Igo Limited · ASX:IGO
Igo — Independence Group NL — FY2019 Earnings Presentation
16 slides from Igo's earnings presentation, Aug 29, 2019
Slide 1: FY19 Results Presentation
INDEPENDENCE GROUP NL FY19 Results Presentation For personal use only Record financial results driven by outstanding operational performance 29 August 2019 ASX:IGO / ADR:IIDDY
Slide 2: FY19 Highlights
FY19 Highlights Nova and Tropicana operational performance underpins strong result For personal use only Nova metal production Tropicana continued to Focus on exploration & exceeded FY19 production deliver high margin gold downstream processing to guidance production deliver organic growth Record NP
Slide 3: ESG Performance
ESG Performance Parallel focus on non-financial performance, because we care For personal use only High levels of employee engagement and lower turnover rates Community engagement and corporate giving programs delivering tangible benefits Ongoing improvement in lead and lag safety metrics 3
Slide 4: Financial Results Summary
Financial Results Summary Operational outperformance delivered record financial results in FY19 For personal use only Revenue (A$M) Underlying EBITDA(1) (A$M) Net Profit After Tax (A$M) 900 400 100 781 793 800 339 341 76 350 80 700 60 53 300 600 40 250 17 500 417 422 20 200 400 138 151 0 300 150 -20
Slide 5: FY19 Cash Flow
FY19 Cash Flow Nova cash generation drove 151% YoY increase in cash to A$348M For personal use only Cash Flow Reconciliation (A$M) 500 5 58 94 6 10 20 15 17 12 1 400 57 24 300 251 200 348 100 139 - Cash at 30 Nova FCF Tropicana Long FCF Exploration Evaluation Investments Jaguar Stockman Corporate &
Slide 6: FY19 Full Year Dividend
FY19 Full Year Dividend Record return to shareholders For personal use only Dividend History (cents per share) Final Dividend Declared 8c per share (97% franked) 12 10 8 Total FY19 dividend payout 6 8 A$59M – equivalent to 10c/share 4 2 2 1 Revised Shareholder Return Policy(1) 1 1 2 targeting return
Slide 7: Nova Results
Nova Results Strong metal production and high margins in FY19 For personal use only Metal production Nickel Copper Cobalt exceeded in Concentrate in Concentrate in Concentrate guidance 30,708t 13,693t 1,090t ▲38% YoY ▲ 43% YoY ▲ 47% YoY Disciplined Cash Costs AISC FY19 FCF Margin operation delivered
Slide 8: Nova
Nova Strong track record of performance since commencement of commercial production For personal use only Nova Production & Cash Costs Tonnes A$/lb Improving production profile and 9,000 $4.50 reducing cash costs 8,000 $4.00 7,000 $3.50 6,000 $3.00 5,000 $2.50 Free Cash Flow generated since start 4,
Slide 9: Tropicana Results
Tropicana Results High margin gold production continued in FY19 For personal use only Gold Produced (100%) Gold Sold (IGO 30%) Gold production within guidance 518,172oz 154,402oz ▲ 11% YoY ▲ 11% YoY Cash Costs AISC FY19 EBITDA Margin Lower YoY cash costs delivering high A$680/oz A$951/oz 62% margins
Slide 10: Tropicana
Tropicana Consistent performance from Tropicana continued in FY19 For personal use only Tropicana Production (100%) and AISC oz A$/oz Track record of consistent production 160,000 $1,400 and cost performance 140,000 $1,200 120,000 $1,000 100,000 Second ball mill successfully $800 80,000 commissioned
Slide 11: Production & Cost Guidance
Production & Cost Guidance(1) FY20 forecast to be another solid year from Nova and Tropicana For personal use only Nova Tropicana Metric Units FY20 Guidance Metric Units FY20 Guidance Nickel in concentrate t 27,000 – 30,000 Gold produced (100%) oz 450,000 – 500,000 Gold Sold (IGO 30%) oz 135,000 – 1
Slide 12: FY20 – Exploration Guidance
FY20 – Exploration Guidance Enduring commitment to exploration continues into FY20 For personal use only FY20 Exploration Guidance(1,2) Exploration a core part of IGO’s growth A$3M strategy A$3M A$4M A$6M A$26M A$66M Increased budget to accelerate drilling at and near Nova A$24M 70% of overall expen
Slide 13: FY20 Growth Opportunities
FY20 Growth Opportunities Multiple opportunities to generate additional value for shareholders For personal use only Optimisation Unlock Nickel Value Exploration Leveraging smart solutions Nickel sulphate Enduring and significant to improve productivity and downstream PFS commitment to exploration d
Slide 14: Concluding Comments
Concluding Comments Strong operational performance delivers record FY19 result For personal use only Consistent operational Outstanding free cash Growth through performance at Nova and generation continues to exploration, M&A and Tropicana throughout FY19 strengthen the balance downstream processing
Slide 15: Making a Difference
For personal use only 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. Ou
Slide 16: 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