Igo Limited · ASX:IGO
Igo — Independence Group NL — Euroz Securities 2017 Institutional Conference
31 slides from Igo's conference presentation, Mar 14, 2017
Slide 1: Euroz Conference Presentation (ASX cover announcement)
14/03/2017 For personal use only EUROZ CONFERENCE PRESENTATION Attached is a presentation to be given today, by Peter Bradford, Managing Director and CEO at the Euroz Securities 2017 Institutional Conference. The presentation provides: An overview of the Company; A summary of the Company’s stron
Slide 2: Euroz Conference
INDEPENDENCE GROUP NL For personal use only EUROZ CONFERENCE Peter Bradford, Managing Director and CEO 14 March 2017
Slide 3: 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 4: Key Messages
Key Messages Diversified mining company delivering cash flow and growth For personal use only Solid operational and financial performance in 1H17 Tropicana and Long delivering at better than guidance Long and Jaguar delivering strong cash flow Nova ramping up to name plate in 2017 Value enhancements
Slide 5: Market Profile and Share Ownership
Market Profile and Share Ownership Strong domestic institutional and retail support For personal use only Market Profile and LTM Share Price Performance(1) Share Ownership(1) • A$2.1 billion market capitalisation Substantial Holders Institutional Ownership • 17% share price growth LTM Mark Creasy 16
Slide 6: 1H17 Earnings Summary
1H17 Earnings Summary Higher overall metal prices deliver improved earnings For personal use only A$M Net Profit After Tax A$M Revenue 60 300 274 50 250 219 223 40 200 166 150 20 20 14 100 50 0 1H14 1H15 1H16 1H17 (20) A$M Underlying EBITDA(1) 140 (40) 121 120 100 82 (60) 80 68 60 49 (80) (78) 40 20
Slide 7: 1H17 Cash Flow Summary
1H17 Cash Flow Summary Strong balance sheet with net debt of A$91M For personal use only A$M Underlying Free Cash Flow(1) A$M Operating Cash Flow 120 114 150 100 83.6 80 1H17 Operating 100 60 Cash flow is net of 50 75 41 A$58M Taxes 40 (Stamp Duty) 26 payment 50 20 0 1H14 1H15 1H16 1H17 A$M Net Cash
Slide 8: Independence Group Overview
Independence Group Overview Value focused strategy and transformational growth of EBITDA For personal use only A$M Macquarie Research EBITDA Profile A$M Diversified mining company 600 600 500 500 Quality 400 400 Scale 300 300 200 200 Longevity Western Australia 100 100 Geographical focus 0 0 FY08 FY
Slide 9: Tropicana Overview
Tropicana Overview Making a great asset better through value enhancement For personal use only Large scale open pit gold mine • 30% IGO and 70% AngloGold Ashanti • Located 370km East NE of Kalgoorlie Achievements • 1H17 production and costs better than guidance range • Processing plant rate increase
Slide 10: Tropicana: Value enhancement delivers 79% increase in value
Tropicana Value enhancement delivers 79% increase in value For personal use only Value enhancement delivered to date % NPV Variance Mill expansion to 7.5Mtpa 17% Accelerated mining and 42% grade streaming Long Island Study value 20% delivered to date ?% Final Long Island Study Further value enhancem
Slide 11: Tropicana: Processing plant optimisation and expansion
Tropicana Processing plant optimisation and expansion For personal use only 7.5Mtpa expansion successfully completed 29% increase in throughput compared to nameplate 200 - 400ktpa further expansion targeted in CY17 A$6.9M improvement capital estimated in CY17 (100% basis) 10
Slide 12: Tropicana: Mining fleet and grade streaming
Tropicana Mining fleet and grade streaming For personal use only Directional Production and AISC(1) 600 tonne class face shovel added to fleet koz A$/oz 600 1,250 Increased mining rates in CY17 to ~80Mtpa 1,200 550 1,150 Results in higher AISC in CY17 500 1,100 1,050 450 1,000 400 950 Unlocks 2nd ph
Slide 13: Tropicana Exploration
Tropicana Exploration Framework and resource extension drilling For personal use only Strip mining 160,000m of Structural change Ore reserve concept drilling to costs growth 12
Slide 14: Tropicana: Long Island Study – What is it?
Tropicana Long Island Study – What is it? For personal use only Based on strip mining strategy • Possible due to tabular geometry and strike extent • Unlocks additional down plunge resource Strip mining delivers lower mining costs • Shorter hauls due to in-pit dumping of waste • Transition to face s
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 at average 3.9% Ni • Owner operated underground mining Achievements • Consistent low cost performer
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 • Owner operated underground mining & onsite concentrator Achievements • Improved operational consistency o
Slide 17: Jaguar: Four areas of exploration focus
Jaguar Four areas of exploration focus at Jaguar For personal use only Ore Reserves • ~150% increase in Ore Reserves in FY16 from Mineral Resource conversion drilling program(1) Four areas of exploration focus in CY17 • Triumph: Definition drilling completed. Now progressing maiden resource estimate
Slide 18: Jaguar: Triumph Prospect
Jaguar Triumph Prospect For personal use only 1) Refer to ASX Release dated 16 February 2017 – Jaguar Operation – Exploration Update 17
Slide 19: Jaguar: Bentley depth extensions and Heather Bore
Jaguar Bentley depth extensions and Heather Bore gold prospect For personal use only 1) Refer to ASX Release dated 16 February 2017 – Jaguar Operation – Exploration Update 18
Slide 20: Nova Overview
Nova Overview World class, low cost magmatic nickel-copper project For personal use only Underground nickel-copper project in ramp up • Located in highly prospective Fraser Range • 350km SE of Kalgoorlie and 350km from port of Esperance in WA • World class project Achievements • Discovery to first p
Slide 21: Nova Project: Significant value unlocked through optimisation
Nova Project Significant value unlocked through optimisation For personal use only Optimisation study in December 2015 • Improved mining schedule and sequencing to prioritise higher-value ore early in the mine life • Accelerated ramp up to fill the processing plant earlier • Captured current contrac
Slide 22: Nova Project: Significantly de-risked
Nova Project Project significantly de-risked For personal use only Far better progress than envisaged in Feasibility Study Process plant construction completed 4 weeks ahead of schedule First nickel and copper concentrates announced 6 weeks ahead of schedule First nickel concentrate delivered
Slide 23: Nova Project: 12km of mine development completed
Nova Project 12km of mine development completed project to date For personal use only Nova Mining Schedule C5 Nova Bollinger 22
Slide 24: Nova Project: Metallurgical commissioning and performance
Nova Project Metallurgical commissioning and performance For personal use only Smooth commissioning with no material issues • Minor issues with TETA reagent control and some replacement of pumps and motors Expect to achieve design throughput, recoveries and concentrate grades when transition to ROM
Slide 25: Nova Project: Exploration around Nova to accelerate
Nova Project Exploration around Nova to accelerate in CY17 For personal use only People • Dedicated Exploration Manager appointed for IGO’s Fraser Range interests • Strengthened technical staff CY17 work programs • Drill testing of potential resource extensions underway • 2D seismic data collection
Slide 26: Exploration: IGO committed to delivering growth
Exploration IGO committed to delivering growth through exploration For personal use only A$33M exploration budgeted across portfolio • Targeting provinces that can deliver multiple gold and base metals projects • Increasing focus on generative and greenfields projects • Expect to grow exploration sp
Slide 27: Greenfields Exploration: Nova – Tropicana Belt
Greenfields Exploration Nova – Tropicana Belt For personal use only Highly prospective belt • Hosts two of Australia’s best gold and base metals discoveries in last 12 years • Underexplored Early consolidation by IGO • Creation of belt scale exploration opportunity leveraged to Nova infrastructure a
Slide 28: Fraser Range Exploration
Fraser Range Exploration Regional drilling around Nova For personal use only • New frontier with exploration focus only after Nova discovery in 2012 • Exploration has been limited given prospectivity of the belt, primarily as discontinuous land positions held by underfunded juniors at bottom of comm
Slide 29: Greenfields Exploration: Lake Mackay
Greenfields Exploration Lake Mackay – the next belt scale, new frontier For personal use only 28
Slide 30: Concluding comments
Concluding comments Diversified mining company delivering cash flow and growth For personal use only Solid operational and financial performance in 1H17 Tropicana and Long delivering at better than guidance Long and Jaguar delivering strong cash flow Nova ramping up to name plate in 2017 Value enhan
Slide 31: As we go from strength to strength
AS WE GO FROM STRENGTH TO STRENGTH igoO.com.au
Independence Group NL — Euroz Securities 2017 Institutional Conference on 6ix