Igo Limited · ASX:IGO
Igo — Independence Group NL — Q3 FY2019 Earnings Presentation
24 slides from Igo's earnings presentation, Apr 30, 2019
Slide 1: 3Q19 Results Presentation
INDEPENDENCE GROUP NL 3Q19 Results Presentation For personal use only Nova continues to perform delivering record production & cash costs 30 April 2019 ASX:IGO | ADR:IIDDY 1
Slide 2: Cautionary Statements & Disclaimer
Cautionary Statements & Disclaimer • 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 For personal use only securities in IGO or as an inducement to make an offer or invit
Slide 3: Competent Person's Statements
Competent Person’s Statements • Any references to IGO Mineral Resource and Ore Reserve estimates should be read in conjunction with IGO’s Annual Update of Exploration Results, Mineral Resources and Ore Reserves For personal use only dated 20 February 2019 (Annual Statement) and lodged with the ASX f
Slide 4: IGO is Making A Difference
IGO is Making A Difference Strategically focused on metals critical to clean energy For personal use only Globally Relevant Vertically Integrated Large scale, high quality asset portfolio upstream metal production and supplying metals critical to clean energy downstream processing to unlock value Hi
Slide 5: 3Q19 Highlights
3Q19 Highlights Nova outperformance delivers strong cash flow For personal use only Record production and Underlying EBITDA lower cash costs at Nova A$117M Nova and Tropicana on Net Profit After Tax track to deliver on full year A$45M production guidance Continued delivery on Net Cash Position growt
Slide 6: Safety
Safety Continuing improvement across lead and lag metrics For personal use only Key Lag Injury Metrics(1,2) Key Lead Injury Metrics(3) 0.5 3 6 The number of safety 0.45 interactions remain at 5 or exceed target 2.5 0.4 0.35 4 2 0.3 3 0.25 1.5 0.2 2 1 0.15 The number of near-misses 0.1 remain low 1 0
Slide 7: 3Q19 Financial Results
3Q19 Financial Results Strong operational performance driving substantial cash flow generation For personal use only Units 2Q19 3Q19 QoQ Revenue and Other Income A$M 189.0 232.8 ▲ 23% Underlying EBITDA(1) A$M 67.6 116.6 ▲ 72% Profit After Tax A$M 0.7 45.1 ▲ 6300% Net Cash from Operating Activities A
Slide 8: Net Profit After Tax
Net Profit After Tax Significant QoQ increase driven by Nova performance, D&A and investment revaluation For personal use only A$M 70 0.6 60 16.0 20.0 50 8.9 7.9 40 0.1 2.7 4.2 30 48.4 45.1 20 10 0.7 2Q19 NPAT Nova EBITDA Tropicana Long EBITDA Exploration Corporate Mark-to- D&A Other Tax 3Q19 NPAT E
Slide 9: 3Q19 Cash Flow Reconciliation
3Q19 Cash Flow Reconciliation Nova performance drives 24% increase in cash balance QoQ For personal use only A$M 350 1 11 300 21 7 0.2 29 12 250 89 200 150 257 100 208 50 - Cash at Nova FCF Tropicana FCF Long FCF Exploration Corporate & Finance costs Repayment of Dividends Paid Cash at 31 Dec 2018 O
Slide 10: Nova
Nova Strong operational performance delivers record metal production For personal use only Metric Units 2Q19 3Q19 YTD FY19 Guidance(1) Nickel in concentrate t 7,574 8,375 22,802 20,250 – 22,500 Copper in concentrate t 3,482 3,731 10,232 8,250 – 9,375 Cobalt in concentrate t 271 297 810 638 – 713 Cas
Slide 11: Nova
Nova Strong performance delivers EBITDA margin of 56% and FCF margin of 53% For personal use only Nova Production Nova Cash Flow Reconciliation Tonnes A$/lb A$M 9,000 3.00 120 2.78 8,000 20.0 17.3 2.50 100 0.1 7,000 1.79 1.94 6,000 2.00 80 5,000 1.50 1.50 60 4,000 8,375 7,344 7,574 92.6 95.4 6,854 3
Slide 12: Nova Mine Development
Nova Mine Development Underground development and grade control drilling complete For personal use only 12
Slide 13: Nickel Sulphate
Nickel Sulphate For personal use only • Study demonstrates technical viability of the IGO Process™(1) ─ Metal extraction of +97% ─ Battery grade nickel sulphate produced ─ More efficient, less waste, less emissions ─ Patent application lodged • Optimisation work focused on: ─ Site selection trade-of
Slide 14: Tropicana
Tropicana Marginally lower production QoQ driven by lower grade For personal use only Metric Units 2Q19 3Q19 YTD FY19 Guidance(1) Gold produced (100%) koz 136.9 123.2 385.2 375.0 – 412.5 Gold Sold (IGO 30%) koz 42.9 35.8 113.9 112.5 – 123.0 Cash cost A$/oz 645 722 679 635 – 705 AISC A$/oz 848 990 95
Slide 15: Tropicana
Tropicana Strong EBITDA margin of 59% and FCF margin of 31% For personal use only Tropicana Production (100%) and AISC Tropicana Cash Flow Reconciliation oz A$/oz A$M 160,000 1,200 50 1,076 1,040 140,000 990 1,000 40 120,000 848 6.4 0.6 800 100,000 4.7 30 80,000 600 136,891 125,100 20 39.2 60,000 12
Slide 16: Boston Shaker Underground
Boston Shaker Underground For personal use only Boston Shaker Underground Development Layout(3) • Development to commence in May 2019 following positive feasibility ─ Capital cost estimated at A$105M(1) ─ Operating costs estimated at A$95/tonne(2) Probable Ore ─ Average gold production of ~100koz/ye
Slide 17: Tropicana mineralised system
Tropicana mineralised system Significant opportunity for additional value enhancement For personal use only 1) Refer to IGO ASX release dated 20 Feb 2019: CY18 Mineral Resource & Ore Reserve Statement 17
Slide 18: Exploration Update
For personal use only Exploration Update 18
Slide 19: Nova Exploration
Nova Exploration For personal use only • Targeting extensions to Nova system • Diamond drill program expanded to test multiple high quality targets identified from 3D seismic data • Six deep surface drill holes and 15 underground drill holes completed during 3Q19 • Underground drilling extends C5 mi
Slide 20: Fraser Range Regional
February 2018 Fraser Range Regional For personal use only • Drill testing 40 targets in 2019 • RC drilling and DHEM program has commenced in northern Fraser Range • Regional aircore drilling continues to identify new mafic and ultramafic intrusions across entire length of Fraser Range Project ─ Kaon
Slide 21: Widowmaker
Widowmaker For personal use only • 30km NE of Nova, immediately south of Creasy Group’s Silver Knight discovery • Active drilling at Ecliptic and Solar prospects with results expected during 4Q19 ─ Aircore drilling at Ecliptic contained disseminated sulphides with two follow-up RC holes just complet
Slide 22: Lake Mackay
Lake Mackay For personal use only • SpectremAir airborne EM survey completed in January 2019 • Project expanded to 19,200km2 with nine new exploration licence applications • RC drilling commenced in April 2019, targeting; ─ Priority EM targets prospective for sulphide mineralisation including Blaze
Slide 23: Concluding Comments
Concluding Comments For personal use only • Outstanding 3Q19 operating and financial result • Nova continues to perform with record metal production and low cash costs • Nova and Tropicana on track to deliver on FY19 production guidance • Strong free cash flow generation increases net cash to A$172M
Slide 24: For personal use only
“FOLLOW US LIAS WE GO FROM STRENGTH TO STRENGTH igo.com.au
Independence Group NL — Q3 FY2019 Earnings Presentation on 6ix