Igo Limited · ASX:IGO
Igo — Investor Presentation (November 2019)
19 slides from Igo's investor presentation, Nov 4, 2019
Slide 1: Takeover Offer for Panoramic Resources Limited
TAKEOVER OFFER FOR PANORAMIC RESOURCES LIMITED Investor Presentation 4 November 2019
Slide 2: Cautionary note and disclaimer
Cautionary note and disclaimer This presentation has been prepared by Independence Group NL (ABN 46 092 786 304) (IGO). The information in this presentation is of a general nature and does not purport to be complete. The information, opinions and conclusions expressed in this presentation should be
Slide 3: Cautionary note and disclaimer (cont.)
Cautionary note and disclaimer (cont.) Mineral Resources and Ore Reserves The information in this presentation relating to IGO’s Ore Reserves and Mineral Resources is extracted from the report titled “CY18 Mineral Resource and Ore Reserve Statement” released on ASX on 20 February 2019, for which com
Slide 4: Offer Overview
OFFER OVERVIEW 4
Slide 5: Why is IGO offering to acquire Panoramic?
Why is IGO offering to acquire Panoramic? Aligned with strategy, enables IGO to leverage its expertise into an expanded nickel portfolio Acquisition aligned with strategy, Leverage IGO’s increasing production of nickel – capabilities and expertise to a critical clean energy metal maximise value from
Slide 6: Compelling value for Panoramic shareholders
Compelling value for Panoramic shareholders Up-front, de-risked value and enhanced ongoing exposure to nickel through a stronger vehicle Very attractive 51% De-risk investment in Enhance value through premium to the Panoramic within a IGO’s technical, 1-month VWAP of stronger, larger, more financial
Slide 7: Details of IGO's Offer
Details of IGO’s Offer1 All scrip, off-market take over offer for Panoramic – owner of the Savannah Project (WA) 1 IGO share per 13 Panoramic (PAN) shares Implied Offer Value2 Implied PAN Equity Value3 47.6 cents / PAN share A$312M Premium to last closing price Premium to 1 Month VWAP4 Premium to 2
Slide 8: Rationale for the Offer
RATIONALE FOR THE OFFER 8
Slide 9: Panoramic's Savannah Operation
Panoramic’s Savannah Operation Potential to produce ~11ktpa of nickel sulphide at an operating cash cost of ~A$3.10/lb Savannah Schematic of the Savannah mine and the Savannah North orebody6 Mineral Resources and ~217kt Ni Resource Ore Reserves1 ~110kt Ni Reserve Average annual metal in 10.8ktpa Ni,
Slide 10: Acquisition is aligned with IGO's strategy
Acquisition is aligned with IGO’s strategy Expands IGO’s exposure to key clean energy metals IGO has a strategic focus on metals critical to clean energy – particularly nickel, copper and cobalt Accelerating demand for clean energy (including electric vehicles) driven by climate concerns, falling co
Slide 11: Leverages IGO's capabilities to maximise value from Savannah
Leverages IGO’s capabilities to maximise value from Savannah Strong technical, financial and operating ability to enhance operational and exploration value IGO’s Capabilities Nova Case Study Successful transition from ramp up to steady state operation1 ✓ Nickel Sulphide • International nickel sulphi
Slide 12: Adds a second Australian exploration and production camp
Adds a second Australian exploration and production camp Diversifies IGO’s portfolio, adding infrastructure and production capacity in the East Kimberley Combined Portfolio Consolidated and expanded East Kimberley position1 Savannah Panoramic landholding IGO landholding Halls Creek 1) Source: Depart
Slide 13: Enhances production and earnings potential
Enhances production and earnings potential Adds meaningful nickel production and preserves an attractive group cash cost margin1 FY20 Nickel Equivalent Production Guidance (kt)2 Cash Cost and Cash Margin to Nickel Price (A$/lb) Spot Nickel Price: A$11.06/lb6 22% 21% 22% 27% Margin: 7.96 Margin: 8.81
Slide 14: Conditions & Timetable
CONDITIONS & TIMETABLE 14
Slide 15: Key Conditions
Key Conditions IGO’s offer is subject to a number of conditions including due diligence IGO obtaining a relevant interest in at least of 50.1% of Panoramic shares (on a fully diluted Minimum acceptance basis); Production guidance FY20 forecast production guidance for Savannah not being revised downw
Slide 16: Indicative Timetable
Indicative Timetable1 Event Indicative Date Announcement of takeover bid 4 November IGO lodges Bidder’s Statement 4 November Dispatch of Bidder’s Statement to Panoramic Shareholders Mid November Offer Period Opens Mid November The offer will be open for at least one month (minimum statutory period)
Slide 17: Summary
SUMMARY 17
Slide 18: Offer Summary
Offer Summary IGO’s offer creates a win-win for both Panoramic and IGO shareholders Acquisition aligned with strategy, Leverage IGO’s capabilities and expertise increasing production of nickel – to maximise value from Savannah a critical clean energy metal Adds a second Australian exploration and En
Slide 19: We believe in a world where people power makes amazing things happen
We believe in a world where people power makes amazing things happen. Where technology opens up new horizons and clean energy makes the planet a better place for every generation to come. We are bold, passionate, fearless and fun - a smarter, kinder, more innovative company. Our work is making funda