Slide 1: September 2014 Quarter Results Presentation
For personal use only Au Ni Cu/Zn September 2014 Quarter Results Presentation Peter Bradford, Managing Director & CEO
Slide 2: Disclaimer
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 those securities in any
Slide 3: Presentation Outline
Presentation Outline Introduction For personal use only Highlights September Quarter Results • Financials • Tropicana • Long • Jaguar Exploration and Development Summary Appendices Page 3
Slide 4: September 2014 Quarter Highlights
September 2014 Quarter Highlights Financials For personal use only • $27.9M unaudited NPAT • $55.5M operating cashflow • $44.3M of cash at 30 September 2014 Tropicana • Continued to operate above nameplate • Gold production in line with guidance at 119,593 oz (IGO share = 35,878 oz) • Cash costs
Slide 5: Financial Highlights
Financial Highlights For personal use only Highlights Jun 14 Qtr Sep 14 Qtr Unaudited Profit after tax(1) $4.1M $27.9M Underlying EBITDA(2) $55.0M $64.0M Net Cash Flow From Operating Activities $55.8M $55.5M Free Cash Flow(3) $31.0M $25.3M Cash (at end of Quarter) $57.0M $44.3M Debt (at end of Quart
Slide 6: Tropicana (1)
Tropicana (1) For personal use only Tropicana Statistics(1) Units Jun 14 Qtr Sep 14 Qtr Mining Total Material Mt 12.0 14.9 ROM Ore (>0.6g/t Au) Mt 1.8 2.1 ROM Ore Grade g/t Au 2.48 2.25 Processing Ore milled Mt 1.5 1.5 Milled grade g/t Au 3.00 2.82 Recovery % 89.2 88.7 Gold Produced oz 132,844 119,5
Slide 7: Tropicana (2)
Tropicana (2) Health, Safety and Environment For personal use only • No lost time incidents for the quarter • 12-month LTIFR is currently 3.2 Mining • Mining production improved again to 14.9Mt of total material • Mining occurred in both the Havana and Tropicana pits • Mined 72% of ore from the
Slide 8: Tropicana (3)
Tropicana (3) Tropicana Deeps For personal use only • 3D seismic survey completed in July 14 • Data processing well progressed • Near surface targets identified by initial results Near Mine Exploration • Drilling continued at a number of targets • Most results pending • Voodoo Child 2m @ 5.4 g/t
Slide 9: Long (1)
Long (1) For personal use only Long Statistics Units Jun 14 Qtr Sep 14 Qtr Development Operational m 425 609 Capitalized m 301 177 Mining Ore Mined Kt 60.3 62.0 Grade % Ni 4.25 4.12 Contained Nickel t 2,564 2,551 Payable Nickel t 1,550 1,542 Operating Costs Cash Costs(1) (contained Ni) $/lb 2.49 2.4
Slide 10: Long (2)
Long (2) Health, Safety & Environment 3,000 $6.00 For personal use only • No lost time injuries 2,500 $5.00 Cash Costs ($/lb Ni) Contained Nickel (t) • 12 month LTIFR improved to 8.8 2,000 $4.00 Solid quarter 1,500 Contained Nickel (t) $3.00 • 62kt ore mined at 4.12% 1,000 Production Guidance Ca
Slide 11: Long (3)
Long (3) McLeay South For personal use only • Additional encouraging drill results • Best intercept was 4.2m @ 4.9% Ni • Committed to McLeay South drill drive Moran South • First drill position ready in coming weeks • Drilling to commence in December quarter • Targeting EM conductors south of Mo
Slide 12: Jaguar (1)
Jaguar (1) Jaguar Statistics Units Jun 14 Qtr Sep 14 Qtr For personal use only Development Operational m 232 292 Capitalized m 539 583 Mining Ore Mined Kt 103.8 124.9 Processing Ore Milled Kt 130.2 122.8 Grade % Zn 11.1 11.2 Grade % Cu 2.04 2.22 Zinc Produced t 12,611 12,013 Copper Produced t 2,354
Slide 13: Jaguar (2)
Jaguar (2) Health, Safety & Environment For personal use only 14,000 $0.70 • No lost time injuries 12,000 $0.60 • 12 month LTIFR improved to 3.4 10,000 $0.50 Contained Metal (t) Cash Costs ($/lb Zn) Solid quarter 8,000 $0.40 • 125kt ore mined (500ktpa rate) Zinc (t) • 123kt milled at 11.3% Zn &
Slide 14: Jaguar (3) – Bentley Extensions
Jaguar (3) – Bentley Extensions For personal use only Long Section Cross Section Page 14
Slide 15: Jaguar (4) – Triumph Drilling
Jaguar (4) – Triumph Drilling For personal use only Page 15
Slide 16: Exploration & Development
Exploration & Development Stockman (Zn-Cu-Au-Ag) (VIC) For personal use only • Inquiry Panel hearing completed in June 14 • Report by Inquiry Panel submitted to Minister for Planning in September 14 • Enhanced Feasibility Study well progressed Lake Mackay (Au) (NT) • Blanket geochem over whole c
Slide 17: Summary
Summary September Quarter 2014 For personal use only • All projects delivering at or above guidance • Operating cashflow of $55.5M • Net cash improved by $13.1M in quarter to $41.3M • Paid final $25.0M of bank debt facility and $11.7M final dividend for FY14 in Quarter Outlook • Maintain focus o
Slide 18: Contact Details
Contact Details For personal use only Peter Bradford Managing Director & CEO Tony Walsh Company Secretary Suite 4, Level 5, South Shore Centre 85 South Perth Esplanade South Perth, Western Australia, 6151 PO Box 496, South Perth, Western Australia, 6951 Telephone: +61 8 9238 8300 Facsimile: +61 8 92
Slide 19: Resources & Reserves – Competent Persons Statements
Resources & Reserves Competent Persons Statements For personal use only Exploration Results The information in this report that relates to Exploration Results is a compilation of previously published data for which Competent Persons consents were obtained. Their consents remain in place for subseque
Slide 20: Resources & Reserves – Tropicana
Resources & Reserves TROPICANA (IGO 30% SHARE) For personal use only Mineral Resource 30 June 2014 Ore Reserve 30 June 2014 100% Project 100% Project Classification Tonnes Mt Au g/t Contained Au Moz Classification Tonnes Mt Au g/t Contained Au Moz OPEN PIT Measured 22.8 2.11 1.56 OPEN PIT Proved 20.
Slide 21: Resources & Reserves – Long
Resources & Reserves LONG For personal use only Mineral Resource 30 June 2014 Ore Reserve 30 June 2014 Classification Tonnes Ni% Ni Tonnes Classification Tonnes Ni% Ni Tonnes LONG Measured 70,000 5.5 3,900 LONG Proved 50,000 3.8 1,900 Indicated 270,000 5.5 15,000 Probable 56,000 3.1 1,700 Inferred 1
Slide 22: Resources & Reserves – Jaguar
Resources & Reserves JAGUAR For personal use only Mineral Resource 30 June 2014 Ore Reserve 30 June 2014 Classification Tonnes Cu% Zn% Ag g/t Au g/t Classification Tonnes Cu% Zn% Ag g/t Au g/t BENTLEY Measured 706,000 2.2 12.3 172 0.8 BENTLEY Proved 499,000 2.1 12.1 168 0.8 Indicated 1,502,000 1.5 8
Slide 23: Resources & Reserves – Stockman
Resources & Reserves STOCKMAN For personal use only Mineral Resource 30 June 2014 Ore Reserve 30 June 2014 Classification Tonnes Mt Cu% Zn% Ag g/t Au g/t Classification Tonnes Mt Cu% Zn% Ag g/t Au g/t CURRAWONG Measured - - - - - CURRAWONG Proved - - - - - Indicated 9,548,000 2.0 4.2 42 1.2 Probable
Slide 24: FY15 Guidance
FY15 Guidance(1)(2) Tropicana Jaguar For personal use only • 141,000 to 147,000oz (IGO 30% share) • 40,000 to 43,000t Zn in conc. • Average cash cost of $590 - $630/oz Au • 5,800 to 6,500t Cu in conc. • Sustaining capex (IGO 30% share) of $9M • Average cash cost of $0.40-0.60/lb Zn • Exploration (IG
Slide 25: Hedging Summary
Hedging Summary For personal use only Nickel • FY15: 200t/month averaging $18,135/t Copper • FY15 Q2: 550t at $7,700/t in December 14 • FY15 Q3: 550t at $8,294/t in March 15 • FY15 Q4: 550t at $8,500/t in June 15 Gold • FY15 Q2, Q3 & Q4 : 5,056oz/month zero cost collars (range $1,310 to $1,757/oz) •