Igo Limited · ASX:IGO

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

33 slides from Igo's investor presentation, Aug 4, 2014

  1. Slide 1: Investor Presentation August 2014

    For personal use only Investor Presentation August 2014

  2. Slide 2: Disclaimer

    Disclaimer This presentation has been prepared by Independence Group NL (“IGO”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in For personal use only IGO or as an inducement to make an offer or invitation with respect to those securities in any j

  3. Slide 3: Presentation Outline

    Presentation Outline  Introduction to Independence For personal use only  FY14 Financials  Operations • Tropicana • Long • Jaguar  Exploration and Development  Going Forward  Summary Page 3

  4. Slide 4: Introduction to Independence

    Introduction to Independence  Listed on the ASX For personal use only • Head Office in Perth  234.3M shares on issue • $1.1 billion market capitalisation(1)  Multi-commodity focus • Three operating mines • Producing Au, Ni, Zn and Cu  Strong brownfields exploration focus • Powered by innovation

  5. Slide 5: FY14 Financials

    FY14 Financials Highlights Jun 14 Qtr FY14 For personal use only Unaudited Profit after tax(1) $4.1M $46.2M Unaudited Underlying EBITDA(2) $55.0M $174.8M Net Cash Flow From Operating Activities $55.8M $160.2M Interim Dividend Paid 28 March 2014 - 3.0 cps Cash (as at 30 June 2014) $57.0M Debt (as at

  6. Slide 6: Tropicana JV

    Tropicana JV  30% IGO and 70% AngloGold Ashanti For personal use only • AngloGold Ashanti are the managers  First gold poured in September 2013  At nameplate capacity since March 2014  Tropicana Vital Statistics: • 5.8 Mtpa Plant Throughput with potential to optimise • 11 Year Mine life • Years

  7. Slide 7: Tropicana – June Quarter

    Tropicana – June Quarter Tropicana Statistics(1) For personal use only Units Jun 14 Qtr FY14 Mining Total material Mt 12 44 ROM Ore (>0.6g/t Au) Mt 1.8 7.1 ROM Ore Grade g/t Au 2.48 2.21 Processing Ore milled Mt 1.5 4.1 Milled grade g/t Au 3.00 3.02 Recovery % 89.2 89.5 Gold Produced oz 132,844 348,

  8. Slide 8: Tropicana JV

    Tropicana JV For personal use only Reference IGO ASX Release 28/02/2014 Mineral Resources and Ore Reserve Estimates for Tropicana Gold Project Page 8

  9. Slide 9: Tropicana JV Exploration

    Tropicana JV Exploration  Tropicana Deeps For personal use only • 3D Seismic survey to map high grade shoots down plunge from pits  Near Mine Exploration • Near mine targets identified in prospective host stratigraphy • Under cover and largely untested by RC or Diamond drilling  Regional Explorat

  10. Slide 10: Long

    Long  12yrs of consistent low cost production For personal use only  History of reserve replacement  Long Vital Statistics: • Mining rate 230,000 to 270,000tpa • 3-4 Year Mine Life based on Reserves 3,000 $6.00 2,500 $5.00 Cash Costs ($/lb Ni) Contained Nickel (t) 2,000 $4.00 1,500 $3.00 Containe

  11. Slide 11: Long – June Quarter

    Long – June Quarter For personal use only Long Statistics(1) Units Jun 14 Qtr FY14 Development Operational m 425 1,520 Capitalized m 301 1,264 Mining Ore Mined kt 60.3 268.2 Grade % Ni 4.25 4.07 Contained Nickel t 2,564 10,909 Payable Nickel t 1,550 6,589 Operating Costs Cash Costs (contained Ni bas

  12. Slide 12: Long Exploration

    Long Exploration For personal use only Reference: IGO ASX Release 28/07/2014 Independence Group Quarterly Activities Report Page 12

  13. Slide 13: Jaguar

    Jaguar  For personal use only Production 100% from Bentley Deposit  Jaguar Vital Statistics: • Annual mining rate 420,000 to 460,000t • ~3 Year Mine Life based on Reserves 14,000 $0.70 12,000 $0.60 Cash Costs ($/lb Zn) Contained Metal (t) 10,000 $0.50 8,000 $0.40 Zinc (t) 6,000 $0.30 Copper (t) Zi

  14. Slide 14: Jaguar – June Quarter

    Jaguar – June Quarter Jaguar Statistics(1) Units Jun 14 Qtr FY14 For personal use only Development Operational m 232 1,236 Capitalised m 539 1,730 Mining Ore Mined kt 103.8 431.4 Processing Ore Milled kt 130.2 441.9 Grade % Zn 11.1 10.7 Grade % Cu 2.04 1.97 Zinc Produced t 12,611 41,162 Copper Produ

  15. Slide 15: Jaguar - Bentley Mine

    Jaguar - Bentley Mine For personal use only Page 15

  16. Slide 16: Jaguar - Flying Spur

    Jaguar - Flying Spur For personal use only Reference: IGO ASX Release 28/07/2014 Independence Group Quarterly Activities Report Page 16

  17. Slide 17: Jaguar - Near Mine Exploration

    Jaguar - Near Mine Exploration For personal use only  Under-explored 50km long prospective Cu-Zn-Ag VMS corridor surrounding three known mines  Ten Cu-Zn-Ag alteration anomalies under cover being systematically tested Page 17

  18. Slide 18: Jaguar - Triumph

    Jaguar - Triumph For personal use only Reference: IGO ASX Release 28/07/2014 Independence Group Quarterly Activities Report Page 18

  19. Slide 19: 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

  20. Slide 20: Exploration & Development

    Exploration & Development  Skilled and experienced team For personal use only  History of technical innovation • Geophysics • Geochemistry • Proprietary Databases • Generative R&D  Commodity focus: gold and base metals  Existing portfolio predominantly early stage projects • Targeting opportunit

  21. Slide 21: Stockman Project (VIC)

    Stockman Project (VIC)  Located 460km by road NE of Melbourne For personal use only  Zn-Cu-Au-Ag VMS • Feasibility study completed 2013 • Enhanced study targeting a 30% capital reduction well progressed  9 year mine life based on Ore Reserves • Average 15Ktpa Cu and 25Ktpa Zn in concentrate  Exp

  22. Slide 22: Lake Mackay JV (NT)

    Lake Mackay JV (NT)  Earn in JV For personal use only • IGO earning 70% • Partner - ABM Resources NL  Location & Tenure • Southern NT on WA border • Large tenure (7,200 km2 with a further 5,000 km2 under application)  Strategy • Large under-explored Tanami aged province • Targeting Tanami style A

  23. Slide 23: Bryah Basin JV (WA)

    Bryah Basin JV (WA)  Earn in JV For personal use only • IGO earning up to 80% from Alchemy Resources  Location & Tenure • Murchison, WA • 300 km2 land holding  Strategy • Targeting De Grussa style Cu- Au deposits • Limited historical VMS exploration • Utilise in-house VMS expertise  Status • Gro

  24. Slide 24: Going forward

    Going forward  For personal use only Continued focus on operating assets • Safety, productivity and cost control • Delivery against plan and guidance • Near mine exploration to expand resources and reserves  Exploration and development • Exploration to be a key component of the business • Targetin

  25. Slide 25: FY15 Guidance

    FY15 Guidance(1)(2)  Tropicana For personal use only • 6Mt of ore milled for gold production of 141,000 to 147,000oz (IGO 30% share) at an average cash cost of $590 to $630/oz Au • Sustaining capex and exploration (IGO 30% share) of $12M and $6M respectively  Long • 230-270kt of ore mined for prod

  26. Slide 26: Summary

    Summary  Business is in good shape For personal use only  Strong quarter and strong FY14 • History of consistent, low cost production  Strengthening balance sheet • Net cash of $28.0M at 30 June 2014  History of dividends at 25-30% of NPAT  Need for investment to sustain and grow the business •

  27. Slide 27: 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

  28. Slide 28: Resources & Reserves – Competent Persons Statements

    Resources & Reserves For personal use only Competent Persons Statements 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

  29. Slide 29: Resources & Reserves – Tropicana JV

    Resources & Reserves TROPICANA JV For personal use only Mineral Resource 31 December 2013 Ore Reserve 31 December 2013 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 28.6 2.06 1.89 OPEN PIT Indicated 74.0

  30. Slide 30: Resources & Reserves – Long

    Resources & Reserves LONG For personal use only Mineral Resources 30 June 2013 Ore Reserves 30 June 2013 Classification Tonnes Ni% Ni Tonnes Classification Tonnes Ni% Ni Tonnes LONG Measured 61,000 5.4 3,300 LONG Proven 45,000 3.1 1,400 Indicated 213,000 5.2 11,100 Probable 66,000 2.9 1,900 Inferred

  31. Slide 31: Resources & Reserves – Jaguar

    Resources & Reserves For personal use only JAGUAR Mineral Resources 30 June 2013 Ore Reserves 30 June 2013 Classification Tonnes Cu% Zn% Ag g/t Au g/t Classification Tonnes Cu% Zn% Ag g/t Au g/t JAGUAR Measured 264,000 2.4 3.4 47 - JAGUAR Indicated 181,000 1.8 2.0 28 - Proven 20,000 1.7 0.4 15 - Inf

  32. Slide 32: Resources & Reserves – Stockman Project

    Resources & Reserves STOCKMAN PROJECT For personal use only Mineral Resources 30 June 2011 STOCKMAN Mineral Resources 30 June 2013 Ore Reserves 30 June 2013 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 Indicated

  33. Slide 33: Hedging Summary

    Hedging Summary Hedging as at 30 June 2014 For personal use only  Nickel • FY15: 200t/mth averaging $18,128/t Ni  Copper • FY15 Q1: 550t at $8,014/t Cu in September • FY15 Q3: 400t at $8,502/t Cu in March • FY15 Q4: 550t at $8,500/t Cu in June  Gold • FY15 Q1 & Q2: 5,500oz/mth zero cost collars (

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