Igo Limited · ASX:IGO
Igo — Independence Group NL — Investor Presentation (June 2012)
41 slides from Igo's investor presentation, June 2012
Slide 1: Independence Group: Growing a Great Australian Mining Company
INDEPENDENCE GROUP GROWING A GREAT AUSTRALIAN MINING COMPANY June 2012 Investor Update 1
Slide 2: Disclaimer
Disclaimer 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 statements of histor
Slide 3: Independence Group Overview - Corporate
Independence Group Overview - Corporate Capital Structure: ASX 200 Code : IGO 232.9M shares Market Cap. (18/06/2012) : A$876M Substantial shareholders: JCP Investment Partners: 13.2% (18 June 2012) NAB: 9.1% Fidelity: 5.2% Treasury Asset Management 5.1% Commonwealth Bank of Australia: 5.1% Financial
Slide 4: IGO Strategy
IGO Strategy Innovation Exploration • Tropicana • Long • Bentley • Karlawinda • De Beers • McLeay • Duketon Discovery • Moran • Karlawinda • Tropicana • Havana • Boston Shaker Develop & Operate Low Cost, • Long Long Life, High Grade Mines • Bentley • Tropicana Earnings Growth & • Total Dividends pai
Slide 5: Mines, Development and Advanced Exploration Projects
Independence Group NL – Mines, Development and Advanced Exploration Projects 5
Slide 6: Tropicana JV Gold Production 2013
Tropicana JV (IGO 30%, AGA 70% Manager) Gold Production 2013 PROJECT UNDER CONSTRUCTION - A New Australian Gold Province 40% Complete at April 2012 First Production estimated December Qtr 2013 IGO Attributable Production Years 1-3^: 141-147,000 oz Au p.a. Cash Costs Years 1-3^: A$580-600/oz Au Curre
Slide 7: Tropicana JV Project Under Construction
Tropicana JV (IGO 30%, AGA 70% Manager) Gold Production 2013 PROJECT UNDER CONSTRUCTION Airstrip Primary Crusher CIL Area Mill Foundations 7
Slide 8: Tropicana JV Upside Studies and Potential
Tropicana JV (IGO 30%) Upside Studies and Potential November 2011 Mineral Resource: 88.3Mt @ 2.3g/t Au = 6.41Moz (A$1,400/oz) June 2011 Open Pit Reserve: 56.4Mt @ 2.2g/t Au = 3.91Moz (A$1,210/oz) Reference – AGA 27/7/11 and 29/11/11 ASX Releases for Resource and Reserve Estimates 8
Slide 9: Tropicana JV Upside Potential to Mine Design
Tropicana JV (IGO 30%) Upside Potential to Mine Design Potential Upside to BFS Pit Designs: • Inclusion of Boston Shaker pit • Underground operations at Havana, Tropicana and Boston Shaker • Joining of pits between Havana and Tropicana • Expanded Pit Shell New Exploration Results: • Havana Deeps: •
Slide 10: Tropicana JV - Havana Open Pit and Underground Potential
Tropicana JV (IGO 30%) - Havana Open Pit and Underground Potential Havana Deeps Underground Havana Potential Open Pit Resource Location Cut-back Reference – AGA 27/7/11 ASX Release for Reserve Estimate and IGO 29/11/11 ASX Release for Open Pit and Havana Deeps Underground Resource Estimates 10
Slide 11: Boston Shaker and Swizzler Significant Intercepts
Tropicana JV (IGO 30%) - Boston Shaker and Swizzler Significant Intercepts Proposed Boston Shaker, Tropicana and Havana Open Pit Outlines, g/t Au x Thickness (m) Contours, Significant Drill Intercepts and Location of the Swizzler and Swizzler Deeps Prospects Drill widths approximate true widths 11
Slide 12: Tropicana JV Significant Discoveries To Date
Tropicana JV (IGO 30%) Significant Discoveries To Date Numerous gold anomalies and potential for other gold discoveries Reference – AGA 27/7/11 and 29/11/11 ASX Releases for Resource and Reserve Estimates 12
Slide 13: Tropicana JV Fly Through
Tropicana JV (IGO 30%) Fly Through 13
Slide 14: Jaguar / Bentley Production Guidance and Target
Jaguar / Bentley Operation (IGO 100%) Production Guidance and Target 2011/12 Production Guidance Metal in concentrate: 7,500 - 8,500t Cu, 15,500 - 16,500t Zn, 0.4 – 0.5M oz Ag 2012/13 Production target Mining 600,000t ore: Jaguar – 120,000t, Bentley – 480,000t HMS feed: 300,000t producing ~150,0
Slide 15: Jaguar / Bentley Production Guidance and Target
Jaguar / Bentley Operation (IGO 100%) Production Guidance and Target • Significant cost and production improvement for the months of March, April & May 2012 • Average throughput of 57 tonnes per day • Achieving consistent production since March 2012 under revised mine plan Jaguar Operations – Mining
Slide 16: Jaguar / Bentley Bentley Deposit
Jaguar / Bentley Operation (IGO 100%) Bentley Deposit June 2011 Resource: 3.0M t @ 2.0% Cu, 9.8% Zn, 139g/t Ag, 0.7g/t Au June 2011 Reserve: 2.45M t @ 1.5% Cu, 8.6% Zn, 106g/t Ag, 0.5g/t Au Drill intercepts are quoted as down hole widths, and not true widths Reference – IGO 20/10/11 Annual Report AS
Slide 17: Jaguar and Far Side Deposits
Jaguar / Bentley Operation (IGO 100%) Jaguar and Far Side Deposits Jaguar – Far Side Deposits cross-section Drill intercepts are quoted as Potential to increase reserves down hole widths, and not true widths Far Side Deposit drill hole Cu grade longitudinal projection 17
Slide 18: Jaguar/Bentley Exploration Model and Potential
Jaguar/Bentley Operation (IGO 100%) Exploration Model and Potential Volcanic Massive Sulphide (VMS) Discovery History & Mineralisation Scale Bentley Resource Golden Grove Gossan Hill discovery history Outline ? ? ? 18
Slide 19: Pumping Station VMS Prospect
Jaguar / Bentley Operation (IGO 100%) Pumping Station VMS Prospect Under explored 50km long prospective Cu-Zn-Ag VMS corridor. Prospectivity around existing 3 mines. 8 Cu-Zn-Ag alteration anomalies under cover being tested systematically. 19
Slide 20: Long Nickel Operation: Largest Ever Ore Reserve and Resource
Long Nickel Operation (IGO 100%) 2002 Purchase price = A$15M IGO Produced 80,609t Ni since acquisition Largest ever Ore Reserve (58,100t Ni) and Resource (83,000t Ni) supporting potential 5+ year mine life based on Reserves. New exploration success in new areas of Moran South, Moran East and Lon
Slide 21: Long Nickel Quarterly Cash Costs and Revenue
Long Nickel Operation (IGO 100%) Quarterly Cash Costs and Revenue History of high operating margins and consistent low cash costs Revenue A$/lb Ni (includes hedging) Payable Cash Costs A$/lb Ni 21
Slide 22: Long Nickel Mine Geophysics - TEM Equipment
Long Nickel Operation (IGO 100%) Mine Geophysics - TEM Equipment Innovative research and development High powered TEM Underground transmitter Down hole TEM **Exclusive to IGO** surveying • 10 x more powerful than current systems. • More accurate drill • Doubles search radius Down hole TEM probe targ
Slide 23: Long Nickel Deposits and Targets - Longitudinal Projection
Long Nickel Operation (IGO 100%) Deposits and Targets - Longitudinal Projection Largest Reserve since IGO reopened the mine (mine life extended to at least 2017) Reference – IGO 20/10/11 Annual Report ASX Release for Resource and Reserve Estimates 23 IGO ASX Release 30 April 2012 Quarterly Report fo
Slide 24: Long Nickel Moran South Nickel Target
Long Nickel Operation (IGO 100%) Moran South Nickel Target New zone of nickel sulphides intersected east of Moran More DHTEM conductors south-east of Moran Drilling in progress 24
Slide 25: Long Nickel Operation Fly Through
Long Nickel Operation (IGO 100%) Fly Through 25
Slide 26: Karlawinda Gold Project Regional Location
Karlawinda Gold Project (IGO 100%) Regional Location Large new gold system close to gas pipeline and existing Newman infrastructure • Maiden Resource*: 219,900 oz Au, upgrade pending • Scoping Study underway with heap leach test work and larger CIL operation options being examined – release expected
Slide 27: Karlawinda Bibra Prospect Gram x Metre Contours
Karlawinda Gold Project (IGO 100%) Bibra Prospect Gram x Metre Contours Reference – IGO 29/04/2011 ASX March 2011 Quarterly Report for Resource estimate and 30/04/2012 ASX March 2012 Quarterly Report for that Quarter’s drill intercepts 27
Slide 28: Karlawinda Bibra Prospect Cross-section
Karlawinda Gold Project (IGO 100%) Bibra Prospect Cross-section Maiden Resource 219,900 oz Au B B’ Drill intercepts are quoted as down hole widths, and not true widths Reference – IGO 31/3/11 ASX Quarterly Report for Resource estimate 28
Slide 29: Karlawinda Francopan Prospect Cross-section
Karlawinda Gold Project (IGO 100%) Francopan Prospect Cross-section Very large gold system Drill intercepts are quoted as down hole widths, and not true widths 29
Slide 30: Project Generation: De Beers Database
Project Generation De Beers Database (IGO 100%) No buy-back or royalties on future mineral discoveries Long term exploration asset to find new Australian mineral camps. 293,000 geochemical samples collected. IGO analysing samples for 57 elements including Ni, Cu, Pb, Zn, Au, Ag, Pt, Pd, Ur, ra
Slide 31: Asset Pipeline and Organic Growth Profile
Asset Pipeline and Organic Growth Profile Combination of low cost cash flows from current operating mines with significant long-life development projects and highly prospective exploration Highly complementary management and technical capabilities, with proven successful track records of exploration
Slide 32: Independence Group Contact Details
Independence Group Contact Details Perth Office Managing Director – Chris Bonwick Suite 4, Level 5 South Shore Centre 85 South Perth Esplanade South Perth, Western Australia 6151 Postal: PO Box 496, South Perth Western Australia 6951 Telephone: +61 8 9238 8300 Facsimile: +61 8 9238 8399 Email: conta
Slide 33: Appendix: Resource and Reserve Statements
Independence Group NL APPENDIX RESOURCE and RESERVE STATEMENTS 33
Slide 34: Long Nickel Mine June 2011 Resources and Reserves
Long Nickel Mine (IGO 100%) June 2011 Resources and Reserves RESOURCES MINING RESERVE Undiluted at 1% Ni Cut-off 1, 2 as at 30 June 2011 as at 30 June 2011 Tonnes Ni % Ni Tonnes Tonnes Ni % Ni Tonnes LONG Measured 26,000 5.6 1,500 LONG Proven Indicated 210,000 4.8 10,100 Probable 127,000 3.0 3,800 I
Slide 35: Tropicana JV Nov 2011 Resources and Jun 2011 Reserves
Tropicana JV (AGA 70% / IGO 30%) Nov 2011 Resources and Jun 2011 Interim Reserves November 2011 June 2011 Project Resources Project Reserves Tonnes Grade Contained Tonnes Grade Contained (Mt) (g/t) 1 Gold (Mt) (g/t) 3 Gold 2 4 (Moz) (Moz) Measured 28.2 2.1 1.95 Proved 25.8 2.3 1.90 Indicated 49.4 2.
Slide 36: Jaguar/Bentley Project Mineral Resource - June 2011
Jaguar/Bentley Project Mineral Resource – June 2011 2.0 - Reference – IGO 20/10/11 Annual Report ASX Release for Resource Estimates 36
Slide 37: Jaguar/Bentley Project Reserve - June 2011
Jaguar/Bentley Project Reserve– 30 June 2011 - Reference – IGO 20/10/11 Annual Report ASX Release for Reserve Estimates 37
Slide 38: Stockman Resource Estimate - June 2011
Stockman Resource Estimate – June 2011 Stockman Classification Tonnes Cu % Zn % Pb % Ag g/t Au g/t Currawong Indicated 9,130,000 2.0 4.2 0.8 42 1.2 Currawong Inferred 305,000 1.4 4.1 0.6 34 0.5 Total Indicated + Inferred 9,435,000 2.0 4.2 0.8 42 1.2 Wilga Indicated 2,368,000 2.1 5.5 0.5 32 0.5* Wilg
Slide 39: Karlawinda Bibra Deposit Maiden Resource Dec 2011
Karlawinda Gold Project – Bibra Deposit Maiden Resource Dec 2011 Tonnes Au Grade Contained Au Mineralisation Type (Mt) (g/t) (oz) Laterite 1.9 1.2 73,300 Upper Saprolite 0.8 1.1 28,300 Lower Saprolite 1.6 1.1 56,600 Sub-total Oxide Inferred 4.3 1.1 158,200 Transition Inferred 1.6 1.2 61,700 Grand To
Slide 40: Duketon Nickel JV Maiden Resource Dec 2011
Duketon Nickel JV– IGO Earning 70% Maiden Resource Dec 2011 Reference – IGO 25/01/2012 ASX Announcement for Resource Estimate 40
Slide 41: Competent Person Statements
Competent Person Statements Notes: The information in this summary presentation that relates to Exploration Results is based on information compiled by Mr Christopher M Bonwick who is a full-time employee of the Company and is a member of the Australasian Institute of Mining and Metallurgy. Mr Bonwi
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