Igo Limited · ASX:IGO
Igo — Independence Group NL — Q3 FY2017 Earnings Presentation
17 slides from Igo's earnings presentation, Apr 26, 2017
Slide 1: March 2017 Quarter Results Presentation
INDEPENDENCE GROUP NL For personal use only March 2017 Quarter Results Presentation PETER BRADFORD, MANAGING DIRECTOR AND CEO 26 APRIL 2017
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 securities in IGO or as an inducement to make an offer or invitation with respect to
Slide 3: 3Q17 Scorecard
3Q17 Scorecard Nova mine development rate significantly improved For personal use only • One lost time injury recorded during 3Q17 Safety • 67% reduction in LTIF to 1.73 year-on-year • 43% improvement in development advance rate by Barminco during 3Q17 Nova • Ramp up to full production during Septem
Slide 4: Safety First
Safety First We are focused on improving outcomes for our people For personal use only Focus on continuous improvement Consistent improvement in key lag metrics • We continue to see year on year 9 improvement in key injury metrics • We have also seen a decrease in the 8 MTIF 12 MMA severity of injur
Slide 5: Solid Financial Results
Solid Financial Results Underpinned by high grade diversified portfolio For personal use only Unaudited Metrics Units 3Q17 2Q17 %▲ Commentary A$M 83.9 128.5 (35%) • Timing of Jaguar shipments Revenue • Expected lower Tropicana gold sales • Timing of Jaguar shipments Underlying EBITDA(1) A$M 34.7 43.
Slide 6: 3Q17 Cash Flow Reconciliation
3Q17 Cash Flow Reconciliation Cash and cash flow used to fund growth activities, Debt unchanged For personal use only A$M 140 120 11 11 8 36 100 4 80 4 3 2 6 60 109 40 69 20 - Tropicana Jaguar Long Nova Exploration Corporate Payments for Finance Dividend Paid FCF FCF FCF Development & BD costs & WC
Slide 7: High Margin Assets
High Margin Assets Diversified portfolio delivering consistent operating margin For personal use only Consistent Operating Margin Operating Asset EBITDA Margin • Operating assets deliver a consistent 70% 40-50% EBITDA margin Focus on controllable factors 60% • Focus is on controllable factors such a
Slide 8: Nova Project
Nova Project Ramp up to nameplate during September 2017 quarter For personal use only m/month m/day 1,200 40 Mine development 35 1,000 • Average development rates for March 2017 30 800 25 have improved 43%, compared to January 600 20 2017 400 15 • Mine design optimised to reduce upfront 10 lateral c
Slide 9: Tropicana
Tropicana 3Q17 production and costs within guidance For personal use only Metric Units FY17 Guidance Range 3Q17 YTD Gold produced (100% basis) oz 390,000 to 430,000 99,884 321,116 Gold Sold (IGO’s 30% share) oz 117,000 to 129,000 30,844 96,206 Cash cost A$/oz Au 850 to 950 808 817 All-in Sustaining
Slide 10: Tropicana
Tropicana Higher waste volumes in CY17 to unlock higher grades in CY18-19 For personal use only BCM Movement and unit cost A$/BCM BCM (million) 12 10 BCM $/BCM 9 10 8 7 8 6 6 5 4 4 3 2 2 1 0 - 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Directional Production
Slide 11: Jaguar
Jaguar Soft quarter but outlook is positive For personal use only Metric Units FY17 Guidance Range 3Q17 YTD Zinc in concentrate t 39,000 to 43,000 6,599 25,239 Copper in concentrate t 4,600 to 5,100 688 3,444 Cash cost (payable) A$/Ib Zn 0.70 to 0.80 0.90 0.80 Sustaining capex A$M 8 to 9 1.1 5.9 Dev
Slide 12: Long
Long Consistent production and cost delivery For personal use only Metric Units FY17 Guidance Range 3Q17 YTD Nickel (contained metal) t 7,400 to 8,200 2,136 6,364 Cash Cost (payable) A$/Ib Ni 3.50 to 3.90 3.20 3.20 Sustaining capex A$M 1 0.04 0.7 Development capex A$M N/A - 0.2 Exploration expenditu
Slide 13: Value Delivery and Growth
Value Delivery and Growth Multiple catalysts across the portfolio For personal use only Nova Jaguar Tropicana Long • Commercial production • Triumph Mineral • Delivery of Long Island • Completion of Seismic declaration Resource and PFS Study interpretation and • Ramp up to full • Bentley Depth • CY1
Slide 14: Nova Exploration
Nova Exploration Multiple exploration activities underway in CY17 For personal use only Nova resource extension • Resource extension drilling underway at C5 and Bollinger East Nova mining lease • Reprocessing EM complete and drill testing of EM targets on Nova mining lease commences in 4Q17 • Succes
Slide 15: Fraser Range Consolidation
Fraser Range Consolidation Tenure increased by ~7,000km2 For personal use only JV with Orion agreed in 3Q17 • IGO entered into JV with Orion Gold(1) obtaining a 70% interest in Orion Tenements and a 60% and 65% interest in Orion’s Creasy and GR JV Tenements respectively Belt scale land position on u
Slide 16: Concluding Comments
Concluding Comments Diversified mining company delivering cash flow and growth For personal use only Good progress to improve safety culture across business Nova on track to ramp up to nameplate in Sept 2017 quarter Tropicana & Long at or better than guidance on all metrics Jaguar production soft bu
Slide 17: For personal use only
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Independence Group NL — Q3 FY2017 Earnings Presentation on 6ix