Igo Limited · ASX:IGO
Igo — Independence Group NL — Investor Presentation (February 2008)
78 slides from Igo's investor presentation, Feb 25, 2008
Slide 1: Delivering Shareholder Wealth by Mining & Exploration Success
INDEPENDENCE GROUP NL For personal use only Delivering Shareholder Wealth by Mining & Exploration Success Investor Update February 2008 Chris Bonwick Managing Director
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS For personal use only 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 stat
Slide 3: Independence Overview
INDEPENDENCE OVERVIEW For personal use only Capital Structure 116.0M shares & 2.7M staff options 26 Institutions with >0.5M shares Jul-Dec 07 NPAT: $35.6M (unaudited) EPS: $0.30 / share (unaudited) Dividend: 6c div. + 6c special div. Long Nickel Mine Cash costs: A$3.75/lb Ni Production Target: +9,00
Slide 4: Corporate Overview
CORPORATE OVERVIEW For personal use only ♦ ASX Code: IGO (S&P / ASX 200) ♦ Share Price: A$7 88 (1.02.08) A$7.88 (1 02 08) ♦ Fully paid shares: 116.0M ♦ Unlisted Options: 2.7M ♦ Market Capitalisation (undiluted): A$911M ♦ Cash & Receivables net creditors: A$161M (31.12.07) ♦ Daily y turnover ((6 mont
Slide 5: The Board of Independence Group
THE BOARD OF INDEPENDENCE GROUP For personal use only Rod Marston (64) Non Executive Chairman Chris Bonwick (48) Managing Director Kelly Ross (45) Executive Director & CFO John Christie (69) Non Executive Director Oscar Aamodt (61) Non Executive Director Over 140 years experience in jjunior, mid-cap
Slide 6: IGO Top Shareholders
IGO TOP 50 SHAREHOLDERS For personal use only Total issued capital - 116.0M Ordinary share & 2.7M staff options Top 50 - 71.2% of issued capital at 2.11.2007 Country Institutions Institutions Private Investors Share % >0.5 M shares >0.5 M shares Australia 32% 15 9 North America 7% 7 UK 4% 2 Europe 3
Slide 7: Top Ten Shareholders
TOP TEN SHAREHOLDERS For personal use only Ordinary Shares as at 5.02.08 National Nominees 15.6M 13.4% % JP Morgan Nominees 12.0M 10.4% HSBC Custody Nominees 11.8M 10.1% Citicorp Nominees 9 1M 9.1M 7 8% 7.8% ANZ Nominees 7.4M 6.4% Forty Traders Limited 3.3M 2.9% C Cogent Nominees 3.3M 2.8% RBC Dexia
Slide 8: Financials
FINANCIALS For personal use only 1st Half 2008 FY* 2007 FY Total revenue $88M $226M EBITDA $62M $161M Profit before tax $ $55M $ $151M Net profit after tax $36M $105M Operation cash flow before tax $186M $186M Diluted earnings per share 30c 90c Dividend payment per share 12c 13c * Subject to audit
Slide 9: IGO Cash & Investments
IGO CASH & INVESTMENTS For personal use only Cash & Receivables net of creditors (7.02.08) $161M Share Share Share Company Number Price* Value* Matrix Metals Limited 128.9M 8.5c $11M Southstar Diamonds 50% Unlisted Unlisted TOTAL $172M *As at 7.02.08
Slide 10: IGO Financial Year Statistics
IGO FINANCIAL YEAR STATISTICS For personal use only Net Profit after Tax Cash & Net Receivables
Slide 11: IGO Financial Year Statistics
IGO FINANCIAL YEAR STATISTICS For personal use only Earning per Share Fully Franked Dividends
Slide 12: IGO Share Price to 01.02.08
IGO SHARE PRICE TO 01.02.08 For personal use only Weekly Average
Slide 13: Long Nickel Mine
INDEPENDENCE GROUP NL For personal use only LONG NICKEL MINE IGO’S CURRENT CASH PRODUCING ASSET Purchase price = A$15M
Slide 14: Long Nickel Mine (IGO 100%)
LONG NICKEL MINE (IGO 100%) For personal use only HISTORY: ♦ Starting Reserve = 26,800Ni 26 800Ni t ♦ Production to Dec07 = 42,600Ni t ♦ June 2007 Resource = 79,300Ni t ♦ June J 2007 R Reserves = 39 39,600Ni 600Ni t GOALS: ♦ Sustainable 9,000t Ni pa in bottom 3rd of world-wide nickel production cash
Slide 15: Long Mine Personnel
LONG MINE PERSONNEL For personal use only ♦ Owner operator with 118 salaried employees & 40 full time contractors. ♦ Only 3 LTI’s since commencement. commencement ♦ Veryy experienced p team. ♦ Productivity bonus.
Slide 16: 2006/7 Production
2006/7 PRODUCTION For personal use only 1st Half 2007/8 2006/7 ♦ Production 5,181 Ni t 9,825 Ni t ♦ Grade 3.83% Ni 3.69% Ni ♦ Cash Costs (payable) A$3.75/lb Ni A$4.35/lb Ni ♦ Revenue A$12.0/lb Ni A$18.75/lb Ni ♦ Cash & Net Receivables A$161M A$165M ♦ Profit A$36M* A$105M ♦ Debt D bt A$1M A$2M *Unaud
Slide 17: 2007/8 Production Budget
2007/8 PRODUCTION BUDGET For personal use only 2007/8 1st Half Budget 2007/8 ♦ Production 8,800-9,000 Ni t 5,181 Ni t ♦GGrade ade 3.8% 3 8% Ni 3.8% 3 8% Ni ♦ Cash Costs (payable) A$4.50-4.65/lb Ni A$3.75/lb Ni 1st Half 2007/8 $35.6M NPAT (unaudited)
Slide 18: Production to June
PRODUCTION TO JUNE 07 For personal use only Operator Period tonnes % Ni Ni tonnes WMC 1979-1999 5.43 million 3.7 203,184 IGO Oct 02 – Jun 07 1 1 million 1.1 39 3.9 42 620 42,620
Slide 19: Quarterly Cash Costs & Revenue
QUARTERLY CASH COSTS & REVENUE For personal use only
Slide 20: Long Mine & Reserves Longitudinal Projection
LONG MINE & RESERVES LONGITUDINAL PROJECTION For personal use only
Slide 21: Long Mine Accumulated Resource & Production
LONG MINE ACCUMULATED RESOURCE & PRODUCTION For personal use only
Slide 22: Long Mine Accumulated Reserve & Production
LONG MINE ACCUMULATED RESERVE & PRODUCTION For personal use only
Slide 23: Long Mine Production Stats
LONG MINE PRODUCTION STATS For personal use only 1st Half 2007/8 Ore Reserve Est. 2,425 Ni t Ore Reserve Actual 4,777 Ni t Outside Reserve Actual 405 Ni t TOTAL 5,181 Ni t OCT 2002 – DEC 2008 IGO PRODUCTION O Reserve Ore R E t Est. 27 347 Ni t 27,347 Ore Reserve Actual 36,597 Ni t Outside Reserve Ac
Slide 24: Mine Geophysics - TEM Equipment
MINE GEOPHYSICS - TEM EQUIPMENT For personal use only High powered TEM 3 component transmitter underground TEM system ♦ 10 x more powerful than current systems. ♦ Doubles search radius Down hole TEM probe detection up to 200m. ♦ Locates blind ♦ Cleaner data. ♦ 100m search radius. massive NiS ♦ More
Slide 25: Mine Geophysics Seismic Reflection
MINE GEOPHYSICS SEISMIC REFLECTION For personal use only
Slide 26: Long South Seismic Survey
LONG SOUTH SEISMIC SURVEY For personal use only Seismic Survey Coverage Long South Target
Slide 27: McLeay and Long South Seismic Section
MCLEAY AND LONG SOUTH SEISMIC SECTION For personal use only
Slide 28: Long Fly Through
For personal use only LONG FLY THROUGH
Slide 29: McLeay 3D Model Showing Nickel Shoots
McLEAY 3D MODEL SHOWING NICKEL SHOOTS For personal use only
Slide 30: McLeay Shoot – Intercepts, Resource Boundaries & Drill Drive Location
McLEAY SHOOT 2 – INTERCEPTS, RESOURCE BOUNDARIES & DRILL DRIVE LOCATION For personal use only
Slide 31: McLeay Shoot - Intercepts, Shoot Boundary & Drill Drive Location
McLEAY SHOOT 3 - INTERCEPTS, SHOOT BOUNDARY & DRILL DRIVE LOCATION For personal use only
Slide 32: Long North Significant Nickel Intercepts
LONG NORTH SIGNIFICANT NICKEL INTERCEPTS For personal use only
Slide 33: Regional Exploration Strategy
REGIONAL EXPLORATION STRATEGY For personal use only Discovering new, high profit mines by - ♦ Technical Innovation • Geophysical tools to see “under under cover cover” • New targeting techniques • Database licensing and evaluation ♦ Unlocking value al e in established and emerging belts • Examples:
Slide 34: IGO Nickel Exploration Projects
IGO NICKEL EXPLORATION PROJECTS For personal use only
Slide 35: Exploration Geophysics
EXPLORATION GEOPHYSICS For personal use only High powered TEM transmitter truck developed in conjunction with Curtin University Squid TEM sensor Photo courtesy of Anglo American
Slide 36: Lake Lefroy Joint Ventures
LAKE LEFROY JOINT VENTURES For personal use only
Slide 37: Lake Lefroy Joint Ventures
LAKE LEFROY JOINT VENTURES For personal use only
Slide 38: North-Eastern Goldfields Nickel Projects
NORTH-EASTERN GOLDFIELDS NICKEL PROJECTS For personal use only
Slide 39: Wiluna JV
WILUNA JV (IGO earning 51-70%) For personal use only JV Partner: Oxiana
Slide 40: Bodkin Cross-Section
For personal use only BODKIN CROSS-SECTION
Slide 41: Wiluna JV – Bodkin Prospect
WILUNA JV – BODKIN PROSPECT (IGO earning 51-70%) For personal use only
Slide 42: Bodkin Regional TEM Anomalies
BODKIN REGIONAL TEM ANOMALIES For personal use only
Slide 43: Duketon JV – Bulge Nickel Prospect
DUKETON JV – BULGE NICKEL PROSPECT (IGO earning 70%) For personal use only JV Partner: South Boulder
Slide 44: Duketon JV – Bulge Prospect Nickel Geochem Anomalies
DUKETON JV – BULGE PROSPECT NICKEL GEOCHEM ANOMALIES For personal use only
Slide 45: Riverina JV – Martins Zone Longitudinal Projection
RIVERINA JV – MARTINS ZONE LONGITUDINAL PROJECTION For personal use only
Slide 46: Riverina JV – Ni-Cu Geochem Anomalies
RIVERINA JV – Ni-Cu GEOCHEM ANOMALIES & ANOMALIES OVER AEROMAGNETICS For personal use only
Slide 47: Ravensthorpe JV Region Air Magnetics
RAVENSTHORPE JV (IGO earning 51-70%) REGION AIR MAGNETICS For personal use only JV Partner: Traka
Slide 48: Ravensthorpe JV Tenements, Prospects and Intercepts
RAVENSTHORPE JV TENEMENTS, PROSPECTS AND INTERCEPTS For personal use only
Slide 49: Ravensthorpe JV Nickel Prospects
RAVENSTHORPE JV NICKEL PROSPECTS For personal use only RAV 1, 4 & 4 WEST PROSPECTS MS 7 PROSPECT
Slide 50: Storbodsund Nickel JV
STORBODSUND NICKEL JV (IGO earning 70%) For personal use only JV Partner: Mawson Resources
Slide 51: IGO Gold Exploration Projects
IGO GOLD EXPLORATION PROJECTS For personal use only
Slide 52: Dalwallinu Project Locations
DALWALLINU (IGO 100%) PROJECT LOCATIONS For personal use only
Slide 53: Dalwallinu Project – Pithara Prospect Long Section
DALWALLINU PROJECT (IGO 100%) PITHARA PROSPECT LONG SECTION For personal use only
Slide 54: Dalwallinu Project – Pithara Prospect Gold Anomalies
DALWALLINU PROJECT (IGO 100%) PITHARA PROSPECT GOLD ANOMALIES For personal use only
Slide 55: Coomberdale Location
For personal use only COOMBERDALE LOCATION
Slide 56: Coomberdale Project Gold Anomalies and Intercepts
COOMBERDALE PROJECT (IGO 100%) GOLD ANOMALIES AND INTERCEPTS For personal use only
Slide 57: Holleton Project Regional Geology
HOLLETON PROJECT (IGO 90-100%) REGIONAL GEOLOGY For personal use only
Slide 58: Holleton Mining Centre Au Anomalies
HOLLETON PROJECT (IGO 90-100%) HOLLETON MINING CENTRE Au ANOMALIES For personal use only
Slide 59: Gibb Rock Au Anomalies
HOLLETON PROJECT (IGO 100%) GIBB ROCK Au ANOMALIES For personal use only
Slide 60: Mt Isdell Project Area Over Gravity Image
MT ISDELL (IGO 100%) PROJECT AREA OVER GRAVITY IMAGE For personal use only
Slide 61: Mt Isdell – Lag Geochem Images
MT ISDELL – LAG GEOCHEM IMAGES For personal use only
Slide 62: Karlawinda (IGO – 100%)
KARLAWINDA (IGO – 100%) For personal use only
Slide 63: Karlawinda (IGO - 100%)
KARLAWINDA (IGO - 100%) For personal use only
Slide 64: Tropicana JV - New Gold Province
TROPICANA JV - NEW GOLD PROVINCE IGO’S SECOND CASH GENERATOR For personal use only AngloGold Ashanti – 70% (Manager) Independence Group – 30% free-carried to completion of Pre-feasibility Pre feasibility Study Tropicana JV 1000kms “New New Gold Province under sand sand”
Slide 65: Tropicana JV Tenements
TROPICANA JV TENEMENTS For personal use only LAVERTON LAVERTON 300km LEONORA LEONORA Tropicana Deposit 29 29 29 00.0 29 29 29 00.0 00.0 S 00.0 00.0 S S S S Sunrise Dam Α Gold Mine Α 30 30 30 30 00.0 30 30 00.0 00.0 00.0 S 00.0 00.0 S S S S S PINJIN PINJIN Tropicana JV Granted Tenure Tropicana JV MLA
Slide 66: Tropicana JV Significant Discoveries to Date
TROPICANA JV SIGNIFICANT DISCOVERIES TO DATE For personal use only
Slide 67: Tropicana Mineralisation Style
TOPICANA MINERALISATION STYLE For personal use only Yilgarn Greenstone Tropicana Deposit Host rocks Greenstone belt rocks Felsic g gneiss Shearing and brecciation Shearing and brecciation Structure commonly present absent Alteration Cb/Sr/Py +/ +/-- Aspy Bi/Sr/Py Veining Quartz veining common Quartz
Slide 68: Tropicana Fly Through
TROPICANA FLY THROUGH For personal use only
Slide 69: Tropicana JV - Havana Zone Significant Drill Hole Results
TROPICANA JV - HAVANA ZONE SIGNIFICANT DRILL HOLE RESULTS For personal use only
Slide 70: Tropicana JV G x M Gold Contours
TROPICANA JV G X M GOLD CONTOURS For personal use only
Slide 71: Havana JV G x M Gold Contours
HAVANA JV G X M GOLD CONTOURS For personal use only
Slide 72: Tropicana JV - Havana Zone Significant Drill Hole Results
TROPICANA JV - HAVANA ZONE SIGNIFICANT DRILL HOLE RESULTS For personal use only
Slide 73: Tropicana JV – Tropicana Zone Significant Drill Hole Results
TROPICANA JV – TROPICANA ZONE SIGNIFICANT DRILL HOLE RESULTS For personal use only
Slide 74: Tropicana JV - Tropicana Zone Significant Drill Hole Results
TROPICANA JV - TROPICANA ZONE SIGNIFICANT DRILL HOLE RESULTS For personal use only
Slide 75: Tropicana JV Beachcomber Cross-Section
TROPICANA JV BEACHCOMBER CROSS-SECTION For personal use only
Slide 76: Tropicana Pre-Feasibility Status
TROPICANA PRE-FEASIBILITY STATUS For personal use only Open-cut Resource: 62.8M t @ 2.0g/t (4.05M oz) Open-cut Size: Target – 10 years @ 350,000oz/y Drilling: 25m x 25m Reserves in-fill drilling and testing high-grade down plunge potential in progress Pit Design: 2 open cuts Mill: 4-6.5Mt p/a Metall
Slide 77: Independence Corporate Goals
INDEPENDENCE CORPORATE GOALS For personal use only To improve shareholder returns by becoming a highly profitable, multi commodity Australian mining company F Focus on: ♦ Low cash cost assets ♦ Mine longevity ♦ Innovative exploration ♦ Strong balance sheet
Slide 78: IGO Looking Forward
IGO LOOKING FORWARD For personal use only Long Nickel Mine Achieved Future Goals IGO 100% 2011 2013 2015 20?? Assuming production at 9,000t Ni pa. 50% McLeay & Production could increase Reserves Resource Long North Large New Discoveries if new large discovery made conversion Discoveries Tropicana Go
Independence Group NL — Investor Presentation (February 2008) on 6ix