Igo Limited · ASX:IGO
Igo — Independence Group NL — Shareholder Meeting (November 2019)
41 slides from Igo's shareholder meeting presentation, Nov 20, 2019
Slide 1: Annual General Meeting 20 November 2019
For personal use only Independence Group NL ANNUAL GENERAL MEETING 20 November 2019
Slide 2: Safety
Safety Enduring commitment to safe work practices For personal use only Key Lag Injury Metrics(1,2) 5 4 Fatality resulting from an incident which 3 occurred at Nova in September 2019 2 1 0 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 MTIFR 12 MMA LTIFR 12 MMA Comprehensive safety review u
Slide 3: Sustainability
Sustainability Strong performance across key metrics in FY19 For personal use only 2019 ACSI Rating of ASX200 Sustainability Reporting(1) No material environmental or community incidents in FY19 Leading Detailed Moderate Sustainability reporting continues to be industry leading Basic No Reporting Se
Slide 4: Corporate Overview
Corporate Overview Portfolio of high quality operating and exploration assets For personal use only Market Capitalisation(1) Shares on Issue(1) A$3.7 billion 590 million Cash(2) Debt(2) A$321 million A$57 million Shareholders(3) Institutional vs Retail Institutional holders by Geography 29% 34% 71%
Slide 5: Delivering Our Compelling Story
Delivering Our Compelling Story Our Purpose: Making a Difference For personal use only We believe in a world where people power makes amazing things happen. Where technology opens up new horizons and clean energy makes the planet a better place for every generation to come. We are bold, passionate,
Slide 6: Our Purpose
Our Purpose Strategically focused on metals critical to clean energy For personal use only Globally High-quality Relevant Products Vertically Proactively Integrated People Green 6
Slide 7: Clean Energy Metals
For personal use only Clean Energy Metals 7
Slide 8: Nickel Market
Nickel Market Market deficits expected to be positive for nickel price For personal use only Nickel Stockpiles (kt) Nickel Price (US$/tonne) 600,000 25,000 25,000 500,000 20,000 20,000 400,000 Consensus forecast nickel price range 15,000 15,000 300,000 LME Stockpile (16 November 2019) 10,000 10,000
Slide 9: Electric Vehicles
Electric Vehicles EV sales are increasing rapidly For personal use only EV sales forecast(1,2) Higher energy density and improved Million safety of batteries is driving new 60 applications 48M 50 40 Potential for EV adoption to accelerate due to lower cost and 30 increased regulation 20 10 4M Disrup
Slide 10: Electric Vehicles
Electric Vehicles Multiple factors driving strong demand growth for EVs For personal use only Falling battery cost and CO2 regulations driving sales(1) Millions $US/kWh and Subsidies, regulation and penalties g/km 50 250 45 Investment in recharge 40 200 infrastructure 35 30 150 25 Improved quality a
Slide 11: Battery Chemistry
Battery Chemistry Higher nickel intensities improve battery performance and range For personal use only EV batteries becoming more nickel intensive(1) NMC (811) or NCA in 80% of EVs by 2025(2) +75kg of nickel in a 2019 Tesla Model S 30% 36% 72% 82% 73% NMC (111) NMC (433) NMC (811) NCA NCA+ Aluminiu
Slide 12: Nova Nickel Operation
For personal use only Nova Nickel Operation 12
Slide 13: Nova
Nova Outstanding operational performance and financial returns For personal use only Strong metal Nickel Copper Cobalt production in FY19 in Concentrate in Concentrate in Concentrate – exceeded 30,708t 13,693t 1,090t guidance ▲38% YoY ▲ 43% YoY ▲ 47% YoY Low cost Cash Costs AISC FY19 FCF Margin oper
Slide 14: Nova
Nova Track record of outperformance For personal use only Nova Production & Cash Costs Tonnes Average quarterly A$/lb Improving production profile and 9,000 production rate from $4.50 reducing cash costs 8,000 feasibility study $4.00 7,000 $3.50 6,000 $3.00 Free Cash Flow generated since start of 5,
Slide 15: Nova
Nova Capital development and grade control drilling complete For personal use only 15
Slide 16: Nova – Smart Solutions
Nova – Smart Solutions Leveraging innovation and technology to optimise operations For personal use only Hybrid solar/diesel power generation Electronic tracking of personnel and equipment Remote bogging and blasting Drone technology 1) Source: Circular Solutions, Zenith Pacific Energy 16
Slide 17: Tropicana Joint Venture
For personal use only Tropicana Joint Venture (IGO 30%, AngloGold Ashanti 70% and manager) 17
Slide 18: Tropicana Performance
Tropicana Performance Consistent, high margin gold production For personal use only Tropicana Production (100%) and AISC oz A$/oz Strong history of gold production and cost 160,000 $1,400 performance 140,000 $1,200 120,000 $1,000 100,000 FY19 Result $800 80,000 Production (IGO share): 154,402oz 60,0
Slide 19: Tropicana Opportunity
Tropicana Opportunity Significant potential for value uplift from underground and exploration For personal use only 1) Refer ASX Announcement titled “CY18 Mineral Resources and Ore Reserve Statement”, released 20 February 2019 19
Slide 20: Financial Performance
For personal use only Financial Performance 20
Slide 21: FY19 Financial Results
FY19 Financial Results Operational performance delivered record financial results in FY19 For personal use only Revenue (A$M) Underlying EBITDA(1) (A$M) Net Profit After Tax (A$M) 900 793 781 400 100 800 339 341 76 350 80 700 60 53 300 600 40 500 250 17 417 422 20 400 200 151 138 0 300 150 -20 200 1
Slide 22: FY19 Full Year Dividend
FY19 Full Year Dividend Record return to shareholders in FY19 For personal use only Dividend History (cents per share) Capital Management Strategy (% of Free Cash Flow) 12 10 ~20% 8 6 8 ~60% ~20% 4 Nova Development 2 2 1 2 2 1 1 0 FY16 FY17 FY18 FY19 Interim Dividend Final Dividend Returns to Shareh
Slide 23: Exploration
For personal use only Exploration 23
Slide 24: Enduring commitment to exploration
Enduring commitment to exploration Increased exploration budget in FY20 to accelerate organic growth opportunity For personal use only FY20 Exploration Budget A$6M A$3M A$4M A$26M A$3M A$66M A$24M Nova Fraser Range Tropicana West Kimberley Lake Mackay Other Greenfields & Generative 24
Slide 25: Fraser Range
Fraser Range Belt-scale opportunity with a pipeline of targets For personal use only Extensive exploration program across the consolidated Fraser Range belt in FY20 FY20 Drilling Budget: Aircore: 100,000m Diamond: 60,000m Disciplined exploration strategy leveraging state-of-the-art geophysics and ge
Slide 26: Nova Exploration
Nova Exploration Aggressive exploration program at and near Nova For personal use only Corridor of stacked magmatic intrusions identified through Nova mining lease Multiple targets identified, with majority to be drilled in current drill season Three-phase sulphides intersected in drilling 26
Slide 27: Nova System
Nova System Nova intrusive system now understood to be larger than was originally apparent For personal use only Interpreted magmatic intrusions over the Nova mining lease 27
Slide 28: Lake Mackay
Lake Mackay Belt scale exploration asset targeting magmatic nickel-copper-cobalt For personal use only Significant land position of ~18,000km2 First phase exploration program substantially complete Successfully identified nickel laterite, copper and gold prospects 1) Lake Mackay is a joint venture b
Slide 29: Kimberley Projects
Kimberley Projects Geologically similar to Fraser Range – exploring for more Novas For personal use only Systematic exploration planned, targeting nickel, copper and cobalt Landholding expanded to >11,500km2 across West and East Kimberley Proven mineralised belt with Savannah mine and Merlin discove
Slide 30: Nickel Value Optimisation
For personal use only Nickel Value Optimisation 30
Slide 31: Downstream Processing
Downstream Processing IGO Process designed to convert nickel sulphide concentrate into nickel sulphate For personal use only Technical success with high purity, battery grade nickel sulphate produced High metal extractions, strong environmental credentials, low cost flow sheet1 Exploring partnering
Slide 32: Nickel Value Optimisation
Nickel Value Optimisation Parallel processes to unlock additional value from Nova concentrate sales For personal use only New offtake Concentrate Materially improved Established reputation of agreements signed offtake agreement commercial terms Nova concentrate quality achieved with BHP Nickel West
Slide 33: Takeover Offer for Panoramic Resources
For personal use only Takeover Offer for Panoramic Resources 33
Slide 34: Offer Summary
Offer Summary IGO’s offer creates a win-win for both Panoramic and IGO shareholders For personal use only 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 Austral
Slide 35: Diversifies IGO's Portfolio
Diversifies IGO’s Portfolio Adds a second exploration and production camp in the East Kimberley For personal use only Combined Portfolio Combined East Kimberley land positions1 Savannah Panoramic landholding IGO landholding Halls Creek 1) Source: Department of Mines information. 35
Slide 36: Enhances Production and Earnings Potential
Enhances Production and Earnings Potential Adds meaningful nickel production and preserves an attractive group cash cost margin1 For personal use only 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% 27% 21% 22% Mar
Slide 37: Conclusion
For personal use only Conclusion 37
Slide 38: Conclusion
Conclusion IGO well positioned to deliver value and growth for shareholders For personal use only Operational Performance Sustainability Growth and Optimisation Nova and Tropicana Continued focus on delivering consistent, safety, community, Enduring commitment to exploration low cost production envi
Slide 39: Making a Difference
For personal use only 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. Ou
Slide 40: Cautionary Statements, Disclaimer and Competent Persons' Statement
Cautionary Statements, Disclaimer and Competent Persons’ Statement • 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 For personal use only indu
Slide 41: Cautionary note and disclaimer for Panoramic Takeover Offer
Cautionary note and disclaimer for Panoramic Takeover Offer • 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 read in conjunction with IGO’s and For personal use only P
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