Igo Limited · ASX:IGO
Igo — Independence Group NL — UBS Australasia Conference 2015
35 slides from Igo's conference presentation, Nov 16, 2015
Slide 1: UBS Australasia Conference – Initiating Change Today
INDEPENDENCE GROUP NL Peter Bradford, Managing Director and CEO For personal use only UBS Australasia Conference – Initiating Change Today 16 November 2015
Slide 2: Cautionary statements & disclaimer
Cautionary statements & disclaimer For personal use only • 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 or purchase any securities in IGO or as an inducement to make an offer or invit
Slide 3: Program
Initiating Change Today Program For personal use only Introduction Who we are and what we do Tropicana How we are evolving the next WA gold mining legend Jaguar Investing in productivity improvements and extension to mine life Long Changing cost structures to remain competitive at lower nickel price
Slide 4: IGO introduction
IGO introduction Leading Australian diversified mining company For personal use only Listed on the ASX (IGO) • Based in Perth, Western Australia Portfolio of high margin assets • All proximally located in West Australia • Nickel, Gold, Zinc, Copper, Cobalt Consistent track record and future • Strong
Slide 5: Clear company building strategy
Clear company building strategy Diversified focus across gold and base metals reduces shocks to the business from single commodity exposure For personal use only Diversified High margin Long mine Low risk Superior portfolio assets life assets jurisdiction returns 5
Slide 6: Recent financial results
Recent financial results Track record of consistent delivery For personal use only Great year in FY15 with strong growth 600 in all financial metrics • $499M revenue Revenue ($M) 500 • $213M underlying EBITDA Operating Cash Flow ($M) • $116M Free cash flow • $26M Dividends paid 400 Continued strong
Slide 7: Sustainability
Sustainability First Sustainability Report now available at www.igo.com.au For personal use only 14 42 12 12 Mthly Rolling TRIF (RHS) 36 12 Mthly Rolling LTIF (LHS) 10 30 8 24 6 18 4 12 2 6 0 0 Oct 13 Jan 14 Apr 14 Jul 14 Oct 14 Jan 15 Apr 15 Jul 15 1) LTIF is lost time injury frequency rate express
Slide 8: IGO asset portfolio
IGO asset portfolio Portfolio of gold and base metals assets For personal use only Mining Construction Permitting Exploration Au Ni Zn/Cu Ni/Cu Cu/Zn TROPICANA LONG JAGUAR NOVA STOCKMAN VARIOUS 30% JV Interest 100% owned 100% owned 100% owned 100% owned 70-100% West Australia West Australia West Aus
Slide 9: Tropicana overview
Tropicana overview One of Australia’s lowest cost, open pit gold mines of scale For personal use only 30% IGO and 70% AngloGold Ashanti • Located 370km East NE of Kalgoorlie Low cost and long mine life • 3 Moz Ore Reserves(1) contained within 7 Moz Resources(1) • Open Pit mining with remaining LOM s
Slide 10: Tropicana pits
Tropicana pits Four contiguous pits extending over a five kilometre strike For personal use only 10
Slide 11: Tropicana one millionth ounce
Tropicana one millionth ounce Plenty more where that came from For personal use only 11
Slide 12: Tropicana upside
Tropicana upside Significant potential to extend mine life beyond initial 10 years For personal use only Process plant debottlenecking ongoing • Throughput rates of up to 6.6 Mtpa achieved on a monthly basis • Work underway to debottleneck to +7.0 Mtpa at Life of Mine grade of ~2 g/t Au • Expect to
Slide 13: Jaguar overview
Jaguar overview High grade Zn-Cu VMS camp For personal use only High grade underground Zn-Cu-Ag-Au VMS deposit • Located 300km north of Kalgoorlie via sealed road • Fly in – fly out from Perth Significant improvement in operation over last 1-2 years • Acquired by IGO in 2011 • Owner operated undergr
Slide 14: Jaguar in-mine resource extension
Jaguar in-mine resource extension Currently drilling out inferred resource at Flying Spur For personal use only 14
Slide 15: Long overview
Long overview History of consistent production and reserve replacement For personal use only High grade underground nickel • Located in Kambalda, 60km south of Kalgoorlie 35 year operating history • Acquired by IGO in 2002 • Average grade project to date of 3.8% Ni • Owner operated underground minin
Slide 16: Long resource extension
Long resource extension Targeting extensions within lava channel to south For personal use only Moran South • Identified 320m x 60m wide mineralised zone • Best intersection 5.4m @ 12.4% Ni • Infill drilling underway to establish an inferred resource • Pushing drill drive further south to be able to
Slide 17: Nova overview
Nova overview World class, fully funded magmatic nickel-copper project in construction For personal use only Proximal to infrastructure • Located in highly prospective Fraser Range • Located 350 km SE of Kalgoorlie, WA • 350km from port of Esperance, WA • Acquired by IGO in 2015(1) Project timeline
Slide 18: Nova: a world class project
Nova: a world class project Orebody shape, grade and mineralogy underpin low cost profile For personal use only High Grade • Resource: 14.3Mt @ 2.3% Ni and 0.9% Cu • Reserve: 13.1Mt @ 2.0% Ni and 0.8% Cu Flat lying, thick orebody shape • High nickel tonnes per vertical metre • Translates to lower un
Slide 19: Nova Project design
Nova Project design Tried and tested underground mining and processing methods For personal use only Underground mining • Contract mining, initial 3-year term, with Barminco • Conventional longhole stoping with decline haulage Processing plant • 1.5Mtpa • Conventional flowsheet of crushing, grinding
Slide 20: Nova construction on schedule
Nova construction on schedule Work progressing on time and on budget with critical path items currently ahead of schedule For personal use only 2015 2016 2017 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Underground Boxcut excava
Slide 21: Nova Project progress
Nova Project progress Fully financed, in construction, on schedule and on budget For personal use only Overall • Significant progress made during quarter and project now physically +44% complete • +$120M capex expended to date in line with project “S” curve • Project remains on track for commissioni
Slide 22: Nova Project photos
Nova Project photos Infrastructure development well progressed For personal use only Accommodation village, airstrip and access road Life of mine tails dam Airstrip HV power take off Access road 22
Slide 23: Nova Project photos
Nova Project photos Underground development currently eight weeks ahead of schedule For personal use only Fresh air fan Fresh air raise bore Portal First U/G sub-station Decline 23
Slide 24: Nova Project photos
Nova Project photos Process plant currently two weeks ahead of schedule For personal use only Crusher pedestal and first steelwork Flotation circuit foundations SAG & Ball mill pedestals Concentrate shed civil works 24
Slide 25: Optimisation study
Optimisation study Focus on accelerating ramp-up and bringing value forward For personal use only Optimisation study currently underway • Scheduled to be completed in December 2015 • Designed to optimise the project on a Present Value & project return basis Key value drivers being captured by the op
Slide 26: Greenfields exploration
Greenfields exploration Long term commitment to delivering organic growth For personal use only Andrew Young Intrusive Focus on belt scale opportunities Complex – Lake Mackay • Utilising science to drive area selection • Targeting provinces that can deliver multiple gold and base metals projects • F
Slide 27: Fraser Range – Tropicana belt
Fraser Range – Tropicana belt A highly fertile – under explored province For personal use only Fraser Range – Tropicana belt • Hosts two of Australia’s best recent discoveries, IGO holds interests in both • Belt is under-explored • IGO positioned to be dominant player Salt Creek • East of Tropicana
Slide 28: Concluding comments
Concluding comments Diversified mining company delivering cash flow and growth For personal use only Dual focus, existing operations to maximise cash flow • All mines delivering broadly in line with guidance range • Renewed focus on maximising productivity and cost reductions • Brownfields explorati
Slide 29: Follow us as we go from strength to strength
FOLLOW US AS WE GO FROM STRENGTH TO STRENGTH igO.com.au FOr Perso
Slide 30: Mineral resource & ore reserve – Competent Persons Statements
Mineral resource & ore reserve Competent Persons Statements For personal use only 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
Slide 31: Mineral resource & ore reserve – Tropicana Operation
Mineral resource & ore reserve Tropicana Operation Mineral Resource 30 June 2015 Ore Reserve 30 June 2015 For personal use only 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 12.8 2.09 0.86 OPEN PIT Proved
Slide 32: Mineral resource & ore reserve – Long Operation
Mineral resource & ore reserve Long Operation For personal use only Mineral Resource 30 June 2015 Ore Reserve 30 June 2015 Classification Tonnes Ni% Ni Tonnes Classification Tonnes Ni% Ni Tonnes LONG Measured 65,000 5.4 3,500 LONG Proved 28,000 3.6 1,000 Indicated 287,000 5.1 14,600 Probable 94,000
Slide 33: Mineral resource & ore reserve – Jaguar Operation
Mineral resource & ore reserve Jaguar Operation For personal use only Mineral Resource 30 June 2015 Ore Reserve 30 June 2015 Classification Tonnes Cu% Zn% Ag g/t Au g/t Classification Tonnes Cu% Zn% Ag g/t Au g/t BENTLEY Measured 529,000 2.1 11.5 159 0.8 BENTLEY Proved 323,000 2.0 10.8 155 0.8 Indic
Slide 34: Mineral resource & ore reserve – Nova Project
Mineral resource & ore reserve Nova Project For personal use only Mineral Resource 30 June 2015 Ore Reserve 30 June 2015 Classification Tonnes (Mt) Ni% Cu% Co% Ni Kt Cu Kt Co Kt Classification Tonnes (Mt) Ni% Cu% Co% Ni Kt Cu Kt Co Kt NOVA Measured - - - - - - - NOVA Proved - - - - - - - Indicated 9
Slide 35: Mineral resource & ore reserve – Stockman Project
Mineral resource & ore reserve Stockman Project For personal use only Mineral Resource 30 June 2015 Ore Reserve 30 June 2015 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 Proved - - - - - Indicated 9.5 2.0 4.2 42
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