1f551626-a915-4819-8141-fc34c3a69259.pdf
23 March 2016
The Manager
Company Announcements Office Australian Securities Exchange ("ASX")
PUBLIC ANNOUNCEMENT 2016 - ILUKA RESOURCES LIMITED
Please find attached the following documents in relation to Iluka Resources Limited's 2016 Annual General Meeting to be held at 9:30am (WST) on Wednesday, 18 May 2016 in the River View Room 5 at the Perth Convention and Exhibition Centre, 21 Mounts Bay Road, Perth, Western Australia:
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Notice of Annual General Meeting; and
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Proxy Form.
The 2015 Annual Report, Iluka Review 2015, Notice of Annual General Meeting and Proxy Form will be shortly mailed to shareholders who have elected to receive printed copies of these documents. Copies of the documents have been lodged with the ASX today and are available on the company's website: www.iluka.com.
Yours sincerely
Cameron Wilson Company Secretary
Iluka Resources Limited • ABN 34 008 675 018 • Level 23 140 St Georges Terrace Perth WA 6000
GPO Box U1988 Perth WA 6845 • T +61 8 9360 4700 • F +61 8 9360 4777 • www.iluka.com
Iluka Resources Limited
2016
Notice of Annual General Meeting
NOTICE OF ANNUAL GENERAL MEETING
DEAR SHAREHOLDER
I am pleased to provide you with the Notice of Meeting for Iluka's 2016 Annual General Meeting. Details of the business of the meeting are contained from page 6. The immediately following pages include a summary of the key elements of the 2015 year, a financial summary and information on the balance sheet and your Company's capital management approach. More detailed information is available from Iluka's Annual Report and the Iluka Review accessible at www.iluka.com
The mineral sands industry experienced the challenges of another year of lower and variable demand and flat to eroding product prices which impacted Iluka's financial performance for the year.
While the Board is less than satisfied with the current financial performance of the Company, your directors are pleased that Iluka's balance sheet and capacity has been further strengthened over recent years; the Company continued to generate free cash flow, maintained solid margins and was able to pay an increased dividend of 25 cents per share for the full year. As importantly, the Company continued to invest in and retain internal production and other growth options, as well as evaluating and advancing other inorganic investment options. In 2015, the latter was evidenced by the proposed offer for Kenmare Resources Plc; ultimately not progressed due to the inability of the Kenmare Board to deliver a necessary pre-condition in the form of shareholder irrevocable undertakings.
The activities just described are characteristic of the approach Iluka adopts: to seek to harvest the rewards for shareholders through periods of high cycle conditions and ensure the Company has the capability, through its balance sheet management and judicious investments, to be able to play the long game patiently - and with discipline - including taking advantage of appropriate organic and inorganic opportunities. In this manner, the Board believes the Company will be best positioned for the inevitable upswing in demand and the mineral sands price cycle. The Company retains its bias towards the deployment of capital in these continuing bottom of the cycle market conditions.
Return on capital and return on equity were below target, but sales volumes increased, unit cash costs of production declined and margins were preserved at a time of low demand. These are positive indicators of future performance.
In facing another year which may have similar characteristics to 2015, various options to enhance performance are under consideration, including continuing cost performance improvement across the business.
The health and safety of Iluka's people remains a key focus of the Company and the Board. Safety performance has improved markedly in recent years as a result of a company-wide Safe Production Leadership Program implemented in 2011. The increase in total recordable injuries in 2015 is a reminder of the need for constant vigilance and the redoubling of efforts in this all-important aspect of the Company's performance.
As part of Iluka's broader sustainability commitment, the Company's land management and rehabilitation credentials are a widely recognised area of strength and capability. The work undertaken in the rehabilitation of former or currently mined areas, as exemplified at Jacinth-Ambrosia in South Australia, in the Murray Basin in Victoria and also at Green Cove Springs in Virginia, USA, involving multi-faceted elements of environmental management and rehabilitation, are all good examples of Iluka's commitment to the highest standards of sustainable mining practices. A similar commitment is evident in other areas of environmental management including biodiversity.
The composition and capability of your Board remained an area of focus during the year. In December 2015 the Board was pleased to announce the appointment of Dr Xiaoling Liu as an independent non-executive director, effective from 19 February 2016. With an impressive executive background, including serving as President and CEO of Rio Tinto Minerals, Xiaoling's extensive experience and knowledge of the industrial minerals sector will complement the existing skill set around the Iluka Board table.
On behalf of the Board, I would like to thank Wayne Osborn for his contribution to the Iluka Board over the past six years, including serving as Chairman of the People and Performance Committee. Wayne's extensive and detailed experience in mineral processing has added a valuable technical contribution to Board deliberations. Wayne announced in December his intention to retire as a director at the 2016 Annual General Meeting.
On behalf of my fellow directors, I would like to acknowledge the contribution and efforts of David Robb and his executive team and the broader contribution of Iluka's people under challenging market conditions. And, of course, I would like to thank shareholders for their continuing interest and support.
Greg Martin Chairman
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KEY ELEMENTS OF ILUKA'S APPROACH - 2015
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