Igo Limited · ASX:IGO
Igo — Independence Group NL — H1 2018 Earnings Presentation
17 slides from Igo's earnings presentation, Feb 20, 2018
Slide 1: 1H18 Half Yearly Results Presentation
INDEPENDENCE GROUP NL For personal use only 1H18 Half Yearly Results Presentation A successful 1H18 supported by Nova and Tropicana 21 February 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: 1H18 Highlights
1H18 Highlights A strong first half for FY18 supported by Nova and Tropicana For personal use only • Successful first half-year of commercial production at Nova; both production and costs within guidance • Tropicana gold production, cash costs and AISC significantly better than pro-rata full year gu
Slide 4: Sustainability
Sustainability Focused on better outcomes for our people Key Lag Safety Metrics(1,2,3) For personal use only 9 • One lost time injury during the period, with the 8 current LTIFR(2) at 2.09 7 LTIFR 12 MMA 6 MTIFR 12 MMA • Visible safety leadership focus continues 5 • Good progress in a number of area
Slide 5: Strengthening Financial Results
Strengthening 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 Activ
Slide 6: 1H18 Cash Flow Reconciliation
1H18 Cash Flow Reconciliation Operations generated strong cash flows for the period For personal use only A$M 120 14 100 23 16 - 4 10 11 - 6 80 - - 29 60 45 - 40 3- 51 20 36 - Cash at 30 Jun Nova FCF Tropicana FCF Jaguar FCF Long FCF Exploration & Corporate & Proceeds from Finance Costs Dividend Bor
Slide 7: 1H18 Underlying EBITDA Components
1H18 Underlying EBITDA Components Underlying EBITDA improved 63% YoY For personal use only Underlying EBITDA (A$M) 1H18: A$133.4M 76 1H17: A$81.8M 60 53 28 19 21 9 n.a. (11) (11) (9) (20) Nova Tropicana Jaguar Long New Business Corporate 7
Slide 8: Earnings Summary
Earnings Summary NPAT lower due to depreciation and amortisation charges from Nova For personal use only Revenue (A$M) NPAT (A$M) 400 60 355 350 50 300 274 40 250 219 223 200 166 20 150 20 14 100 3(2) 50 - - 1H14 1H15 1H16 1H17 1H18 Underlying EBITDA (A$M)(1) (20) 160 133 (40) 140 121 120 100 (60) 8
Slide 9: Cash Flow Summary
Cash Flow Summary Cash flows strengthening due to commercial production at Nova For personal use only Underlying Free Cash Flow (A$M)(1) Net Cash (A$M) 100 150 75 80 60 41 100 92 40 20 - 50 (20) (22) (40) (44) (60) (49) - 1H14 1H15 1H16 1H17 1H18 (18) Operating Cash Flow (A$M) 120 114 (50) 111 100 8
Slide 10: Segment Financial Results
Segment Financial Results Earnings from Nova are included in the half-year results for the first time For personal use only Operation Metric 1H18 1H17 Change Inc/(Dec) Revenue 124.8 - 124.8 n/a Nova Underlying EBITDA(1) 59.7 - 59.7 n/a Free Cash Flow(2) 2.8 - 2.8 n/a Revenue 127.5 106.6 20.9 20% Tro
Slide 11: Nova: First half scorecard
Nova First half scorecard For personal use only Tonnes Metric Units 1H18 1H17 Inc/(Dec) Guidance(1) Nova Production 5,000 4,500 4,454 Nickel in concentrate t 8,954 - 8,954 7,500 – 9,000 4,500 4,000 Copper in concentrate t 3,843 - 3,843 4,000 – 4,500 3,500 Cobalt in concentrate t 290 - 290 250 – 350
Slide 12: Tropicana: First half scorecard
Tropicana First half scorecard For personal use only Tropicana Metric Units 1H18 1H17 Inc/(Dec) Guidance(2) koz Production (100%) and AISC A$/oz 160 1,400 Gold produced (100%) koz 249.3 221.2 28.1 220.0 – 245.0 1,229 1,286 140 1,167 1,200 Gold Sold (IGO 30%) koz 74.5 65.4 9.1 66.0 – 73.5 120 1,000 9
Slide 13: Jaguar: First half scorecard
Jaguar First half scorecard For personal use only Jaguar Production Metric Units 1H18 1H17 Inc/(Dec) Guidance(1) Tonnes 9,000 8,105 Zinc in concentrate t 14,990 18,641 (3,651) 14,500 – 16,500 8,000 7,399 6,599 6,885 7,000 Copper in concentrate t 1,121 2,756 (1,635) 1,300 – 1,500 6,000 Cash cost (pay
Slide 14: Long: First half scorecard
Long First half scorecard For personal use only Tonnes Long Production Metric Units 1H18 1H17 Inc(Dec) Guidance(1) 2,500 2,136 2,069 Contained nickel produced t 2,946 4,229 (1,283) 2,700 – 3,000 2,000 Cash cost (payable) A$/lb Ni 5.10 3.21 1.89 4.40 – 4.90 1,572 1,500 1,374 Sustaining capex A$M 0.2
Slide 15: Stockman divestment and Chief Operating Officer change
Corporate Update For personal use only Divestment of Stockman Project to CopperChem finalised in December 2017(1) • Partial proceeds net of costs of A$10.7M were received at completion • A$21M cash payments are scheduled to be received during the 12 months following completion Change of Chief Operat
Slide 16: Concluding Comments
Concluding Comments • Successful first half-year of commercial For personal use only production at Nova; both production and costs within guidance • Solid contributions from Tropicana, Jaguar and Long • Underlying EBITDA increased by 63% • Operating cash flow increased by 335% • A$29M debt repaid an
Slide 17: For personal use only
Nye Nad “AS WE GO FROM STRENGTH TO STRENGTH igo.com.au
Independence Group NL — H1 2018 Earnings Presentation on 6ix