Igo Limited · ASX:IGO
Igo — Independence Group NL — Lithium & Battery Metals Conference 2018
30 slides from Igo's conference presentation, Mar 21, 2018
Slide 1: Lithium & Battery Metals Conference
INDEPENDENCE GROUP NL For personal use only Lithium & Battery Metals Conference Andrew Eddowes, Head of Corporate Development Discovery and Delivery 21 March 2018
Slide 2: Cautionary statements & disclaimer
Cautionary statements & disclaimer For personal use only • This presentation has been prepared by Independence Group NL (“IGO”) (ABN 46 092 786 304). It should not be considered as an offer or invitation to subscribe for or purchase any securities in IGO or as an inducement to make an offer or invit
Slide 3: Presentation Focus
Presentation Focus For personal use only • Strong first half result • Commitment to people, ESG and exploration • Tropicana • Nova • Nova and Fraser Range exploration • IGO alignment to EV mega trend 3
Slide 4: Robust balance sheet as focus shifts from construction to delivery and discovery
Robust balance sheet as focus shifts from For personal use only Share Ownership construction to delivery Substantial Holders(1) Institutional Ownership(3) Mark Creasy 16% Australia 62% and discovery FIL 9% USA 25% T Rowe Price 8% UK & Europe 10% CBA 6% ROW 3% ASX IGO Ausbil 5% Base Perth, WA Share P
Slide 5: Strong First Half Financial Results
Strong First Half Financial Results Balance sheet continues to strengthen with net debt reduced to A$120M For personal use only Units 1H18 1H17 Inc/(Dec) Revenue and Other Income A$M 354.8 223.1 59% Underlying EBITDA(1) A$M 133.4 81.8 63% Profit After Tax A$M 3.2 20.2 (84%) Net Cash from Operating A
Slide 6: Right people in the right place at the right time
For personal use only Right people in the right place at the right time • Shaping the right culture • Nurturing the IGO Way • Developing the next generation of industry leaders 6
Slide 7: Embedded ESG performance & reporting in the business
Embedded ESG Key Lag Safety Metrics(1,2,3) For personal use only performance & reporting 9 8 in the business 7 6 LTIFR 12 MMA MTIFR 12 MMA 5 ACSI Rating of ASX200 Sustainability Reporting(5) 4 3 Leading 2 1 Detailed 0 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Moder
Slide 8: A$50M Commitment to Discovery in FY18
A$50M Commitment to For personal use only Discovery in FY18 Fraser Range A$10M Nova A$1.5M A$21M Tropicana A$4M Jaguar A$4.5M Long A$9M Lake Mackay & Other 8
Slide 9: A Focus on Projects that Create a Solid Foundation
A Focus on Projects that Create a Solid Foundation For personal use only IGO EBTIDA Profile (A$M)(1) 600 500 400 300 200 100 - FY12 FY13 FY14 FY15 FY16 FY17 FY18e FY19e FY20e Long (A$M) Jaguar (A$M) Tropicana (A$M) Nova (A$M) 1) Macquarie Research – 31 Jan 2018 9
Slide 10: Tropicana Gold Mine
For personal use only Tropicana Gold Mine 10
Slide 11: Tropicana
Tropicana • 330km NE of Kalgoorlie For personal use only • 465,000oz gold production (100%) at $1,115/oz AISC(1) • 10 year mine life remaining • Upside potential Tropicana Production (100%) & AISC koz A$/oz 160 1,400 1,229 1,286 140 1,167 1,200 120 939 1,000 100 800 80 600 60 400 40 20 200 - - 3Q17
Slide 12: Tropicana value drivers
Tropicana value drivers For personal use only • Grade streaming drives FY18- koz Directional Production and AISC(1) A$/oz 20 gold production and costs 800 1,162 1,500 • Long Island underpins mine life 700 1,000 max • Additional ball mill delivers lift 600 max 500 in scale and gold recovery 500 max m
Slide 13: Tropicana – 5km strike of mineralisation
Tropicana – 5km strike of mineralisation For personal use only 1) Refer to ASX release dated 7 Dec 2017: Tropicana JV Commits to Long Island and Increased Milling Capacity 13
Slide 14: Boston Shaker Underground Drilling
Boston Shaker Underground Drilling (1) For personal use only Upside opportunities • Boston Shaker underground study during CY18 • Future underground assessment at Havana and Havana South • Regional exploration along 160km of strike on 3,660km2 1) Refer to ASX release dated 7 Dec 2017: Tropicana JV C
Slide 15: Nova
For personal use only Nova 15
Slide 16: Nova
Nova • Delivers scale, low cost, long For personal use only mine life and exploration upside • Commercial production from 1 July 2017 • Five years from discovery Nova Production (tonnes) 5,000 4,500 4,454 4,500 4,000 3,500 3,000 2,477 2,500 2,011 2,000 1,832 1,500 1,329 1,000 507 370 500 - 3Q17 4Q17
Slide 17: Nova shallow, thick, flat-lying orebody
• Nova is a shallow, thick, flat-lying orebody delivering low development costs and low mining costs • Capital development to be substantially complete For personal use only by end FY-18 17
Slide 18: Resource model being de-risked
For personal use only Resource model being de-risked Plan view of Nova- with grade control Red traces = Remaining Diamond drilling Bollinger grade control drilling drilling at Nova and Bollinger to be completed by end- FY18 18
Slide 19: Nova near mine exploration search space
Nova near mine exploration search space is wide open with focus to date on Nova/Bollinger resource envelope For personal use only 19
Slide 20: Understanding the potential extensions of the Nova intrusive
For personal use only Understanding the potential extensions of the Nova intrusive • 58km2 3D seismic program over mining lease • Drilling 3D seismic targets in FY19 • Continued drilling of extension to intrusive to the NW of Nova 20
Slide 21: Why explore the Fraser Range?
September 2015 Why explore the Fraser Range? For personal use only • Multiple magmatic intrusions • Ni/Cu anomalism reported by multiple explorers along belt • Disseminated and blebby sulphides Empirical evidence demonstrates belt is fertile 1) Classic Minerals ASX Releases: 29 Aug 2013, 12 Dec 2013
Slide 22: Systematic exploration over 14,300km2 of consolidated tenure
February 2018 For personal use only Systematic exploration over 14,300km2 of consolidated tenure • Multiple EM platforms • Bedrock geochem using Aircore • Gravity survey & mapping • Follow up RC/DDH 22
Slide 23: LME Nickel Versus Nickel Sulphate
LME Nickel Versus Nickel Sulphate (US$/t)(1,2) Downstream processing For personal use only US$/t 20,000 potential 18,000 • Produce nickel and cobalt 16,000 NiSO4 Price sulphates for EV batteries Premium 14,000 • Metallurgical testwork commencing in 3Q18 12,000 • Targeting PFS completion 10,000 aroun
Slide 24: Lithium Ion Batteries
Lithium Ion Batteries Batteries with nickel-based chemistries have higher energy densities For personal use only NMC (Nickel, NCA LFP LMO LCO Manganese, Cobalt) (Nickel, Cobalt, Aluminium) (Lithium, Iron, Phosphate) (Lithium, Manganese, Oxide) (Lithium, Cobalt, Oxide) • Uses: medical devices, • Curr
Slide 25: Changing EV battery chemistry will boost Ni demand
Changing EV battery For personal use only chemistry will boost Ni demand • 24kg nickel, 24kg cobalt & 91kg copper in a 2017 Chevy Bolt(1) For 811 NMC chemistry in a Bolt(2) • Nickel increases by 15kg • Cobalt decreases by 17kg 1) Source data: UBS Research titled Electric Car Teardown – Disruption Ah
Slide 26: Cathode active materials allocation expected to be mostly NMC by 2025
Cathode active materials allocation is expected to be mostly NMC by 2025 For personal use only NMC, 26% LFP, 24% LFP, 36% NMC, 41% 2016 2025E NCA, 9% LCO, 16% LMO, 8% LCO, 21% LMO, 9% NCA, 10% 1) Source: BMO Capital Markets: The Lithium Ion Battery and the EV Market, February 2018 26
Slide 27: Evolving EV battery chemistry
Evolving EV battery For personal use only 2.1% 2.1% chemistry designed to 9.0% 4.6% 30.4% 27.4% 13.8% • Improve battery performance • Reduce overall cost 30.2% 36.2% 71.9% 82.3% 73.1% • Cathode component ~18% of 28.3% 25.5% battery cost(1) 8.4% 11.0% 10.9% 10.7% 11.0% 10.9% • Enhance EV penetration
Slide 28: The world is changing: electric vehicles will be a disruptive force
The world is changing: electric vehicles will be a disruptive force For personal use only 1) Source: Glencore Investor Update: 12 Dec 2017 28
Slide 29: Nickel to be a big winner from EV demand disruption
For personal use only Nickel Mine Supply by Product (kt)(1) Nickel to be a big Ni ktpa 2018E supply Ni ktpa winner from EV demand 3,500 deficit of 3,500 3,000 167kt(2) 3,000 disruption 2,500 2,500 2,000 2,000 • Market in deficit in 2016 & 1,500 1,500 2017 1,000 1,000 500 500 • Synchronous growth in
Slide 30: From strength to strength
“FOLLOW US» UAS WE GO FROM STRENGTH TO STRENGTH igo.com.au
Independence Group NL — Lithium & Battery Metals Conference 2018 on 6ix