Igo Limited · ASX:IGO

Igo — Independence Group NL — Shareholder Meeting (November 2012)

56 slides from Igo's shareholder meeting presentation, Nov 21, 2012

  1. Slide 1: Growing a Great Australian Mining Company

    GROWING A GREAT For personal use only AUSTRALIAN MINING COMPANY Annual General Meeting Presentation Chris Bonwick, Managing Director 21 November 2012

  2. Slide 2: Disclaimer

    DISCLAIMER L For personal use only l Certain oral and written statements contained or incorporated by reference in this presentation, including information as to the future financial or operating performance of the Company and its projects, constitute forward-looking statements. All statement, other

  3. Slide 3: Company History

    COMPANY HISTORY L For personal use only  2000 Independence Group NL founded l  2002 Listed on ASX (IGO)  2002 Acquisition: Long Nickel Mine (IGO 100%)  2005 Discovery: Tropicana Gold Project (IGO 30%) Discovery: McLeay Nickel Deposit at Long (IGO 100%)  2008 Discovery: Moran Nickel Deposit at L

  4. Slide 4: Financial Summary

    FINANCIAL SUMMARY L For personal use only Capital Structure: ASX 200 Code : IGO 232.9M shares l Financials: Market Cap. (20/11/12): A$996.8M Cash (end Sept Qtr 2012): A$146.9M Debt (end Sept Qtr 2012): (A$21.4M) Substantial shareholders: 65 Institutions in Top 100 67% Australian 10% Overseas Dividen

  5. Slide 5: Financial Summary

    FINANCIAL SUMMARY L Full Year Ended June 30 2012 2011 Total Revenue $216.6M $163.6M For personal use only Underlying EBITDA $33.6M $56.3Ml (Loss) Profit Before Tax ($368.8)M $14.3M (Loss) Profit After Tax ($285.3)M $5.5M Net Cash Flow From Operating Activities $32.0M $52.8M Impairments 2012 Jaguar R

  6. Slide 6: IGO Asset Pipeline

    IGO ASSET PIPELINE L For personal use only  Combination of low cost cash flows from current operating mines with l significant long-life development projects and highly prospective exploration  Highly complementary management and technical capabilities, with proven successful track records of expl

  7. Slide 7: IGO Major Projects

    IGO MAJOR PROJECTS L For personal use only l 7

  8. Slide 8: Base Metal Assets: Price Environment

    BASE METAL ASSETS L A$ BASE METAL & SILVER PRICE ENVIRONMENT For personal use only A$/t Nickel Price A$/t Copper Price 24,000 9,500 l 22,000 9,000 8,500 20,000 8,000 18,000 7,500 16,000 7,000 6,500 14,000 6,000 12,000 Ni A$/t 5,500 Cu A$/t 10,000 5,000 A$/t A$/oz Silver Price Zinc Price 2,400 45.0 2

  9. Slide 9: Long Nickel Operation (IGO 100%)

    LONG NICKEL OPERATION (IGO 100%) L For personal use only  Record^ Annual 2012 Production – 9,995t Ni (2011/12 Guidance 8,800-9,200t Ni). l  IGO produced over 83,000t Ni since acquisition.  June 2012 Ore Reserve 41,900t Ni and Resource 76,600t Ni.  Exploration success continues to add to Mining I

  10. Slide 10: Long Nickel Operation: Low Cost Producer

    LONG NICKEL OPERATION (IGO 100%) L For personal use only  Remains a low cost nickel producer l Net Margin 10

  11. Slide 11: Long Nickel Operation: Innovative Research and Development

    LONG NICKEL OPERATION (IGO 100%) L For personal use only  Innovative research and development l High powered TEM transmitter **exclusive to IGO**  10 x more powerful than conventional systems.  Nickel sulphides are very  Doubles search radius conductive and can be detection up to 200m. detected

  12. Slide 12: Long Nickel Deposits & Targets Longitudinal Projection

    LONG NICKEL OPERATION (IGO 100%) DEPOSITS & TARGETS LONGITUDINAL PROJECTION L For personal use only l Reference: IGO 19/10/2012 Annual Report– Long Nickel Mine Mineral Resource and Ore Reserve Statement IGO 31/10/2012 ASX Release – Quarterly Activities Report to 30 September 2012 12

  13. Slide 13: Long Nickel Operation Fly Through

    LONG NICKEL OPERATION (IGO 100%) L FLY THROUGH For personal use only l 13

  14. Slide 14: Jaguar & Bentley Production Update & Operational Improvements

    JAGUAR & BENTLEY (IGO 100%) L PRODUCTION UPDATE & OPERATIONAL IMPROVEMENTS For personal use only Jaguar & Bentley zinc- 2011/12 Actual 2012/13 Guidance Sept Qtr 2012 copper-silver Mines l Production (Zn Tonnes) 16,569 27,000 – 28,000 6,668 Production (Cu Tonnes) 7,257 5,000 – 6,000 1,360 Production

  15. Slide 15: Jaguar & Bentley: Heavy Media Separation Plant

    JAGUAR & BENTLEY (IGO 100%) L PRODUCTION UPDATE & OPERATIONAL IMPROVEMENTS For personal use only HEAVY MEDIA SEPARATION PLANT l  Removes waste rock from diluted ore and stringer sulphides.  Increases mill head-grade resulting in reduced processing costs.  Total tonnes treated 95,108t  Removed 40

  16. Slide 16: Jaguar & Bentley Site Cost Overview

    JAGUAR & BENTLEY (IGO 100%) L SITE COST OVERVIEW JAGUAR & BENTLEY (IGO 100%) For personal use only $250.00 JAGUAR/BENTLEY OPERATION – Operational Costs per tonne mined l $200.00 $150.00 $ / Ore tonne $100.00 $50.00 $- Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-1

  17. Slide 17: Jaguar & Bentley Site Production Overview

    JAGUAR & BENTLEY (IGO 100%) L SITE PRODUCTION OVERVIEW JAGUAR & BENTLEY (IGO 100%) For personal use only 5,000 250,000 JAGUAR/BENTLEY OPERATON - MINE PRODUCTION l 4,500 (Contained Metal) 4,000 200,000 3,500 Cu & Zn Metal Tonnes Ag Metal Ounces 3,000 150,000 2,500 2,000 100,000 1,500 1,000 50,000 500

  18. Slide 18: VMS Genesis Flythrough

    VMS GENESIS FLYTHROUGH L For personal use only l 18

  19. Slide 19: Jaguar & Bentley: Bentley Deposit

    JAGUAR & BENTLEY (IGO 100%) L BENTLEY DEPOSIT For personal use only l Drill intercepts are quoted as down hole widths, and not true widths Reference: IGO 19/10/2012 Annual Report– Jaguar/Bentley Operation Mineral Resource and Ore Reserve Statement  New high grade mining plan  2 years of developed

  20. Slide 20: Jaguar & Bentley: Bentley Deposit

    JAGUAR & BENTLEY (IGO 100%) L BENTLEY DEPOSIT For personal use only  Discovered – 2008 Development – 2011 First Stoping – Sept Qtr 2012 l Bentley - Mineral Resource Total Tonnes Cu % Zn % Ag g/t Au g/t Total Resource 2,914,000 1.9 10.2 134 0.7 Bentley – Contained Metal Cu t Zn t Ag Moz Au oz Total

  21. Slide 21: Jaguar & Bentley (IGO 100%)

    JAGUAR & BENTLEY (IGO 100%) L For personal use only  Under-explored 50km l long prospective Cu-Zn-Ag VMS corridor.  Prospectivity around existing 3 mines.  Six Cu-Zn-Ag alteration anomalies under- cover being systematically tested. Golden Grove Gossan Hill : discovery history Bentley Deposit Scal

  22. Slide 22: Jaguar & Bentley Fly Through

    JAGUAR & BENTLEY (IGO 100%) L FLY THROUGH For personal use only l 22

  23. Slide 23: Stockman Project Overview

    STOCKMAN PROJECT (IGO 100%) L OVERVIEW For personal use only  Located 300kml NE of Melbourne  Project Area 335 km2  Bankable Feasibility Study at Wilga and Currawong  Recent gold discovery at Bigfoot Prospect, 300m north of Currawong Deposit.  Regional Exploration potential for VMS and Gold Dep

  24. Slide 24: Stockman Project

    STOCKMAN PROJECT (IGO 100%) L Currawong Deposit Wilga Deposit For personal use only l Stockman - Mineral Resource Total Tonnes Cu % Zn % Ag g/t Au g/t Total Resource 13,986,000 2.1 4.3 38 1.0 Stockman – Contained Metal Cu t Zn t Ag Moz Au oz Total Resource 288,500 594,600 17.1 424,000 Reference: IGO

  25. Slide 25: Stockman Project Bankable Feasibility Study

    STOCKMAN PROJECT (IGO 100%) L l L BANKABLE FEASIBILITY STUDY l For personal use only  Two underground mines - Wilga and Currawong  Feeding a 1Mtpa flotation plant over 9 years  Cu & Zn concentrate production averaging 150ktpa LOM  Recent gold discovery at Bigfoot prospect, 300m north of Currawon

  26. Slide 26: Stockman Project Exploration Potential

    STOCKMAN PROJECT (IGO 100%) L EXPLORATION POTENTIAL For personal use only l  Near mine high grade “Bigfoot style” mineralisation  Significant untested potential for VMS and gold deposits  Historical 1970’s regional exploration never assayed for gold  IGO high powered TEM 26

  27. Slide 27: Stockman Project Fly Through

    STOCKMAN PROJECT (IGO 100%) L FLY THROUGH For personal use only l 27

  28. Slide 28: Gold Assets: Gold Price Environment

    GOLD ASSETS L GOLD PRICE ENVIRONMENT For personal use only Gold Price January 1979 to October 2012 l 2,500 2,000 1,500 1,000 500 0 USD/oz AUD/oz USD/oz CPI Adjusted (2012) Source: US Bureau of Labour Statistics, World Gold Council 28

  29. Slide 29: Gold Price Forecasts: Who to Believe?

    GOLD PRICE FORECASTS L WHO TO BELIEVE? For personal use only l 29

  30. Slide 30: Gold Price Forecasts: QE3 Scenario

    GOLD PRICE FORECASTS L QE3 SCENARIO For personal use only Gold US $/oz US Federal Reserve Assets Vs Gold Price l Fed Total Assets US$ Trn $2,500 $5.0 $4.5 FED Balance Sheet Expansion: QE3 US $40 Billion per Month $2,000 $4.0 Operation Twist: US $ 267 Billion July 2012 to December 2012 ? Short term s

  31. Slide 31: Tropicana Gold Project

    TROPICANA GOLD PROJECT L L IGO 30%, AGA 70%, MANAGER For personal use only l NEW AUSTRALIAN GOLD PROVINCE l UNDER SAND DUNES Regional drilling Preparation for mining 31

  32. Slide 32: Tropicana Gold Project

    TROPICANA GOLD PROJECT L IGO 30%, AGA 70%, MANAGER For personal use only l References : IGO 29/11/11 ASX Release - Open Pit and Havana Deeps Underground Resource Estimates AGA 27/7/11 ASX Release - Reserve Estimate 32

  33. Slide 33: Tropicana Gold Project: Under Construction

    TROPICANA GOLD PROJECT L IGO 30%, AGA 70%, MANAGER For personal use only PROJECT UNDER CONSTRUCTION: l  Project 64% complete at 30 September 2012  First production estimated December Qtr 2013 ^  IGO attributable production years 1-3 : 141-147,000 oz Au pa ^  Cash costs years 1-3 : A$580-600/oz A

  34. Slide 34: Tropicana: Domestic Gold Production

    TROPICANA GOLD PROJECT L  IN 2011 DOMESTIC GOLD PRODUCTION >100KOZ For personal use only l Gold Ounces Australian Mine Production 2011 900,000 Tropicana* (100%) 800,000 700,000 600,000 500,000 Tropicana* (30% IGO) 400,000 300,000 200,000 100,000 0 Source: * Based on BFS Production Years 1-3 34

  35. Slide 35: Tropicana Gold Project: Upside Studies & Potential

    TROPICANA GOLD PROJECT UPSIDE STUDIES & POTENTIAL L For personal use only November 2011 Mineral Resource: 88.3Mt @ 2.3g/t Au = 6.41Moz l (A$1,400/oz) June 2011 Open Pit Reserve: 56.4Mt @ 2.2g/t Au = 3.91Moz (A$1,210/oz) Reference : AGA 27/7/11 ASX Release for Reserve Estimate and IGO 29/11/11 ASX Re

  36. Slide 36: Tropicana: Havana Open Cut & Underground Mine Potential

    TROPICANA GOLD PROJECT HAVANA OPEN CUT & UNDERGROUND L MINE POTENTIAL For personal use only l Reference : AGA 27/7/11 ASX Release for Reserve Estimate and IGO 29/11/11 ASX Release for Open Pit and Havana Deeps Underground Resource Estimates 36

  37. Slide 37: Tropicana: Significant Down Plunge Potential

    TROPICANA GOLD PROJECT L SIGNIFICANT DOWN PLUNGE POTENTIAL L l For personal use only l Drill widths approximate true widths 37

  38. Slide 38: Tropicana Gold Project Fly Through

    TROPICANA GOLD PROJECT L FLY THROUGH For personal use only l 38

  39. Slide 39: Karlawinda Gold Project

    KARLAWINDA GOLD PROJECT (IGO 100%) L  207% Increase in Resource announced June 2012 to 674,300oz Au  New Gold Province in Western Australia’s “Iron Ore Country” For personal use only  No historical gold workings l  Close to infrastructure: major town, airport, sealed roads, major highway, gas pi

  40. Slide 40: Karlawinda: Francopan Prospect Discovery

    KARLAWINDA GOLD PROJECT (IGO 100%) FRANCOPAN PROSPECT DISCOVERY L For personal use only l Drill intercepts are quoted as down hole widths, and not true widths 40

  41. Slide 41: Karlawinda: Bibra Prospect Cross-Section

    KARLAWINDA GOLD PROJECT (IGO 100%) BIBRA PROSPECT CROSS-SECTION L For personal use only  Scoping Study commenced. l  Potential to increase resources down dip and along strike. Reference: IGO 28/06/2012 ASX Release – Karlawinda Gold Project 41

  42. Slide 42: Karlawinda: Bibra Prospect Gram x Metre Contours

    KARLAWINDA GOLD PROJECT (IGO 100%) BIBRA PROSPECT GRAM X METRE CONTOURS L For personal use only  Currently seven untested anomalies for follow-up regional exploration l Reference: IGO 28/06/2012 ASX Release – Karlawinda Gold Project 42

  43. Slide 43: Karlawinda Gold Project Fly Through

    KARLAWINDA GOLD PROJECT (IGO 100%) L FLY THROUGH For personal use only l 43

  44. Slide 44: Generative Exploration: Australian Projects

    GENERATIVE EXPLORATION L AUSTRALIAN PROJECTS For personal use only l 44

  45. Slide 45: De Beers Database

    DE BEERS DATABASE (IGO 100%) L L  Long term exploration asset to find new Australian mineral camps.  293,000 geochemical samples collected by De Beers over 30 years. l For personal use only  IGO analysing samples for 57 elements including Ni, Cu, Pb, Zn, Au,l Ag, Pt, Pd, U, rare earths, Sn, Li, K

  46. Slide 46: De Beers Database: Unlocking the Potential

    DE BEERS DATABASE (IGO 100%) L L UNLOCKING THE POTENTIAL l For personal use only  De Beers Targets Under Review l  71 Gold Anomalies  33 Base Metal Anomalies  3 Other/Strategic Metal Anomalies Anomalous base metal and sulphur rich gossan found by Independence Group geologists following upstream

  47. Slide 47: De Beers Database: Unlocking the Potential

    DE BEERS DATABASE (IGO 100%) L L UNLOCKING THE POTENTIAL  Alteration mapping using the De Beers data set l For personal use only l Landsat Image Hyperspectral Image Hydrothermal alteration mapping in carbonates using the De Beers data set  De Beers Data Includes  Geophysical surveys covering 306,

  48. Slide 48: IGO Transformation

    IGO TRANSFORMATION L Growing a Great Australian Mining Company For personal use only l  Zero to Ten Years  A great team of people  2 operating mines  Significant gold mine under construction  Feasibility study pipeline  Unique exploration assets  Strong clean balance sheet and future cash flo

  49. Slide 49: Contact Details

    INDEPENDENCE GROUP L CONTACT DETAILS L l For personal use only l Perth Office Chris Bonwick, Managing Director Suite 4, Level 5, South Shore Centre 85 South Perth Esplanade South Perth, Western Australia, 6151 PO Box 496, South Perth, Western Australia, 6951 Telephone: +61 8 9238 8300 Facsimile: +61

  50. Slide 50: Appendix: Reserves and Resources Statements

    L For personal use only l APPENDIX RESERVES AND RESOURCES STATEMENTS 50

  51. Slide 51: Reserves and Resources: Long Nickel Operation

    RESERVES AND RESOURCES L For personal use only LONG NICKEL OPERATION Mineral Resources 30 June 2012 Ore Reserve 30 June 2012 l Cut-off 1% Ni at Economic Ni Cut-off Classification Tonnes Ni% Ni Tonnes Classification Tonnes Ni% Ni Tonnes LONG Measured 47,000 3.7 1,700 LONG Indicated 220,000 5.1 11,200

  52. Slide 52: Reserves and Resources: Tropicana Gold Project JV

    RESERVES AND RESOURCES L For personal use only TROPICANA GOLD PROJECT JV l Mineral Resources Ore Reserve November 2011 June 2011 Contained Contained Tonnes Grade Gold Tonnes Grade Gold 1 2 3 4 Classification (Mt) (g/t) (Moz) Classification (Mt) (g/t) (Moz) Measured 28.2 2.1 1.95 Indicated 49.4 2.0 3

  53. Slide 53: Reserves and Resources: Jaguar / Bentley Operation

    RESERVES AND RESOURCES L For personal use only JAGUAR / BENTLEY OPERATION JAGUAR / BENTLEY OPERATION Mineral Resources 30 June 2012 l Ore Reserve 30 June 2012 Classification Tonnes Cu% Zn% Ag g/t Au g/t Classification Tonnes Cu% Zn% Ag g/t Au g/t JAGUAR Measured 429,000 2.5 4.4 61 - JAGUAR Proven 73

  54. Slide 54: Reserves and Resources: Stockman Project

    RESERVES AND RESOURCES L For personal use only STOCKMAN PROJECT l Mineral Resources 30 June 2012 Classification Tonnes Cu% Zn% Pb% Ag g/t Au g/t CURRAWONG Indicated 9,548,000 2.0 4.2 0.8 42 1.2 Inferred 781,000 1.4 2.2 0.3 23 0.5 Total 10,329,000 2.0 4.0 0.8 40 1.1 WILGA Indicated 2,987,000 2.0 4.8

  55. Slide 55: Reserves and Resources: Karlawinda Gold Project

    RESERVES AND RESOURCES L For personal use only KARLAWINDA GOLD PROJECT : l BIBRA DEPOSIT (INFERRED RESOURCES - JUNE 2012) Tonnes Au Grade Contained Au Mineralisation Type (Mt) (g/t) (oz) Laterite 2.2 1.1 77,100 Upper Saprolite 0.9 1.1 31,000 Lower Saprolite 1.9 1.1 63,600 Transitional 2.1 1.0 68,200

  56. Slide 56: Competent Persons Statements

    COMPETENT PERSONS STATEMENTS L For personal use only l Notes: The information in this summary presentation that relates to Exploration Results is based on information compiled by Mr Christopher M Bonwick who is a full-time employee of the Company and is a member of the Australasian Institute of Mini

Independence Group NL — Shareholder Meeting (November 2012) on 6ix