Igo Limited · ASX:IGO
Igo — Independence Group NL — Shareholder Meeting (November 2006)
51 slides from Igo's shareholder meeting presentation, Nov 22, 2006
Slide 1: Independence Group NL AGM Presentation
INDEPENDENCE GROUP NL Mining, Exploration & Success AGM AGM Presentation Presentation 22 nd November 22nd November 2006 2006 Chris Chris Bonwick Bonwick Managing Managing Director Director
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain oral and written statements contained or incorporated by reference in this presentation, including information as to the future financial or operating performance of the Company and its projects, constitute forward-looking statements. All statement, other than stat
Slide 3: 2005/6 Financial Year
2005/6 FINANCIAL YEAR Full Year Ended June 30 2005 2006 % change Total revenue $86.6M $113.4M 31% EBITDA $39.4M $59.7M 51% Profit before tax $30.6M $50.4M 65% Net profit after tax $20.9M $35.0M 67% Operation cash flow $47.1M $44.3M -6% Diluted earnings per share 19.3c 30.7c 59% Dividend per share* 8
Slide 4: IGO Financial Year Statistics
IGO FINANCIAL YEAR STATISTICS Net Profit after Tax Earning per Share
Slide 5: IGO Financial Year Statistics
IGO FINANCIAL YEAR STATISTICS Fully Franked Dividends Cash & Net Receivables
Slide 6: IGO Financial Year Statistics
IGO FINANCIAL YEAR STATISTICS Market Capitalisation Production & Reserves
Slide 7: IGO Share Price to 20.11.06
IGO SHARE PRICE TO 20.11.06 Weekly Average AGM 2005
Slide 8: Corporate Overview
CORPORATE OVERVIEW ♦ ASX Code: IGO (S&P / ASX 300) ♦ Share Price: A$4.45 (21.11.06) ♦ Fully paid shares: 113M ♦ Unlisted Options: 4.3M ♦ Market Capitalisation (undiluted): A$503M ♦ Cash & Receivables net creditors: A$67.5M (30.09.06) ♦ Daily turnover (6 month average): 375,000 ♦ Debt: A$2.9M (30.09.
Slide 9: IGO Board
IGO BOARD Rod Marston Non Executive Chairman Chris Bonwick Managing Director Kelly Ross Executive Director & Company Secretary John Christie Non Executive Director Oscar Aamodt Non Executive Director 2005/06 Board Remuneration - $1.1M (including option valuation)
Slide 10: Top Ten Shareholders
TOP TEN SHAREHOLDERS Ordinary Shares as at 9.11.06 JP Morgan Nominees 12.9M 11.4% Westpac Custodian Nominees 10.8M 9.5% ANZ Nominees 7.8M 6.9% National Nominees 7.8M 6.9% Citicorp Nominees 6.5M 5.8% Forty Traders Limited 3.3M 3.0% RBC Dexia Investor Services 3.1M 2.8% Virtual Genius 3.0M 2.7% Cogent
Slide 11: Long Nickel Mine (IGO 100%)
LONG NICKEL MINE (IGO 100%) TARGETS: ♦ Sustainable 9,000t Ni pa in bottom 3rd of world-wide nickel production cash costs. ♦ New Reserves to increase mine life and possibly increase production rate.
Slide 12: Production History
PRODUCTION HISTORY Operator Period tonnes % Ni Ni tonnes WMC 1979-1999 5.43 million 3.7 203,184 IGO Oct 02 – Sep 06 0.76 million 3.9 29,316
Slide 13: Cash Costs & Receivables
q wi CASH COSTS & RECEIVABLES IGO Receivables /Ib (A$) = IGO Cash Cost / lb (AS) mmm Ni Price / Ib (US$) —— AS$/Ib US$/Ib 18.00 18.00 16.00 16.00 14.00 14.00 12.00 12.00 10.00 10.00 8.00 8.00 6.00 6.00 4.00 4.00 2.00 2.00 0 HE SO SEEESEESEEEEEESE SN F SF SS SS ge s SK Ww S & Fw FF Kw SK KF
Slide 14: Hedging
HEDGING ♦ Low priced hedging (174 Ni t / month @ A $12,183) finished in April 2006. ♦ Difference between spot @ A $35,000 / Ni t and low priced hedged Ni = A $4.0M /month. ♦ 23% of current payable metal in reserve hedged. ♦ 40% of payable metal hedged between July 06 and Jun 09. Payable Metal ♦ 2006
Slide 15: Long Mine Production Stats
LONG MINE PRODUCTION STATS 2005/6 IGO PRODUCTION Expected from Ore Reserve blocks 5,537 Ni t Mined from Ore Reserve blocks 7,887 Ni t Mined from outside Ore Reserve 1,010 Ni t TOTAL 8,897 Ni t OCT 2002 – JUN 2006 IGO PRODUCTION Expected from Ore Reserve blocks 18,334 Ni t Mined from Ore Reserve bloc
Slide 16: Long Mine & Reserves Longitudinal Projection
LONG MINE & RESERVES LONGITUDINAL PROJECTION June 2006 Ore Resource: 1,367,000t @ 5.6% Ni (76,700t Ni) Ore Reserve: 1,114,000t @ 4.2% Ni (46,800t Ni)
Slide 17: Mine Geophysics
MINE GEOPHYSICS High powered TEM 3 component transmitter – 10 x more underground TEM powerful than current system developed by Independence systems / Curtin University in development by Independence / Curtin Down hole Mag TEM University probe developed by Electromagnetic Imaging Technology (EMIT)
Slide 18: McLeay Discovery
McLEAY DISCOVERY VICTOR SOUTH McLeay TEM Plates in 3D McLeay Actual orebody in 3D (as of Apr 06)
Slide 19: McLeay Shoots 1 & 2 Longitudinal Projection
McLEAY SHOOTS 1 & 2 LONGITUDINAL PROJECTION Significant drill hole intercepts south of current ore reserves
Slide 20: Long South Exploration Significant Drill Intercepts
LONG SOUTH EXPLORATION SIGNIFICANT DRILL INTERCEPTS
Slide 21: Long Mine Drilling Targets Longitudinal Projection
LONG MINE DRILLING TARGETS LONGITUDINAL PROJECTION
Slide 22: IGO Regional Exploration
IGO REGIONAL EXPLORATION STRATEGY: Targeting new, high profit mines by - ♦ Exploring under cover and in lightly or unexplored terrains. ♦ Combining empirical and conceptual targeting methods with new and innovative exploration technologies. ♦ Maintaining a strong in-house geophysical capability. ♦ T
Slide 23: IGO Australian Nickel Projects
IGO AUSTRALIAN NICKEL PROJECTS
Slide 24: Exploration Geophysics
EXPLORATION GEOPHYSICS Mag TEM sensor developed by Electromagnetic Imaging Technology (EMIT) Squid TEM sensor Photo courtesy of Anglo American
Slide 25: Strata - Lake Lefroy JV Dome Comparison
STRATA - LAKE LEFROY JV (IGO earning 70%) DOME COMPARISON Kambalda Ultramafic Dome Lake Lefroy Ultramafic Dome
Slide 26: Strata - Lake Lefroy JV (IGO earning 70%)
STRATA - LAKE LEFROY JV (IGO earning 70%) SQUID EM Image SQUID EM outline over Mag Image JV Partner: Strata
Slide 27: Lake Lefroy Joint Ventures
5 PALI oe ' ‘ : . so) ¥ me aa J hh N ADA = Man : coal : ) , . . . i he ‘ ® * . } JOINT VENTURES Gladiator’ IGO ‘ \ é ' TO! Anglogold/IGO Excalibur/iGO oO YarmanaIG O @ IGO SQUIDTEM anomaly © Major Nickel Mine
Slide 28: North-Eastern Goldfields Nickel Projects
NORTH-EASTERN GOLDFIELDS NICKEL PROJECTS
Slide 29: Wiluna Option
WILUNA WILUNA OPTION OPTION (IGO (IGO option option to to earn earn 51-70%) 51-70%) JV Partner: Agincourt
Slide 30: North-Eastern Goldfields Nickel Projects
NORTH-EASTERN GOLDFIELDS NICKEL PROJECTS
Slide 31: Copper Nickel Gossan - Duketon JV
COPPER NICKEL GOSSAN - DUKETON JV (IGO earning 70%) Nickel sulphide gossan rock chips with up to 2.3% Cu, 0.9% Ni, 0.7g/t Pt, 0.7g/t Pd, 0.4g/t Au Primary nickel sulphide JV Partner: South Boulder
Slide 32: Duketon JV - Bulge Nickel Prospect
DUKETON DUKETON JV JV –– BULGE BULGE NICKEL NICKEL PROSPECT PROSPECT (IGO (IGO earning earning 70%) 70%) Aeromagnetic image Ground TEM image JV Partner: South Boulder
Slide 33: Ravensthorpe Option
RAVENSTHORPE OPTION (IGO option to earn 51-70%) Regional Air Magnetics JV Partner: Traka
Slide 34: Storbodsund Nickel JV
STORBODSUND NICKEL JV (IGO option to earn 70%) JV Partner: Mawson Resources
Slide 35: Storbodsund Nickel JV
STORBODSUND NICKEL JV (IGO option to earn 70%) JV Partner: Mawson Resources
Slide 36: IGO Australian Gold Projects
IGO AUSTRALIAN GOLD PROJECTS
Slide 37: Tropicana Gold JV
TROPICANA GOLD JV IGO 30% \ LAVERTON 123° / ted a AL ral y LEONORA \ Sm y \ , \ : _ \\ A \ TROPICANA JV f] An gloGold Ashanti 70% Manager \ IGO 30% free carried to ~ completion of pre-feasibility ) \ fe) yy Kanowna ud / a ae ! KALGOORLIE BOULDER « \ —f fi / rks 100km 7 | “4
Slide 38: Tropicana Zone Cross-Section
TROPICANA ZONE CROSS-SECTION (IGO 30%)
Slide 39: Havana Zone Cross-Section
HAVANA ZONE CROSS-SECTION (IGO 30%)
Slide 40: Tropicana Gram x Metre Contours
TROPICANA GRAM x METRE CONTOURS (IGO 30%)
Slide 41: Tropicana Prospect Potential Extensions
TROPICANA PROSPECT POTENTIAL EXTENSIONS
Slide 42: Tropicana JV Southern Auger Anomalies
TROPICANA JV SOUTHERN AUGER ANOMALIES
Slide 43: Dalwallinu Project Pithara Prospect
DALWALLINU PROJECT PITHARA PROSPECT (IGO 100%) Cross-section 1 Cross-section 2 Cross-sections 25m apart
Slide 44: Dalwallinu - Coomberdale Gold Anomalies
DALWALLINU – COOMBERDALE GOLD ANOMALIES (IGO 100%)
Slide 45: Cobar Gold Project
COBAR GOLD PROJECT (IGO 100%) Tenement Location over Mags Mag Lag Collection
Slide 46: Cobar Gold Projects Gold Anomalies
COBAR GOLD PROJECTS GOLD ANOMALIES (IGO 100%)
Slide 47: IGO Investments
IGO INVESTMENTS Share Share Share Company Number Price Value Matrix Metals Limited 124.1M 10.5c $12.5M Atlas Iron Limited 1.05M 45.0c $0.47M Southstar Diamonds 50% Unlisted Unlisted As at 21.11.06
Slide 48: Matrix Metals Limited Future Copper Production
MATRIX METALS LIMITED FUTURE COPPER PRODUCTION Matrix plan to mine the Mt Watson copper deposit and treat the ore at the Mt Cuthbert SXEW plant. Production, commencing in 2007 will begin at a rate of 5,500t Cu pa increasing to 10,000t Cu pa.
Slide 49: Independence Corporate Goals
INDEPENDENCE CORPORATE GOALS To increase shareholder wealth by becoming a highly profitable, mid-cap, multi commodity Australian mining company ♦ Focus on share price, cash flow, earnings per share, dividends and market capitalisation accretion. ♦ Growth through exploration and possible acquisitions
Slide 50: World-wide Stainless Steel Production vs Industrial Production
WORLD-WIDE STAINLESS STEEL PRODUCTION VS INDUSTRIAL PRODUCTION Between 1968 – 2003 stainless steel production has increased nearly 800% compared to total industrial production increasing by only 150%.
Slide 51: IGO Looking Forward
IGO LOOKING FORWARD Targeting +A$100M profit per annum (pay large dividends) FINANCIAL YEAR 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Long Nickel Mine IGO 100% ? ? ? ? ? ? 9000 Ni tonnes pa Existing Reserves McLeay New Discoveries Extensions Tropicana Gold Project – IGO 30% ? ? ? ? ? ?
Independence Group NL — Shareholder Meeting (November 2006) on 6ix