Igo Limited · ASX:IGO
Igo — Shareholder Meeting (November 2021)
49 slides from Igo's shareholder meeting presentation, Nov 18, 2021
Slide 1: IGO Limited 2021 Annual General Meeting
For personal use only IGO Limited 2021 Annual General Meeting 18 November 2021
Slide 2: 2021 was a year of transformation for IGO
2021 was a year of transformation for IGO Realigned our portfolio to leverage the clean energy opportunity For personal use only Transformation: A complete change in the appearance or character of something or someone, especially so that that thing or person is improved 2
Slide 3: Our Transformation
Our Transformation We have transformed our business and the way we work For personal use only Transformed Culture Transformed ESG Transformed Outlook Historic and Projected EBITDA (A$M)1 1200 1000 800 600 400 200 0 Long (A$M) Jaguar (A$M) Tropicana (A$M) Nova (A$M) Greenbushes (A$M) Kwinana Hydroxid
Slide 4: People
For personal use only People 4
Slide 5: Safety & Wellbeing
Safety & Wellbeing Retained our strong focus on safety improvement programs Lag Safety Indicators (TRepIFR1 & SPIFR2) Lead Safety Indicators For personal use only 20 7 400 19 350 6 18 17 300 5 16 250 15 4 14 200 13 3 150 12 2 11 100 10 1 50 9 8 0 0 Visual Safety Leadership Interactions (VSLI) Hazard
Slide 6: COVID-19
COVID-19 FY19 and 4Q19 Highlights Continued to manage and respond to risks to our people and business For personal use only WA has remained relatively unaffected by COVID-19, allowing us to operate with few restrictions Broad range of programs in place to support our people and their families Focus
Slide 7: Our Culture
Our Culture Continuous process to strengthening our unique culture For personal use only Focused on attracting, developing and retaining our #1 asset Maintained high levels of employee engagement Made strong progress on diversity, learning programs and leadership development 7
Slide 8: Sustainability & Decarbonisation
For personal use only Sustainability & Decarbonisation 8
Slide 9: Sustainability
Sustainability Continued our commitment to leading performance and reporting For personal use only Dow Jones Sustainability Australia Index Dow Jones Sustainability Asia Pacific Index S&P Global 2021 Sustainability Yearbook ESG Reporting consistently rated as “Leading” 9
Slide 10: Nova is leading the way on carbon emissions
Sustainability Nova is leading the way on carbon emissions For personal use only Carbon Intensity of Nickel Operations1 PT Aneka Tambang PT Vale Indonesia Glencore (global nickel assets) Sunrise Energy Metals BHP Nickel West Eagle mine Vale Canada* IGO Limited - Nova Nickel 0 10 20 30 40 50 tCO2e/t
Slide 11: Climate Change
Climate Change Accelerating our proactive response in FY22 For personal use only Adopted an internal carbon price Scope 1 & 2 emissions reduction programs being implemented Investing in carbon removal and offsets programs in FY22 Commitment to understand controllable Scope 3 emissions 11
Slide 12: Our Strategy
For personal use only Our Strategy 12
Slide 13: Our Strategy
Our Strategy Our Purpose of Making a Difference has underpinned our strategy For personal use only 13
Slide 14: Our Portfolio
Our Portfolio Aligned to clean energy metals strategy For personal use only Portfolio focused on nickel, copper and lithium Operating assets in Tier-1 jurisdictions Extensive exploration portfolio in Australia and Greenland 14
Slide 15: Clean Energy Metals
For personal use only Clean Energy Metals 15
Slide 16: Clean Energy
Clean Energy Three key industries driving uptake of clean energy technologies For personal use only Renewable Energy Energy Storage Electric Vehicles 16
Slide 17: Lithium-ion Battery Demand
Lithium-ion Battery Demand Substantial increases expected as the global vehicle fleet transitions to electric power For personal use only Lithium-ion battery demand outlook (GWh/year)1 GWh/year 5,000 Battery demand set to increase 5x over the 4,500 next decade 4,000 3,500 3,000 2,500 Passenger vehic
Slide 18: Implications for raw materials
Implications for raw materials Battery demand will drive significant increases in demand for key raw materials For personal use only Lithium-ion battery metal demand outlook1 Million metric tons 25 2021 vs 2030 Copper 20 Aluminum Copper ▲5.5x Phosphorus 15 Iron Nickel ▲ 5.2x Manganese 10 Graphite Co
Slide 19: Implications for commodity prices
Implications for commodity prices Supply deficits for key battery metals expected to drive higher prices over the next decade For personal use only Nickel Market Balance1 Lithium Market Balance2 (Wood Mackenzie Forecast) (Barrenjoey Forecast) kt kt LCE Existing supply 3,000 Total Lithium Supply 6,00
Slide 20: FY21 – Year in Review
For personal use only FY21 – Year in Review 20
Slide 21: Key Achievements
Key Achievements FY21 was a highly successful year For personal use only Invested into a global lithium joint venture with Tianqi Divested our 30% interest in Tropicana Delivered outstanding operational and financial performance Maintained balance sheet strength and focus on growth Built o
Slide 22: Nova
For personal use only Nova 22
Slide 23: Nova: FY21 metal production and cash costs better than guidance
Nova FY21 metal production and cash costs all better than guidance For personal use only FY21 FY21 Production & Costs Result Guidance Nickel in concentrate (t) 29,002 27,000 – 29,000 Copper in concentrate (t) 13,022 11,000 – 12,500 Cobalt in concentrate (t) 1,084 850 – 950 Cash Costs (A$/lb Ni payab
Slide 24: Nova: FY21 record financial outcomes
Nova FY21 performance drove record financial outcomes from Nova For personal use only Nova Production & Cash Costs Nova Financial Performance A$/lb A$M Tonnes 9,000 A$2.25 A$2.50 700 669 8,000 A$2.10 593 600 A$1.83 A$2.00 7,000 504 500 6,000 436 405 A$1.50 393 400 5,000 A$1.28 349 351 335 321 4,000
Slide 25: Nova: FY22 guidance
Nova FY22 guidance reflects lower production in line with the life of mine plan FY22-24 Nova Guidance1 For personal use only kt A$/lb Metric Units FY22 Guidance 30.0 3.00 Nickel in concentrate t 25,000 to 27,000 25.0 2.50 Copper in concentrate t 11,000 to 12,500 20.0 2.00 Cobalt in concentrate t 900
Slide 26: Silver Knight
Silver Knight Near-Nova nickel sulphide development project For personal use only Acquisition from Creasy Group for A$45M completed in October 2021 Infill drilling program to commence 2Q22 to inform and update resource estimate during 2H22 Planning underway for exploration programs around Silver Kni
Slide 27: Lithium Joint Venture Greenbushes Project
For personal use only Lithium Joint Venture Greenbushs Project 27
Slide 28: Lithium Joint Venture
Lithium Joint Venture Transformational transaction with Tianqi completed in June 2021 For personal use only World class lithium portfolio with scale, quality, life and strong ESG credentials Greenbushes CGP2 Kwinana LiOH Plant Greenbushes (IGO: 25%) Kwinana (IGO:49%) World’s lowest cost and highest
Slide 29: Greenbushes
Greenbushes World’s largest, highest grade and lowest cost hard rock lithium resource For personal use only Located 240km south of Perth, Western Australia Active lithium mine for 20+ years utilising a local workforce Large open pit mine with multiple onsite concentrator facilities to produce spodum
Slide 30: Greenbushes: spodumene production expansion
Greenbushes Spodumene production to expand significantly via new concentrator projects For personal use only Greenbushes Townsite Potential spodumene concentrate CGP1 & capacity expansion (Mtpa) TGP Potential Commissioning Date 0.5 2.5 2027 0.5 CGP3 & 4 2025 0.3 CGP2 1.2 2022 TRP CGP1 & 2 TRP CGP3 C
Slide 31: Greenbushes: progress on expansion projects
Greenbushes1 Good progress on expansion projects since transaction completion For personal use only Chemical Grade Plant 2 (CGP2) commissioning commenced in May 2021 and ramp up is well progressed Tailings Retreatment Project (TRP) under construction with commissioning expected to commence in 3Q22 E
Slide 32: Kwinana Refinery
Kwinana Refinery1 Downstream processing facility to produce battery grade lithium hydroxide For personal use only Located Located in in thethe Kwinana Kwinana Industrial Industrial area,area, south south of Perth of Perth Fully Fullyautomated automated processing facility processing facility convert
Slide 33: Kwinana Refinery: commissioning of Train 1
Kwinana Refinery1 Commissioning of Train 1 progressing to plan For personal use only First lithium hydroxide produced from Train 1 during August 2021 Process commissioning progressing from batch to continuous basis; battery grade product expected by March 2022 Recommencement of Train 2 construction
Slide 34: Kwinana Lithium Hydroxide Refinery expansion potential
Kwinana Lithium Hydroxide Refinery Significant expansion potential For personal use only Lithium Hydroxide Production Capacity (ktpa) (100%) Option to add Train III and IV in the future 24ktpa 96ktpa Expected to commission in 2024 24ktpa Currently completing 24ktpa commissioning 24ktpa Train I Train
Slide 35: Tropicana
For personal use only Tropicana 35
Slide 36: Tropicana: successfully divested in FY21
Tropicana Successfully divested in FY21 For personal use only Delivered within guidance until sale in May 2021 Sold to Regis Resources for A$889M Completes transformation to be 100% clean energy metals focused Concludes a highly successful +20 year partnership with AngloGold Ashanti 1. Results refle
Slide 37: Financial Results
For personal use only Financial Results 37
Slide 38: FY21 Results
FY21 Results Record results across all key financial metrics For personal use only Revenue1 (A$M) 300 NPAT (A$M) 5492 1000 892 919 250 900 778 784 800 200 700 1642 155 600 150 500 413 423 400 100 76 300 53 200 50 17 100 0 0 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 -50 -59 -100 Und
Slide 39: FY21 Dividend
FY21 Dividend Enduring commitment to making cash returns to shareholders For personal use only Dividend History (cents per share) Dividend (cents per share) Interim dividend in FY21 deferred due to 12 Tianqi JV transaction 10 5 8 Final Dividend 10c per share (fully franked) 6 8 10 4 6 Total FY21 div
Slide 40: Capital Management
Capital Management Revised Shareholder Returns Policy for FY22 For personal use only Capital Allocation Framework Policy amended to reflect business transformation Underlying Free Cash Flow 15% – 25% 75% – 85% Intent to balance shareholder returns Higher returns possible above A$500M liquidity with
Slide 41: Exploration
For personal use only Exploration 41
Slide 42: Exploration Strategy
Exploration Strategy Committed to investing in growth through discovery For personal use only FY22 Exploration Budget Lake Mackay Copper Coast Raptor A$9M Kimberley Project A$6M Nova & A$65M A$33M Fraser Range A$17M Paterson Project 42
Slide 43: Near Nova
Near Nova Targeting Nova 2.0 with several key targets identified For personal use only Orion and Chimera are our highest priority target Discovery close to Nova could utilize existing Nova infrastructure Focus in FY22 to progress high priority targets 43
Slide 44: Fraser Range Project
Fraser Range Project Significant land package targeting nickel sulphides For personal use only 12,000km2+ land position over 400km in length Discoveries elsewhere demonstrate the belts fertility and perspectivity for further discovery Several targets to be drill tested over FY22 44
Slide 45: Paterson Project
Paterson Project Targeting high value sediment-hosted copper deposits For personal use only Large land holding via several exploration joint ventures Much of IGO’s portfolio has been underexplored IGO focus is on applying latest science and technology to generate new targets 45
Slide 46: Outlook for FY22
For personal use only Outlook for FY22 46
Slide 47: Outlook for FY22
Outlook for FY22 Focus on driving returns from our clean energy metals business For personal use only Execute on Lithium JV growth opportunities Continue delivering operational excellence at Nova Maintain our commitment to unlocking value through exploration and discovery Continue to invest in growt
Slide 48: 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 For personal use only inducement to make an offer or invitation with
Slide 49: Making a Difference
For personal use only 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. O