Igo Limited · ASX:IGO
Igo — Independence Group NL — Denver Gold Forum 2016
28 slides from Igo's conference presentation, Sep 21, 2016
Slide 1: Independence Group NL - Denver Gold Forum
INDEPENDENCE GROUP NL For personal use only Peter Bradford, Managing Director and CEO Denver Gold Forum 20 September 2016
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 For personal use only or purchase any securities in IGO or as an inducement to make an offer or invit
Slide 3: Investment highlights
Investment highlights Australian diversified mining company (ASX:IGO) For personal use only Three operating mines with commodity diversification through exposure to gold, QUALITY nickel, zinc, copper, cobalt and silver DIVERSIFIED All located in Western Australia ASSETS High-margin operating a
Slide 4: IGO assets
IGO assets Consistent high-margin production with platform for growth For personal use only DISCOVERY DEVELOPMENT & CURRENT OPERATIONS CONSTRUCTION Emerging belt scale regional Construction of the world- Tropicana (Au) exploration opportunities class Nova Ni-Cu-Co Project • Albany Fraser/ Trop
Slide 5: Market profile
Market profile Strong domestic institutional support + growing international profile For personal use only Corporate Structure Share Ownership • Shares on issue: 587M • Substantial Holders (2) • Share price 52 Week Range: Mark Creasy 17% Van Eck 11% Low A$1.98 20 January 2016 FIL Limited 10%
Slide 6: Balance sheet and funding
Balance sheet and funding Strong balance sheet with pro-forma net cash of A$50M For personal use only At 30 June 2016 cash of A$46M and debt of A$271M(1) At 30 June 2016 A$279M of $550M debt facilities undrawn(1) Nova project at 93% completion (1) At 30 June 2016 A$145M remaining construction capex
Slide 7: IGO portfolio earnings
IGO portfolio earnings Strong platform of growth A$M Macquarie Research EBITDA Profile A$M For personal use only 600 600 500 500 400 400 300 300 200 200 100 100 0 0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17e FY18e FY19e FY20e Long (A$m) Jaguar (A$m) Tropicana (A$m) Nova (A$m) Realising Value
Slide 8: Snapshot of IGO asset base
Snapshot of IGO asset base For personal use only Nova Ni, Cu, Co Long Ni World-class development project Cash flow positive throughout nickel Status Under construction cycle Est. Mine Life 10+ years Status Producing Est. cash cost FY17: A$4.00 – $4.50/lb(1) Est. Mine Life 2 years FY18: A$1.50 – $2.0
Slide 9: Tropicana Gold Mine
Tropicana Gold Mine One of Australia’s leading open-pit gold mines For personal use only Overview JV IGO 30% with AngloGold Ashanti 70% Open pit with potential for expansion 7+ years current LOM Resource Reserve 7.04Moz (100%) 2.1Moz (30%) 30 June 2015 (1) 3.01Moz (100%) 0.9Moz (30%) Production (100
Slide 10: Tropicana pits
Tropicana pits Four contiguous pits extending over a five kilometre strike For personal use only 10
Slide 11: Tropicana Gold Mine - Long Island
Tropicana Gold Mine Long Island - Likely to deliver material step-change For personal use only • Long Island Study designed to unlock full potential of Tropicana including: • Completion of extensive resource extension exploration program with significant intersections outside current Mineral Resourc
Slide 12: Tropicana near mine exploration
Tropicana near mine exploration Long Island Study mining concept For personal use only 100km of drilling in 12 months Preliminary concept – August 2015 Latest concept – August 2016 12
Slide 13: Tropicana near mine exploration
Tropicana near mine exploration Unlocking growth potential through exploration • Tropicana hosts a unique style of mineralisation For personal use only • Using innovative exploration and knowledge transfer from mine geology • Improved understanding on the mineralisation controls • JV committed to re
Slide 14: Nova Project
Nova Project World class Ni-Cu-Co project in construction For personal use only IGO 100% magmatic Ni – Cu 1.5Mtpa underground mine Overview Construction 93% complete On time and on budget for first production in December 2016 Resource 30 June 2015 (1) 325,000t Ni, 134,000t Cu Reserve 14 December 201
Slide 15: Nova Project - on time and on budget
Nova Project Construction is on time and on budget For personal use only • Preliminary operating guidance for Nova provided through to FY19 • Additional opportunities exist to improve mining production and processing rates • These further enhancements will be pursued following commissioning and ramp
Slide 16: Nova Project - value unlocked
Nova Project Significant value unlocked with improved mining flexibility • Further value unlocked at Nova through For personal use only Optimisation Study, December 2015 Accelerated Development of Bollinger, July 2016 • A cumulative 51% increase in NPV relative to the DFS1 was achieved with Cape
Slide 17: Accelerated development of the Bollinger Decline
Nova Project Accelerated development of the Bollinger Decline Nova Mining Schedule For personal use only 17
Slide 18: Overall Project currently 93% complete
Nova Project Overall Project currently 93% complete For personal use only Grinding circuit Breccia ore from 2080 ore drive Power station Flotation circuit 18
Slide 19: In mine and brownfields exploration opportunities
Nova Project In mine and brownfields exploration opportunities For personal use only • Areas identified and prioritised for in mine exploration • Untested geophysical targets • Potential to extend known Mineral Resources • Some areas require additional work to define targets 19
Slide 20: Jaguar Mine
Jaguar Mine VMS Corridor with cluster of orebodies For personal use only Overview IGO 100% High grade Underground Cu – Zn VMS Resource 67,000t Cu, 294,000t Zn & 15.4Moz Ag Reserve 20,000t Cu, 88,000t Zn & 4.7Moz Ag 30 June 2015 (1) Production 39,000 to 43,000t Zn in concentrate Guidance FY17 4,600 t
Slide 21: Jaguar Mine - Resource extension and regional opportunities
Jaguar Mine Resource extension and regional opportunities For personal use only • Opportunities to extend mineralisation and Resources down plunge at the Bentley mine • 50km long prospective corridor • Potential to discover VMS mineralisation under cover along strike from known deposits 1) For furth
Slide 22: Long Mine
Long Mine High grade underground nickel on the Kambalda dome For personal use only IGO 100% high-margin underground nickel Overview Average grade project to date of 3.8% Ni Consistent low cost producer Resource 66,000 Ni t Reserve 22,000 Ni t 30 June 2015 (1) Production Guidance 7,400 to 8,200 Ni t
Slide 23: Long Mine - Consistent low cash cost production
Long Mine Consistent low cash cost production For personal use only Historical Quarterly Cash Cost & Realised Price A$/lb Ni 25 20 15 10 5 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Financial Quarters Payable Cash Cost + Royalties Realised Ni Price Including Hedging Historica
Slide 24: Exploration
Exploration IGO remains committed to delivering growth through exploration For personal use only A$33M exploration budgeted across portfolio • Targeting provinces that can deliver multiple gold and base metals projects • Increasing focus on generative and greenfields projects FY17 Exploration Budget
Slide 25: Nova - Tropicana Belt
Nova – Tropicana Belt Two of Australia's best exploration discoveries in the last 15 years For personal use only 25
Slide 26: Partnering to unlock opportunities
Partnering to unlock opportunities Focussed on belt scale opportunities with potential for Tier 1 assets For personal use only Lake Mackay JV • Partnered with ABM Resources NL • IGO has an option to earn 70% interest • 400km northwest of Alice Springs • Sparsely explored Proterozoic terrane • Prospe
Slide 27: Sustainability
Sustainability Continued strengthening and improvement across the business For personal use only 27
Slide 28: IGO Summary
IGO Summary Diversified mining company delivering cash flow and growth For personal use only QUALITY DIVERSIFIED ASSETS Outlook and catalysts for value recognition • Tropicana processing capacity to reach 7.0 – 7.5Mtpa • Long Island Study results throughout H1 FY17 LEADING • Continued de-risking of