Igo Limited · ASX:IGO
Igo — Independence Group NL — Denver Gold Forum 2017
35 slides from Igo's conference presentation, September 2017
Slide 1: Independence Group NL – Denver Gold Forum 2017
INDEPENDENCE GROUP NL Denver Gold Forum 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: A Company with Purpose
A Company with Purpose To create long-term shareholder value Acquire Discover Develop Operate Diversified mining company Core Assets GEOGRAPHICAL QUALITY FOCUS Nova: Ni/Cu/Co(1) Tropicana: Au(2) Other Assets LONGEVITY SCALE Jaguar: Zn/Cu/Ag(1) Long: Ni(1) 1) 100% IGO owned 2) 30% IGO owned (unincorp
Slide 4: Transformational Growth of EBITDA
Transformational Growth of EBITDA Aligned to disruptive electric vehicle growth The addition of tier one assets, Nova and Market dynamic to change over the coming Tropicana have demonstrated years as a result of electric vehicle batteries transformational growth of EBITDA • 24kg nickel, 24kg cobalt
Slide 5: Snapshot of IGO Asset Base
Snapshot of IGO Asset Base Nova Ni, Cu, Co Long Ni World-class tier one asset Consistent high margin production Status Ramp up Status Producing Est. Mine Life 10+ years Est. Mine Life <1 year Est. cash cost (FY18)(1) A$1.90 – A$2.50/lb Ni Est. cash cost (FY18)(1) A$4.40 – $4.90/lb Ni Current Resourc
Slide 6: Nova
Nova World class, low cost magmatic nickel-copper mine High grade, thick, flat lying Quality ✓ magmatic sulphide orebody Scale ✓ Average 26kt Ni, 11kt Cu & 1kt Co per annum Longevity ✓ Initial 10 year mine life with huge exploration potential Geographical focus ✓ Located in WA on Fraser Range (proxi
Slide 7: Nova
Nova Commercial production declared 1 July 2017 IGO 100% magmatic Ni – Cu – Co 1.5Mtpa underground mine Overview Ramping up to nameplate Near mine and regional exploration advancing Resource 26 July 2017(1) 271,000t Ni, 113,000t Cu Reserve 14 October 2016(2) 275,000t Ni, 112,000t Cu Production Guida
Slide 8: Nova – Capital expenditure reconciliation
Nova Capital expenditure reconciliation Actual 2015 Estimate Variance Nova Capitalised Development Costs Change % A$M A$M(1) A$M(2) Process Plant & Infrastructure 161 176 (15) (9%) Non-mine Infrastructure 90 99 (8) (8%) Mine Development 64 55 10 18% Mine Infrastructure 46 46 - n/a Pre-operating Owne
Slide 9: Nova Mining Plan FY18
Nova Mining Plan FY18 Multiple mining fronts for flexibility Nova Bollinger Completed 1Q18 2Q18 3Q18 4Q18 9
Slide 10: Nova Mine Layout
Nova Mine Layout Shallow, thick, flat lying orebody delivers low mining costs C5 Nova Bollinger 10
Slide 11: Nova Resource
Nova Resource(1) Interim update as at 30 June 2017 91km of grade control drilling completed to date • Delivers significant increase in confidence of Resource with drilling to 12.5m x 12.5m centres • Updated Mineral Resource estimate using revised geological interpretation and approach to resource do
Slide 12: Nova Resource Update
Nova Resource Update(1) Schematic Long Section of the Nova-Bollinger Deposits looking North 1) For further information on Mineral Resources refer to ASX release Nova Mineral Resource Estimation and Exploration Update, dated 26 Jul 2017 12
Slide 13: Nova Exploration
Nova Exploration Drilling in progress on Nova mining lease One surface diamond drill rig on site • Drilling a number of historical EM plates • Drill testing the western mafic complex • Framework drilling on 2D seismic line testing a number of reflective positions Underground diamond drilling • In Ju
Slide 14: Fraser Range Exploration
Fraser Range Exploration Regional drilling around Nova • New frontier with exploration focus only after Nova discovery in 2012 • Belt is underexplored – primarily as discontinuous land positions held by underfunded juniors at bottom of commodity price cycle • IGO completing systematic greenfields ex
Slide 15: Tropicana Gold Mine
Tropicana Gold Mine Making a great asset better through value enhancement Engineering to bring value forward Quality ✓ through grade streaming Scale ✓ +120,000 oz/year (IGO share) Longevity ✓ Initial 11 year mine life being extended by strip mining Geographical focus ✓ Located in WA proximal to Nova
Slide 16: Tropicana Gold Mine
Tropicana Gold Mine Increasing gold production at improved AISC 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%) Production Guidance (100%) (30%) FY18 440 to 490koz
Slide 17: Tropicana Gold Mine
Tropicana Gold Mine Transitioning towards grade streaming Mining costs have fallen 37% since CY15 Directional Production and AISC(2) • Accelerated mining rates have been delivered koz Production profile subject to ongoing planning and Long Island Study which may smooth production profile for CY18 an
Slide 18: Tropicana Gold Mine – Long Island Study
Tropicana Gold Mine Long Island Study – What is it? Based on strip mining strategy • Possible due to tabular geometry and strike extent • Unlocks additional down plunge resource Strip mining delivers lower mining costs • Shorter hauls due to in-pit dumping of waste • Transition to face shovels • Min
Slide 19: Tropicana Gold Mine – Long Island Study
Tropicana Gold Mine Long Island Study Staged schedule with multiple decision points • 3 decision points – Flexibility & Optionality • 3 locations with 8 stages ─ 1st decision point 4Q17 ─ 2nd decision point 4Q19 ─ 3rd decision point 4Q22 Finalisation of the Long Island Study is expected in the Decem
Slide 20: Tropicana Gold Mine
Tropicana Gold Mine Evaluating underground potential As part of the Long Island drilling several high grade shoot positions have been identified, which will be investigated further in FY18 Tropicana Boston Shaker Havana Havana South Havana Deeps UG Exploration Potential Scoping Study (2010) (Drillin
Slide 21: Boston Shaker
Boston Shaker Recent results below Boston Shaker are very encouraging Currently drilling high grade targets • Down dip extensions 3.0 g/t grade shell • Initial ~3,000m scheduled 0.3 g/t grade shell BWD017 31m @ 4.20 g/t from 340m 14m @ 6.10 g/t from 355m BWD019 17m @ 5.53 g/t from 382m BSD054 9m @ 5
Slide 22: Exploration
Exploration Committed to delivering growth through exploration FY18 Exploration Budget A$2M Greenfields & A$4M Generative Nova A$5M Tropicana A$9M A$31M Jaguar Long Key developments and potential • Substantial increase in greenfields exploration in FY18 • Fraser Range a key focus of activity • Devel
Slide 23: Fraser Range Exploration
Fraser Range Exploration Consolidated 12,000km2 of tenure Prospective tenure proximal to Nova Project • Substantial exploration planned for FY18 to unlock the potential over the Fraser Range • Currently operating: ─ 3 drill rigs (outside Nova mining lease) ─ 2 EM fields crews ─ 3 gravity crews • In
Slide 24: Greenfields Exploration
Greenfields Exploration Lake Mackay Joint Venture JV with ABM Resources NL • Proterozoic gold and base metals • 400km north east of Alice Springs • 7,200km2 of exploration licenses • Tenure covers a 200km strike of the Proterozoic ─ Continental-scale geophysical gravity ridge ─ Central Australian Su
Slide 25: Market Profile
Market Profile Strong domestic institutional support and growing international profile Share Ownership(1) Scale: ~A$2.3 billion market capitalisation(2) Substantial Holders Institutional Ownership Mark Creasy 16% Australia 60% Liquid: ~5.3 million shares per day FIL 9% USA 26% T Rowe Price 8% UK & E
Slide 26: Financial Results Summary
Financial Results Summary Improving metal prices through FY17 and into FY18 A$M FY17 FY16 Change % Revenue 422 417 1% Underlying EBITDA(1) 151 138 9% Net Profit after Tax 17 (59) n/a Cash Flow from Operations (2) 78 102 (24%) Underlying Free Cash Flow (3) (113) (142) n/a Cash 36 46 (23%) FY17 result
Slide 27: FY17 Cash Flow Reconciliation
FY17 Cash Flow Reconciliation Nova FY17 development focus switching to FY18 production focus A$M 200 28 100 22 55 166 46 36 - 23 19 (100) 82 274 11 71 (200) 18 (300) Tropicana Jaguar Long Nova Exploration Corporate Acquisition, Net Finance Debt Dividends Capital FCF FCF FCF FCF & BD costs & WC Dives
Slide 28: Sustainability
Sustainability We are focused on improving outcomes for our people Leading practice in Sustainability Reporting(1) Improved safety outcomes • Australian Council of Superannuation Investors • Significant improvement in lag metrics over recognised IGO’s level of sustainability disclosure as the past 2
Slide 29: Value Delivery and Growth
Value Delivery and Growth Multiple catalysts across the portfolio September Quarter December Quarter March Quarter FY18 FY18 FY18 Drill testing of 3D Seismic survey & processing EM targets Nova Ramping up to full Complete LoM grade control production Interim Ore Reserve Delivery of Long Island Study
Slide 30: APPENDIX
APPENDIX 30
Slide 31: Jaguar Mine
Jaguar Mine VMS Corridor with cluster of orebodies IGO 100% High grade Underground Cu – Zn Overview VMS Resource(1)(2) 62,000t Cu, 389,000t Zn & 18.9Moz Ag Reserve(1)(2) 20,600t Cu, 212,000t Zn & 9.9Moz Ag Production Guidance FY18 29,000 to 33,000t Zn (contained metal in 2,600 to 3,000t Cu concentra
Slide 32: Jaguar Value Enhancement Program
Jaguar Value Enhancement Program(1) Optimising and extending Jaguar’s mine life and overall performance Triumph Deposit Triumph Deposit Mineral Resource and Ore Reserve • Mineral Resource: 2.2Mt @ 6.2% Zn, 0.5% Cu, 0.5% Pb, 84g/t Ag and 0.3g/t Au(1) • Ore Reserve: 1.2Mt @ 6.2% Zn, 0.4% Cu, 85g/t Ag
Slide 33: Jaguar Value Enhancement Program
Jaguar Value Enhancement Program(1) Bentayga Discovery Bentley In-Mine Exploration Bentley Mine New massive sulphide lens named Bentayga • Bentayga, ~250m south of the current Bentley decline • Mineralisation extends over ~200m along strike and 150m vertically and contains a typical VHMS sulphide as
Slide 34: Long Mine
Long Mine High grade underground nickel on the Kambalda dome IGO 100% high-margin underground nickel Overview Average grade project to date of 3.8% Ni Consistent low cost producer Resource(1) 60,000t Ni Reserve(1) 14,000t Ni Production Guidance FY18 (contained metal in 5,400 to 6,000t Ni concentrate
Slide 35: As We Go From Strength to Strength
AS WE GO FROM STRENGTH TO STRENGTH igo.com.au