Igo Limited · ASX:IGO
Igo — Independence Group NL — BofAML 2018 Global Metals, Mining & Steel Conference
13 slides from Igo's conference presentation, May 16, 2018
Slide 1: BofAML 2018 Global Metals, Mining & Steel Conference
INDEPENDENCE GROUP NL For personal use only BofAML 2018 Global Metals, Mining & Steel Conference Peter Bradford, CEO & Managing Director ASX:IGO / ADR:IIDY 16 May 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: A West Australian base metals company focused on discovery and delivery
A West Australian base For personal use only metals company focused on discovery and delivery ASX IGO Base Perth, West Australia Market Cap(1) A$3 Billion Cash(2) A$70M Debt(2) A$143M Revolver(1) A$200M (undrawn) Dividend Policy >30% NPAT 1) As at market close 11 May 2018 3
Slide 4: Focus on quality and long life assets which deliver great financial outcomes
Focus on quality and long life Expect to be net cash in assets which deliver great the September 2018 For personal use only financial outcomes Quarter IGO EBITDA Profile (A$M)(1) IGO Net Debt Profile (A$M) 600 250 180 164 160 500 200 142 140 400 120 120 150 100 300 80 100 73 200 60 40 50 100 20 - -
Slide 5: Nickel to be a big winner from EV demand disruption
Solidifying IGO’s position as Nickel to be a big winner a world-class base metals from EV demand disruption For personal use only producer aligned to the - 2018E supply deficit of 167kt(2) growing EV mega trend Nickel Mine Supply by Product (kt)(1) • Nova Ni ktpa Ni ktpa Additional • Nova and Fraser
Slide 6: Nova
Nova • Tier one Ni-Cu-Co asset For personal use only • Delivers scale, low cost, long mine life & exploration upside • Successful commercial production since 1 July 2017 - Achieved nameplate capacity of 1.5Mtpa - Nickel grade consistently increasing - Metallurgical recoveries performing in line with
Slide 7: Downstream processing potential
LME Nickel Versus Nickel Sulphate (US$/t)(1,2) Downstream processing For personal use only US$/t 20,000 potential 18,000 • Produce nickel and cobalt NiSO4 sulphates for EV batteries 16,000 Price Premium • Metallurgical testwork 14,000 commenced in the March 12,000 2018 Quarter 10,000 • Targeting PFS
Slide 8: A$30M commitment to discovery at Nova and the Fraser Range in FY18
A$30M commitment to discovery at Nova and the For personal use only Fraser Range in FY18 • Understanding potential extensions of the Nova intrusive • Systematic exploration over 14,300km2 of consolidated tenure in the Fraser Range • Actively looking for commodities aligned with EV battery thematic -
Slide 9: Tropicana
Tropicana • Tier one gold asset in Joint For personal use only Directional Production and AISC(2) Venture with AngloGold Ashanti koz 800 A$/oz 1,500 1,162 • 465,000oz gold production 700 1,000 (100%) at $1,115/oz AISC(1) 600 max 500 • Higher free cash flow FY18 – 20 max 500 max - min - Driven by hig
Slide 10: 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 10
Slide 11: Capital Allocation & Growth
Capital Allocation & Growth • Balance growth & yield For personal use only - Dividend yield since 2005 - Minimum 30% of NPAT • Invest to grow business on a sustainable basis - Brownfields development to sustain/grow production near term - Opportunistic and accretive M&A to deliver medium term growth
Slide 12: Summary
Summary • Focus on quality, long life For personal use only assets aligned to EV mega trend • Strong balance sheet with outlook for strong cash flow generation potential • Potential to unlock additional value: - Discovery focus at Nova and Fraser Range - Downstream processing to supply nickel sulpha
Slide 13: For personal use only
“FOLLOW US» UAS WE GO FROM STRENGTH TO STRENGTH igo.com.au
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