Slide 1: IGO Limited 1Q22 Results Presentation
IGO Limited 1Q22 Results Presentation 1 November 2021
Slide 2: Cautionary Statements & Disclaimer
Cautionary Statements & Disclaimer • This presentation has been prepared by IGO Limited (“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 invitation with respect to those secu
Slide 3: 1Q22 Highlights
1Q22 FY19Highlights and 4Q19 Highlights Strong start to FY22 with Nova operational delivery and progress on lithium growth projects Nova Nickel production and cash costs better than guidance, copper production within guidance Greenbushes CGP2 commissioned and CGP3 EPCM contract awarded to Lycopodium
Slide 4: Safety
Safety Safety improvement programs delivering positive outcomes Lag Safety Indicators (TRepIFR1 & SPIFR2) Lead Safety Indicators 20 7 400 19 350 6 18 17 300 5 16 250 15 4 14 200 13 3 150 12 2 11 100 10 1 50 9 8 0 0 Visual Safety Leadership Interactions (VSLI) Hazard Near Miss Workplace Inspection TR
Slide 5: Sustainability and Decarbonisation
Sustainability and Decarbonisation ESG performance is one of IGO’s key competitive advantages Nova has a low carbon intensity and a tangible plan to get to carbon neutrality Customers increasing ESG scrutiny of upstream suppliers High ESG ratings expected to deliver premium pricing 5
Slide 6: 1Q22 Financial Results
1Q22 Financial Results Maiden profit recorded from Lithium JV Units 4Q21 1Q22 QoQ Sales Revenue A$M 266.2 189.2 ▼ 29% Underlying EBITDA(1) A$M 139.5 97.4 ▼ 30% Share of Net Profits of Lithium JV A$M N/A 13.2 N/A Profit After Tax A$M 452.6 45.9 ▼ 90% Net Cash from Operating Activities A$M 133.3 131.0
Slide 7: 1Q22 NPAT Reconciliation
1Q22 NPAT Reconciliation QoQ variance driven by gain from Tropicana recorded in 4Q21 A$M 500 450 400 350 300 250 398 453 200 150 100 8 21 50 19 1 28 13 1 2 5 7 46 - 4Q21 NPAT Absence of Nova Exploration Corporate & Acquisition Mark-to- Share of Net Finance D&A Foreign Tax benefit 1Q22 NPAT Tropicana
Slide 8: 1Q22 Cash Flow Reconciliation
1Q22 Cash Flow Reconciliation Robust metals prices drives strong free cash flow from Nova A$M 800 700 17.3 2.6 12.2 0.3 0.1 0.9 1.1 600 157.2 75.7 10.0 15.7 2.3 500 400 300 528.5 552.3 200 100 - Cash at Nova FCF Exploration & Payments for Corporate and Acquisition & Proceeds from Finance Costs Lease
Slide 9: Nova (Nickel-Copper-Cobalt)
Nova (Nickel-Copper-Cobalt) 9
Slide 10: Nova: First quarter of FY22 delivered ahead of guidance
Nova1 First quarter of FY22 delivered ahead of guidance Metric Units 4Q21 1Q22 FY22 Pro-Rata Guidance2 Nickel in concentrate t 7,887 6,889 6,250 to 6,750 Copper in concentrate t 3,538 3,023 2,875 to 3,125 Cobalt in concentrate t 285 253 225 to 250 Cash cost (payable) A$/Ib Ni 1.28 1.99 2.00 to 2.40
Slide 11: Nova: Production and cash costs reflecting lower grades
Nova Production and cash costs reflecting lower mined and milled grades Nova Production & Cash Costs Nova Cash Flow Reconciliation Tonnes A$/lb A$M 9,000 $2.50 180 8,000 $2.10 160 6.0 $1.99 41.9 $1.83 $2.00 7,000 140 6,000 120 1.3 $1.28 $1.50 5,000 100 4,000 7,887 80 158.7 $1.00 6,889 7,024 3,000 3,
Slide 12: Silver Knight
Silver Knight Near-Nova nickel sulphide development project Acquisition from Creasy Group for A$45M completed in October Infill drilling program to commence 2Q22 to inform and update resource estimate during 2H22 Planning underway for exploration programs around Silver Knight 12
Slide 13: Lithium Joint Venture (TLEA)
Lithium Joint Venture (TLEA) (IGO:49% | Tianqi Lithium Corporation: 51%) Greenbushes Project 13
Slide 14: Lithium Joint Venture
Lithium Joint Venture1 Investment in TLEA2 joint venture completed 30 June 2021 High levels of collaboration between IGO and Tianqi focused on growing TLEA’s2 lithium business Quarterly Financial Summary NPAT (IGO share - unaudited) A$13M IGO Cash Contribution A$16M Lithium market continuing to stre
Slide 15: Greenbushes: Spodumene production exceeded plan
Greenbushes1 Spodumene production exceeded plan for the Quarter Metric Units 4Q212 1Q22 TGP Technical grade concentrate t - 39,130 CGP1 Chemical grade concentrate t - 137,132 CGP2 Chemical grade concentrate t - 91,416 Cost of goods sold per tonne concentrate sold A$/t - 310 • First reporting of resu
Slide 16: Greenbushes: Progress on brownfields expansion projects
Greenbushes1 Good progress on brownfields expansion projects Greenbushes Mine CGP1 & CGP2 commissioning commenced in May TGP 2021 and ramp up well progressed Tailings Retreatment Project (TRP) commissioning expected to commence CGP3 & 4 in 3Q22 CGP2 EPCM contract for CGP3 awarded to Lycopodium TRP 1
Slide 17: Kwinana Refinery
Kwinana Refinery1 Commissioning of Train 1 progressing to plan First lithium hydroxide produced from Train 1 at Kwinana Refinery during August 2021 Process commissioning progressing from batch to continuous basis Recommencement of Train 2 construction expected in CY22 1. IGO: 49% non-controlling int
Slide 18: Kwinana Refinery: Indicative timetable for growth projects
Kwinana Refinery1 Indicative timetable for near term growth projects Train 1 (24,000 tpa LiOH) 1 First Lithium hydroxide produced in August 2021 2 Achieve premium grade product during 2Q22 3 Produce battery grade product by March 2022 4 Commence 6-month product qualification period 5 Ramping up to n
Slide 19: Exploration
Exploration 19
Slide 20: Exploration Strategy
Exploration Strategy Committed to investing in growth through discovery FY22 Exploration Budget Lake Mackay Copper Coast Raptor A$9M Kimberley Project A$6M Nova & A$65M A$33M Fraser Range A$17M Paterson Project 20
Slide 21: Near Nova
Near Nova Multiple targets drill tested during the quarter – all encountering sulphides Chimera, Western Eye, Halia and Griffin targets tested with diamond drilling Chimera Prospect – multiple holes encountered key intrusive systems and disseminated to blebby magmatic nickel-copper sulphides Unexpla
Slide 22: Fraser Range Project
Fraser Range Project Focused exploration on southern tenement area 1Q22 activity focused on Celestial target, proximal to Silver Knight Mafic-ultramafic rocks encountered in three diamond drill holes, some with disseminated magmatic sulphides Multiple targets to be tested in 2Q22 including a down-ho
Slide 23: Paterson Project
Paterson Project Targeting high value sediment-hosted copper deposits Geochemical and geophysical data acquisition programs advancing Air-core (AC) drilling completed on Encounter and Cyprium JV tenements Further AC drilling planned over Antipa JV tenements 23
Slide 24: Summary
Summary 24
Slide 25: Summary
Summary FY19 and 4Q19 Highlights A solid start to FY22 with strong operational performance and lithium JV integration • Improving lead and lag safety performance People & Safety • Continued focus on culture to enhance performance and retention • Quarterly production and cash costs better than guidan
Slide 26: 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 fund