Iluka Resources Limited · ASX:ILU
Iluka Resources — JB Were Resources Conference 2002
19 slides from Iluka Resources's conference presentation, August 2002
Slide 1: JB Were Resources Conference
JB Were Resources Conference Presentation by Mike Folwell – Managing Director Iluka Resources Limited August 2002
Slide 2: Company Overview
Company Overview International mining and minerals processing company 1,500 people employed in Australia and the USA ranked 1 & 2 in global Zircon and Titanium production, respectively long established position in USA, European and Asian markets World class ore reserves access to long life and compe
Slide 3: Location of Iluka's Operations
Location of Iluka’s Operations Virginia Florida/Georgia Mid West CRL South West Iluka’s mineral Murray Basin sands operations
Slide 4: Key Areas of Management Focus
Key Areas of Management Focus Current focus is on: fine tuning organisational structure and processes improving cost, operational performance and profitability of existing business improving major project and capital expenditure performance creating a portfolio of growth opportunities managing debt
Slide 5: Senior Management Team
Senior Management Team Managing Director’s Office Co. Secretary / Legal Managing Director & CEO I Gregory K M Folwell GM External Affairs G Wedgwood EGM President Chief EGM Technical EGM Human Australian Iluka USA & Financial Services Resources Operations EGM Sales & Officer Marketing H Bohannan S W
Slide 6: Group Production and Sales – 1st Half
Group Production and Sales – 1st Half Product – k tonnes 2002 2001 Rutile production 82.6 93.5 Rutile sales 80.0 83.7 SR production 188.5 214.5 SR sales 253.5 188.7 Ilmenite production 636.8 764.0 Ilmenite sales 293.2 307.9 Zircon production 167.1 170.3 Zircon sales 149.4 187.3 Leucoxene production
Slide 7: 2002 - 2nd Half Year Performance
2002 - 2nd Half Year Performance Expect to achieve substantially higher production in the second half of 2002 Key identified production risks Old Hickory achieving production targets post commissioning of expansion Maintaining high availability of SR kilns in WA Financial performance increased scrut
Slide 8: Business Improvement Focus
Business Improvement Focus GEM Consulting being appointed to assist with a business improvement program The program will target an initial A$40 million per annum through savings and improved margins Business improvement initiatives will be applied to asset performance by targeting high return capita
Slide 9: Market Focus - Zircon
Market Focus - Zircon Maintain market leader Total Market Share position by leveraging Zircon (2000 Estimate) existing strengths Iluka products to suit all sectors Rio Tinto 9% 3% strong position in all Billiton 3% 32% CSL/RZM sectors 10% Tiwest global spread of sales Namakwa DuPont sales to most ma
Slide 10: Market Focus - Titanium Minerals
Market Focus - Titanium Minerals Targeting an expanded share of chloride feedstock Titanium Pigment Demand market Iluka well positioned with 6,000 The Opportunity Synthetic Rutile 1 million extensive supplies of 4,000 tonnes chloride ilmenite and Tonnes rutile long standing 2,000 relationships with
Slide 11: Development and Exploration Focus
Development and Exploration Focus Atlantic Basin WA Basin Murray Basin
Slide 12: Development Opportunities
Development Opportunities MW Commissioning Old Florida/ Zircon Hickory Georgia Finishing Plant Expansion Expansion Under construction A$42m A$66m A$21m To be approved Committed projects 2002 2003 2004 2005 2006 2007 Projects to be approved Murray Murray Basin SW New Gen SR Basin Douglas SR-5 Plant A
Slide 13: Importance of the Murray Basin
Importance of the Murray Basin The most valuable new mineral sands province in the world existing resources estimate of 20 mt Heavy minerals high margin production Namakwa potential Richards Bay Resource (Mt) Iluka WA significant potential for Murray Basin further exploration success low country and
Slide 14: Basin Minerals Takeover Status
Basin Minerals Takeover Status Agreed takeover offer announced 29 May Offer declared unconditional on 11 July offer closes on 5 August Iluka’s Murray Basin implementation team in place Work program is targeting completion of assess phase by mid - Q3 2002 board approval for Douglas phase –1 in early
Slide 15: Iluka's Interests Post-Takeover
Iluka’s Interests Post-Takeover Control of 70% to 80% of the value Reinforces position as market leader in the rutile and zircon markets Potential for future value adding through SR Douglas/KWR one of the world’s highest margin projects Iluka Basin Minerals Other Tenure Parks Advanced Projects
Slide 16: M & A Focus
M & A Focus Organic growth remains the initial priority However, there is value to be gained from further industry consolidation Screening of opportunities indicates a small (1-3) number of targets in terms of attractiveness to Iluka ability to acquire Will continue to consider acquisitions as a gro
Slide 17: Synthetic Rutile Technology
Synthetic Rutile Technology Current technology is a source of competitive advantage but it has some limitations process requires coal (1 tonne per 3 tonnes of ilmenite) relies on chloride (secondary) ilmenite as a feedstock Ilmenite Coal Kiln Char Screening Mag Separation Waste Gas System Cooler Hea
Slide 18: Synthetic Rutile Technology cont'd
Synthetic Rutile Technology cont’d NewGen SR technology offers a range of potential benefits by using natural gas in place of coal in the upgrading process utilising primary grade ilmenite producing TiO2 feedstock > 94% Indicative timetable for commercial scale NewGen SR pre-feasibility study comple
Slide 19: Concluding Comments
Concluding Comments New executive management team in place to deliver business improvements and growth opportunities Market outlook for titanium minerals and zircon over balance of 2002 remains robust in the absence of a major world economic downturn Committed development projects are progressing as