Igo Limited · ASX:IGO
Igo — Independence Group NL — FY2018 Earnings Presentation
18 slides from Igo's earnings presentation, Aug 29, 2018
Slide 1: FY18 Results Presentation
INDEPENDENCE GROUP NL FY18 Results Presentation For personal use only Nova and Tropicana drive record financial results 29 August 2018 ASX:IGO / ADR:IIDY
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: FY18 Highlights
FY18 Highlights Nova and Tropicana drive record FY18 results For personal use only • Record revenue and underlying EBITDA • Completed first full year of commercial production at Nova • Tropicana gold production better than mid-point of guidance • Long transitioned into care and maintenance in June 2
Slide 4: FY18 Safety & Sustainability
FY18 Safety & Sustainability Because we care Key Lag Safety Metrics(1,2,4) For personal use only • LTIFR for FY18 was 2.39(4) 9.0 ─ No fatalities or serious disabling injuries 8.0 7.0 LTIFR 12 MMA occurred 6.0 MTIFR 12 MMA 5.0 • No material environmental incidents 4.0 experienced 3.0 2.0 • Commenced
Slide 5: Record Financial Results
Record Financial Results Revenue and Underlying EBITDA up 85% and 125% respectively For personal use only Units FY17 FY18 YoY Revenue and Other Income A$M 421.9 780.6 85% Underlying EBITDA(1) A$M 150.5 338.6 125% Net Profit After Tax A$M 17.0 52.7 210% Net Cash from Operating Activities A$M 77.7 277
Slide 6: FY18 Cash Flow Reconciliation
FY18 Cash Flow Reconciliation Cash increased by A$103M to A$139M For personal use only Cash Flow Reconciliation (A$M) 300 250 19 44 22 18 19 - 200 - 23 10 - 57 76 - 8- 150 12 - 100 93 139 50 36 - Cash at Nova FCF Tropicana Jaguar FCF Long FCF Exploration Investment Jaguar Sale Stockman Corporate Deb
Slide 7: FY18 Underlying EBITDA Components
FY18 Underlying EBITDA Components Underlying EBITDA improved 125% YoY For personal use only Underlying EBITDA (A$M) 250 FY18: A$339M FY17: A$151M 196 200 150 141 106 100 50 50 32 27 24 8 n.a. 3 - (17) (17) (24) (50) (41) (100) (1) Nova Tropicana Jaguar Long New Business Corporate Other 1) FY18 other
Slide 8: Earnings Summary
Earnings Summary Record revenue, record underlying EBITDA and higher NPAT For personal use only Revenue (A$M) NPAT (A$M) 900 100 781 800 700 77 80 600 499 500 417 422 399 400 60 53 49 300 200 40 100 - FY14 FY15 FY16 FY17 FY18 20 17 Underlying EBITDA (A$M)(1) - 400 339 350 (20) 300 250 213 (40) 200 1
Slide 9: Cash Flow Summary
Cash Flow Summary Cash flows strengthening following first year of commercial production at Nova For personal use only Underlying Free Cash Flow (A$M)(1) Net Cash (A$M) 200 150 138 121 150 116 100 100 50 30 - 50 (50) 28 (100) (113) - (150) (142) (4) (200) FY14 FY15 FY16 FY17 FY18 (50) Operating Cash
Slide 10: Segment Financial Results
Segment Financial Results Solid performance at Nova and Tropicana provides a strong base for FY19 For personal use only Operation Metric Units FY17 FY18 Change Inc/(Dec) Revenue A$M - 348.8 348.8 n.a. Nova Underlying EBITDA(1) A$M - 196.0 196.0 n.a. Underlying Free Cash Flow(2) A$M - 92.8 92.8 n.a.
Slide 11: Nova
Nova Nova positioned as the lowest cost nickel producer in Australia For personal use only Tonnes FY18 FY18 Nova Production Metric Units FY17 FY18 Inc/(Dec) 8,000 7,344 Guidance 7,000 Nickel in concentrate t - 22,258 22,258 23,000 – 27,000 5,961 6,000 Copper in concentrate t - 9,545 9,545 10,000 – 1
Slide 12: Tropicana
Tropicana FY18 gold production better than the mid-point of guidance For personal use only FY18 Tropicana FY18 koz Production (100%) and AISC A$/oz Metric Units FY17 FY18 Inc/(Dec) Guidance 160 1,400 140 1,167 Gold produced (100%) koz 431.6 467.1 35.5 440 – 490 1,093 1,200 1,076 120 939 Gold Sold (I
Slide 13: Jaguar and Long
Jaguar and Long Portfolio rationalisation For personal use only Tonnes FY18 Long Production Long 1,800 • Transitioned into care and maintenance in June 2018 1,600 1,572 1,528 1,374 1,381 ─ Local contractor will manage the site during care and maintenance 1,400 1,200 • Strategic review considering al
Slide 14: A$51M committed to discovery in FY19
A$51M committed to discovery in FY19 Fraser Range For personal use only • Systematic exploration over ~15,000km2 of consolidated tenure Nova • ~25,000 line km’s of Airborne EM surveys A$12.0M completed Tropicana Nova Mining Lease A$3.0M Long • Completed the largest 3D seismic program A$33.0M A$2.5M
Slide 15: FY19 Guidance
FY19 Guidance(1) Higher production and lower unit costs expected for both Nova and Tropicana in FY19 For personal use only Metric Units FY19 Guidance Metric Units FY19 Guidance Nickel in concentrate t 27,000 – 30,000 Gold produced (100%) koz 500 – 550 Copper in concentrate t 11,000 – 12,500 Gold Sol
Slide 16: Making a Difference
Making a Difference Focused on short and long term growth For personal use only Tropicana • Second Ball Mill to increase throughput and gold recovery • Underground prefeasibility study to demonstrate potential to deliver longer mine life and higher grade contribution Nova • Debottlenecking projects
Slide 17: Concluding Comments
Concluding Comments Nova and Tropicana drive record FY18 results For personal use only • Record revenue and underlying EBITDA • Completed first full year of commercial production at Nova • Tropicana gold production and Long nickel production both better than mid-point of guidance • Portfolio rationa
Slide 18: For personal use only
Nye Nad “AS WE GO FROM STRENGTH TO STRENGTH igo.com.au