Igo Limited · ASX:IGO
Igo — Independence Group NL — Q1 FY2016 Earnings Presentation
15 slides from Igo's earnings presentation, Oct 29, 2015
Slide 1: September 2015 Quarter Results Presentation
INDEPENDENCE GROUP NL For personal use only Peter Bradford, Managing Director and CEO September 2015 Quarter Results Presentation 29 October 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: September 2015 Quarter Highlights
September 2015 Quarter Highlights Leading Australian diversified mining company For personal use only Financial and Corporate • Completed acquisition of Sirius on 22 September 2015 • Cash and bullion of $131.8M and debt of $200.0M at quarter end for net debt of $68.2M • $33.0M of operating cash flow
Slide 4: Sustainability
Sustainability Continued strengthening and improvement across the business For personal use only Safety 14 42 • Two lost time injuries recorded in the quarter 12 36 Sustainability reporting 10 30 • First sustainability report released 8 24 • Available in soft copy from the IGO website (www.igo.com.a
Slide 5: Unaudited financial highlights
Unaudited financial highlights Balance sheet remains strong For personal use only Unaudited ($’million) Q1 FY16 Q1 FY15 Revenue 124.2 129.1 Underlying EBITDA(1) 40.3 58.1 Underlying NPAT(1) 12.5 25.1 Profit after tax (49.9) 25.1 Net Cash Flow From Operating Activities 33.0 48.4 Underlying Free Cash
Slide 6: Financial Notes
Financial Notes Adjustments for Sirius transaction and updated gold hedging position For personal use only Finalising Sirius Acquisition • Underlying EBITDA of $40.3M (June 2015 $38.0M) • Unaudited profit after tax of $12.5M (June 2015 $7.5M) • Unaudited loss after tax of $49.9M included tax unadjus
Slide 7: Tropicana
Tropicana Production and cash costs within or better than annualised guidance For personal use only Gold production and costs • 35,461oz gold produced and 36,341oz sold (IGO share) • Cash costs of $624/oz produced and AISC of $798/oz sold Mining • Higher productivity rates sustained with 6.2M BCM mi
Slide 8: Jaguar
Jaguar Zinc production beats guidance but cash costs impacted by lower Copper by-product credits than guidance For personal use only Production and costs • 11,407t Zn and 1,429t Cu produced in concentrates • Cash cost of $0.65/lb payable zinc net of by-product credits and royalties Underground minin
Slide 9: Long
Long Quarter of transition to scaled back production rate For personal use only Production and costs • 2,262t contained nickel produced • Cash costs of $4.24/lb payable Ni net of by-product credits and royalties Underground mining • 66,315t mined at an average grade of 3.41% Ni • Mining activities s
Slide 10: Nova overview
Nova overview Fully financed, in construction, on schedule and on budget For personal use only Overall • Significant progress made during quarter and project now 44% complete • Project remains on track for commissioning in late 2016 and production of first concentrates in December 2016 • Optimisatio
Slide 11: Nova Project progress
Nova Project progress Project currently on time and on budget For personal use only Accommodation village, airstrip and access road Flotation circuit foundations Portal Decline SAG mill pedestals 11
Slide 12: Greenfields exploration
Greenfields exploration Long term commitment to delivering organic growth For personal use only Lake Mackay • AC program of 3,216m completed over six gold and multi-element surface anomalies • Bumblebee discovery • 2m @ 1.3g/t Au, 34.6g/t Ag, 7.4% Cu, 1.6% Zn, 1.3% Pb and 0.09% Co from 29m (oxide) •
Slide 13: FY16 guidance
FY16 guidance Long guidance modified in September following restructuring 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 capex of $8 to $10M and Exploration of $9 to $11M Jaguar • 35,000 to
Slide 14: Concluding comments
Concluding comments Diversified mining company delivering cash flow and growth For personal use only Solid quarter of operating results • All mines delivering broadly in line with guidance range • Restructuring implemented at Long in September to reset cost structure Nova acquisition completed: focu
Slide 15: For personal use only
© AS WE GO FROM UL STRENGTH TO STRENGTH igo.com.au
Independence Group NL — Q1 FY2016 Earnings Presentation on 6ix