Slide 1: AMEC Convention 2017
INDEPENDENCE GROUP NL For personal use only AMEC CONVENTION 2017 Andrew Eddowes, Manager Business Development 7-8 June 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 For personal use only in IGO or as an inducement to make an offer or invit
Slide 3: A company with purpose
A company with purpose To create long-term shareholder value For personal use only Acquire Discover Develop Operate Diversified mining company Core Assets GEOGRAPHICAL QUALITY FOCUS Nova: Ni/Cu(1) Tropicana: Au(2) Other Assets LONGEVITY SCALE Jaguar: Zn/Cu(1) Long: Ni(1) Stockman: Cu/Zn(1) 1) 100% I
Slide 4: Diversified portfolio
Diversified portfolio Delivering consistent operating margin For personal use only Operating Margin 70% 60% 50% 40% 30% Tropicana 20% Long Jaguar Combined Operations 10% 0% 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 -10% IGO EBITDA FY15(1) IGO EBITDA FY18E(1) Long Jaguar Tropicana Long Jaguar Tropicana
Slide 5: Our flagship Nova nickel-copper mine
Our flagship Nova nickel-copper mine For personal use only
Slide 6: Nova overview
Nova overview World class, low cost magmatic nickel-copper project For personal use only High grade, thick, flat lying magmatic Quality sulphide orebody Average +26kt Ni, 11kt Cu & 1kt Co per Scale annum Initial 10 year mine life with huge Longevity exploration potential Geographical Located i
Slide 7: Nova timeline
Nova timeline World class timetable from discovery to production For personal use only Nameplate Production Sep 17 Discovery Construction Jul 2012 Start Jan 2015 2012 2013 2014 2015 2016 2017 Feasibility First Study Concentrate Jul 2014 Oct 2016 Nameplate capacity expected to be achieved 12 months e
Slide 8: Nova mine design and schedule
Nova mine design and schedule Priority (till now) has been underground development For personal use only C5 Nova Bollinger 8
Slide 9: Nova processing plant
Nova processing plant Conventional differential flotation plant For personal use only De-risked and commissioned in Oct 2016 Plant tonnage constrained from underground Ramp-up to nameplate in Sep Q17 Average LOM production 26kt Ni & 11.5kt Cu(1) Highly marketable concentrates 1) Nova production aver
Slide 10: Nova concentrates
Nova concentrates Highly marketable concentrates For personal use only Nickel concentrates • Nickel concentrate grading 13.5% Ni • No Arsenic • High Fe to MgO ratio preferred by smelters Copper concentrates • Copper concentrate grading 29% • No deleterious elements Offtake agreements in place for fi
Slide 11: Tropicana gold mine, a successful JV
For personal use only Tropicana gold mine, a successful JV
Slide 12: Tropicana overview
Tropicana overview Making a great asset better through value enhancement For personal use only Engineering to bring value forward Quality through grade streaming Scale +120,000 oz/year (IGO share) Initial 11 year mine life being Longevity extended by strip mining Geographical focus Located i
Slide 13: Tropicana value enhancement
Tropicana Value enhancement delivers 79% increase in value For personal use only Value enhancement delivered to date % NPV Variance Increased plant throughput to 17% 7.5Mtpa Accelerated mining and grade 42% streaming Long Island Study Dec 2016 Update 20% with LoM extension and waste mining cost redu
Slide 14: Tropicana processing plant expansion
Tropicana Processing plant expansion successfully completed For personal use only 29% increase in throughput from as built nameplate capacity 7.5Mtpa expansion successfully completed 200 - 400ktpa additional throughput targeted in CY17 A$6.9M improvement capital estimated in CY17 (100% basis) 14
Slide 15: Tropicana production profile
Tropicana production profile Accelerated mining and grade streaming For personal use only Directional production and AISC(1) Gold produced AISC A$/oz Grade streaming koz 700 1,200 Grade streaming 1,100 600 1,000 900 500 800 700 400 600 300 500 400 200 300 200 100 100 - - CY14 CY15 CY16 CY17 CY18 CY1
Slide 16: Tropicana resource extension
Tropicana resource extension Framework and resource extension drilling For personal use only 160,000m of drilling completed as part of Long Island Study ~40,000m at Boston Shaker and Havana South still to be captured in resource model updates Significant results continued to be returned from Havana
Slide 17: Tropicana LOM extension
Tropicana LOM extension Long Island Study – What is it? For personal use only Unlock resource extensions beneath pits 160,000m of drilling completed for study Strip mining with in-pit dumping of waste Step change reduction in mining cost Study completion in Sep Q17 17
Slide 18: Positioning to discover the next big one
Positioning to discover the next big one For personal use only
Slide 19: Exploration
Exploration IGO committed to delivering growth through exploration For personal use only FY17 Exploration Budget IGO vs Tropicana Exploration A$M 60 21% 50 50 40 48% 8% 33 30 45 11% 23 20 12% 10 10 Tropicana Long 5 0 (1) FY17 FY18 Jaguar Nova Total IGO Exploration (excl. Tropicana) Generative & Proj
Slide 20: Nova Project
Nova Project Multiple exploration activities underway in CY17 For personal use only Nova resource extension Reprocessing EM complete Drill testing of EM targets in Jun Q17 2D seismic data acquisition completed R&D to deliver competitive advantage 20
Slide 21: Fraser Range consolidation
Fraser Range consolidation Positioning for discovery For personal use only Fraser Range an under-explored province Multiple programs starting in CY17 Regional geochem & geophysics Deeper drilling on advanced targets Apply learnings from R&D at Nova 21
Slide 22: Leveraging R&D innovation
Leveraging R&D innovation Data driven exploration For personal use only • Unique Core Scanner Technology – • Completed NW-SE oriented line • Internal Stratigraphy of Intrusions first mover across lease • Metamorphic Petrology • XRF, RQD, Hi Res Photography, • Sonic and VSP logging of holes • Origins
Slide 23: Corporate and our people
For personal use only Corporate and our people
Slide 24: People
People Attracting, developing and retaining the best people For personal use only Consistent improvement in key lag metrics Graduate and apprentice programs 9 8 MTIF 12 MMA Training to strengthen supervisors 7 LTIF 12 MMA 6 Focus on visible leadership 5 4 Safety systems improved 3 2 Lag metrics sign
Slide 25: IGO corporate and market data
IGO corporate and market data Diversified explorer, developer and miner For personal use only Share Ownership(1) Scale: ~A$2.1 billion market capitalisation Substantial Holders Institutional Ownership Mark Creasy 17% Australia 65% FIL 10% USA 22% Van Eck 6% UK & Europe 8% Liquid: ~5.5 million shares
Slide 26: IGO key catalysts
For personal use only IGO key catalysts
Slide 27: Value delivery and growth
Value delivery and growth Multiple catalysts across the portfolio For personal use only June Quarter September Quarter December Quarter FY17 FY18 FY18 Drill testing EM targets 3D Seismic survey & processing Nova Ramp-up to full production Delivery of Long Island Study Tropicana Incremental process p
Slide 28: Concluding comments
Concluding comments Diversified mining company delivering cash flow and growth For personal use only Diversified (gold and base metals) Two core assets with long mine life Quality assets delivering 40-50% historical operating margin Strong balance sheet Positioned to unlock potential of Fraser Range
Slide 29: Appendix
For personal use only Appendix 29
Slide 30: Nova Mine
Nova Mine World class Ni-Cu-Co project in ramp up For personal use only IGO 100% magmatic Ni – Cu Overview 1.5Mtpa underground mine Ramp-up expected September 2017 quarter Resource(1) 325,000t Ni, 134,000t Cu Reserve(1) 275,000t Ni, 112,000t Cu 5,000 to 6,000t Ni, Production Guidance FY17 1,900 to 2
Slide 31: Tropicana Gold Mine
Tropicana Gold Mine One of Australia’s leading open-pit gold mines For personal use only JV IGO 30% with AngloGold Ashanti 70% Overview Open pit with potential for expansion 7+ years current LOM Resource(1) 8.02Moz (100%) 2.4Moz (30%) Reserve(1) 3.80Moz (100%) 1.1Moz (30%) (100%) (30%) Production Gu
Slide 32: Jaguar Mine
Jaguar Mine VMS Corridor with cluster of orebodies For personal use only Overview IGO 100% High grade Underground Cu – Zn VMS 51,000t Cu, 256,000t Zn & 13.1Moz Ag Resource(1) 16,000t Cu, 137,000t Zn & 6.7Moz Ag Reserve(1) 39,000 to 43,000t Zn in concentrate Production Guidance FY17 4,600 to 5,100t C
Slide 33: 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(1) 60,000 Ni t Reserve(1) 14,000 Ni t Production Guidance FY17 7,400 to 8,200 Ni t Operat
Slide 34: For personal use only
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