Slide 1: IGO Limited 3Q20 Results Presentation
IGO Limited 3Q20 Results Presentation 30 April 2020
Slide 2: Cautionary Statements & Disclaimer
Cautionary Statements & Disclaimer • This presentation has been prepared by IGO Limited (“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 secu
Slide 3: Competent Person's Statements
Competent Person’s Statements • Any references to IGO Mineral Resource and Ore Reserve estimates should be read in conjunction with IGO’s Annual Update of Exploration Results, Mineral Resources and Ore Reserves dated 30 January 2020 (Annual Statement) and lodged with the ASX for which Competent Pers
Slide 4: COVID-19 – Our Response
COVID-19 – Our Response Prioritising the protection of our people, community and business continuity Safeguarding the welfare of our people • Travel restrictions and pre-flight mandatory health screenings • Changes to operational rosters and remote working where possible • On-site quarantine and tes
Slide 5: Safety
Safety Focus remains on implementing our safety improvement program Total Reportable Injury Frequency (TRepIF)1 and Serious Potential Incident Frequency (SPIF) 2 20 7 19 6 18 17 5 16 15 4 14 13 3 12 2 11 10 1 9 8 0 TRepIFR (lhs) SPIFR (rhs) 1) 12 month moving average TRepIF – Total Reportable Injury
Slide 6: 3Q20 Highlights
3Q20 FY19Highlights and 4Q19 Highlights Continued production performance and cost discipline Nova metal production increased QoQ for all metals – Group Revenue on track to meet top end of FY20 guidance A$188M Tropicana production lower as expected – Underlying EBITDA Boston Shaker Underground develo
Slide 7: 3Q20 Financial Results
3Q20 Financial Results Financial performance and balance sheet remains strong Units 2Q20 3Q20 QoQ YTD FY20 Revenue and Other Income A$M 211.6 187.5 (11%) 661.9 Underlying EBITDA(1) A$M 116.7 75.8 (35%) 346.5 Profit After Tax A$M 34.1 15.2 (55%) 115.3 Net Cash from Operating Activities A$M 156.0 67.3
Slide 8: 3Q20 Cash Flow Reconciliation
3Q20 Cash Flow Reconciliation Cash balance higher despite lower QoQ operational cash flow and interim dividend payment A$M 600 500 19.8 13.7 1.8 9.8 2.8 0.5 1.5 50.6 35.4 400 300 452.8 464.3 200 100 - Cash at Nova FCF Tropicana FCF Exploration Payments for Corporate and Proceeds from Finance Costs L
Slide 9: 3Q20 NPAT Reconciliation
3Q20 NPAT Reconciliation NPAT impacted by lower EBITDA from Nova and Tropicana A$M 40 35 30 25 17.1 20 34.1 15 0.5 10.9 8.6 10 6.2 0.4 15.2 5 19.7 - 13.9 (5) (10) 2Q20 NPAT Nova Tropicana Exploration Corporate Mark-to- D&A Other Tax 3Q20 NPAT EBITDA EBITDA EBITDA market investments 9
Slide 10: Nova
Nova 10
Slide 11: Nova
Nova Strong performance delivers QoQ increase in metal production and significantly lower costs Metric Units 2Q20 3Q20 QoQ YTD FY20 YTD Guidance(1) Nickel in concentrate t 7,513 8,019 7% 23,255 20,250 – 22,500 Copper in concentrate t 3,289 3,784 15% 10,562 8,250 – 9,375 Cobalt in concentrate t 279 3
Slide 12: Nova Production
Nova Production Lower QoQ costs driven by higher metal production Nova Production Nova Cash Flow Reconciliation Tonnes A$/lb A$M 9,000 $3.00 70 $2.59 8,000 60 3.2 $2.22 $2.42 $2.50 5.5 7,000 0.7 50 6,000 $1.96 $2.00 5,000 40 $1.50 4,000 8,019 30 61.6 7,906 7,724 7,513 3,784 52.2 3,000 3,462 3,490 $1
Slide 13: Tropicana
a AL ANGLO’ ASHANTI Tropicana
Slide 14: Tropicana Highlights
Tropicana Highlights Lower production driven primarily by lower milled grade Metric Units 2Q20 3Q20 QoQ YTD FY20 YTD Guidance(1) Gold produced (100%) koz 133.9 103.9 (22%) 361.1 338 – 375 Gold Sold (IGO 30%) koz 38.6 33.0 (15%) 110.5 101 – 113 Cash cost A$/oz 698 877 26% 764 700 – 780 AISC A$/oz 948
Slide 15: Tropicana
Tropicana Strong EBITDA margin sustained at 57% Tropicana Production (100% ) and AISC Tropicana Cash Flow Reconciliation oz A$M A$/oz 160,000 $1,400 45 1,303 0.8 140,000 $1,200 40 $1,066 3.6 120,000 $950 $948 35 $1,000 30 100,000 $800 25 80,000 132,945 133,932 $600 20 39.9 60,000 123,320 35.4 103,85
Slide 16: Tropicana
Tropicana Boston Shaker underground development remains on track On track for first gold production in September 2020 Quarter 3Q20 Activities Primary escapeway installed Overhead power line commissioned Underground power distribution Preparing for primary vent installation 16
Slide 17: Exploration & Growth
Exploration & Growth 17
Slide 18: Exploration Overview
Exploration Overview Activity impacted by weather and COVID-19 Exploration activity in Kimberley, Northern Territory and Greenland on hold due to COVID-19 restrictions Spare capacity transferred to increase activity on Fraser Range FY20 exploration expenditure expected to be ~A$6M below mid-point of
Slide 19: Nova
Nova Three drill rigs active throughout 3Q20 Active drilling campaign over various targets proximal to Nova Successful drilling at Western Eye, Orion and Hunter prospects with fertile mafic/ultramafic intrusions intersected Drilling continuing in 4Q20 – subject to COVID-19 restrictions 19
Slide 20: Fraser Range
Fraser Range Regional exploration impacted by weather and COVID-19 3Q20 activity primarily limited to geophysical surveys and rehabilitation work Work program in 4Q20 focused on infill air-core drilling on 100m x 100m spacings and high-priority diamond drill targets >100,000m program of air-core dri
Slide 21: Tropicana Exploration
Tropicana Exploration Primary focus on Havana resource definition and Boston Shaker Resource development drilling at Havana to aid in completion of PFS for potential underground Boston Shaker (BS04) pit drilling returned 32 intersections of >20 g/t Au x metres(1) Drilling progressed at Madras-Masala
Slide 22: Business Development
Business Development Disciplined strategy to deliver “clean energy metals” growth opportunities Focus on metals critical to clean energy Strategic investment in New Century Resources – renewables, grid scale energy storage and electrification of transport IGO investing up to A$27M in NCZ for an inte
Slide 23: Summary
Summary 23
Slide 24: Concluding Comments
Concluding Comments FY19 and 4Q19 Highlights Production performance and cost discipline continue Excellent production and cost performance from Nova Tropicana growth project at Boston Shaker progressing well Effectively mitigating the impact of COVID-19 on the business 24
Slide 25: We believe in a world where people power makes amazing things happen
We believe in a world where people power makes amazing things happen. Where technology opens up. new horizons and clean energy makes the planet a better place for every generation to come. We are bold, passionate, fearless and fun - a smarter, kinder, more innovative company. Our work is making fund