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ILUKA RESOURCES LIMITED Interim / Quarterly Report 2003
65116_rns_2003-08-26_8ffb2091-000e-48fb-a21f-bc291c2527b9.pdf
Interim / Quarterly Report
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LINGS COMPASSED NON 2003 Half Year Results
ATGUSTZOOS
Highlights Year to Date
- Tinproved first half production performance in WA and USA Į
- Good progress with MnM 1
- Growth beyond mineral sands investment framework finished
- Thterin dividend franking increased
- US private debughed nemeticompleted (USSTOO million)
- Georgia USA expansion underway
- Murray Basin Pouglas PRS completed n na
- KORLKS Enterpriserprofects approved in June (ASZS million) i
| $\begin{array}{c} \hline \end{array}$ | Overview |
|---|---|
| P. | Financial Performance |
| $\overline{\phantom{a}}$ 3 | Operational Performance and Outlook |
| $\overline{4}$ | Market Outlook |
| 5 | Progress Against Strategic Objectives |
| $6\phantom{1}6$ | Concluding Comments |
| 7 | Appendices |
2002 Group Profit After Tax v 2002
Moto Half Monducials
| Leopes Hotel College | PINIER | PANDA |
|---|---|---|
| SELES REVENIE (ASTID) | F. M. | 14 14 14 |
| ESTIOT | ||
| CONSTRUCTION COMMUNIST THE STATE OF THE SALE | 74 | (1 17 A |
| CELLINA DEL BRITA (BA) | [1) 22 Z | CECCED |
| EXPLICITION | ||
| ENDY (STD) | 66Z) | EK 074 |
| HUDWELG (ZO) | r Va | y a |
| EXIMAND | ll margen) llyan (fan 1 |
75 |
| NEACHAIN | rw | 75 B |
| ET CO | 180 | , 1. |
$\approx$ matrices AS-727 million in Q $\epsilon$ sales from Koba tin priori to its sale in Q2, 2002
Mist Half Inancials cont'd
| GOISOITERRA | PANCE | pinida |
|---|---|---|
| Cearing and interest cover | ||
| ECCIE III MOZI | r (i) | r (n |
| HALL STREET WERE STATED TO A LITTLE STATED OF THE CONTRACTOR | I | $\cdot$ . |
| DIVICHIE | ||
| hram dwdar (cans) | e ( | 10 |
| DEN ALLEE TOT GYDD | $\left(\frac{1}{2}\right)$ | Tag |
| EXECUTIVE (226) | (* 7) | PA 0 ) |
II SCHOIF Profit Analysis (A\$m)
| PIOIO E J | PINDPI | Carante | |
|---|---|---|---|
| WA | ELLE | F.Z. | TORE |
| US. | (CA) | (CAI) | CEA |
| o i | (* 144 | r K.) | PA 0 |
| G Y | A | 74 | OKO |
| Components of the models | CZA: | (OZA) | (CZA) |
| DISKON TITULET KONS | |||
| LUISOLETIST en eller Manuell KODENTI |
$\left( \mathbf{r} \right)$ | OH. | CESS |
| ODERTING ISSUE en de la posta de la posta de la posta de la posta de la posta de la posta de la posta de la posta de la posta Constituit de la posta de la posta de la posta de la posta de la posta de la posta de la posta de la posta de |
OKO | (624) | 1 |
| IF CHOI | CECT | ! "M | CEO) |
| OEK | (VZA) | $(\bullet \mathbb{H}\mathfrak{o})$ | (VATA) |
| n'i Ve | E T | 157. | (Zea) |
| 1 | Overview |
|---|---|
| $\overline{\mathbf{2}}$ | Financial Performance |
| B | Operational Performance and Outlook |
| $\boldsymbol{\Phi}$ | Market Outlook |
| G | Progress Against Strategic Objectives |
| AJ | Concluding Comments |
| 7 | Appendices |
WA Operations
THE COOPER THE PLOTE THE PROTE
CRL Operations
Second Half Production Outlook - WA
DENTIFIER WARE
- D SR4 shut down at the end of July to repair hot spots
- A Engineering work to assess the impact of the hot spots is GONTINUING - SNUTCOWNUNIKEN to be less than 6 weeks
- 1974 Samar Berlin, Samar Berlin, Samar Berlin, Samar Berlin, Samar Berlin, Samar Berlin, Samar Berlin, Sa TIII Veri SR producion trigeroi 210 Rioni es-mafor maintenance ourige of 6 weeks inducted in production plan
- ALEXANDRA PROTECTION
- D'infinite de Yoshnup Oxkanded Kamnanks underway
- DIE Week nafntenange shutdown of SRL defence to O4
- DE COTTO TENECO
- DI full verreiktareer of 430,000 tonnes remains achtevable DIOVICEC TIC CERE CONDUITORSEE DROUGHON ISSUES
- De FLIBY CELIB LIBERT EN LELLE LOUR CELEB COMMUNISTIE DE L'ANGULATION DE L'ANGULATION DE L'ANGULATION DE L'ANG OIMECOR
Second Half Production Outlook - CRL
BACTER AND THE TELESCOPY
- Diedeel Feder dansese in mid-10 y
- DIRED: In estimate ASA million and Smonths (fully Operational by inid-October)
- A Insured for equipment damage and business intertupion
- Dry mining to start in OS to feed the floating concentrator and continue after repairs have been made to the dredde
- SAIT
- METUD LELLELLEL MALA MALLA ALLULLE A CASSIS I SALIAN METUDI
DESCRIPTION AND SERVICE
- > Production impact of S month Yarraman shut down largely ofiset by dry niming operations at both sites
- D H2 ruile Szzircon production will be similar to H1 levels
Enterprise Project
- De Enterprise contains 80% of GRYSTESENG DESE (20 YR)
- Sichtly hicherdey concin-Standard Co
- E Capex of ASZS million to modfy This concentritor build/install a thickener DIUS STEETHTRESTRITERTE
- METOTEGESEIGTUTGGE TOTT GRIS STSTILE GEDE FOIRY
-
Mining operations at Ibis Will cease in early 2004, Uperfele completed by end Q1,12 month transition to the Enternes
Muray Basin Update
- LA CALCE SIDILLA ALLE VA CALS ALCIADO LE SECOLO DI SICE SIDILLA VALDE í.
- PRS focused on retining Basin Mineral's original plan to enen
Geografia - De develop the Douglas mine
- Duild a minerals separation plant (MSP) near Hamilton
- Copportunities to optimise mineral processing operations in the Murray Basin were investigated
- This work demonstrated that en de la posta de la posta de la posta de la posta de la posta de la posta de la posta de la posta de la posta
De la posta de la posta de la posta de la posta de la posta de la posta de la posta de la posta de la posta de - $>$ plans to utilise existing processing facilities in WA and/or N GESK GEOGRAFIERE STRIKT DIE STRIKT STRIK IN DIE SOME DIE STRIKT SOME DIE SOME DIE SOME DIE SOME DIE SOME DIE provided minimal benefits
- De largelse le VSP in Hamilton remains the most effective Oprionito processining als from Pouglas and KWR
Muray Basin Update cont'd
- Detailed feasibility study (DES) underway to complete detailed engineering/design work for Douglas and the MSP and refine Hining and Gapex estimates
- A Subjectio the DRS process, ITURE currently expects
- DEASTOO million in Gaper to develop the Douglas mine, VSP
- X Profect completion milestones
- PDES and Q1 2004
- Mill sele mining/Wei concentrator oreritors QI (2005
- DIVISE Commissioning to commence 02/2005
- KOLLIKSIN KAVISSI DISPOSITIOISSA KUULISEN TEISEEN ON SIITEETTEET for an accelerated time frame)
- PESTO CONDI
- MDIS CEVILLE
- Statue Mileov
- KWRCE PERCIPION INERENZISTOS IN INGLICULTECTIO DES)
USA Operations
- X Hisproduction lower dian plan due to de layed final commissioning of OIC HICKON CIN DEINE OZ DISCRIPTIONS DELD
- X HI sales in the with plan
- A Underlying firences is CONTINUING CONTINUOVE despre a Asset millon WHICHCOWNERSCOCHE with the revaluation of IINGNESIN
Production Outlook - USA
- Stonger P production regionalisation both sites Ĩ
- DIO GETIGKORY OXPECIEG IO MOTIVETI GUITEN PETOTI GINENCE TAY 25
- DIGREEN COVERS DIRES WILL DENEMIATION AND LIKE LOCATION AND Improved dregge perionnance
- De Contribution from MnM production enhancements et MG1 II DI ETIC TITI OB
- > Sales orders remain firm and expect to sell all production
- Appeal against Eulaton environmental/planning approvals ESTO MET
- DE Constitucion underway Original completion target
- a de la construcción de la construcción de la construcción de la construcción de la construcción de la construcción
Tanium Minerals Outlook
- Market outlook in terms of contractsales and denand for titanium minerals remains sound despite sone picment producers reporting softer narkets for their products
- Thuka's 2005 thanfun minerals production is fully sold and I Sales volumes are still experied to indicase in H2 as planned
- DER Sales Willingrease in F2 in line with shipping plan
- A Some shore term tightening of high tile, feed stock supply STOS SE KVIENE TSE KSULSKOJ IN MODILSVI FIBELIJE SISTEMITIV
- Pright of chloride skt remains under pressure
- De H2 final outcome will be depend on the economic conditions In key market destinations
Zircon Outlook
- Zircon maile renalns roblatover II but with one one lining
A marketsegnen and geographic differences - Overall zircon shipments are on schedule with any entaria
Balde adjustments to timing being offset between operations - Market being driven more so by premium product supply n
Santa Leon is de l'inistracione de la commune de la companya - Zheon prieing remains firm with H2 pries herses being ET HEYST
MnM Program – Accelerated Timing
MnM Wave - 1 & 2 H1 Progress Report
- De BBO cost saving and production/makelinimprovement THE REAL PROPERTY
- Envestment required for implementation ASSS million
- At this stage these initiatives have the potential by end 2005 en de la familie de la familie de la familie de la familie de la familie de la familie de la familie de la fam
Concert de la familie de la familie de la familie de la familie de la familie de la familie de la familie de l Rox (SINGRO) NEXTRA LIBRARY SENTIME IN SERVER - A operating cost sayings of ASS9 million, and
- Exprediction/march Improvements of AST28 million in EXTREMEL
- Netsavings and production/margin improvements will be Tavar
- Das notal initiatives will deliver results as planned, and
- De de legal de la provincia de la provincia por la carta de la provincia de la provincia de la provincia de l TAXIVE TI E DI E PILLE LE SESSE TRADITI A LA CONTINUATION DE L'ANGUI EN CONTE CIEDCS and additional transport distances/costs etc
- Linier religios developmente to verity forecest outcones
MnM Wave - 1 & 2 H1 Progress Report cont'd
| STETTI KYÖTÄKKÄÄÄÄÄN KÄÄN KIINEIN KONTAINEIN KUURIN KUURIN KUURIN KUURIN KUURI | ||||
|---|---|---|---|---|
| THEFTHER | ANTEIRE | |||
| FRIDERICE | RESILETION I.G.T |
ETOT ITALIA Material Assault |
Investingin TATION |
|
| Kedindere | F K. 7 | 54 W | 1999 - 1999 - 1999 1999 - 1999 - 1999 - 1999 - 1999 |
7. |
| ALITECHALE | 74 W A | 7. (1 | 10-a | 71. |
| ING KAGPIKAL | ya digi di | PA | W. | y. |
Examples of cost saying projects the envay or completed
- De Fining of new higher capacity spirals in SW (capex)
- De Restructure of the CRL maintenance and operations group (oper)
- Examples of production/marchmiprovement profects underway or KONINGKET
- E Divaning at CRKOS, Mot upgrace at CGS in OS and installation of tails seavenger circuit at 08 concentrator in MW (all capex)
- $\triangleright$ . Operator training to increase SW concentrator utilisation (opex)
MnM Wave - 1 & 2 H1 Progress Report cont'd
Key cost savings and production /match Iminiowenten stakes
| ATTEIRE The Secretary of Company and Company |
TA TITLETT HALL HOLD |
Financing | |
|---|---|---|---|
| A GIVIS ACT | ASTE | MELLISLEY | I.C.The |
| THE STRIKE STRIKE | 9 | e v 1 | 16 |
| Fiteration | - 7 | 9 Me | en alle ville velle sont antilla. En la strata del porto del controllo del controllo del controllo del controllo del controllo del controllo de |
| RCCOVERY RYCE | O | 43 | y X |
| Maintenance/materals | 6 | . | ge Maar |
| KONTENS | 7. 9. - | PAI No. | 1 |
| HOLLON ALLENDROOM | . | OB. | $\frac{1}{2}$ |
| OHIGH | er 83 |
, a ya mi | lija. Vita |
| erman | g an na g | F 27 | r i |
Growth Beyond Mineral Sands
- Long term growth in mineral sands likely to be finited by
- Demand a counsidents being subject to anticompetitive CALLINA
- Denotes industry demand growth (average of 596 p.a)
- Desplie sone Imitations nineral sands provides a plationn TE DI LE DI CERE E LEVIS DE LEVIS FRANCE DE LE PRETTE DE LE PRETTE DE LE P
- Mektnsey & Corangaged to assist Illuka in reviewing its e
Li GIOWIN OPHONS and developing an investment francwork -
The review concluded that Iluka is well placed to build an inclusirial minerals turnaround business
Growth Beyond Mineral Sands cont'd
Investing in Fine Workforts
- improvement potential-Under performing assets offer IA CATH DIANA
- Mitaniliarity with process --IEWS FEED STEED AND INTERFERING CELEBRATICS
- Finaustry attractiveness -MOCHS ON CHOWAD STRITERIKS Condictand poitability
- acquire at reasonable price minimise any accuisition DISTITUTT
- Schoolid/Salesmethod leverage existing marketing CONTRACTOR
- Decography leverage knowledge of work practices, legal and political systems etc
Concluding Comments
E FOR HOLD
- D'operations performance continuint to improve in response to better cost management, planning and oper time DEL LOCA
- DE UNCER VING DROITEIDINTY OF THE USA OPERETONS IMPROVING
- Drovided there are no unioressent production problems ZOOSTUI Vern production should meeror exceed plan
- MATHE
- Dion tradition deliver to achieve tak de of ASZO million Increase in prestax earnings by end 2004
- The College of the College of the College of the College of the College of the College of the Col
- Divolumes are experient to indrease in 12 as planned
- DESUGS WITH SHIP availability FP Shipping Schedules are being managed to ensure shipments are made on time
Conclucing Comments cont'd
- TP inancial performance na
M - Distrong balange sheet position at the start of H2
- DE Will have a higher level of exposure to AS FX in F2 COMBETICO WITH HA
- Definer production/sales, MnM benefits and lower tax may not offset the potential impact on full year earnings from D. CII ROYS IN STRUCTURE
- FULVED DOTEDIRY
- Den Helpared profilering (SZ-1930) ZGSO million posiara 2 provided production and sales targets are met
| Ū | Overview |
|---|---|
| $\vert 2 \vert$ | Financial Performance |
| $\bullet$ | Operational Performance and Outlook |
| $\overline{\mathbf{4}}$ | Market Outlook |
| $5^{\circ}$ | Progress Against Strategic Objectives |
| 6 | Concluding Comments |
| r, | Appendices |
Currency Position/FX Sensitivity
| COTTESTING 20STRICITY | |||||
|---|---|---|---|---|---|
| 17 | |||||
| pio de B | PINTER | pinis | PANITS | pini v b | |
| TEGO TEKS | GLAD | 500au | M | LSHI) | ZEA) |
| Alecti III de l | OLYAN | THEFICE | en de la p | 114-a | i Pazity |
ESTIMATEd US\$7/AS Sensitivity - 2006 Full Year
E 1 dent movement in the USS/AS exchange rate impacts EBN by approximately AS7 - Smillion (preany hedge adjustment)
Group H1 Production & Sales 2003 v 2002
| Product - Kronnes | PATOR | pitit pi |
|---|---|---|
| Ruide production | 707 | SPAS |
| RUILSELS | 767. | ETORO |
| SROOTGITGION | 747 | 187. Po |
| STATISTICS. | PATOR | 74 (B. Hr.) |
| Tingnie producton | TIVA: | GET ST |
| Tinenicke is | EXP. | PLE PP |
| Ziron prodiction | FORT | TOA |
| ZATOON SELES | 1762 - | KORA |
| Lateoxene production | 1 | - 72 |
| ICTICO CHIESE ICS | Ty Ale | 74. Pr |
| More Mary and More Communication | SOLUTION | MANA |
| COSTICS | AT | - Wa |