Igo Limited · ASX:IGO
Igo — Independence Group NL — Shareholder Meeting (November 2004)
43 slides from Igo's shareholder meeting presentation, Nov 24, 2004
Slide 1: Independence Group NL Annual General Meeting
INDEPENDENCE GROUP NL Annual General Meeting 24th th November 2004
Slide 2: Executive Summary
EXECUTIVE SUMMARY Low cost nickel producer. Expanding production profile and increasing mine life. Strong cash reserves and cash generation potential. Paying dividends. Exploring for gold and nickel in Australia. Unique exploration technology. Aim to become a diversified mining house.
Slide 3: Share Structure
SHARE STRUCTURE ASX Code - Shares IGO $1.34 (19.11.04) - Options IGOO $1.18 (19.11.04) IGO average turnover (last 6 months) = 377,983 shares/day Ordinary shares 87.4M Options 12.8M Contributing shares 7.0M Unlisted options 9.3M TOTAL 116.5M Option expiry date 31.01.05 Will raise $4.1M if all exercis
Slide 4: Top Ten Shareholders
TOP TEN SHAREHOLDERS Ordinary Shares Equity Trustees 6.5M 8.1% JP Morgan Nominees 3.7M 4.6% National Nominees 3.1M 3.9% Forbar Custodians 2.7M 3.3% ANZ Nominees 2.3M 2.8% Citicorp Nominees 2.0M 2.5% IME 2.0M 2.5% Virtual Genius 2.0M 2.4% Queensland Investments 2.0M 2.4% Westpac Custodians 1.7M 2.1%
Slide 5: IGO Profitability
IGO PROFITABILITY 2002/3 2003/4 Mine Revenue $25.5M $66.7M Mine cash flow (pre tax)* $7.3M $29.4M Group profit (after tax) $1.4M $17.3M Earnings per share 2.0c 24c (undiluted) Earnings per share 2.0c 18c (diluted) * Excludes capital, depreciation, amortisation and exploration
Slide 6: IGO Cash
IGO CASH 2002/3 2003/4 Cash: $4.0M $18.4M Receivables: $5.1M $13.7M Creditors: ($3.6M) ($6.5M) Total: $5.5M $25.6M Debt: $17.2M $12.7M
Slide 7: IGO Cash + Receivables as at 30.9.04
IGO CASH + RECEIVABLES as at 30.9.04
Slide 8: Long Nickel Mine Geological Setting
LONG NICKEL MINE GEOLOGICAL SETTING WMC Production 1979-1999: 5.43M t 3.7% Ni 203,184 Ni t IGO Production 2002-2004: 256,155 t 3.9 % Ni 9,852 Ni t 2004/2005 Reserves: 1.185M t 4.1 % Ni 48,300 Ni t
Slide 9: IGO Nickel Resources & Reserves Comparison
IGO NICKEL RESOURCES & RESERVES COMPARISON
Slide 10: Long Mine Safety
LONG MINE SAFETY LTI’s MTI’s LTIFR 2002/2003 1 4 8.3 2003/2004 0 11 0 Total 1 15 2.8 Industry Average 5.7 Contributions to Safety: Owner operator with salaried employees. Continual awareness, training and good communication. High standards of shotcreting, bolting and meshing. Low extraction rate com
Slide 11: Long Mine Personnel
LONG MINE PERSONNEL 92 employees. Turnover extremely low. Skilled personnel waiting list. Very experienced team.
Slide 12: 2003/2004 Production
2003/2004 PRODUCTION IGO Ni t Tonnes % Ni Ni t Share Budget 160,000 3.3 5,280 3,109 Actual 168,991 4.1 6,843 4,063 REASONS: Mined 1,854 Ni t from outside ore reserve. Mined an additional 1,292 Ni t from inside reserves due to better grades. eg. Gibb South - 3.7% Ni ore reserve grade - 6.9% Ni actual
Slide 13: 2003/2004 Production Stats
2003/2004 PRODUCTION STATS Tonnes % Ni Ni t Long 143,651 3.7 5,240 Gibb South 22,130 6.9 1,528 Victor South 3,210 2.4 75 TOTAL 168,991 4.1 6,843 A$/lb Payable Ni Payable sales revenue (incl. hedging): 7.52 Cash mining / development costs: 2.45 Milling & other cash costs: 0.87 TOTAL 3.32 Deprec. / am
Slide 14: Future Cost Savings
FUTURE COST SAVINGS Producing own cement Redesigning ground support
Slide 15: Future Cost Savings
FUTURE COST SAVINGS New 55t haulage truck Compressed air blast hole rig
Slide 16: Mining Research & Development
MINING RESEARCH & DEVELOPMENT Ground support evaluation
Slide 17: Innovations - Geophysics
INNOVATIONS - GEOPHYSICS 3 component fluxgate down hole probe 3 component EM torch
Slide 18: Geophysics Nickel Grade Estimation
GEOPHYSICS NICKEL GRADE ESTIMATION
Slide 19: Exploration Targets
EXPLORATION TARGETS y 1) GOLD FIELDS ML 15/161 _ OYALTY AREA 7.1m @ 12.1% Ni 3.15m @ 3.2% Ni _— Fe 0.76m @ 10.1% <. z r ) PS BS * 3.6m @ 3.3% Ni 0.7m @ 4.7% Ni _ Long South £ Decline Proposed Proposed drill holes 1km TARGET AREAS LEGEND @ Victor South @) Long Deeps || Nickel mineralisation @ EM cond
Slide 20: 2004/2005 Production Budget
2004/2005 PRODUCTION BUDGET Budget: 222,000 t @ 4.0% Ni (8,900t Ni) 2004/5 Cash costs <A$3.30/lb (payable (payable nickel nickel metal) metal)
Slide 21: Long - 5 Year Mining Schedule
(2 LONG -5 YR MINING SCHEDULE Production Head Grade Nickel Tonnes % Ni 12000 5.0 10000 40 8000 2004/5 2005/6 2006/7 2007/8 2008/9 |i Production Ni tonnes =——= Head grade % Ni
Slide 22: Australian Regional Exploration Strategy
AUSTRALIAN REGIONAL EXPLORATION STRATEGY Looking for new nickel and gold camps: • Under cover, and • In lightly or unexplored terrains using empirical & conceptual targeting
Slide 23: IGO Nickel Exploration Projects
IGO NICKEL EXPLORATION PROJECTS
Slide 24: Geophysical Innovations
GEOPHYSICAL INNOVATIONS LOW TEMP SQUID TEM SENSOR MAG TEM SENSOR Anglo American JV
Slide 25: Geophysical Innovations: Coil vs MAG TEM & SQUID TEM
GEOPHYSICAL INNOVATIONS COIL vs MAG TEM & SQUID TEM Conventional Coil TEM MAG & SQUID TEM
Slide 26: Exploration Innovations: Using Chromites to Find NiS
EXPLORATION INNOVATIONS USING CHROMITES TO FIND NiS Chromites occur in many rock types. Diamond explorers collect and analyse chromites. IGO can use their data to recognise chromites that are sourced from massive nickel sulphides and fertile flows. Chromite grains
Slide 27: Cosmos Example
COSMOS EXAMPLE Other NiS deposits have associated chromite anomalies, including: Kambalda Widgiemooltha Scotia Cosmos Blair Ravensthorpe >40 new nickel targets defined.
Slide 28: Chromite Example
CHROMITE EXAMPLE Aeromagnetic Image showing NiS anomalous chromite sample locations
Slide 29: North Eastern Goldfields Nickel Project Locations
NORTH EASTERN GOLDFIELDS NICKEL PROJECT LOCATIONS
Slide 30: Nickel Geochem Anomaly
NICKEL GEOCHEM ANOMALY Anomalous values and TEM conductor Nickel geochemical image over magnetics
Slide 31: Nickel Geochem Anomaly
NICKEL GEOCHEM ANOMALY Aeromagnetic image Nickel geochemical image showing peak geochem results
Slide 32: IGO Gold Exploration Projects
IGO GOLD EXPLORATION PROJECTS
Slide 33: Tropicana East Gold JV
TROPICANA EAST GOLD JV ANGLOGOLD earning 70%
Slide 34: Tropicana Cross-Sections
TROPICANA CROSS-SECTIONS 142800mN 143200mN
Slide 35: Goldsworthy Gold JV
GOLDSWORTHY GOLD JV IGO earning 80%
Slide 36: Goldsworthy Gold JV Gold Anomalous Shear Zones
GOLDSWORTHY GOLD JV GOLD ANOMALOUS SHEAR ZONES
Slide 37: Goldsearch JV
GOLDSEARCH JV IGO earning 36% Goldsearch JV - Bloods Range Gold Geochem Image
Slide 38: Murrin South & Leonora Gold Projects
MURRIN SOUTH & LEONORA GOLD PROJECTS Murrin South Leonora Project Gold in Auger Geochemistry Image Cross-Section
Slide 39: Mt Padbury Project
MT PADBURY PROJECT IGO earning 90% Gold Geochemistry Image Arsenic Geochemistry Image
Slide 40: Dalwallinu Project
DALWALLINU PROJECT Gold Arsenic Bismuth Geochemistry Image Geochemistry Image Geochemistry Image
Slide 41: Mt Isdell Project
MT ISDELL PROJECT Zinc Geochemistry Image Lead Geochemistry Image Copper Geochemistry Image Gold Geochemistry Image
Slide 42: Summary
SUMMARY +5 year mine life with low cash costs. Strong cash position. Significant cash flow available for growth and fully franked dividends. Exposure to exploration upside at Long and on regional nickel and gold plays. $6M exploration budget plus Long South decline. Acquisitions must be value accret
Slide 43: Independence Group NL
INDEPENDENCE GROUP NL Creating Shareholder Wealth
Independence Group NL — Shareholder Meeting (November 2004) on 6ix