Igo Limited · ASX:IGO
Igo — Independence Group NL — Investor Presentation (December 2012)
46 slides from Igo's investor presentation, Dec 4, 2012
Slide 1: Growing a Great Australian Mining Company
For personal use only GROWING A GREAT AUSTRALIAN MINING COMPANY Investor Presentation Chris Bonwick, Managing Director 4th to 6th December 2012
Slide 2: Disclaimer
DISCLAIMER L For personal use only l Certain oral and written statements contained or incorporated by reference in this presentation, including information as to the future financial or operating performance of the Company and its projects, constitute forward-looking statements. All statement, other
Slide 3: Company History
COMPANY HISTORY L For personal use only 2000 Independence Group NL founded l 2002 Listed on ASX (IGO) 20c 2002 Acquisition: Long Nickel Mine (IGO 100%) 2005 Discovery: Tropicana Gold Project (IGO 30%) Discovery: McLeay Nickel Deposit at Long (IGO 100%) 2008 Discovery: Moran Nickel Deposit at Long (I
Slide 4: Financial Summary
FINANCIAL SUMMARY L For personal use only Capital Structure: ASX 200 Code : IGO 232.9M shares l Financials: Market Cap. (29/11/12): A$1,048.0M Cash (end Sept Qtr 2012): A$146.9M Debt (end Sept Qtr 2012): (A$21.4M) Substantial shareholders: 65 Institutions in Top 100 67% Australian 10% Overseas Divid
Slide 5: IGO Asset Pipeline
IGO ASSET PIPELINE L For personal use only Combination of low cost cash flows from current operating mines with significant long-life development projects and highly prospective exploration l Highly complementary management and technical capabilities, with proven successful track records of explorat
Slide 6: IGO Major Projects
IGO MAJOR PROJECTS L For personal use only l 6
Slide 7: Tropicana Gold Project
TROPICANA GOLD PROJECT L L IGO 30%, AGA 70%, MANAGER For personal use only l NEW AUSTRALIAN GOLD PROVINCE l UNDER SAND DUNES Regional drilling Preparation for mining 7
Slide 8: Tropicana Gold Project
TROPICANA GOLD PROJECT L IGO 30%, AGA 70%, MANAGER For personal use only l References : IGO & AGA 4/12/2012 ASX Releases for Tropicana Gold Project Mineral Resource Estimate IGO & AGA 27/7/2011 ASX Releases for Reserve Estimate 8
Slide 9: Tropicana Gold Project
TROPICANA GOLD PROJECT L IGO 30%, AGA 70%, MANAGER For personal use only PROJECT UNDER CONSTRUCTION: l Project 64% complete at 30 September 2012 First production estimated December Qtr 2013 ^ IGO attributable production years 1-3 : 141-147,000 oz Au pa ^ Cash costs years 1-3 : A$580-600/oz Au Recent
Slide 10: In 2011 Domestic Gold Production >100koz
TROPICANA GOLD PROJECT L IN 2011 DOMESTIC GOLD PRODUCTION >100KOZ For personal use only l Gold Ounces Australian Mine Production 2011 900,000 Tropicana* (100%) 800,000 700,000 600,000 500,000 Tropicana* (30% IGO) 400,000 300,000 200,000 100,000 0 Source: * Based on BFS Production Years 1-3 10
Slide 11: Upside Studies & Potential
TROPICANA GOLD PROJECT UPSIDE STUDIES & POTENTIAL LL For personal use only ll December 2012 Mineral Resource: 118.0Mt @ 2.1g/t Au = 7.89Moz (A$1,500/oz) June 2011 Open Pit Reserve: 56.4Mt @ 2.2g/t Au = 3.91Moz (A$1,210/oz) References : IGO & AGA 4/12/2012 ASX Releases for Tropicana Gold Project Mine
Slide 12: Havana Open Cut & Underground Mine Potential
TROPICANA GOLD PROJECT LL HAVANA OPEN CUT & UNDERGROUND For personal use only MINE POTENTIAL AT NOVEMBER 2011 ll References : IGO & AGA 27/7/2011 ASX Releases for Reserve Estimate IGO & AGA 29/11/2011 ASX Releases for Open Pit and Havana Deeps Underground Resource Estimates 12
Slide 13: Significant Down Plunge Potential
TROPICANA GOLD PROJECT L LL SIGNIFICANT DOWN PLUNGE POTENTIAL l For personal use only ll Drill widths approximate true widths 13
Slide 14: Significant Regional Potential
TROPICANA GOLD PROJECT L LL SIGNIFICANT REGIONAL POTENTIAL l For personal use only ll Tenement Area 13,480 km2 Of the 60 Geochem Prospects ~ 32 Geochem Coverage over 7,000 km2 have been drilled with RC or DD Geochem Based Prospects ~ 60 Of the 32 Prospects drilled ~14 have drill intercepts > 5g/t Au
Slide 15: Tropicana Gold Project Fly Through
TROPICANA GOLD PROJECT L FLY THROUGH For personal use only l 15
Slide 16: Long Nickel Operation (IGO 100%)
LONG NICKEL OPERATION (IGO 100%) L For personal use only Record^ Annual 2012 Production – 9,995t Ni (2011/12 Guidance 8,800-9,200t Ni). l IGO produced over 83,000t Ni since acquisition. June 2012 Ore Reserve 41,900t Ni and Resource 76,600t Ni. Exploration success continues to add to Mining Inventory
Slide 17: Remains a Low Cost Nickel Producer
LONG NICKEL OPERATION (IGO 100%) L REMAINS A LOW COST NICKEL PRODUCER For personal use only l Net Margin 17
Slide 18: Innovative Research and Development
LONG NICKEL OPERATION (IGO 100%) L For personal use only INNOVATIVE RESEARCH AND DEVELOPMENT l High powered TEM transmitter **exclusive to IGO** 10 x more powerful than conventional systems. Nickel sulphides are very Doubles search radius conductive and can be detection up to 200m. detected using Do
Slide 19: Deposits & Targets Longitudinal Projection
LONG NICKEL OPERATION (IGO 100%) DEPOSITS & TARGETS LONGITUDINAL PROJECTION L For personal use only l References: IGO 19/10/2012 ASX Release: Annual Report for Long Nickel Mine Mineral Resource and Ore Reserve Statement IGO 31/10/2012 ASX Release : Quarterly Activities Report to 30 September 2012 19
Slide 20: Long Nickel Operation Fly Through
LONG NICKEL OPERATION (IGO 100%) L FLY THROUGH For personal use only l 20
Slide 21: Jaguar & Bentley Production Update & Operational Improvements
JAGUAR & BENTLEY (IGO 100%) L PRODUCTION UPDATE & OPERATIONAL For personal use only IMPROVEMENTS JAGUAR & BENTLEY ACTUAL GUIDANCE l SEPT QTR ZINC-COPPER-SILVER 2011/12 2012/13 2012 OPERATION Production (Zn Tonnes) 16,569 27,000 – 28,000 6,668 Production (Cu Tonnes) 7,257 5,000 – 6,000 1,360 Producti
Slide 22: Heavy Media Separation Plant
JAGUAR & BENTLEY (IGO 100%) L PRODUCTION UPDATE & OPERATIONAL For personal use only IMPROVEMENTS HEAVY MEDIA SEPARATION PLANT l Removes waste rock from diluted ore and stringer sulphides. Increases mill head-grade resulting in reduced processing costs. “Floats” “Sinks” Total tonnes treated 95,108t R
Slide 23: Bentley Deposit
JAGUAR & BENTLEY (IGO 100%) L BENTLEY DEPOSIT For personal use only l Drill intercepts are quoted as down hole widths, and not true widths Reference: IGO ASX Release 19/10/2012 for Annual Report: Jaguar/Bentley Operation Mineral Resource and Ore Reserve Statement New high grade mining plan 2 years o
Slide 24: Bentley Deposit
JAGUAR & BENTLEY (IGO 100%) L BENTLEY DEPOSIT For personal use only Discovered – 2008 Development – 2011 First Stoping – Sept Qtr 2012 l Bentley - Mineral Resource Total Tonnes Cu % Zn % Ag g/t Au g/t Total Resource 2,914,000 1.9 10.2 134 0.7 Bentley – Contained Metal Cu t Zn t Ag Moz Au oz Total Re
Slide 25: Jaguar & Bentley (IGO 100%)
JAGUAR & BENTLEY (IGO 100%) L For personal use only Under-explored 50km l long prospective Cu-Zn-Ag VMS corridor. Prospectivity around existing 3 mines. Six Cu-Zn-Ag alteration anomalies under- cover being systematically tested. Golden Grove Gossan Hill : discovery history Bentley Deposit Scale Comp
Slide 26: Jaguar & Bentley Fly Through
JAGUAR & BENTLEY (IGO 100%) L FLY THROUGH For personal use only l 26
Slide 27: Stockman Project Overview
STOCKMAN PROJECT (IGO 100%) L OVERVIEW For personal use only Located 300kml NE of Melbourne Project Area 335 km2 Bankable Feasibility Study at Wilga and Currawong Recent gold discovery at Bigfoot Prospect, 300m north of Currawong Deposit. Regional Exploration potential for VMS and Gold Deposits 27
Slide 28: Stockman Project
STOCKMAN PROJECT (IGO 100%) L Currawong Deposit Wilga Deposit For personal use only l Stockman - Mineral Resource Total Tonnes Cu % Zn % Ag g/t Au g/t Total Resource 13,986,000 2.1 4.3 38 1.0 Stockman – Contained Metal Cu t Zn t Ag Moz Au oz Total Resource 288,500 594,600 17.1 424,000 Reference: IGO
Slide 29: Bankable Feasibility Study
STOCKMAN PROJECT (IGO 100%) L l L BANKABLE FEASIBILITY STUDY l For personal use only Two underground mines - Wilga and Currawong Feeding a 1Mtpa flotation plant over 9 years Cu & Zn concentrate production averaging 150ktpa LOM Recent gold discovery at Bigfoot prospect, 300m north of Currawong deposi
Slide 30: Stockman Project Exploration Potential
STOCKMAN PROJECT (IGO 100%) L EXPLORATION POTENTIAL For personal use only l Near mine high grade “Bigfoot style” mineralisation Significant untested potential for VMS and gold deposits Historical 1970s regional exploration never assayed for gold IGO high powered TEM 30
Slide 31: Stockman Project Fly Through
STOCKMAN PROJECT (IGO 100%) L FLY THROUGH For personal use only l 31
Slide 32: Karlawinda Gold Project
KARLAWINDA GOLD PROJECT (IGO 100%) L 207% Increase in Resource announced June 2012 to 674,300oz Au For personal use only New Gold Province in Western Australia’s “Iron Ore Country” No historical gold workings l Close to infrastructure: major town, airport, sealed roads, major highway, gas pipeline,
Slide 33: Francopan Prospect Discovery
KARLAWINDA GOLD PROJECT (IGO 100%) FRANCOPAN PROSPECT DISCOVERY L For personal use only l Drill intercepts are quoted as down hole widths, and not true widths 33
Slide 34: Bibra Prospect Cross-Section
KARLAWINDA GOLD PROJECT (IGO 100%) L BIBRA PROSPECT CROSS-SECTION For personal use only Scoping Study commenced. l Potential to increase resources down dip and along strike. Reference: IGO 28/06/2012 ASX Release for Karlawinda Gold Project 34
Slide 35: Bibra Prospect Gram x Metre Contours
KARLAWINDA GOLD PROJECT (IGO 100%) L BIBRA PROSPECT GRAM X METRE CONTOURS For personal use only Currently seven untested anomalies for follow-up regional exploration l Reference: IGO 28/06/2012 ASX Release for Karlawinda Gold Project 35
Slide 36: De Beers Database
DE BEERS DATABASE (IGO 100%) L L Long term exploration asset to find new Australian mineral camps. 293,000 geochemical samples collected by De Beers over 30 years. l For personal use only IGO analysing samples for 57 elements including Ni, Cu, Pb, Zn, Au,l Ag, Pt, Pd, U, rare earths, Sn, Li, K etc.
Slide 37: Unlocking the Potential
DE BEERS DATABASE (IGO 100%) L L UNLOCKING THE POTENTIAL l For personal use only De Beers Targets Under Review l 71 Gold Anomalies 33 Base Metal Anomalies 3 Other/Strategic Metal Anomalies Anomalous base metal and sulphur rich gossan found by Independence Group geologists following upstream from a D
Slide 38: IGO Transformation
IGO TRANSFORMATION L GROWING A GREAT For personal use only AUSTRALIAN MINING COMPANY l Zero to Ten Years A great team of people 2 operating mines Significant gold mine under construction Feasibility study pipeline Unique exploration assets Strong clean balance sheet and future cash flows Dividends p
Slide 39: Contact Details
INDEPENDENCE GROUP L CONTACT DETAILS L l For personal use only l Perth Office Chris Bonwick, Managing Director 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 40: Appendix: Reserves and Resources Statements
L For personal use only l APPENDIX RESERVES AND RESOURCES STATEMENTS 40
Slide 41: Reserves and Resources: Long Nickel Operation
RESERVES AND RESOURCES L For personal use only LONG NICKEL OPERATION Mineral Resources 30 June 2012 l 2012 Ore Reserve 30 June Cut-off 1% Ni at Economic Ni Cut-off Classification Tonnes Ni% Ni Tonnes Classification Tonnes Ni% Ni Tonnes LONG Measured 47,000 3.7 1,700 LONG Indicated 220,000 5.1 11,200
Slide 42: Reserves and Resources: Tropicana Gold Project JV
RESERVES AND RESOURCES L For personal use only TROPICANA GOLD PROJECT JV l Mineral Resources Ore Reserves December 2012 June 2011 Contained Contained Tonnes Grade Gold Tonnes Grade Gold 1 2 3 4 Classification (Mt) (g/t) (Moz) Classification (Mt) (g/t) (Moz) Measured 29.8 2.1 2.03 Indicated 76.4 2.0
Slide 43: Reserves and Resources: Jaguar / Bentley Operation
RESERVES AND RESOURCES L For personal use only JAGUAR / BENTLEY OPERATION JAGUAR / BENTLEY OPERATION Mineral Resources 30 June 2012 l Ore Reserve 30 June 2012 Classification Tonnes Cu% Zn% Ag g/t Au g/t Classification Tonnes Cu% Zn% Ag g/t Au g/t JAGUAR Measured 429,000 2.5 4.4 61 - JAGUAR Proven 73
Slide 44: Reserves and Resources: Stockman Project
RESERVES AND RESOURCES L For personal use only STOCKMAN PROJECT l Mineral Resources 30 June 2012 Classification Tonnes Cu% Zn% Pb% Ag g/t Au g/t CURRAWONG Indicated 9,548,000 2.0 4.2 0.8 42 1.2 Inferred 781,000 1.4 2.2 0.3 23 0.5 Total 10,329,000 2.0 4.0 0.8 40 1.1 WILGA Indicated 2,987,000 2.0 4.8
Slide 45: Reserves and Resources: Karlawinda Gold Project
RESERVES AND RESOURCES L For personal use only KARLAWINDA GOLD PROJECT : l BIBRA DEPOSIT (INFERRED RESOURCES - JUNE 2012) Tonnes Au Grade Contained Au Mineralisation Type (Mt) (g/t) (oz) Laterite 2.2 1.1 77,100 Upper Saprolite 0.9 1.1 31,000 Lower Saprolite 1.9 1.1 63,600 Transitional 2.1 1.0 68,200
Slide 46: Competent Persons Statements
COMPETENT PERSONS STATEMENTS L For personal use only l Notes: The information in this summary presentation that relates to Exploration Results is based on information compiled by Mr Christopher M Bonwick who is a full-time employee of the Company and is a member of the Australasian Institute of Mini
Independence Group NL — Investor Presentation (December 2012) on 6ix