Igo Limited · ASX:IGO
Igo — Independence Group NL — Shareholder Meeting (November 2005)
43 slides from Igo's shareholder meeting presentation, Nov 23, 2005
Slide 1: Annual General Meeting ASX announcement
23 November 2005 Australian Stock Exchange Limited Company Announcements NO. OF PAGES : (43) Level 10, 20 Bond Street SYDNEY NSW 2000 ANNUAL GENERAL MEETING Independence Group NL is pleased to provide the presentation to be made at the Annual General Meeting of Shareholders to be held at 10:00 am to
Slide 2: Independence Group NL Annual General Meeting
INDEPENDENCE GROUP NL Annual General Meeting November 23, 2005
Slide 3: Executive Summary
EXECUTIVE SUMMARY Low cost nickel producer – 2004/5 A$3.32/lb A$3.32/lb payable Ni. Ni. Strong cash reserves and cash generation potential – Sept 2005 $28.6M cash + receivables net creditors. Debt Debt reduced reduced to $2.9M. High-grade McLeay discovery is still still growing growing and and will
Slide 4: IGO Board
IGO BOARD Rod Marston Non Executive Chairman Chris Bonwick Managing Director Kelly Ross Executive Director & Company Secretary John Christie Non Executive Director Oscar Aamodt Non Executive Director 2004/05 Board Remuneration - $1.14M (including option valuation)
Slide 5: Share Structure
SHARE STRUCTURE ASX Code - IGO A$1.68 (22.11.05) IGO average turnover (last 6 months) = 440,000 shares/day Ordinary shares 108.8M Contributing shares 1.9M Unlisted options 6.6M TOTAL 117.3M Undiluted market capitalisation = $183M Now an ASX 300 Company
Slide 6: IGO Snapshot
IGO SNAPSHOT Net Net Profit Profit after after Tax Tax Operations Operations Gross Gross Cash Cash Flow Flow Return Return on on Equity Equity $25 $52 60% 50% $46 $20 40% $40 30% $15 $34 20% A$ million A$ million $28 $10 10% $22 0% $5 $16 -10% $10 $0 -20% $4 -30% -$5 -$2 2002 2003 2004 2005 -40% 200
Slide 7: IGO Snapshot (cont.)
IGO SNAPSHOT (cont.) (cont.) Revenue Revenue Dissection/Gross Dissection/Gross Margin/lb Margin/lb Quarterly Quarterly Net Net Cash Cash & & Receivables Receivables $10.00 $28 Cash Cost/lb Gross Margin/lb Net Cash Net Receivables $9.00 $24 $8.00 $20 Total Revenue/lb (A$) $7.00 $16 A$ million $6.00 $
Slide 8: IGO Share Price – 22.11.05
IGO SHARE PRICE – 22.11.05 Weekly Weekly Average Average
Slide 9: ASX Metals Companies P/E Comparison
ASX 300 METALS COMPANIES P/E COMPARISON
Slide 10: Top Ten Shareholders
TOP TEN SHAREHOLDERS Ordinary Shares as at 18.11.05 National Nominees 7.9M 7.2% ANZ Nominees 6.8M 6.2% JP Morgan Nominees 6.2M 5.6% Westpac Custodian Nominees 5.9M 5.4% RBC Global Services 4.6M 4.2% Cogent Nominees 3.7M 3.4% Forty Traders 3.4M 3.2% Virtual Genius 3.4M 3.2% Yarandi Investments 2.3M 2
Slide 11: IGO Profitability
IGO PROFITABILITY 2003/4 2004/5 Mine Revenue $66.7M $85.8M Mine cash flow (pre tax)* $29.4M $31.7M Group profit (after tax) $17.3M $21.5M Earnings per share 18c 20c (diluted) * Excludes capital, depreciation, amortisation and exploration
Slide 12: IGO Cash & Debt (A$)
IGO CASH & DEBT (A$) 30 Jun 04 30 Jun 05 Cash: $18.4M $23.8M Receivables Net Creditors: $7.4M $4.5M Total: $25.8M $28.3M Debt: $12.7M $5.3M Paid Dividends to 30.06.05: A$8.7M (5c + 3c)
Slide 13: Long Nickel Mine (100% IGO)
LONG NICKEL MINE (100% IGO) TARGETS: rd of nickel production Sustainable 9,000t Ni pa in bottom 3rd cash costs. New Reserves and Resources to increase mine life.
Slide 14: Long Nickel Mine Geological Setting
LONG NICKEL MINE GEOLOGICAL SETTING WMC Production 1979-1999: 5.43M t 3.7% Ni 203,184 Ni t IGO Production 2002-Jun05: 468,808 t 4.0 % Ni 18,721 Ni t 30.06.05 Reserve: 1.284M t 3.8 % Ni 49,370 Ni t
Slide 15: Long Production History
LONG PRODUCTION HISTORY 2002 – Sept 05 pre-tax free cash = $92.4M ($15M purchase price)
Slide 16: Long Mine Personnel
LONG MINE PERSONNEL Owner operator with 111 salaried employees & 7 full time contractors. Only 2 LTI’s since commencement. Very experienced team. Turnover extremely low. Productivity bonus.
Slide 17: 2003/4 & 2004/5 Production
2003/4 & 2004/5 PRODUCTION IGO Ni t Tonnes % Ni Ni t Share 2003/4 168,991 4.1 6,843 4,063 2004/5 212,654 4.2 8,868 5,248 2004/5 cash costs A$3.32/lb (payable nickel metal) A$/lb Payable Ni Payable sales revenue (incl. hedging): 7.41 Cash Costs: 3.32 Deprec. / amort. / rehab: 0.77
Slide 18: Long Mine Production Stats
LONG MINE PRODUCTION STATS 2004/2005 IGO PRODUCTION Ore Reserve Est. 145,046 t @ 4.5% Ni (6,554 Ni t) Ore Reserve Actual 179,259 t @ 4.1% Ni (7,378 Ni t) Outside Reserve Actual 33,395 t @ 4.5% Ni (1,490 Ni t) TOTAL 212,654 t @ 4.2% Ni (8,868 Ni t) OCT 2002 – JUN 2005 IGO PRODUCTION Ore Reserve Est.
Slide 19: 2005/2006 Production Budget
2005/2006 PRODUCTION BUDGET 2004/5 2005/6 Budget Ore tonnes 212,654 240,000 Ni % 4.2 3.6 – 4.0 Nickel tonnes (Ni t) 8,870 8,500 – 9,500 IGO Payable Ni t 5,248 5,500 – 6,000 Aus $/lb payable 3.32 3.5 – 4.0 Historic reserve nickel metal overcall not taken into account – average 47% project to date. Co
Slide 20: Long Mine Fly Through
LONG MINE FLY THROUGH i ‘Victor AL
Slide 21: Long Nickel Mine New McLeay Discovery
LONG NICKEL MINE NEW McLEAY DISCOVERY
Slide 22: McLeay Shoot 1 & 2
McLEAY SHOOT 1 & 2 3.4m @ 11.5% Ni Victor South i 3.2m @ 11.3% Ni 14 —_ 4.55m @ 4.1% Ni} 1.7m @ 11.4% Ni | 9.85m @ 6.1% Ni 2.3m @ 14.6% Ni f 5.6m @ 5.9% Ni be - 1.3m @ 12.6% Ni 2.2m @ 13.9% Ni Ey 3.2m @ 7.5% Ni Or) 1.2m @ 11.4% Ni { _ 5.7m @ 8.2% Ni = 17.0m @ 10.7% Ni ee incl. 8.5m @ 16.1% Ni : : 5.
Slide 23: Long Project Area Longitudinal Projection
LONG PROJECT AREA LONGITUDINAL PROJECTION
Slide 24: IGO Investment Criteria
IGO INVESTMENT CRITERIA Acquisition Acquisition // Merger Merger Investment Investment Tenets: Tenets: Production cash costs preferably in the lowest 3rd rd of world-wide costs. Long-term mine-life. Appropriate capital cost and cash generation timing. Significant exploration upside.
Slide 25: Matrix Metals Copper Project Location & Goals (IGO – 18.9%)
MATRIX METALS COPPER PROJECT LOCATION & GOALS (IGO – 18.9%)
Slide 26: IGO Australian Regional Exploration
IGO AUSTRALIAN REGIONAL EXPLORATION STRATEGY: Targeting new, high profit mines by - Exploring under cover and in lightly or unexplored terrains. Using empirical, conceptual targeting & new innovative exploration technology. Turning ground over quickly and efficiently. REGIONAL BUDGET: 2005/2006 - A
Slide 27: Lake Lefroy JV's – Target New Kambalda Field
LAKE LEFROY JV’S – TARGET NEW KAMBALDA FIELD (IGO earning 70%)
Slide 28: Strata Lake Lefroy JV Kambalda Dome Comparison
STRATA LAKE LEFROY JV KAMBALDA DOME COMPARISON Kambalda Ultramafic Dome Lake Lefroy Ultramafic Dome
Slide 29: North-Eastern Goldfields Nickel Projects
NORTH-EASTERN GOLDFIELDS NICKEL PROJECTS
Slide 30: Nickel Sulphide Gossan
NICKEL SULPHIDE GOSSAN Nickel sulphide gossan rock chips with up to 2.3% Cu, 0.9% Ni, 0.7g/t Pt, 0.7g/t Pd, 0.4g/t Au Primary nickel sulphide
Slide 31: Duketon JV – Bulge Nickel Prospect
DUKETON JV – BULGE NICKEL PROSPECT (IGO earning 70%) Aeromagnetic image Ground TEM image
Slide 32: Ravensthorpe Option
RAVENSTHORPE OPTION (IGO earning 51-70%) Regional Air Magnetics
Slide 33: Ravensthorpe Option
RAVENSTHORPE OPTION (IGO earning 51-70%) Detailed Air Magnetics & Nickel Sulphide Occurrences
Slide 34: Tropicana Gold JV (IGO 30%)
TROPICANA GOLD JV (IGO 30%) TARGET: New gold camps
Slide 35: Tropicana Cross-Section
48000E 48100E 9 ak e & x 1m @ 2.1g/t Au \ 1m @ 3.7g/t Au pa 26m @ 2.2g/t Au 200mRL & 10m @ 4.1g/t Au incl. 8m @ 1.8g/t Au - > 0.5g/t Au a > 2% Pyrite TPA= Air-core drillhole TPD=Diamond drillhole Ly 2m @ 1.6g/t Au | 49m SS 4m @ 1.0g/t Au Base of clay zone Weakly weathered Fresh 38m @ 3.0g/t Au y¥— i
Slide 36: Tropicana Gram x Metre Contours
TROPICANA GRAM x METRE CONTOURS
Slide 37: Tropicana Gold JV – Rusty Nail Prospect
TROPICANA GOLD JV – RUSTY NAIL PROSPECT (IGO 30%)
Slide 38: Dalwallinu Project (100% IGO)
DALWALLINU PROJECT (100% IGO) TARGET: New gold camp Roadside Sampling Gold 200m x 50m Auger Geochemical Image Gold Geochemical Image
Slide 39: Dalwallinu Project Pithara Prospect
DALWALLINU PROJECT PITHARA PROSPECT Cross-section 1 Cross-section 2 Cross-sections 25m apart
Slide 40: Mt Padbury (90% IGO)
MT PADBURY (90% IGO) TARGET: +250,000oz @ +4g/t Au (OC)
Slide 41: Kudi Bore Option (IGO earning 100%)
KUDI BORE OPTION (IGO earning 100%)
Slide 42: Independence Corporate Goals
INDEPENDENCE CORPORATE GOALS To increase shareholder wealth by becoming a highly profitable, mid-cap, multi commodity Australian mining company Focus on share price, earnings per share, dividends and market capitalisation accretion. Growth through exploration and possible acquisitions. Maintain a co
Slide 43: Long-Term Growth Strategy
LONG-TERM GROWTH STRATEGY Targeting +A$100M profit per annum (pay large dividends) MINE/NEAR MINE GREENFIELDS MERGERS & PRODUCTION/ EXPLORATION ACQUISITIONS EXPLORATION (Ni, Au, Cu, Diam) Long Mine New nickel Identify, secure, sustainable camp evaluate, 9,000Ni t / pa +100,000 Ni t acquire New disco
Independence Group NL — Shareholder Meeting (November 2005) on 6ix