Igo Limited · ASX:IGO
Igo — Independence Group NL — Investor Presentation (April 2007)
50 slides from Igo's investor presentation, April 2007
Slide 1: Independence Group NL Investor Update April 2007
INDEPENDENCE GROUP NL Delivering Growth through Mining & Exploration Success Investor Investor Update Update April April 2007 2007 Chris Chris Bonwick Bonwick Managing Managing Director Director
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain oral and written statements contained or incorporated by reference in this presentation, including information as to the future financial or operating performance of the Company and its projects, constitute forward-looking statements. All statement, other than stat
Slide 3: Corporate Overview
CORPORATE OVERVIEW ♦ ASX Code: IGO (S&P / ASX 200) ♦ Share Price: A$6.05 (20.04.07) ♦ Fully paid shares: 114M ♦ Unlisted Options: 5M ♦ Market Capitalisation (undiluted): A$690M ♦ Cash & Receivables net creditors: A$146M (31.03.07) ♦ Daily turnover (6 month average): 454,040 ♦ Debt: A$2M (31.03.07)
Slide 4: The Board of Independence Group
THE BOARD OF INDEPENDENCE GROUP Rod Marston (63) Non Executive Chairman Chris Bonwick (47) Managing Director Kelly Ross (44) Executive Director & CFO John Christie (68) Non Executive Director Oscar Aamodt (60) Non Executive Director Over 140 years experience in junior, mid-cap & multinational mining
Slide 5: Company History
COMPANY HISTORY Mar 2000 Incorporated – Chris Bonwick founding Director Jan 2002 Floated as an exploration company on the ASX Oct 2002 Purchased Long Nickel Mine (US $12M) Mar 2005 Admitted to the ASX 300 Sep 2005 Tropicana discovery Dec 2006 Admitted to the ASX 200 Present 146 employees AWARDS: 200
Slide 6: IGO Share Price to 20.04.07
IGO SHARE PRICE TO 20.04.07 Weekly Average
Slide 7: Top Ten Shareholders
TOP TEN SHAREHOLDERS Ordinary Shares as at 13.04.07 JP Morgan Nominees 11.5M 10.0% ANZ Nominees 11.5M 10.0% National Nominees 10.0M 8.8% Citicorp Nominees 6.8M 6.0% Westpac Custodian Nominees 5.2M 4.6% Forty Traders Limited 3.3M 2.9% HSBC Custody Nominees 2.8M 2.5% RBC Dexia Investor Services 2.6M 2
Slide 8: Jul 06 – Mar 07 Financials to Date
JUL 06 – MAR 07 FINANCIALS TO DATE 2006 FY Jul 06 -Mar 07 Total revenue $113M $174M EBITDA $60M $132M Profit before tax $50M $120M Net profit after tax $35M $82M Operation cash flow $44M $84M Diluted earnings per share 31c 71c Dividend per share 9c 6c
Slide 9: IGO Cash & Investments
IGO CASH & INVESTMENTS Cash & Receivables net of creditors (31.03.07) $146M Share Share Share Company Number Price* Value* Matrix Metals Limited 124.1M 9c $11M Atlas Iron Limited 1.05M 65c $1M Southstar Diamonds 50% Unlisted Unlisted TOTAL ~$158m *As at 18.04.07
Slide 10: IGO Financial Year Statistics
IGO FINANCIAL YEAR STATISTICS Net Profit after Tax Cash & Net Receivables
Slide 11: March 2007 Quarter
MARCH 2007 QUARTER Dec 06 Qtr Mar 07 Qtr ♦ Production 2,289 Ni t 3,055 Ni t ♦ Grade 3.56% Ni 4.07% Ni ♦ Cash Costs A$4.37/lb Ni A$3.70/lb Ni ♦ Revenue A$16.01/lb Ni A$21.41/lb Ni ♦ Cash & Net Receivables A$78M A$146M ♦ Profit A$24M A$42M ♦ Debt A$2M A$2M On track to exceed 2006/7 8,500-8,800 Ni t bu
Slide 12: Long Nickel Mine – Current Cash Producing Asset
INDEPENDENCE GROUP NL LONG NICKEL MINE IGO’S CURRENT CASH PRODUCING ASSET Purchase price = A$15M IGO’s Net Profit to date = A$156M
Slide 13: Long Nickel Mine (IGO 100%)
LONG NICKEL MINE (IGO 100%) HISTORY: ♦ Starting Reserve = 26,800Ni t ♦ Production to date = +34,000Ni t ♦ June 2006 Reserve = 46,800Ni t GOALS: ♦ Sustainable 9,000t Ni pa in bottom 3rd of world-wide nickel production cash costs. ♦ New Reserves to increase mine life and possibly increase production r
Slide 14: Production History
PRODUCTION HISTORY Operator Period tonnes % Ni Ni tonnes WMC 1979-1999 5.43 million 3.7 203,184 IGO Oct 02 – Mar 07 0.88 million 3.9 34,060
Slide 15: Quarterly Cash Costs & Receivables
QUARTERLY CASH COSTS & RECEIVABLES
Slide 16: Nickel Hedging
NICKEL HEDGING Payable Metal June 07 Qtr 450 Ni t @ A $17,835 2007/8 2400 Ni t @ A $17,670 2008/9 2400 Ni t @ A $18,489
Slide 17: Long Mine & Reserves Longitudinal Projection
LONG MINE & RESERVES LONGITUDINAL PROJECTION June 2006 Ore Resource: 1,367,000t @ 5.6% Ni (76,700t Ni) Ore Reserve: 1,114,000t @ 4.2% Ni (46,800t Ni)
Slide 18: Long Mine Exploration Targets Longitudinal Projection
LONG MINE EXPLORATION TARGETS LONGITUDINAL PROJECTION LONG LAVA CHANNEL VICTOR LAVA CHANNEL Long South: targeting >100,000t Ni McLeay South: targeting +50,000t Ni Long North: targeting >100,000t Ni Gibb North: targeting +20,000t Ni 2006/7 LONG MINE EXPLORATION BUDGET = $6M
Slide 19: Mine Geophysics
MINE GEOPHYSICS High powered TEM 3 component transmitter – 10 x more underground TEM powerful than current system developed by Independence systems / Curtin University in development by Independence / Curtin Down hole Mag TEM University probe developed by Electromagnetic Imaging Technology (EMIT)
Slide 20: Long South Exploration Significant Drill Intercepts
LONG SOUTH EXPLORATION SIGNIFICANT DRILL INTERCEPTS
Slide 21: McLeay Shoot 1 – Open to South
y | | McLEAY SHOOT 1 — OPEN TO SOUTH GOLDFIELDS ROYALTYAREA | 100% 0 iz Indic ated Resourced rea ; ~ 1 Inferred Resource Area defined by == = J downhole TEM geophysical surveys TE} Porphyry bd Drill hole Drill hole wi downhol gl — é\ hot truswanns we comnnhole, | x . SHOOT 1 . SHOOT 1 Extension Indi
Slide 22: McLeay Shoot 2 – Open to South
nm | McLEAY SHOOT 2 - OPEN TO SOUTH GOLDFIELDS | 100% IGO ROYALTY AREA ol. Z LC] Indic ated Resourced rea j 1 Inferred Resource Area defined by == = J downhole TEM geophysical surv eys [J Porphyry * Drill h ole Drill hde widths are down hole, not true width Drill drive To Victor South SHOOT 2 SHOOT
Slide 23: Long North & Gibb North Targets
LONG NORTH & GIBB NORTH TARGETS ♦ Exploration to commence when legal documentation from BHPB finalised. ♦ Surface & underground geophysics and drilling planned
Slide 24: Regional Exploration Strategy
REGIONAL EXPLORATION STRATEGY Discovering new, high profit mines by - ♦ Technical Innovation • Development of geophysical tools to see “under cover” • In-house structural and metallogenic targeting techniques • Database licensing and evaluation ♦ Unlocking value in established and emerging belts • A
Slide 25: IGO Gold Exploration Projects
IGO GOLD EXPLORATION PROJECTS 2006/7 REGIONAL GOLD EXPLORATION BUDGET = $2.5M
Slide 26: Tropicana Joint Venture (IGO 30%)
TROPICANA JOINT VENTURE (IGO 30%) NEW GOLD PROVINCE IGO’S FUTURE CASH GENERATOR AngloGold Ashanti – 70% (Manager)
Slide 27: Tropicana Gold JV (IGO 30%)
TROPICANA GOLD JV (IGO 30%) \ | LAVERTON 423° / LEONORA \ A TROPICANA JV \ \\ Kanowna Kum an a ee ! KALGOORLIE BOULDER Kambd da \ { AngloGold Ashanti 70% Manager \ IGO 30% free carried to ~ completion of pre-feasibility yh. MICA
Slide 28: Tropicana Gold JV Discovery History
TROPICANA GOLD JV (IGO 30%) DISCOVERY HISTORY WMC 1997/8 open file surface gold geochemical anomalies – never drill tested
Slide 29: Tropicana Prospect Gram x Metre Contours
TROPICANA PROSPECT GRAM x METRE CONTOURS (IGO 30%)
Slide 30: Tropicana Zone Cross-Section
TROPICANA ZONE CROSS-SECTION (IGO 30%)
Slide 31: Havana Zone Cross-Section
HAVANA ZONE CROSS-SECTION (IGO 30%)
Slide 32: Tropicana Prospect Potential Extensions
TROPICANA PROSPECT POTENTIAL EXTENSIONS
Slide 33: Tropicana JV Southern Auger Anomalies
TROPICANA JV SOUTHERN AUGER ANOMALIES
Slide 34: Dalwallinu Project Pithara Prospect (IGO 100%)
DALWALLINU PROJECT PITHARA PROSPECT (IGO 100%) Cross-sections 25m apart
Slide 35: Dalwallinu Project Regional Project Area
DALWALLINU PROJECT REGIONAL PROJECT AREA (IGO 100%)
Slide 36: Coomberdale Project Gold Anomalies
COOMBERDALE PROJECT GOLD ANOMALIES (IGO 100%)
Slide 37: IGO Nickel Exploration Projects
IGO NICKEL EXPLORATION PROJECTS 2006/7 REGIONAL NICKEL EXPLORATION BUDGET = $3.5M
Slide 38: Exploration Geophysics
EXPLORATION GEOPHYSICS High power TEM transmitter truck developed in conjunction with Curtin University Squid TEM sensor Photo courtesy of Anglo American
Slide 39: Lake Lefroy Joint Ventures
5 PALI oe ' ‘ : . so) ¥ me aa J hh N ADA = Man : coal : ) , . . . i he ‘ ® * . } JOINT VENTURES Gladiator’ IGO ‘ \ é ' TO! Anglogold/IGO Excalibur/iGO oO YarmanaIG O @ IGO SQUIDTEM anomaly © Major Nickel Mine
Slide 40: North-Eastern Goldfields Nickel Projects
NORTH-EASTERN GOLDFIELDS NICKEL PROJECTS
Slide 41: Wiluna JV (IGO earning 51-70%)
WILUNA WILUNA JV JV (IGO (IGO earning earning 51-70%) 51-70%) JV Partner: Agincourt
Slide 42: Wiluna JV – Bodkin Prospect
WILUNA JV – BODKIN PROSPECT (IGO earning 51-70%)
Slide 43: North-Eastern Goldfields Nickel Projects
NORTH-EASTERN GOLDFIELDS NICKEL PROJECTS
Slide 44: Copper Nickel Gossan – Duketon JV
COPPER NICKEL GOSSAN - DUKETON JV (IGO earning 70%) Nickel sulphide gossan rock chips with up to 2.3% Cu, 0.9% Ni, 0.7g/t Pt, 0.7g/t Pd, 0.4g/t Au Primary nickel sulphide JV Partner: South Boulder
Slide 45: Duketon JV – Bulge Nickel Prospect
DUKETON DUKETON JV JV –– BULGE BULGE NICKEL NICKEL PROSPECT PROSPECT (IGO (IGO earning earning 70%) 70%) JV Partner: South Boulder
Slide 46: Ravensthorpe JV (IGO earning 51-70%)
RAVENSTHORPE JV (IGO earning 51-70%) Regional Air Magnetics JV Partner: Traka
Slide 47: IGO Nickel Exploration Projects
IGO NICKEL EXPLORATION PROJECTS
Slide 48: Storbodsund Nickel JV (IGO earning 70%)
STORBODSUND NICKEL JV (IGO earning 70%) JV Partner: Mawson Resources
Slide 49: Independence Corporate Goals
INDEPENDENCE CORPORATE GOALS To increase shareholder wealth by becoming a highly profitable, mid-cap, multi commodity Australian mining company ♦ Focus on cash flow, earnings per share, dividends resulting in increased share price and market capitalisation. ♦ Growth through exploration and possible
Slide 50: IGO Looking Forward
IGO LOOKING FORWARD Targeting +A$100M profit per annum FINANCIAL YEAR 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Long Nickel Mine IGO 100% ? ? ? ? ? ? 9000 Ni tonnes pa Existing Reserves McLeay New Discoveries Extensions Tropicana Gold Project – IGO 30% ? ? ? ? ? ? ? ? Resource drilling
Independence Group NL — Investor Presentation (April 2007) on 6ix