Igo Limited · ASX:IGO
Igo — Independence Group NL — Macquarie Australia Conference 2019
32 slides from Igo's conference presentation, May 2, 2019
Slide 1: Macquarie Australia Conference
INDEPENDENCE GROUP NL Macquarie Australia Conference For personal use only Peter Bradford – Managing Director & CEO 2 May 2019 ASX:IGO | ADR:IIDDY
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: Corporate Overview
Corporate Overview High quality portfolio of operating and exploration assets For personal use only Market Cap(1) Shares on Issue (1) A$2.6 billion 590 million Cash (2) Debt (2) A$257 million A$85 million Share Ownership(3) Other Mark Creasy 12% 15% Foreign Institutions 23% Domestic Insitutions 50%
Slide 5: Our Purpose
For personal use only Our Purpose 5
Slide 6: IGO is Making A Difference
IGO is Making A Difference Strategically focused on metals critical to clean energy For personal use only Globally Relevant Vertically Integrated Large scale, high quality asset portfolio upstream metal production and supplying metals critical to clean energy downstream processing to unlock value Hi
Slide 7: A clear global trend towards clean energy to reduce emissions
A clear global trend towards clean For personal use only energy to reduce emissions • Strong government support for renewable energy and mass adoption of EVs and energy storage ─ Bans on conventional ICE vehicles ─ Subsidies, tax exemptions & rebates ─ Substantial investments in recharge infrastruct
Slide 8: EV price parity with ICE by 2022; NCM chemistry to dominate by 2030
EV price parity with ICE by 2022(1) NCM 811 chemistry to dominate by 2030(2) For personal use only EV sales to grow(3) Greater proportion of nickel in EV battery cathode (4) % of total vehicle sales 100% 90% 2030e: 80% ~65% 70% 60% 30.2% 36.2% 71.9% 82.3% 73.1% 50% 40% 2018: 30% ~7% 20% 10% 0% NCM(1
Slide 9: Nickel stockpiles at record lows; Class I nickel supply needs to double
Nickel stockpiles are at record lows Class I nickel supply needs to For personal use only with limited new supply double by 2030 to meet new demand Official Nickel Exchange Stockpiles and Price(1) Class I & Class II Nickel Demand Forecast(2) 4,000 Nickel Stocks Nickel Price (kt) (US$/t) 600 23,000 3
Slide 10: Financial Performance
Financial Performance For personal use only 10
Slide 11: 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$45M production guidance Continued delivery on Net Cash Position growt
Slide 12: Net Cash
Net Cash Strong cash build since commercial production commenced from Nova For personal use only A$M 200 172 150 100 94 62 50 0 -4 -50 -73 -100 -120 -150 -142 -200 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 12
Slide 13: Tropicana Gold Mine
Tropicana Gold Mine IGO: 30%, AngloGold Ashanti: 70% and managers For personal use only 13
Slide 14: Tropicana continuing to deliver
Tropicana continuing to deliver For personal use only Tropicana Production (100%) & AISC high margin gold production • 8.0Mtpa annualised processing rate oz A$/oz achieved during FY19 140,000 $1,200 $1,076 • FY19 YTD gold production of 135,000 $1,040 $990 $1,000 385koz at A$955/oz (100% basis) 130,0
Slide 15: 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$95/tonne(2) Probable Ore ─ Average gold production of ~100koz/ye
Slide 16: Tropicana mineralised system
Tropicana mineralised system Significant opportunity for additional value optimisation For personal use only 1) Refer to IGO ASX release dated 20 Feb 2019: CY18 Mineral Resource & Ore Reserve Statement 16
Slide 17: Nova
For personal use only Nova 17
Slide 18: Nova outperformance delivering high margin production and strong cash flow
Nova outperformance delivering For personal use only Nova Production high margin production and Tonnes A$/lb strong cash flow 9,000 $2.78 $3.00 • 3Q19 Highlights: 8,000 $2.50 ─ Record nickel and copper production 7,000 ─ Lowest recorded cash costs of $1.50/lb Ni 6,000 $1.94 $2.00 ─ Strong EBITDA mar
Slide 19: Nova Mine Development
Nova Mine Development Underground development and grade control drilling complete For personal use only 19
Slide 20: Growth: Downstream
For personal use only Growth: Downstream 20
Slide 21: Nickel Sulphate
Nickel Sulphate For personal use only • Study demonstrate 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-off
Slide 22: The IGO Process
For personal use only Ni & Co concentrates sourced from IGO’s 100% ‘owned Nova Operation THE IGO PROCESS Neutralisation + impurity removal Nickel solvent IGO Patented extraction Direct Crystallisation Process Mixed Sulphide Product Ocorait Nickel and cobalt sulphates are important materials for cath
Slide 23: Growth: Exploration
For personal use only Growth: Exploration 23
Slide 24: 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 25: 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 26: 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 27: 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 28: ESG
For personal use only ESG 28
Slide 29: Sustainability & Safety
Sustainability & Safety Key Lag Injury Metrics(2,3) For personal use only 2018 ACSI Rating of ASX200 Sustainability Reporting(1) 6 5 LTIFR 12 MMA Leading MTIFR 12 MMA 4 3 Detailed 2 Moderate 1 0 Basic Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 No Reporting Key Lead Injury Metrics(4) Sector Sector ASX
Slide 30: People & Culture
People & Culture For personal use only • Strong sense of purpose • Empowered people who are owners of the business • Focus on doing what is right – because we care • Collectively we are making a difference • Fostering the next generation of industry leaders • Achieving above benchmark levels of staf
Slide 31: Concluding Comments
Concluding Comments Outstanding 3Q operating and financial result For personal use only Boston Shaker Nova continuing to perform underground development approved Operations on track to Nickel sulphate study deliver on full year progressing production guidance Strong cash flow generation Significant
Slide 32: Follow Us
FOLLOW US “AS WE GO FROM STRENGTH TO STRENGTH igo.com.au °
Independence Group NL — Macquarie Australia Conference 2019 on 6ix