Slide 1: Fourth Quarter 2018 Results Presentation
INDEPENDENCE GROUP NL Fourth Quarter 2018 Results Presentation For personal use only Record 4Q18 further strengthens balance sheet 27 July 2018 ASX:IGO / ADR:IIDY
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: 4Q18 Highlights
4Q18 Highlights Record 4Q18 further strengthens balance sheet For personal use only • Record revenue and underlying EBITDA for 4Q18 and FY18(1) • Nova nickel production increased 23% QoQ ─ Mining rate of 20% above nameplate achieved ─ Downstream processing and metallurgical testwork progressed • Tro
Slide 4: Sustainability
Sustainability Because we care Key Lag Safety Metrics(1,2,3) For personal use only • LTIFR of 1.96 (1.97 3Q18) with no lost time 9.0 injuries recorded for 4Q18 8.0 7.0 LTIFR 12 MMA • Long’s transition into Care & Maintenance has 6.0 MTIFR 12 MMA progressed to plan with completion of various 5.0 4.0
Slide 5: Record Financial Results
Record Financial Results Revenue and Underlying EBITDA up 33% and 78% respectively For personal use only Units 3Q18 4Q18 FY18(3) QoQ Revenue and Other Income A$M 182.7 243.1 780.6 33% Underlying EBITDA(1) A$M 73.7 131.5 338.6 78% Profit After Tax A$M 9.2 40.3 52.7 336% Net Cash from Operating Activi
Slide 6: 4Q18 Cash Flow Reconciliation
4Q18 Cash Flow Reconciliation Total free cash flow from Operations was A$59M For personal use only A$M 160 7 2 140 1 34 5 11 120 4 15 100 38 80 139 60 40 70 20 - Cash at Nova FCF Tropicana FCF Jaguar FCF Long FCF Exploration & Corporate & Proceeds from Payments for Net Finance/ Cash at 31 Mar 2018 (
Slide 7: Nova
Nova Record mining rate of 1.8Mtpa, 20% above nameplate, in 4Q18 For personal use only Tonnes FY18 Nova Production Metric Units 3Q18 4Q18 FY18 8,000 7,344 Guidance 7,000 Nickel in concentrate t 5,961 7,344 22,258 23,000 – 27,000 5,961 6,000 Copper in concentrate t 2,472 3,230 9,545 10,000 – 12,000 5
Slide 8: FY19 Nova Guidance
FY19 Nova Guidance(1) De-risked by grade control drilling For personal use only Metric Units FY19 Guidance Nickel in concentrate t 27,000 – 30,000 Copper in concentrate t 11,000 – 12,500 Cobalt in concentrate t 850 – 950 Cash cost (payable)(2) A$/Ib Ni 1.65 – 2.00 Sustaining/Improvement Capex A$M 21
Slide 9: Nova Downstream Processing
Nova Downstream Processing Potentially significant value driver for IGO For personal use only Nickel sulphate hexahydrate crystals produced from Nova nickel concentrate • This was produced as part of the pre-feasibility metallurgical testwork completed in collaboration with Wood Mining and Minerals
Slide 10: Tropicana
Tropicana FY18 gold production better than the mid-point of guidance For personal use only Tropicana FY18 koz Production (100%) and AISC A$/oz Metric Units 3Q18 4Q18 FY18 Guidance 160 1,400 140 1,167 Gold produced (100%) koz 103.6 114.3 467.1 440 – 490 1,093 1,200 1,076 120 939 Gold Sold (IGO 30%) k
Slide 11: FY19 Tropicana Guidance
FY19 Tropicana Guidance(1) Stronger year projected for FY19 For personal use only Metric Units FY19 Guidance Gold produced (100%) koz 500 – 550 Gold Sold (IGO 30%) koz 150 – 165 Cash cost A$/oz 635 – 705 AISC A$/oz 890 – 980 Sustaining/improvement capex A$M 21 – 24 Capitalised waste stripping A$M 32
Slide 12: Tropicana – 5km strike of mineralisation
Tropicana – 5km strike of mineralisation For personal use only 1) Refer to ASX release dated 26 Jul 2018: Annual Update of Exploration Results, Mineral Resources and Ore Reserves 12
Slide 13: Tropicana – Boston Shaker
Tropicana – Boston Shaker) Reserve extension opportunities For personal use only • Resource development drilling continued Boston Shaker Underground Drilling(1) at Boston Shaker during 4Q18 ─ Total of 1,957m of Diamond core drilling and Reverse Circulation drilling completed • Resource model update,
Slide 14: Jaguar
Jaguar Divested for total consideration of A$73M For personal use only Tonnes Jaguar Production FY18 Metric Units 3Q18 4Q18(1) FY18(1) 9,000 Guidance(2) 8,105 2 months 8,000 Zinc in concentrate t 4,935 6,234 26,159 26,583 – 30,250 6,885 7,000 6,234 Copper in concentrate t 244 329 1,695 2,383 – 2,750
Slide 15: Long
Long Transitioned to Care & Maintenance in June 2018 For personal use only Tonnes Long Production FY18 Metric Units 3Q18 4Q18 FY18 1,800 Guidance 1,572 1,528 1,600 Contained nickel produced t 1,381 1,528 5,855 5,400 – 6,000 1,374 1,381 1,400 Cash cost (payable) A$/lb Ni 5.13 4.18 4.87 4.40 – 4.90 1,
Slide 16: Mineral Resource & Ore Reserve Update
Mineral Resource & Ore Reserve Update(1,2) Nova resource & reserve de-risked with grade control drilling For personal use only Mineral Resource Estimate as at 30 June 2018 Nova Mineral Resource Reconciliation Grade Estimate In situ Metal Estimates (kt Nickel metal) Tonnes Operation Ni Cu Co Au Ni Cu
Slide 17: FY19 Exploration Guidance
FY19 Exploration Guidance(1) Continuing A$51M commitment For personal use only FY19 Exploration Budget(2) A$12.0M Nova Tropicana A$3.0M Long A$33.0M A$2.5M Greenfields, Generative & Other Guidance Notes • Focus is on discovery at Nova and the Fraser Range with two thirds of our FY19 exploration inve
Slide 18: Nova Mining Lease Exploration
Nova Mining Lease Exploration Leverage 3D seismic program in FY19 For personal use only 58km2 3D seismic survey completed by HiSeis in April 2018 • Processed date expected end of July 2018 Complete reassessment of Nova ‘camp scale’ geology commenced in 4Q18 • c.31,000m of historic Diamond drill core
Slide 19: Fraser Range Exploration
Fraser Range Exploration c.15,000km2 of tenure consolidated For personal use only Completed acquisition of Creasy Southern Hills Tenements in 1Q19 • Highly prospective, under-explored tenure south west of, and adjoining, Nova mining lease Systematic belt scale exploration activities continued during
Slide 20: Fraser Range Exploration – Andromeda
Fraser Range Exploration Andromeda For personal use only Results from first drilling completed at Andromeda include: • 18AFRD004: 29.9m grading 1.36% Cu, 2.51% Zn, 19.9g/t Ag, 0.35g/t Au from 548.1m Assay results from additional drilling are pending and a fourth hole targeting the EM plate is underw
Slide 21: Lake Mackay Exploration
Lake Mackay Exploration 12,800km2 belt scale greenfields project For personal use only SpectremAir airborne EM survey underway • 12,000 line-km survey planned with half the survey completed in 4Q18 Prospect-scale geological mapping and rock chip sampling were completed at various prospects • Include
Slide 22: Concluding Comments
Concluding Comments Record 4Q18 further strengthens balance sheet For personal use only • Record revenue and underlying EBITDA for 4Q18 and FY18 • Nova nickel production increased 23% QoQ ─ Mining rate of 20% above nameplate achieved ─ Downstream processing and metallurgical testwork progressed • Tr
Slide 23: For personal use only
Nye Nad “AS WE GO FROM STRENGTH TO STRENGTH igo.com.au