Igo Limited · ASX:IGO
Igo — Independence Group NL — Q4 FY2017 Earnings Presentation
27 slides from Igo's earnings presentation, Jul 26, 2017
Slide 1: June 2017 Quarter Results Presentation
INDEPENDENCE GROUP NL For personal use only June 2017 Quarter Results Presentation Peter Bradford, Managing Director and CEO 26 July 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: 4Q17 Scorecard
4Q17 Scorecard Improved Cash Flow delivered with zero LTI or environmental incidents For personal use only Zero lost time injuries recorded during 4Q17 Safety • LTIFR at 1.69 per million man hours worked to 30 June 2017 First shipments of Nickel and Copper concentrates Nova • Ramp up to full product
Slide 4: Safety and ESG
Safety and ESG We are focused on improving outcomes for our people For personal use only Leading practice in Sustainability Reporting(1) Improved safety outcomes • Australian Council of Superannuation Investors • No Lost Time Injuries for the recognised IGO’s level of sustainability disclosure as Qu
Slide 5: Solid Financial Results
Solid Financial Results Revenue increased 36% quarter on quarter For personal use only Unaudited Metrics Units 4Q17 3Q17 %▲ YTD Commentary A$M 114.2 83.9 36% 421.4 • Jaguar concentrate shipments Revenue • Gold sold from Tropicana • Jaguar concentrate shipments Underlying EBITDA(1) A$M 34.1 34.7 (2%)
Slide 6: 4Q17 Cash Flow Reconciliation
4Q17 Cash Flow Reconciliation Cash and cash flow used to fund growth activities, Debt unchanged For personal use only A$M 100 90 2 1 80 14 70 38 60 50 7 40 4 1 1 1 69 30 20 36 10 - Tropicana Jaguar Long Nova Exploration Corporate Proceeds from Payments for Finance FCF FCF FCF FCF & BD costs & WC sal
Slide 7: FY17 Cash Flow Reconciliation
FY17 Cash Flow Reconciliation Nova FY17 development focus switching to FY18 production focus For personal use only A$M 200 28 22 100 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
Slide 8: Nova: Ramping up to full production in September 2017 quarter
Nova Ramping up to full production in September 2017 quarter For personal use only Metric Units FY17 Guidance Range FY17 Nickel in concentrate t ~3,400(1) 3,502 Copper in concentrate t ~1,500(1) 2,106 Cobalt in concentrate t - 112 Cash cost (payable)(2) A$/Ib Ni - - Net Project capex (cash basis)(3)
Slide 9: Nova: FY18 Guidance
Nova FY18 ramp up tonnage consistent across 1H and 2H grade a driver For personal use only FY18 Guidance Metric Units 1H18 2H18 Range Nickel (contained metal) t 7,500 to 9,000 15,500 to 18,000 23,000 to 27,000 Copper (contained metal) t 4,000 to 4,500 6,000 to 7,500 10,000 to 12,000 Cobalt (containe
Slide 10: Nova Resource: Interim update as at June 2017
Nova Resource(1) Interim update as at 30 June 2017 For personal use only 91km of grade control drilling completed to date • Updated Mineral Resource estimate using revised geological interpretation and approach to resource domaining • As at 30 June 2017 Mineral Resource estimate for Nova and Bolling
Slide 11: Nova Resource Update
Nova Resource Update(1) 46% of the total resource is classified as Measured For personal use only Tonnage Grades In Situ Metal Ni Cu Co NiEq Ni Cu Co NiEq Item Class/Area Mt (%) (%) (%) (%) (kt) (kt) (kt) (kt) Nova Measured 5.20 2.63 1.10 0.08 2.69 136.9 57.1 4.3 140.0 Indicated 2.39 2.47 1.02 0.08
Slide 12: Nova Resource Update: Schematic Long Section
Nova Resource Update(1) Schematic Long Section of the Nova-Bollinger Deposits looking North For personal use only 12 1) For further information on Mineral Resources refer to ASX release Nova Mineral Resource Estimation and Exploration Update, dated 26 July 2017
Slide 13: Nova Exploration
Nova Exploration Drilling in progress on Nova Mining lease For personal use only Two surface diamond drill rigs 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 d
Slide 14: Tropicana: 4Q17 production and cash costs better than guidance
Tropicana 4Q17 production and cash costs better than guidance For personal use only Metric Units FY17 Guidance Range 4Q17 FY17 Gold produced (100% basis) oz 390,000 to 430,000 110,509 431,625 Gold Sold (IGO’s 30% share) oz 117,000 to 129,000 32,396 128,601 Cash cost A$/oz Au 850 to 950 815 817 All-i
Slide 15: Tropicana FY18 Guidance
Tropicana FY18 Guidance Increased gold production at improved AISC margin forecast For personal use only Metric Units FY18 Guidance Range Gold produced (100% basis) oz 440,000 to 490,000 Gold Sold (IGO’s 30% share) oz 132,000 to 147,000 Cash cost A$/oz Au 680 to 750 All-in Sustaining Costs (AISC) A$
Slide 16: Tropicana: Transitioning towards grade streaming
Tropicana Transitioning towards grade streaming For personal use only Mining productivity improves BCM Movement and Unit Cost A$/BCM BCM (million) • Higher mining rates are expected to 12 12 continue through the remainder of CY17 BCM $/BCM 10 10 which is expected to result in higher gold production
Slide 17: Jaguar: Zinc and copper production higher than previous quarter
Jaguar Zinc and copper production higher than previous quarter For personal use only Metric Units FY17 Guidance Range 4Q17 FY17 Zinc in concentrate t 39,000 to 43,000 7,399 32,638 Copper in concentrate t 4,600 to 5,100 1,121 4,565 Cash cost (payable) A$/Ib Zn 0.70 to 0.80 0.66 0.76 Sustaining capex
Slide 18: Jaguar FY18 Guidance
Jaguar FY18 Guidance Forecast production impacted by ore availability For personal use only Metric Units FY18 Guidance Range Zinc in concentrate t 29,000 to 33,000 Copper in concentrate t 2,600 to 3,000 Cash cost (payable) A$/Ib Zn 0.85 to 1.05 Sustaining capex A$M 8 to 9 Development capex A$M 10 to
Slide 19: Jaguar Value Enhancement Program
Jaguar Value Enhancement Program(1) Optimising and extending Jaguar’s mine life and overall performance For personal use only First Mineral Resource & Ore Reserve for Triumph Triumph Reserves can support mine life to 2022 Plant improvement to increase metallurgical recoveries Plant improvement to pr
Slide 20: Jaguar Value Enhancement Program: Triumph Deposit
Jaguar Value Enhancement Program(1) Optimising and extending Jaguar’s mine life and overall performance For personal use only Triumph Deposit Triumph Deposit Mineral Resource and Ore Reserve • Mineral Resource: 2.2Mt @ 6.2% Zn, 0.5% Cu, 0.5% Pb, 84g/t Ag and 0.3g/t Au(1) • Ore Reserve: 1.2Mt @ 6.2%
Slide 21: Jaguar Value Enhancement Program: Bentayga Discovery
Jaguar Value Enhancement Program(1) Bentayga Discovery For personal use only Bentley In-Mine Exploration Bentley Mine New massive sulphide lens named Bentayga • Bentayga, ~250m south of the current Bentley decline • Mineralisation extends over ~200m along strike and 150m vertically and contains a ty
Slide 22: Long: Strong result to end the financial year
Long Strong result to end the financial year For personal use only Metric Units FY17 Guidance Range 4Q17 FY17 Nickel (contained metal) t 7,400 to 8,200 2,069 8,433 Cash Cost (payable) A$/Ib Ni 3.50 to 3.90 3.47 3.28 Sustaining capex A$M 1 0.05 0.8 Development capex A$M N/A - 0.2 Exploration expendit
Slide 23: Long FY18 Guidance
Long FY18 Guidance Guidance impacted by planned mining suspension in 4Q18 For personal use only Metric Units FY18 Guidance Range Nickel (contained metal) t 5,400 to 6,000 Cash Cost (payable) A$/Ib Ni 4.40 to 4.90 Sustaining capex A$M 0.5 to 1 Development capex A$M 0.5 to 1 Exploration expenditure A$
Slide 24: Fraser Range Exploration
Fraser Range Exploration Regional activities ramping up outside Nova mine environment For personal use only Regional EM Targets • Three prospective EM conductors defined at Zanthus, Zanthus North and Mai Tai • Warrant drill testing Regional Gravity Survey • IGO has completed gravity surveying on all
Slide 25: Value Delivery and Growth
Value Delivery and Growth Multiple catalysts across the portfolio For personal use only September Quarter December Quarter March Quarter FY18 FY18 FY18 Drill testing of 3D Seismic survey & processing EM targets Nova Ramp-up to full production Delivery of Long Island study Tropicana Incremental proce
Slide 26: Concluding Comments
Concluding Comments Nova focus switching from construction to production For personal use only Improved safety culture across business delivers zero LTI Nova milestones achieved as nameplate production approaches Tropicana & Long at or better than guidance on all metrics Jaguar improved with explora
Slide 27: As we go from strength to strength
AS WE GO FROM STRENGTH TO STRENGTH igoO.com.au
Independence Group NL — Q4 FY2017 Earnings Presentation on 6ix