Slide 1: 3Q23 Results Presentation
3Q23 Results Presentation IGO Limited 28 April 2023 IGO LIMITED IGO | ASX: LIMITED IGO
Slide 2: Cautionary Statements & Disclaimer
Cautionary Statements & Disclaimer • This presentation has been prepared by IGO Limited (“IGO”) applications and approvals, construction, financing • Nickel cash costs are reported inclusive of royalties and after (ABN 46 092 786 304). It should not be considered as an offer arrangements and access
Slide 3: Our People
Our People Retained our focus on safety, wellbeing and employee engagement TOTAL RECORDABLE INJURY FREQUENCY RATE (TRIFR)1 22 21 20 19 18 17 16 15 14 13 12 Safety Employee Engagement • QoQ improvement in lag indicators Encouraging results from the first employee engagement survey conducted since com
Slide 4: Highlights
Highlights Quarterly result underpinned by strength of our lithium business Record quarterly earnings and NPAT result1 Financial Repayment of $240M revolving credit facility reduces net debt to $9M Consistent production and cost performance from Greenbushes Lithium Business Higher lithium pricing he
Slide 5: 3Q23 Financial Results Summary
3Q23 Financial Results Summary Lithium business result drives another quarter of record earnings Units 3Q231 2Q231 QoQ YTD231 Sales Revenue A$M 236 253 ▼7% 774 Lower sales revenue QoQ attributed to lower sales volumes at Forrestania Share of Net Profit of TLEA A$M 450 346 ▲30% 1,082 Underlying EBITD
Slide 6: Net Profit After Tax Reconciliation
Net Profit After Tax Reconciliation Record NPAT result driven by another strong quarter from TLEA NET PROFIT AFTER TAX – QoQ MOVEMENT1 A$M 500 450 15 3 3 39 400 104 350 5 21 3 4 11 300 250 200 412 338 150 100 50 - 2Q23 NPAT Nova Forrestania Exploration & Corporate & Mark-to- Share of Net Finance Imp
Slide 7: Cash Reconciliation
Cash Reconciliation Record IGO dividend and debt reduction offset by substantial TLEA dividend CASH – QoQ MOVEMENT1 A$M 1,000 900 21 8 11 800 106 700 321 32 600 93 240 92 500 33 7 400 300 515 441 200 100 - Cash at Nova FCF Forrestania Cosmos FCF TLEA Exploration, Corporate & Finance Dividend Debt In
Slide 8: Lithium Business
Lithium Business TLEA Joint Venture (IGO: 49% / Tianqi Lithium Corporation: 51%) IGO Limited | 3Q23 Results Page 8
Slide 9: TLEA Joint Venture
TLEA Joint Venture Strong result from TLEA driven by materially higher prices 3Q23 Financial 3Q23Highlights Financial Results 3Q23 TLEA performance underscored by: • 45% higher spodumene prices QoQ IGO share of TLEA NPAT • Favourable sales mix with higher QoQ spodumene grade $450M ↑30% QoQ Dividend
Slide 10: Greenbushes
Greenbushes Higher prices delivered outstanding earnings and margin 100% basis Units 3Q231 2Q231 QoQ YTD231 Lower QoQ production due to temporarily lower mill availability Spodumene Concentrate kt 356 379 ▼6% 1,096 Production Lower QoQ sales volume due to port storage Spodumene Sales kt 336 386 ▼13%
Slide 11: Greenbushes
Greenbushes Strong operating performance and focus on growth continues GREENBUSHES PRODUCTION & UNIT COGS Major Capital Projects A$/t kt $292 400 300 $263 Mobilisation of concrete contractor 380 $254 $253 CGP3 $242 Schedule optimisation – targeting first ore mid CY25 $235 250 360 $219 340 200 Progre
Slide 12: Greenbushes Outlook
Greenbushes Outlook 4Q23 Chemical Grade Price reset to $US5,444 /t FOB as of 1 April 2023 Production and costs remain on track to be at the top or marginally above the top end of FY23 Guidance1 CGP3 capital estimate under review following design challenges related to piling IGO expects total capital
Slide 13: Kwinana Refinery
Kwinana Refinery Continued production improvement from Train 1 as rectification works continue 3Q23 Production of 963 tonnes lithium hydroxide (65% higher QoQ) Next stage of customer qualification expected to be completed during the June 2023 quarter Ramp up progress remains on track to reach 60 – 7
Slide 14: Nickel Business
Nickel Business IGO Limited | 3Q23 Results Page 14
Slide 15: Nova
Nova Strong recovery following power station fire in December Units 3Q231 2Q231 QoQ YTD231 Improved QoQ production and cost Nickel in concentrate t 5,547 4,229 ▲31% 16,348 performance, however production impacted by power reliability and paste plant challenges Copper in concentrate t 2,524 1,953 ▲29
Slide 16: Forrestania
Forrestania Performance adversely impacted by lower ore availability limiting mill feed Units 3Q231 2Q231 QoQ YTD23 Quality ore tonnes restricted by poor ground conditions, ongoing rehab and longer re-entry times Nickel in concentrate t 2,811 2,950 ▼5% 8,950 Lower cash costs demonstrate savings from
Slide 17: Cosmos
Cosmos Key milestone achieved as project development progresses 3Q23 Update Shaft construction progressing well with first leg completed and second leg in concert with erection of headframe commenced Paste plant construction complete, with commissioning well advanced Aerodrome construction complete
Slide 18: Integrated Battery Materials Facility
Integrated Battery Materials Facility Land allocation at Kwinana a first step toward an integrated cathode precursor facility Strong support from the Western Australian Government to expand WA’s battery chemical manufacturing capability Proposed plant will produce cathode precursor (PCAM) chemical f
Slide 19: Nickel Business FY23 Outlook
Nickel Business FY23 Outlook Nova Impairment of WSA assets Production and cost guidance unchanged • IGO expects to record a non-cash impairment on the FY23 capex guidance reduced to $8M - $10M due to the assets acquired via the WSA transaction in its year deferral of various capital items to FY24 en
Slide 20: Exploration
Exploration IGO Limited | 3Q23 Results Page 20
Slide 21: Exploration
Exploration Work continuing toward unlocking discovery 3Q23 activity limited to southern parts of Australia; Fraser Range, Forrestania, Western Gawler, Copper Coast, Broken Hill and Greenbushes Bridgetown Detailed review and sampling of lithium-bearing pegmatite intrusions in diamond core at Forrest
Slide 22: Summary
Summary Lithium business continued to drive outstanding financial results Another record quarterly EBITDA and NPAT result Balance sheet bolstered by repayment of revolving credit facility Consistent delivery from Greenbushes generating strong FCF Strong recovery from Nova | Forrestania underperforma
Slide 23: Making a Difference
Making a We believe in a world where people power makes How? Developments in battery storage technology amazing things happen. are enabling the full potential of renewable energy to be realised, by allowing energy produced from the Where technology opens up new horizons and clean sun, wind and other