Slide 1: 2Q21 and 1H21 Results Presentation
IGO Limited 2Q21 and 1H21 Results Presentation 28 January 2021
Slide 2: 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 inducement to make an offer or invitation with respect to those secu
Slide 3: Competent Person’s Statements
Competent Person’s Statements • Any references to IGO Mineral Resource and Ore Reserve estimates should be read in conjunction with IGO’s Annual Update of Exploration Results, Mineral Resources and Ore Reserves dated 30 January 2020 (Annual Statement) and lodged with the ASX for which Competent Pers
Slide 4: Safety
Safety Encouraging improvement in key metrics Total Reportable Injury Frequency (TRepIF)1 and Serious Potential Incident Frequency (SPIF)2 18 6 17 5 16 15 4 14 13 3 12 2 11 10 1 9 8 0 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 TRepIFR (lhs) SPIFR (rhs) Notes: (1) 12 month moving
Slide 5: 2Q21 Highlights
2Q21 FY19Highlights and 4Q19 Highlights Delivering strong operational performance and growth Nova Tropicana Growth Production in line with Strong performance as Transformational guidance; costs lower QoQ Strategic Review continues investment in lithium joint venture with Tianqi Exploration Sustainab
Slide 6: 2Q21 & 1H21 Financial Results
2Q21 & 1H21 Financial Results Consistent operating performance delivers robust financials Units 1Q21 2Q21 QoQ 1H20 1H21 HoH Revenue and Other Income A$M 226.6 235.9 ▲4% 474.7 462.5 ▼3% Underlying EBITDA1 A$M 121.4 120.9 - 270.7 242.3 ▼10% Net Profit After Tax (NPAT) A$M 45.4 8.8 ▼81% 100.1 54.2 ▼45%
Slide 7: 2Q21 Cash Flow Reconciliation
2Q21 Cash Flow Reconciliation Increase in QoQ cash flow from both Nova and Tropicana Tianqi Transaction A$M 1,400 93 1,200 28 1,000 696 800 600 32 18 8 4 2 103 1,186 400 509 200 - Cash at Nova FCF Tropicana FCF Exploration & Payments for Corporate and Lease Proceeds from Funds in Effect of Cash at 3
Slide 8: 2Q21 NPAT Reconciliation
2Q21 NPAT Reconciliation Tianqi related foreign exchange losses impacted NPAT A$M 60 1 4 4 Forex losses related 2 to Tianqi transaction 50 10 14 40 7 30 45 20 39 10 12 9 - (10) 1Q21 NPAT Nova Tropicana Exploration & Corporate & Acquisition & Mark-to- D&A Foreign Tax 2Q21 NPAT EBITDA EBITDA Evaluatio
Slide 9: 1H21 Segment Financial Results
1H21 Segment Financial Results Consistent operating performance delivers robust financials Operation Metric 1H20 1H21 Inc/(Dec) Revenue 317.3 312.2 ▼ 2% Nova Underlying EBITDA1 206.8 194.6 ▼ 6% Free Cash Flow2 206.2 193.8 ▼ 6% Revenue 154.3 148.8 ▼ 4% Tropicana Underlying EBITDA1 98.2 83.5 ▼ 15% Fre
Slide 10: Nova
Nova 10
Slide 11: Nova: Production and cost performance in line with FY21 guidance
Nova Production and cost performance in line with FY21 guidance Metric Units 1Q21 2Q21 1H21 Pro-rata Guidance1 Nickel in concentrate t 7,276 7,024 14,300 13,500 – 14,500 Copper in concentrate t 3,278 3,171 6,449 5,500 – 6,250 Cobalt in concentrate t 278 266 544 425 – 475 Cash cost (payable) A$/Ib Ni
Slide 12: Nova Production
Nova Production Consistent operational performance enhanced by nickel price tailwinds Nova Production & Cash Costs Nova Financial Summary Tonnes A$/lb 9,000 $3.00 Metric Units 1Q21 2Q21 1H21 $2.70 8,000 Revenue and other income A$M 153.6 158.6 312.2 $2.25 $2.50 7,000 $1.96 $2.10 Underlying EBITDA A$
Slide 13: Tropicana
AW. ANGLOGOLDASHANTI BOSTON SHAKER DECLINE fea, MAY 2019 .
Slide 14: Tropicana
Tropicana Solid performance as high grade underground ore improves milled grades Metric Units 1Q21 2Q21 1H21 Pro-rata Guidance1 Gold produced (100%) oz 107,060 112,050 219,110 190,000 – 215,000 Gold Sold (IGO 30%) oz 31,359 34,230 65,589 57,000 – 64,500 Cash cost A$/oz 947 1,023 986 1,040 – 1,120 AI
Slide 15: Tropicana
Tropicana 1H21 gold production ahead of pro-rata guidance, 2H21 forecast to be lower Tropicana Production (100% ) and AISC Tropicana Financial Summary oz A$/oz 120,000 $1,800 Metric Units 1Q21 2Q21 1H21 $1,537 $1,527 $1,440 $1,600 Revenue and other income A$M 72.3 76.5 148.8 100,000 $1,303 $1,400 Un
Slide 16: Exploration
Exploration 16
Slide 17: Exploration Strategy
Exploration Strategy Focused on unlocking transformational value and sustainable growth Targeting high value nickel and copper deposits – aligned to clean energy metals strategy Utilising best in class generative geoscience and geophysics Belt-scale land packages acquired through open-file applicati
Slide 18: 2Q21 Highlights
2Q21 Highlights Primary focus has been on Near Nova, Fraser Range and Paterson Projects Near Nova Fraser Range Project Paterson Project Orion and Double Dipper Copernicus Metals X JV Positive results from surface Defined ‘chonolith’ intrusion First comprehensive technical drilling identified 8km sou
Slide 19: Transformational Investment in Lithium Joint Venture
Transformational Investment in Lithium Joint Venture Greenbushs Project 19
Slide 20: Transformational Investment
Transformational Investment Creation of a global, vertically integrated lithium partnership with Tianqi1 IGO to acquire an indirect 25% interest in Greenbushes2 and a 49% interest in Tianqi’s Kwinana Lithium Hydroxide Refinery, both located in WA US$1.4bn purchase price to be paid at completion3, ex
Slide 21: Exposure to world class assets
Exposure to world class assets Delivering quality, scale, long mine life, solid ESG credentials and alignment to clean energy Greenbushes Kwinana World’s lowest cost and highest grade hard First fully automated LiOH plant rock lithium mine1 Greenbushes CGP2 Kwinana LiOH Plant Notes: (1) CRU Consulti
Slide 22: Transaction Highlights
Transaction Highlights A transformative, compelling and on-strategy acquisition for IGO 1 2 Quality, long-term sustainable assets with Strong near-term production growth significant growth optionality underpins cash flow generation 3 4 IGO to become unique clean energy Well-timed acquisition in lith
Slide 23: Ownership Structure & Governance
Ownership Structure & Governance Transaction structure designed to deliver value and security for IGO shareholders Pro-forma Ownership Structure IGO participation at: • Lithium HoldCo • Greenbushes Board and; • Lithium HoldCo management 51% 49% 49% 51% Lithium 100% HoldCo1 Robust minority shareholde
Slide 24: Transaction Timeline
Transaction Timeline Key transaction milestones Event Date1 Status Announcement of the acquisition of 49% of Lithium HoldCo 9 December 2020 Complete Launch of equity raising and binding debt documentation signed 9 December 2020 Complete Completion of the placement and institutional entitlement offer
Slide 25: Summary
Summary 25
Slide 26: Concluding Comments
Concluding Comments FY19 and 4Q19 Highlights Consistent operational performance underpins transformational lithium transaction Strong shareholder support for Nova and Tropicana continue to transformational lithium transaction perform strongly with Tianqi Pursuit of organic growth through Tropicana S
Slide 27: We believe in a world where people power makes amazing things happen
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. Our work is making fund