Hey people this may interest you.It's from ILU but pertains to...

Hey people this may interest you.

It's from ILU but pertains to AZC.

Regards

Oscar -



18 June 2008
ILUKA RESOURCES PRESENTATION TO THE UBS AUSTRALIAN RESOURCES & ENERGY CONFERENCE BY VICTOR HUGO, GENERAL MANAGER SALES & MARKETING Iluka Resources Limited's ("Iluka") General Manager, Sales and Marketing, Victor Hugo,
presented to the UBS Australian Resources and Energy Conference in Sydney today. A
copy of his presentation is attached for your information.

Some key features:
·Iluka's view is that mineral sands displays late cycle characteristics linked primarily to urbanisation and demand growth and enveloping economies, particularly China and in
South East Asia ·Rio Tinto Iron & Titanium suggest a similar likely demand characteristic for pigment in China (of which Ti02products are the major feedstock) - refer slide 11 ·Increased evidence of supply/demand characteristics shifting in Iluka's favour: - Southern African power supply situation
- Exxaro outage in one of two slag furnaces
- new production sources experiencing commissioning/production difficulties
- new project struggling to obtain financing
- Indonesian zircon concentrate imports into China running significantly lower than the same YTD period compared with 2007 - less domestic production in China for Ti02feedstocks and zircon - WA gas supply disruption ·Pricing outcomes expected to be stronger, led in part by Iluka ·TZMI has recently lifted its long term pricing forecasts for all Mineral Sands Products Based on industry research and consulting body, TZMI, first half 2008 pricing
indication (metric tonne)1: - Rutile (bulk): high US$400s FOB
- Synthetic Rutile: low US$400s FOB
- Zircon (bulk) mid US$700s FOB
- Sulphate Ilmenite: low US$100s FOB ·TZMI are forecasting that zircon prices will increase by US$50-70/t in the second half of 2008 and forecasts further increases in 2009 for zircon (Please note - these are
TZMI price forecasts - Iluka does not disclose pricing forecasts) ·Iluka tactically declined to contract some of its planned 2008 zircon volumes and, as such, has a price reset opportunity in the second half of 2008 on those volumes