Igo Limited · ASX:IGO
Igo — Independence Group NL — Mines and Money Hong Kong 2014
25 slides from Igo's conference presentation, Mar 25, 2014
Slide 1: Growing a Great Australian Mining Company
GROWING A GREAT For personal use only AUSTRALIAN MINING COMPANY MINES AND MONEY - HONG KONG March 2014
Slide 2: Disclaimer
DISCLAIMER L This presentation has been prepared by Independence Group NL (“IGO”). It should not be considered as an offer or invitation to subscribe for or purchase any For personal use only securities in IGO or as an inducement to make an offer or invitation with respect to those securities in any
Slide 3: Corporate Overview
CORPORATE OVERVIEW L For personal use only Capital Structure: ASX 200 Code : IGO l 233.3M shares Financials: Market Cap. (18/03/14): A$928.6M Cash (at 31/12/13): A$45.8M Debt (at 31/12/13): (A$63.7M) FY2014 First Half Result: EBITDA: A$63.3M NPAT: A$21.5M FY2013 Full Year Final Result: EBITDA: A$56.
Slide 4: Financial Results H1 FY2014
FINANCIAL RESULTS H1 FY 2014 L Positive net profit contribution from all operations For personal use only Strong production and successful cost management l Debt unchanged from 30 Sept 2013 following Tropicana completion Interim dividend increased HALF YEAR RESULTS 31 DECEMBER H1 FY2014 H1 F
Slide 5: IGO Asset Pipeline
IGO ASSET PIPELINE L Globally competitive cash costs at operations For personal use only Significant long-life developments l Highly prospective exploration portfolio 5
Slide 6: Tropicana Gold Project
TROPICANA GOLD PROJECT IGO 30%, AGA (MANAGER) 70% L PLANT COMMISSIONING AND RAMP UP ON TRACK For personal use only l First gold was ahead of schedule and on budget – 26th September 2013 Maiden Qtr Dec 2013: Focus on Plant Commissioning 82% Plant Utilisation ▪ 1,184,000t Milled 88% Recovery
Slide 7: Tropicana Gold Project - Havana Pit
TROPICANA GOLD PROJECT L HAVANA PIT - EARLY STAGE MINING For personal use only l First Ore Mined Feb 2013 ROM Stockpile >2.5Mt Grade control 3 months ahead of mining Pre-strip underway at Tropicana Pit First ore from Tropicana pit in March Qtr 2014 Cash cost estimate years 1-3 A$590-63
Slide 8: Tropicana Gold Project - Updated Mineral Inventory
TROPICANA GOLD PROJECT L UPDATED MINERAL INVENTORY For personal use only l Reference : IGO ASX Release 28/02/2014 Mineral Resources and Ore Reserve Estimates for Tropicana Gold Project 8
Slide 9: Tropicana Gold Project - Havana Deeps and Regional Exploration
TROPICANA GOLD PROJECT L HAVANA DEEPS PRE-FEASIBILITY STUDY For personal use only Enhanced pre-feasibility l commenced Phased exploration targeting additional high grade shoots 3D Seismic survey planned to map high grade shoots down plunge Funded separately to Regional Exploration REGION
Slide 10: Long Operation (IGO 100%)
LONG OPERATION (IGO 100%) L Focus on: ▪ consistent low cost production For personal use only ▪ brownfields exploration potential l H1 FY2014: ▪ realised nickel price down 21% (cf H1 FY2013) ▪ profit contribution A$14.1M ▪ payable cash costs including royalties down 17% (cf H1 FY2013) LONG OPERAT
Slide 11: Long Operation - Deposits & Targets Longitudinal Projection
LONG OPERATION (IGO 100%) L DEPOSITS & TARGETS LONGITUDINAL PROJECTION For personal use only l Reference: * IGO ASX Release dated 25/10/2013 : Mineral Resources and Ore Reserves Estimates for Long Nickel Operation 11
Slide 12: Jaguar Operation (IGO 100%)
JAGUAR OPERATION (IGO 100%) L Focus: ▪ consistent and lower cost production For personal use only l H1 FY2014: ▪ realised zinc price up 2% (cf H1 FY2013) ▪ profit contribution A$24.6M ▪ payable cash costs including royalties down 33% (cf H1 FY2013) JAGUAR OPERATION FY2013 FY2014 H1 FY2104 ACTUAL
Slide 13: Jaguar Operation - Bentley Deposit
JAGUAR OPERATION (IGO 100%) BENTLEY DEPOSIT L New mining plan achieving more consistent production For personal use only l Development Balance of production changing to Stoping rather than Reference: IGO ASX Release 25/10/2013 : Mineral Resources and Ore Reserves Estimates for Jaguar Operation
Slide 14: Jaguar Operation - Bentley Deposit Drilling
JAGUAR OPERATION (IGO 100%) BENTLEY DEPOSIT L On going drilling at “Flying Spur” discovery For personal use only Infill drilling of existing Inferred Mineral Resources l 14 Reference: IGO ASX Release 20/02/2014 : Jaguar Operation New Flying Spur Sulphide Lens
Slide 15: Stockman Project (IGO 100%)
L STOCKMAN PROJECT (IGO 100%) PERMITTING PROCESS UNDERWAY l Conceptual site layout For personal use only L l Enhanced feasibility study targeting a 30% capital reduction Mine Life based on Ore Reserves – 9 yrs Exploration upside - Bigfoot and Eureka discoveries Permitting approvals expecte
Slide 16: Exploration Strategy
EXPLORATION STRATEGY L DISCOVERING NEW MINES BY: TECHNICAL INNOVATION: ▪ Geophysical tools For personal use only ▪ Geochemical techniques to detect “blind” deposits ▪ Proprietary databases (e.g. De Beers) l JOINT VENTURE PARTERNSHIPS: ▪ Lake Mackay, Darlot, Rebecca, Bryah Basin ADD VALUE TO
Slide 17: Summary
SUMMARY L GROWING A GREAT AUSTRALIAN MINING COMPANY For personal use only H1 FY2014 Result l NPAT up 30% on previous corresponding period to A$21.5M Tropicana commissioning and ramp up on track Maiden profit contribution from Tropicana A$6.5M Interim fully franked dividend increased to 3
Slide 18: Independence Group NL - Contact Details
INDEPENDENCE GROUP NL L L CONTACT DETAILS l For personal use only l Peter Bradford, Managing Director & CEO Suite 4, Level 5, South Shore Centre 85 South Perth Esplanade South Perth, Western Australia, 6151 PO Box 496, South Perth, Western Australia, 6951 Telephone: +61 8 9238 8300 Facsimile: +61
Slide 19: Appendix: Reserves and Resources Statements
APPENDIX L For personal use only l RESERVES AND RESOURCES STATEMENTS 19
Slide 20: Competent Persons Statements
COMPETENT PERSONS STATEMENTS L JORC CODE COMPETENT PERSONS STATEMENTS For personal use only l Exploration Results The information in this report that relates to Exploration Results is based on information compiled by Mr Tim Kennedy. Mr Kennedy is a full-time employee of the Company and is a member
Slide 21: Reserves and Resources - Tropicana Gold Mine JV
RESERVES AND RESOURCES TROPICANA GOLD MINE JV Mineral Resource 31 December 2013 Ore Reserve 31 December 2013 For personal use only 100% Project 100% Project Classification Tonnes Mt Au g/t Contained Au Moz Classification Tonnes Mt Au g/t Contained Au Moz OPEN PIT Measured 28.6 2.06 1.89 OPEN PIT Ind
Slide 22: Reserves and Resources - Long Operation
RESERVES AND RESOURCES LONG OPERATION For personal use only Mineral Resources 30 June 2013 Ore Reserves 30 June 2013 Classification Tonnes Ni% Ni Tonnes Classification Tonnes Ni% Ni Tonnes LONG Measured 61,000 5.4 3,300 LONG Proven 45,000 3.1 1,400 Indicated 213,000 5.2 11,100 Probable 66,000 2.9 1,
Slide 23: Reserves and Resources - Jaguar Operation
RESERVES AND RESOURCES JAGUAR OPERATION MINERAL RESOURCES - JUNE 2013 ORE RESERVES - JUNE 2013 For personal use only Classification Tonnes Cu% Zn% Ag g/t Au g/t Classification Tonnes Cu% Zn% Ag g/t Au g/t JAGUAR Measured 264,000 2.4 3.4 47 - JAGUAR Indicated 181,000 1.8 2 28 - Proven 20,000 1.7 0.4
Slide 24: Reserves and Resources - Stockman Project
RESERVES AND RESOURCES STOCKMAN PROJECT For personal use only Mineral Resources 30 June 2013 Ore Reserves 30 June 2013 Classification Tonnes Mt Cu% Zn% Ag g/t Au g/t Classification Tonnes Mt Cu% Zn% Ag g/t Au g/t CURRAWONG Measured - - - - - CURRAWONG Indicated 9,548,000 2.0 4.2 42 1.2 Proved - - -
Slide 25: Reserves and Resources - Karlawinda: Bibra Prospect
RESERVES AND RESOURCES KARLAWINDA: BIBRA PROSPECT For personal use only MINERAL RESOURCES - 30 JUNE 2013 CLASSIFICATION TONNES Mt Au g/t CONTAINED AU oz Measured - - - Indicated - - - Inferred 18 1.1 650,800 GRAND TOTAL 18 1.1 650,800 NOTES: 1 The Mineral Resource estimate was estimated within a con
Independence Group NL — Mines and Money Hong Kong 2014 on 6ix