Igo Limited · ASX:IGO

Igo — Independence Group NL — Investor Presentation (November 2014)

36 slides from Igo's investor presentation, Nov 3, 2014

  1. Slide 1: November 2014 Investor Presentation

    For personal use only Au Ni Cu/Zn November 2014 Investor Presentation Peter Bradford, Managing Director & CEO

  2. Slide 2: Disclaimer

    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 those securities in any

  3. Slide 3: Presentation Outline

    Presentation Outline  Corporate Overview For personal use only  Recent Financials  Operations • Tropicana • Long • Jaguar  Growth  Summary Page 3

  4. Slide 4: Corporate Overview

    Corporate Overview  ASX listed (IGO.AX) Board of Directors For personal use only • Head Office in Perth Chairman Peter Bilbe Managing Director & CEO Peter Bradford  234.3M shares on issue Non-executive Director Peter Buck • $1.1 billion market capitalisation(1) Non-executive Director Geoff Cliffor

  5. Slide 5: Shareholders

    Shareholders For personal use only Institutional Retail & other Domestic Instos Foreign Instos Top 100 shareholders Other Major shareholders Colonial 7.6% Fidelity 6.8% Vinva 4.0% DFA 3.5% BT 3.4% AMP 2.9% Page 5

  6. Slide 6: FY14 Financials

    FY14 Financials For personal use only Highlights FY14 Q1FY15(4) Revenue $399.0M $225.9M Underlying EBITDA(1) $174.8M $64.0M Profit after tax(2) $46.6M $27.9M Net Cash Flow From Operating Activities $153.6M $55.5M Free Cash Flow(3) $30.2M $25.3M Full Year Fully Franked Dividends 8.0 cps NA Cash (as a

  7. Slide 7: Underlying EBITDA (ex Mine)

    Underlying EBITDA (ex Mine) For personal use only 80 70 60 Underlying EBITDA ($’M) 50 40 30 20 10 0 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Tropicana Long Jaguar Page 7

  8. Slide 8: Tropicana Gold Mine

    Tropicana Gold Mine  For personal use only Located 370km northeast of Kalgoorlie by road  Unincorporated joint venture • 70% Anglogold Ashanti (Manager) • 30% Independence  Recent discovery on a new belt • Eastern edge of the Yilgarn craton along the Fraser-Albany orogen • Belt scale (~9,000km2)

  9. Slide 9: Tropicana Gold Mine

    Tropicana Gold Mine  10 year mine life For personal use only • First gold production in September 2013 • At nameplate capacity since March 2014  Open pit mine • Contract mining by MacMahons • Life of mine strip ratio of 5.4  Standard CIL processing plant • 5.8 Mtpa throughput • Scope to debottlen

  10. Slide 10: Tropicana Pits

    Tropicana Pits For personal use only Page 10

  11. Slide 11: Tropicana Exploration

    Tropicana Exploration  Tropicana Deeps For personal use only • 3D Seismic completed around existing pits • Near surface targets identified in initial results  Near Mine Exploration • Numerous targets in prospective geology within 50km trucking distance of Tropicana mill  Regional Exploration • Fo

  12. Slide 12: Long Nickel Mine

    Long Nickel Mine  Located 57km south of Kalgoorlie For personal use only  Mechanised Underground mine • Owner mining (residential) • Annual mining rate ~250,000t at average 4.0% Ni  Toll treatment ore processing • By BHP Nickel West  Three year reserve life • Track record of replacing production

  13. Slide 13: Long – consistent production

    Long – consistent production For personal use only 3,000 $6.00 2,500 $5.00 2,000 $4.00 Cash Costs ($/lb Ni) Contained Nickel (t) 1,500 $3.00 Contained Nickel (t) 1,000 Production Guidance $2.00 Cash Costs ($/lb Ni) Cost Guidance 500 $1.00 - $0.00 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun

  14. Slide 14: Long Mining Vs Reserve Depletion

    Long Mining Vs Reserve Depletion For personal use only 90,000 80,000 70,000 60,000 Ore tonnes 50,000 40,000 30,000 20,000 Mined Reserve Depletion 10,000 0 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Page 14

  15. Slide 15: Long – brownfields exploration

    Long – brownfields exploration  McLeay South For personal use only • Encouraging recent exploration • Best intercept was 4.2m @ 4.9% Ni • Committed to McLeay South drill drive  Moran South • First drill position ready in November • Drilling to commence in December quarter • Targeting EM conductors

  16. Slide 16: Jaguar Zn/Cu Mine

    Jaguar Zn/Cu Mine  Located 300km north of Kalgoorlie For personal use only  Cu-Zn VMS camp • IGO controls +50km long corridor  Mechanised underground mine • Owner mining (fly in – fly out) • Annual mining rate ~440,000t @ 10%Zn and 1.8%Cu • Three year reserve life  Flotation processing plant • P

  17. Slide 17: Jaguar Continuous Improvement

    Jaguar Continuous Improvement For personal use only 14,000 $0.70 12,000 $0.60 10,000 $0.50 Cash Costs ($/lb Zn) Contained Metal (t) 8,000 $0.40 Zinc (t) 6,000 $0.30 Copper (t) Zinc Guidance 4,000 Copper Guidance $0.20 Cash Costs ($/lb Zn) 2,000 Cost Guidance $0.10 - $- Sep 12 Dec 12 Mar 13 Jun 13 Se

  18. Slide 18: Jaguar – Bentley Extensions

    Jaguar – Bentley Extensions For personal use only Long Section Cross Section Reference: IGO ASX Release 29/10/2014 Independence Group Quarterly Activities Report Page 18

  19. Slide 19: Jaguar - Near Mine Exploration

    Jaguar - Near Mine Exploration Under-explored 50km long corridor surrounding three known mines with ten Cu-Zn-Ag alteration For personal use only anomalies under cover, being systematically tested. Reference: IGO ASX Release 28/07/2014 Independence Group Quarterly Activities Report Page 19

  20. Slide 20: Jaguar – Triumph Drilling

    Jaguar – Triumph Drilling For personal use only Reference: IGO ASX Release 29/10/2014 Independence Group Quarterly Activities Report Page 20

  21. Slide 21: Jaguar - Darlot JV

    Jaguar - Darlot JV  Earn in JV For personal use only • IGO earning a 70-80% interest • Partner - Enterprise Metals Ltd  Location and Tenure • 60 km north of Jaguar • Large land holding (740 km2)  Strategy • Past exploration focussed on Au • Updated geological model confirms Jaguar/Bentley style V

  22. Slide 22: Growth

    Growth For personal use only Lake Mackay Discovery Bryah Basin De Beers database Project generation CREATE Tropicana base metals Advanced exploration Joint Ventures SUPPLEMENT Acquisition Study & Stockman develop Tropicana Brownfields Production SUSTAIN Long Exploration Jaguar Page 22

  23. Slide 23: Growth

    Growth  Primary focus is on organic growth GOLD For personal use only $1,900 • Unlock value through discovery and $1,700 $1,500 development • $1,300 Gold price (USD/oz) Brownfields projects is a priority $1,100 Bloomberg consensus  Pursuing opportunities to build $900 $700 project pipeline $500 •

  24. Slide 24: Stockman Project (VIC)

    Stockman Project (VIC)  460 km by road NE of Melbourne $3,000 ZINC For personal use only $2,800 $2,600  Zn-Cu-Au-Ag VMS $2,400 $2,200 • Enhanced feasibility study being finalised in Zinc price (USD/t) $2,000 Bloomberg consensus $1,800 November 2014 $1,600 $1,400  9 year mine life based on Ore Res

  25. Slide 25: Lake Mackay JV (NT)

    Lake Mackay JV (NT)  IGO earning 70% over 6 years For personal use only • Phase 1: >$1.6M +$1.0M over 2 years • Phase 2: >$6.0M over 4 years • Partner - ABM Resources NL  Location & Tenure • Southern Northern Territory on WA border • Very large tenure - 12,200 km2 (5,000 km2 under application)  S

  26. Slide 26: Bryah Basin JV (WA)

    Bryah Basin JV (WA)  IGO earning 70-80% For personal use only Reference: IGO ASX Release 29/10/2014 Independence Group Quarterly Activities Report • Spending $6.5M over 6 years • Partner – Alchemy Resources Ltd  Location & Tenure • Murchison, WA • 300 km2 land holding  Strategy • Targeting De Gru

  27. Slide 27: Summary

    Summary  Business is in good shape For personal use only • Strong FY14 and solid September Quarter production • Consistent history of low cost production  Continued focus on operating assets • Safety, productivity and cost control • Delivery against plan and guidance • Exploration dollars focussed

  28. Slide 28: Contact Details

    Contact Details For personal use only Peter Bradford Managing Director & CEO Tony Walsh Company Secretary 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 8 92

  29. Slide 29: Resources & Reserves

    Resources & Reserves Competent Persons Statements For personal use only Exploration Results The information in this report that relates to Exploration Results is a compilation of previously published data for which Competent Persons consents were obtained. Their consents remain in place for subseque

  30. Slide 30: Resources & Reserves – Tropicana

    Resources & Reserves TROPICANA (IGO 30% SHARE) For personal use only Mineral Resource 30 June 2014 Ore Reserve 30 June 2014 100% Project 100% Project Classification Tonnes Mt Au g/t Contained Au Moz Classification Tonnes Mt Au g/t Contained Au Moz OPEN PIT Measured 22.8 2.11 1.56 OPEN PIT Proved 20.

  31. Slide 31: Resources & Reserves – Long

    Resources & Reserves LONG For personal use only Mineral Resource 30 June 2014 Ore Reserve 30 June 2014 Classification Tonnes Ni% Ni Tonnes Classification Tonnes Ni% Ni Tonnes LONG Measured 70,000 5.5 3,900 LONG Proved 50,000 3.8 1,900 Indicated 270,000 5.5 15,000 Probable 56,000 3.1 1,700 Inferred 1

  32. Slide 32: Resources & Reserves – Jaguar

    Resources & Reserves JAGUAR For personal use only Mineral Resource 30 June 2014 Ore Reserve 30 June 2014 Classification Tonnes Cu% Zn% Ag g/t Au g/t Classification Tonnes Cu% Zn% Ag g/t Au g/t BENTLEY Measured 706,000 2.2 12.3 172 0.8 BENTLEY Proved 499,000 2.1 12.1 168 0.8 Indicated 1,502,000 1.5 8

  33. Slide 33: Resources & Reserves – Stockman

    Resources & Reserves STOCKMAN For personal use only Mineral Resource 30 June 2014 Ore Reserve 30 June 2014 Classification Tonnes Mt Cu% Zn% Ag g/t Au g/t Classification Tonnes Mt Cu% Zn% Ag g/t Au g/t CURRAWONG Measured - - - - - CURRAWONG Proved - - - - - Indicated 9,548,000 2.0 4.2 42 1.2 Probable

  34. Slide 34: FY15 Guidance

    FY15 Guidance(1)(2) Tropicana Jaguar For personal use only • 141,000 to 147,000oz (IGO 30% share) • 40,000 to 43,000t Zn in conc. • Average cash cost of $590 - $630/oz Au • 5,800 to 6,500t Cu in conc. • Sustaining capex (IGO 30% share) of $9M • Average cash cost of $0.40-0.60/lb Zn • Exploration (IG

  35. Slide 35: Hedging Summary

    Hedging Summary For personal use only Nickel • FY15: 200t/month averaging $18,135/t Copper • FY15 Q2: 550t at $7,700/t in December 14 • FY15 Q3: 550t at $8,294/t in March 15 • FY15 Q4: 550t at $8,500/t in June 15 Gold • FY15 Q2, Q3 & Q4 : 5,056oz/month zero cost collars (range $1,310 to $1,757/oz) •

  36. Slide 36: September 2014 Quarter

    September 2014 Quarter For personal use only Page 36

Independence Group NL — Investor Presentation (November 2014) on 6ix