Igo Limited · ASX:IGO
Igo — Independence Group NL — Q4 FY16 Earnings Presentation
21 slides from Igo's earnings presentation, Jul 27, 2016
Slide 1: June 2016 Quarter Results Presentation
INDEPENDENCE GROUP NL For personal use only PETER BRADFORD, MANAGING DIRECTOR AND CEO June 2016 Quarter Results Presentation 27 July 2016
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 For personal use only or purchase any securities in IGO or as an inducement to make an offer or invit
Slide 3: June 2016 quarter highlights
June 2016 quarter highlights Leading Australian diversified mining company For personal use only Tropicana continued to increase processing rates beyond 7Mtpa • 28,540oz (IGO 30% share) production at a Cash Cost of A$895/oz and AISC of A$1,135/oz • Plant debottlenecking upgrades to materials handlin
Slide 4: Unaudited financial results
Unaudited financial results Improved quarter on quarter cash flow underpins solid balance sheet For personal use only Unaudited (A$’million) Q4 FY16 Q3 FY16 Q4 FY15 YTD FY16 Revenue 105.9 88.5 118.7 417.1 Underlying EBITDA(1) 38.9 28.7 38.0 135.7 Net Profit After Tax 16.4 2.8 7.5 (58.9) Net Cash Flo
Slide 5: June quarter cash flow
June quarter cash flow Focus on cash management and realisation of asset optimisation For personal use only • As at 30 June A$140M - $A150M capital spend remained to complete the Nova Project • Undrawn debt facilities of A$279M out of a total of A$550M • Continued capital investment at Tropicana foc
Slide 6: Hedging
Hedging Additional gold hedging completed during the quarter For personal use only • Opportune time to take advantage of strong recent gold price appreciation • Additional hedges since the March 2016 quarterly report include: • FY17 12,000 ounces at A$1,817/oz • FY18 60,000 ounces at A$1,796/oz • FY
Slide 7: Tropicana: Transitioning to higher process rates at lower grade
Tropicana Transitioning to higher process rates at lower grade as planned For personal use only Gold production and costs • 28,540oz gold produced and 29,254oz refined (IGO share) • Cash Cost of A$895/oz produced and AISC of A$1,135/oz sold Mining • 7.0M BCM mined and hauled ex-pit Processing • 1.72
Slide 8: Tropicana: High grade ore shoot intersected at Havana South
Tropicana Significant high grade ore shoot intersected at Havana South For personal use only Near mine exploration • As part of the on going Long Island Study, drilling completed outside of the known Mineral Resources has intersected a significant high grade ore shoot at Havana South • Better inters
Slide 9: Tropicana FY16 operational scorecard and FY17 guidance
Tropicana FY16 operational scorecard and FY17 guidance For personal use only UOM FY16 Guidance1 FY16 Results FY17 Guidance Range Gold produced (100% basis) oz 430,000 to 470,000 448,116 390,000 to 430,000 Gold (IGO’s 30% share) oz 129,000 to 141,000 134,435 117,000 to 129,000 Cash cost A$/oz Au 680
Slide 10: Long: Consistently delivering to new operating plan
Long Consistently delivering to new operating plan For personal use only Production and costs • 2,018t contained nickel produced • Cash Cost of A$3.51/lb payable Ni Underground mining • 50,167t mined at an average grade of 4.02% Ni • Mining for the quarter focussed on the Moran orebody Productivity
Slide 11: Long FY16 operational scorecard and FY17 guidance
Long FY16 operational scorecard and FY17 guidance For personal use only FY16 Units FY16 Guidance1 Results FY17 Guidance Range Nickel (contained metal) tonnes 8,500 to 9,000 8,483 7,400 to 8,200 Cash Cost (payable) A$/Ib Ni 3.50 to 4.00 3.68 3.50 to 3.90 Sustaining capex A$M 2 to 3 1.7 1 Exploration
Slide 12: Jaguar: Copper grades deliver catch up quarter
Jaguar Copper grades deliver catch up quarter For personal use only Production and costs • 8,937t Zn and 3,235t Cu produced in concentrates • Cash Cost of A$0.02/lb payable zinc Underground mining • Tonnes mined 117,337t Processing • 122,332t milled at average grade of 8.61% Zn and 2.88% Cu • Copper
Slide 13: Jaguar FY16 operational scorecard and FY17 guidance
Jaguar FY16 operational scorecard and FY17 guidance For personal use only FY16 Units FY16 Guidance1 FY17 Guidance Range Results Zinc in concentrate tonnes 38,000 to 40,000 39,335 39,000 to 43,000 Copper in concentrate tonnes 6,500 to 7,000 7,412 4,600 to 5,100 Cash cost (payable) A$/Ib Zn 0.60 to 0.
Slide 14: Nova Project overview
Nova Project overview Project remains on schedule and on budget For personal use only Strong on-site progress • Substantial progress made during quarter and project 93% complete at quarter end • First development ore mined during the quarter • Three grade control drilling rigs onsite • Project remai
Slide 15: Nova Project progress
Nova Project progress Overall Project currently 93% complete For personal use only Grinding circuit Breccia ore from 2080 ore drive Power station Paste fill plant 15
Slide 16: Accelerated Bollinger development
Accelerated Bollinger development Significant value unlocked with improved mining flexibility For personal use only • Further value unlocked at Nova through accelerating the Bollinger decline within the original $443M capital estimate • Committing to earlier development of the Bollinger orebody will
Slide 17: Updated mine design and schedule
Updated mine design and schedule Improved mining design and sequencing delivers significant benefits For personal use only 17
Slide 18: Nova initial operating guidance
Nova initial operating guidance Operational readiness on track For personal use only • Preliminary operating guidance for Nova provided through to FY19 • Additional opportunities exist to improve mining production and processing rates • Further enhancements will be pursued following commissioning an
Slide 19: FY17 exploration guidance
FY17 exploration guidance IGO remains committed to delivering growth through exploration For personal use only A$33M exploration budgeted across portfolio • Targeting provinces that can deliver multiple gold and base metals projects • Increasing focus on generative and greenfields projects FY17 Expl
Slide 20: Concluding comments
Concluding comments Diversified mining company delivering cash flow and growth For personal use only Strong focus on cash management and operational performance • Nova remains on schedule and on budget • A$140M – A$150M spend remaining to deliver Nova Project • At quarter end A$279M of A$550M debt f
Slide 21: For personal use only
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