Igo Limited · ASX:IGO

Igo — Independence Group NL — Australian Resources Conference & Trade Show (November 2012)

37 slides from Igo's conference presentation, Nov 14, 2012

  1. Slide 1: Growing a Great Australian Mining Company

    GROWING A GREAT For personal use only AUSTRALIAN MINING COMPANY Australian Resources Conference & Trade Show Chris Bonwick, Managing Director 14 November 2012

  2. Slide 2: Disclaimer

    DISCLAIMER L For personal use only l Certain oral and written statements contained or incorporated by reference in this presentation, including information as to the future financial or operating performance of the Company and its projects, constitute forward-looking statements. All statement, other

  3. Slide 3: Financial Summary

    FINANCIAL SUMMARY L For personal use only Capital Structure: ASX 200 Code : IGO 232.9M shares l Financials: Market Cap. (12/11/12): A$999.1M Cash (end Sept Qtr 2012): A$146.9M Debt (end Sept Qtr 2012): (A$21.4M) Substantial shareholders: 65 Institutions in Top 100 67% Australian 10% Overseas Dividen

  4. Slide 4: IGO Asset Pipeline

    IGO ASSET PIPELINE L For personal use only  Combination of low cost cash flows from current operating mines with l significant long-life development projects and highly prospective exploration  Highly complementary management and technical capabilities, with proven successful track records of expl

  5. Slide 5: IGO Major Projects

    IGO MAJOR PROJECTS L For personal use only l 5

  6. Slide 6: Long Nickel Operation (IGO 100%)

    LONG NICKEL OPERATION (IGO 100%) L For personal use only  Record^ Annual 2012 Production – 9,995t Ni (2011/12 Guidance 8,800-9,200t Ni). l  IGO produced over 83,000t Ni since acquisition.  June 2012 Ore Reserve 41,900t Ni and Resource 76,600t Ni.  Exploration success continues to add to Mining I

  7. Slide 7: Long Nickel Operation: Quarterly Cash Costs & Revenue

    LONG NICKEL OPERATION (IGO 100%) QUARTERLY CASH COSTS & REVENUE L For personal use only  Remains a low cost nickel producer l Net Margin 7

  8. Slide 8: Jaguar & Bentley (IGO 100%) Production Update

    JAGUAR & BENTLEY (IGO 100%) L PRODUCTION UPDATE For personal use only Jaguar & Bentley zinc- 2011/12 Actual 2012/13 Guidance Sept Qtr 2012 copper-silver Mines l Production (Zn Tonnes) 16,569 27,000 – 28,000 6,668 Production (Cu Tonnes) 7,257 5,000 – 6,000 1,360 Production (Ag ozs) 577,726 700,000 –

  9. Slide 9: De Beers Database (IGO 100%)

    DE BEERS DATABASE (IGO 100%) L L  Long term exploration asset to find new Australian mineral camps.  293,000 geochemical samples collected by De Beers over 30 years. l For personal use only  IGO analysing samples for 57 elements including Ni, Cu, Pb, Zn, Au,l Ag, Pt, Pd, U, rare earths, Sn, Li, K

  10. Slide 10: Tropicana Gold Project

    TROPICANA GOLD PROJECT L IGO 30%, AGA 70%, MANAGER For personal use only l NEW AUSTRALIAN GOLD PROVINCE UNDER SAND DUNES Regional drilling Preparation for mining 10

  11. Slide 11: Tropicana Gold Project

    TROPICANA GOLD PROJECT L IGO 30%, AGA 70%, MANAGER For personal use only l References : IGO 29/11/11 ASX Release - Open Pit and Havana Deeps Underground Resource Estimates AGA 27/7/11 ASX Release - Reserve Estimate 11

  12. Slide 12: Tropicana Gold Project

    TROPICANA GOLD PROJECT L IGO 30%, AGA 70%, MANAGER For personal use only PROJECT UNDER CONSTRUCTION: l  Project 64% complete at 30 September 2012  First production estimated December Qtr 2013 ^  IGO attributable production years 1-3 : 141-147,000 oz Au pa ^  Cash costs years 1-3 : A$580-600/oz A

  13. Slide 13: Tropicana Gold Project: Upside Studies & Potential

    TROPICANA GOLD PROJECT UPSIDE STUDIES & POTENTIAL L For personal use only November 2011 Mineral Resource: 88.3Mt @ 2.3g/t Au = 6.41Moz l (A$1,400/oz) June 2011 Open Pit Reserve: 56.4Mt @ 2.2g/t Au = 3.91Moz (A$1,210/oz) Reference : AGA 27/7/11 ASX Release for Reserve Estimate and IGO 29/11/11 ASX Re

  14. Slide 14: Tropicana Gold Project: Havana Open Cut & Underground

    TROPICANA GOLD PROJECT L HAVANA OPEN CUT & UNDERGROUND MINE POTENTIAL For personal use only l Reference : AGA 27/7/11 ASX Release for Reserve Estimate and IGO 29/11/11 ASX Release for Open Pit and Havana Deeps Underground Resource Estimates 14

  15. Slide 15: Tropicana Gold Project: Significant Down Plunge Potential

    TROPICANA GOLD PROJECT L L SIGNIFICANT DOWN PLUNGE POTENTIAL l For personal use only l Drill widths approximate true widths 15

  16. Slide 16: Tropicana Fly Through

    TROPICANA FLY THROUGH L For personal use only l

  17. Slide 17: Tropicana Joint Venture

    TROPICANA JOINT VENTURE LL WORKING WITH A For personal use only MAJOR INTERNATIONAL GOLD COMPANY ll  Partnership: IGO Innovation in Targeting and Pegging Ground AGA Financial “grunt” to explore large remote areas  JV Terms: AGA to earn 70% interest by funding to the completion of a PFS  Well stru

  18. Slide 18: Domestic Gold Production From 31 Operations

    TROPICANA GOLD PROJECT L  IN 2011 DOMESTIC GOLD PRODUCTION >100KOZ For personal use only CAME FROM 31 OPERATIONS l Gold Ounces Australian Mine Production 2011 900,000 Tropicana* (100%) 800,000 700,000 600,000 500,000 Tropicana* (30% IGO) 400,000 300,000 200,000 100,000 0 Source: * Based on BFS Prod

  19. Slide 19: Australian Gold Production

    AUSTRALIAN GOLD PRODUCTION L • BETWEEN 2000 AND 2011 AUSTRALIAN GOLD OUTPUT HAS BEEN STEADY For personal use only • CASH COSTS HAVE INCREASED 100% l Australian Gold Production and C1 Cash Costs net of By Products 12 $800 $700 10 $600 Millions of Troy Ounces 8 Cash Cost US$/oz $500 6 $400 $300 4 $200

  20. Slide 20: Recent Australian Gold Mergers

    RECENT AUSTRALIAN GOLD MERGERS L For personal use only COMPANIES LOCATION l Silver Lake / Integra Kalgoorlie, WA focus Evolution / Conquest Mining / Catalpa: Queensland and WA 2 Newcrest mining Assets Resolute / Noble Minerals Africa focus Alacer / Avoca Minerals Australia and Turkey focus Focus / C

  21. Slide 21: Global Gold Production

    GLOBAL GOLD PRODUCTION L  FOLLOWING THE LOW OF THE GFC GLOBAL For personal use only  GOLD PRODUCTION HAS INCREASED TO LEVELS REACHEDl IN THE EARLY 2000’s Global Gold Production and C1 Cash Cost net of By Products 86 $700 84 $600 82 80 $500 Cash Cost US $/oz 78 Millions of Troy Ounces $400 76 $300

  22. Slide 22: Factors Affecting Gold Producers

    FACTORS AFFECTING GOLD PRODUCERS L  GLOBAL CASH COSTS AND GOLD PRICE HIGHLY CORRELATED  A FUNCTION OF LOWER GRADE MATERIAL BECOMING ECONOMIC For personal use only l Gold Price Cash Costs US$/oz GOLD PRICE vs C1 CASH COSTS NET OF BY PRODUCTS US$/oz $1,800 $700 $1,600 $650 $600 $1,400 $550 $1,200 $5

  23. Slide 23: Factors Affecting Gold Producers

    FACTORS AFFECTING GOLD PRODUCERS L  GRADES ARE DECLINING OVER TIME  Discovery rates are in decline For personal use only  Discovery costs are increasing l  Trend to increased sovereign risk 23

  24. Slide 24: Cash Costs & Total Costs

    CASH COSTS & TOTAL COSTS IRRESPECTIVE OF GOLD PRICE L MINERS TO FOCUS ON VALUE For personal use only l 24

  25. Slide 25: Gold Price: Where Have We Come From

    GOLD PRICE L WHERE HAVE WE COME FROM AND WHERE ARE WE GOING? For personal use only l Gold Price January 1979 to October 2012 2,500 2,000 1,500 1,000 500 0 USD/oz AUD/oz USD/oz CPI Adjusted (2012) 25 Source: US Bureau of Labour Statistics, World Gold Council

  26. Slide 26: Factors Affecting Gold Producers

    FACTORS AFFECTING GOLD PRODUCERS L  LATE 1970’S GOLD MINING EQUITIES OUTPERFORMED GOLD  LATE 2000’S GOLD MINING EQUITIES UNDERPERFORMED GOLD For personal use only l Source: Denver Gold Forum 2012 Pierre Lassonde 26

  27. Slide 27: Gold Price Forecasts

    GOLD PRICE FORECASTS L WHO TO BELIEVE? For personal use only l Most Recent Gold Price Forecasts July to November 2012 US$/oz 2,200 Annual Gold Price Forecasts 2007 to 2012 2,000 1,800 2012 1,600 1,400 2011 1,200 2010 High 1,000 Low 2009 Average 800 2008 600 2007 400 2012 2013 2014 2015 2016 Source:

  28. Slide 28: Influence on Gold Price

    INFLUENCE ON GOLD PRICE L European Gold Sales within Central Bank Gold Agreements Gold in For personal use only tonnes Limits to Gold Sales l 600.0 500.0 400.0 300.0 200.0  Quantitative : QE3 US$40 bn per month 100.0 Easing  Basel Accords: BASEL III (Starting 2013) 0.0 Banks to hold 6% of Tier 1 C

  29. Slide 29: Gold Price Forecasts: QE3 Scenario

    GOLD PRICE FORECASTS L QE3 SCENARIO For personal use only US Federal Reserve Assets Vs Gold Price l Fed Total Assets Gold US $/oz US$ Trn $2,500 $5.0 $4.5 FED Balance Sheet Expansion: QE3 US $40 Billion per Month $2,000 $4.0 Operation Twist: US $ 267 Billion July 2012 to December 2012 ? Short term s

  30. Slide 30: Contact Details

    INDEPENDENCE GROUP L L CONTACT DETAILS l For personal use only l Perth Office Chris Bonwick, Managing Director 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

  31. Slide 31: Appendix: Reserves and Resources Statements

    L For personal use only l APPENDIX RESERVES AND RESOURCES STATEMENTS 31

  32. Slide 32: Reserves and Resources: Long Nickel Operation

    RESERVES AND RESOURCES L For personal use only LONG NICKEL OPERATION Mineral Resources 30 June 2012 Ore Reserve 30 June 2012 l Cut-off 1% Ni at Economic Ni Cut-off Classification Tonnes Ni% Ni Tonnes Classification Tonnes Ni% Ni Tonnes LONG Measured 47,000 3.7 1,700 LONG Indicated 220,000 5.1 11,200

  33. Slide 33: Reserves and Resources: Tropicana Gold Project JV

    RESERVES AND RESOURCES L For personal use only TROPICANA GOLD PROJECT JV l Mineral Resources Ore Reserve November 2011 June 2011 Contained Contained Tonnes Grade Gold Tonnes Grade Gold 1 2 3 4 Classification (Mt) (g/t) (Moz) Classification (Mt) (g/t) (Moz) Measured 28.2 2.1 1.95 Indicated 49.4 2.0 3

  34. Slide 34: Reserves and Resources: Jaguar / Bentley Operation

    RESERVES AND RESOURCES L For personal use only JAGUAR / BENTLEY OPERATION JAGUAR / BENTLEY OPERATION Mineral Resources 30 June 2012 l Ore Reserve 30 June 2012 Classification Tonnes Cu% Zn% Ag g/t Au g/t Classification Tonnes Cu% Zn% Ag g/t Au g/t JAGUAR Measured 429,000 2.5 4.4 61 - JAGUAR Proven 73

  35. Slide 35: Reserves and Resources: Stockman Project

    RESERVES AND RESOURCES L For personal use only STOCKMAN PROJECT l Mineral Resources 30 June 2012 Classification Tonnes Cu% Zn% Pb% Ag g/t Au g/t CURRAWONG Indicated 9,548,000 2.0 4.2 0.8 42 1.2 Inferred 781,000 1.4 2.2 0.3 23 0.5 Total 10,329,000 2.0 4.0 0.8 40 1.1 WILGA Indicated 2,987,000 2.0 4.8

  36. Slide 36: Reserves and Resources: Karlawinda Gold Project

    RESERVES AND RESOURCES L For personal use only KARLAWINDA GOLD PROJECT : l BIBRA DEPOSIT (INFERRED RESOURCES - JUNE 2012) Tonnes Au Grade Contained Au Mineralisation Type (Mt) (g/t) (oz) Laterite 2.2 1.1 77,100 Upper Saprolite 0.9 1.1 31,000 Lower Saprolite 1.9 1.1 63,600 Transitional 2.1 1.0 68,200

  37. Slide 37: Competent Persons Statements

    COMPETENT PERSONS STATEMENTS L For personal use only l Notes: The information in this summary presentation that relates to Exploration Results is based on information compiled by Mr Christopher M Bonwick who is a full-time employee of the Company and is a member of the Australasian Institute of Mini

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