Igo Limited · ASX:IGO
Igo — Independence Group NL — BMO Global Metals & Mining Conference 2016
30 slides from Igo's conference presentation, Feb 29, 2016
Slide 1: Independence Group NL - BMO Global Metals & Mining Conference
INDEPENDENCE GROUP NL For personal use only Peter Bradford, Managing Director and CEO BMO Global Metals & Mining Conference 29 February to 2 March 2016
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: Independence Group Overview
Independence Group Overview Leading Australian diversified mining company For personal use only ASX Listed (IGO) • Based in Perth, Western Australia Diversified portfolio of high margin assets • 3 operating mines and 1 under construction • All located in Western Australia • Gold, Nickel, Zinc, Coppe
Slide 4: Market Profile and Share Ownership
Market Profile and Share Ownership Strong domestic institutional and retail register composition For personal use only Market Profile Share Ownership • $1.4 billion market capitalisation at $2.63/share(1) • Substantial Holders(2) Mark Creasy 18.88% • Share price 52 Week Range FIL Limited 6.84%
Slide 5: Financials: H1 FY16 financial results
Financials H1 FY16 financial results For personal use only Highlights ($’million) H1 FY16 H1 FY15 Revenue 220.2 274.3 Underlying EBITDA(1) 69.6 121.4 Underlying NPAT(1) 13.5 51.0 Net (Loss) Profit After Tax (78.0) 49.5 Net Cash Flow From Operating Activities 48.9 113.9 Free Cash Flow(2) (42.6) 75.3
Slide 6: Sustainability
Sustainability Continued strengthening and improvement across the business For personal use only Sustainability reporting • IGO’s first sustainability report was released in 2015 • IGO is committed to: Implementation and maintenance of ethical business practices Continual improvement in health,
Slide 7: Clear Company Building Strategy
Clear Company Building Strategy Diversification across gold and base metals reduces shocks from single commodity focus For personal use only Diversified High margin Long mine Low risk Superior portfolio assets life assets jurisdiction returns 50% 51% 39% 63% Operating Margin Operating Margin Operati
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
Slide 10: Tropicana H1 FY2016
Tropicana H1 FY2016 Strong operational performance and delivery on growth For personal use only Gold production and costs (IGO share) • 75,584oz gold produced and 76,055oz sold • Cash costs of $625/oz (US$450/oz)(1) produced and AISC of $801/oz (US$577/oz)(1) sold • Realised gold price $1,547/oz (US
Slide 11: Tropicana Pits
Tropicana Pits Four contiguous pits extending over a five kilometre strike For personal use only 11
Slide 12: Conceptual Mining Study
Conceptual Mining Study Potential for larger scale equipment and strip mining approach For personal use only Step 1: Mine starter pit - waste dumped ex-pit Blocks are hauled ex-pit Step 2: Mine strips – shallow waste dumped ex-pit and other waste trucked along ramps in pit wall to dump in-pit Hauled
Slide 13: 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 6.9 Mtpa achieved on a monthly basis • Work underway to debottleneck to +7.0 Mtpa at Life of Mine grade of ~2 g/t Au Resource ext
Slide 14: 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 15: Long H1 FY2016
Long H1 FY2016 Operating discipline delivering gains in difficult price environment For personal use only Production and costs • 4,508t contained nickel produced • Cash costs of $3.97/lb (US$2.86/lb)(1)payable nickel net of by-product credits and royalties • Realised nickel price of $5.49/lb (US$3.9
Slide 16: 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 17: Jaguar H1 FY2016
Jaguar H1 FY2016 On track to meet guidance despite lower H1 copper production For personal use only Production and costs • 20,721t zinc and 2,876t copper produced in concentrates • Cash cost of $0.67/lb (US$0.48/lb)(1) payable zinc net of by-product credits and royalties • Realised zinc price of $1.
Slide 18: Jaguar In-Mine Resource Extension
Jaguar In-Mine Resource Extension Currently drilling out inferred resource at Flying Spur For personal use only 18
Slide 19: Nova Overview
Nova Overview World class, low cost magmatic nickel-copper project For personal use only Fully funded underground nickel-copper project in construction • Located in highly prospective Fraser Range • Located 350km SE of Kalgoorlie, Western Australia • 350km from port of Esperance, Western Australia •
Slide 20: Nova H1 FY2016
Nova H1 FY2016 Fully financed, in construction, on schedule and on budget For personal use only Overall • Continued significant progress made with the project now 68% complete at 31 January 2016 • Project remains on track for commissioning in late 2016 and for production of first concentrates in Dec
Slide 21: Nova Project Progress
Nova Project Progress Construction is progressing ahead of schedule For personal use only Access road Crushing section Power building and switch room Heavy vehicle refuelling facility 21
Slide 22: Nova Mine Layout
Nova Mine Layout Updated mining sequence improved project NPV by 26%(1) For personal use only Portal • Initial stopes extracted on the north- western and south-western margins of Nova • Principal extraction is via Centre-Out mining sequence of Lower Nova • Extraction of Bollinger brought forward wit
Slide 23: Nova Optimisation Study
Nova Optimisation Study Added value - reduced risk - future growth For personal use only Study outcomes • 36% improvement on the Project NPV • 27% reduction in expected C1 cash costs (after by-product credits) in concentrate to $1.21/lb (US$0.87/lb)(2) from $1.66/lb (US$1.20/lb)(2) nickel • 21% decr
Slide 24: Exploration Portfolio
Exploration Portfolio Long term commitment to delivering organic growth For personal use only Diverse greenfields and brownfields exploration projects • Targeting provinces that can deliver multiple gold and base metals projects • Portfolio includes belt scale projects with potential for Tier1 asset
Slide 25: Fraser Range – Tropicana belt
Fraser Range – Tropicana belt Part of a highly fertile – under explored province • Hosts two of Australia’s best recent discoveries, IGO holds interests in both For personal use only • IGO positioned to be dominant player 25
Slide 26: Lake Mackay Greenfields Exploration
Lake Mackay Greenfields Exploration First mover opportunity with potential for scale For personal use only Lake Mackay • 7,200km2 under-explored land package Lake Mackay - Andrew Young Intrusive Complex • Blanket geo-chem targeting gold • Work identified large 7x5km Ni anomaly with 1.6% Ni, 1.6% Co
Slide 27: FY16 Guidance
FY16 Guidance Exploration expenditure guidance lowered for 2016 For personal use only Tropicana (IGO share) • 129,000 to 141,000oz at average cash cost of $640 to $710/oz Au • AISC of $820 to $910/oz Au sold • Sustaining/improvement capex of $14-$16M, stripping capex of $18-$20M and exploration of $
Slide 28: IGO Value Proposition
IGO Value Proposition For personal use only Deliver Nova Project on time and on budget with first production in December 2016 Unlock scale and value at Tropicana throughout 2016 Maintain track record of consistent delivery to meet/beat guidance Focus on triple bottom line 28
Slide 29: Concluding Comments
Concluding Comments Diversified mining company delivering cash flow and growth For personal use only Strong focus on cash management • Market prices for base metals offset within IGO’s diversified portfolio • Tropicana continues to deliver operationally and on growth projects • Nova remains on sched
Slide 30: For personal use only
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