970-2008) Pigment (kg) / person 0.8 0.7 2000 2008 0.6 1990 0.5 1980 1970 0.4 0.3 5,000 6,000 7,000 8,000 9,000 10,000 11,000 GDP / Capita (Real US$) Source: IMF, TZMI and Artikol
Slide 16: Ceramics
Ceramics Tile Production Trends Zircon in Glazed Tiles = 335kt (approx) Zircon in Ceramics = 674 kt Zircon in Porcelain Tiles = 335kt (approx) Other* 11% Tableware ROW Sanitaryware Indonesia Global Tiles Produced 8.0 b sqm Mexico 5yr CAGR = 5.5% Turkey India Brazil Tiles 89% Italy Spain China ROW It
Slide 17: China Tile Production Trends
Ceramics China Tile Production Trends 0.2 40% % Chinese Tile Production (RHS) China Tile Production (% of Total) 0.16 35% Zircon kg / Tile sqm Global Zircon 0.12 Intensity of Use 30% (LHS) 0.08 25% 0.04 20% 0 15% 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 *Note: Global Intensity of Use = Glob
Slide 18: Italian Tile Production Trends
Ceramics Italian Tile Production Trends Tiles (million sqm) 700 600 500 400 300 200 100 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Glazed Porcelain - Enamel Porcelain - Non-Enamel Other Source: CWR, Confindustria Ceramica
Slide 19: Closing Slide Closing Statement
Closing Slide Closing Statement
Slide 20: Project Inducement
Project Inducement Iluka’s View 100 75 50 Rutile Price (% Change) 25 0 -25 -50 -75 -100 -100 -75 -50 -25 0 25 50 75 100 Zircon Price (% Change)
Slide 21: Major Producers
0 400 800 1200 1600 2002 ktpa 2003 2004 Source: TZMI 2005 RBM 2006 2007 2008 2002 2003 2004 QIT 2005 2006 2007 Note: 2008 based on Iluka estimates. 2008 2002 2003 Major Producers 2004 2005 Namakwa 2006 2007 2008 2002 2003 2004 2005 KZN 2006 2007 2008 2002 TiO2 2003 2004 Mining and Processing – TiO2
Slide 22: Industry Dynamics
Industry Dynamics Zircon:TiO2 Ratio mt of TiO2 or Zircon Ratio t Zircon/t TiO2 7.0 0.35 TiO2 Historical Supply Zircon Historical Supply 6.0 0.3 Zircon/TiO2 Ratio All 5.0 Feedstock Producers 0.25 (including J-A) 4.0 0.2 3.0 0.15 Zircon/TiO2 Ratio Excluding Iluka 2.0 0.1 1.0 0.05 0.0 0 1990 1995 2000
Slide 23: Major Producers – Zircon Production
Major Producers – Zircon Production Zircon produced (ktpa) 2002 2003 2004 2005 2006 2007 2008 RBM 300.3 235.3 219.6 234.2 237.7 239.4 240.0 Namakwa 106.3 93.3 119.1 128.6 128.1 114.5 130.0 KZN - 48.1 49.3 47.0 49.9 34.3 34.0 Iluka MW 130.0 245.7 238.5 203.9 244.6 197.2 167.8 Iluka SW 53.4 55.6 44.3
Slide 24: Commodity Prices
Commodity Prices 1990 to 2009, US$, Index 2004=100 500 450 400 350 Index 2004=100 300 250 200 150 100 50 0 Jan-90 Jan-92 Jan-94 Jan-96 Jan-98 Jan-00 Jan-02 Jan-04 Jan-06 Jan-08 Gold (US$/oz) Copper (US$/t) Nickel (US$/t) Zinc (US$/t) Lead (US$/t) Rutile (US$/t A us. FOB) Zircon (US$/t A us. FOB) Sil
Slide 25: Iluka Investment
Iluka Investment Capex and D&A A$m 600 Capex D&A 500 400 300 200 100 0 2003 2004 2005 2006 2007 2008 2009
Slide 26: Murray Basin Stage 2
Murray Basin Stage 2 ILUKA SOUTH AUSTRALIA eeroken Hill NEW SOUTH WALES Murray Basin Mildura Portland 50 VICTORIA Douglas Mine N Hamitt Ballarat A i e 2 ummon Melbourne Mineral Separation Plant Kilometres a 100
Slide 27: Murray Basin
Murray Basin Physical Characteristics Mineral Resources 47.8 million tonnes of heavy mineral (HM) Ore Reserves 8.7 million tonnes of HM Average Ore Reserve HM 20.6% Grade Average HM Assemblage 15% rutile 11% zircon Planned Mining and Production Commencement Stage 2 – third quarter 2009 Expected Cape
Slide 28: Jacinth-Ambrosia
Jacinth-Ambrosia Eucla Basin Tenement Position Source: Iluka
Slide 29: Jacinth-Ambrosia
Jacinth-Ambrosia Physical Characteristics Mineral Resources 9.5 million tonnes of HM Ore Reserves 6.4 million tonnes of HM Avg Ore Reserve HM Grade 6.5% Avg HM Assemblage 50% zircon 28% ilmenite 5% rutile Planned Commencement First half 2010 Expected Capex <$400 million Expected Mine Life Ten years
Slide 30: Murray Basin Stage 2
Murray Basin Stage 2 ILUKA
Slide 31: Jacinth - Ambrosia
Jacinth - Ambrosia
Slide 32: 2007 Asset Configuration
2007 Asset Configuration Largely Old / Short Life Non Integrated Asset Base MSP = Mineral Separation Plant HMC = Heavy Mineral Concentrate SR = Synthetic Rutile SSC = South Secondary Concentrator
Slide 33: 2011-2013 Asset Configuration
2011-2013 Asset Configuration Expected Asset Configuration 1 Expected to complete 2011 with Douglas MUP/WCP decommissioned/redeployed 2 Expected to complete 2013 with Concord MUP/WCP decommissioned/redeployed 3 Potential mine development, subject to Board approval. Indicative timing: 2013 commenceme
Slide 34: Antarctica
Antarctica’
Slide 35: Iluka Investment: Exploration Expenditure
Iluka Investment Exploration Expenditure A$m 25 Expensed Capitalised 20 15 10 5 0 2003 2004 2005 2006 2007 2008 2009 Notes: Forecasts indicative only, based on 2009 Corporate Plan
Slide 36: ILUKA
ILUKA
Slide 37: Product and Technical Development
Product and Technical Development Sales and Marketing Victor Hugo Chris Cobb General Manager, General Manager, Product and Technical Development Sales and Marketing
Slide 38: Iluka Resources – Past, Present and Future
Iluka Resources – Past, Present and Future TZMI 2009 Congress David Robb, Managing Director 22 October 2009 www.iluka.com