Igo Limited · ASX:IGO
Igo — Independence Group NL — Investor Presentation (October 2010)
48 slides from Igo's investor presentation, Oct 13, 2010
Slide 1: Growing a Great Company by Mineral Discoveries & Mine Development
For personal use only INDEPENDENCE GROUP GROWING A GREAT COMPANY BY MINERAL DISCOVERIES & MINE DEVELOPMENT INVESTOR UPDATE October 2010 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 - Corporate
INDEPENDENCE OVERVIEW ‐ CORPORATE For personal use only Tight share structure, cashed up and no debt Capital Structure: ASX 200 Code: IGO 114.1M shares & 0.8M staff options Market Cap. (7/7/10): A$730M Daily turnover (6 month average) – 0.4M Substantial shareholders: JF Capital 11.6M shares Orion 7.
Slide 4: Independence Overview - Assets
INDEPENDENCE OVERVIEW ‐ ASSETS For personal use only Multiple growth opportunities LONG NICKEL 2009/10 Cash Costs without royalty: A$4.01/lb Ni MINE with royalty: A$4.44/lb Ni 2009/10 Revenue: A$9.60/lb Ni Jun 10 Resources: 91,500t Ni @ 5.4% Ni 9Production Jun 10 Reserves: 53,400t Ni @ 4.1% Ni Exten
Slide 5: IGO History and Share Price
IGO HISTORY AND SHARE PRICE For personal use only Only one capital raising since floating Monthly Average Share Price to 27.08.10
Slide 6: Long Nickel Mine
LONG NICKEL MINE For personal use only IGO’S CURRENT CASH PRODUCING ASSET 2002 Purchase price = A$15M IGO Profit to date = A$274M Australia’s lowest cost nickel sulphide mine 1979‐1999 WMC Production: 203,184t Ni 2002‐2010 IGO Production: 64,109t Ni
Slide 7: Long Nickel Mine – IGO 100%
LONG NICKEL MINE – IGO 100% For personal use only Consistently increasing Reserves HISTORY • IGO Starting Reserve = 26,800 Ni t • IGO Production to date = 64,109 Ni t • June 2010 Resource = 91,500 Ni t • June 2010 Reserves = 53,400 Ni t GOALS • Sustainable 9,000t Ni pa in bottom 3rd of world‐wide ni
Slide 8: Production Forecast & Hedging
PRODUCTION FORECAST & HEDGING For personal use only History of exceeding production guidance 2009/10 2009/10 Guidance Actual • Production 8,000‐8,400 Ni t 8,615 Ni t • Grade 4.0% Ni 4.25% Ni • Cash Costs (payable) ‐ with royalty A$4.20‐4.40/lb Ni A$4.44/lb Ni ‐ without royalty A$3.90‐4.10/lb Ni A$4.
Slide 9: Quarterly Cash Costs & Revenue
QUARTERLY CASH COSTS & REVENUE For personal use only High operating margins and consistent low cash costs over 6 years Revenue A$/lb Ni (includes hedging) Payable Cash Costs A$/lb Ni
Slide 10: Mine Geophysics - TEM Equipment
MINE GEOPHYSICS ‐ TEM EQUIPMENT For personal use only Innovative research and development High powered TEM Underground transmitter Down hole TEM **Exclusive to IGO** surveying • 10 x more powerful than current systems. • More accurate drill • Doubles search radius Down hole TEM probe targeting, redu
Slide 11: Long Mine Nickel Deposits & Targets
LONG MINE NICKEL DEPOSITS & TARGETS LONGITUDINAL PROJECTION For personal use only Largest Reserve since IGO reopened the mine (+5 year mine life)
Slide 12: Moran Nickel Deposit
MORAN NICKEL DEPOSIT For personal use only Open to the south east
Slide 13: Moran Deposit
MORAN DEPOSIT HIGH‐GRADE MASSIVE NICKEL SULPHIDES For personal use only
Slide 14: Moran Development
MORAN DEVELOPMENT For personal use only Potential for Moran, McLeay and Long ore body extensions
Slide 15: Long North
LONG NORTH For personal use only 3D Isometric Model Showing Nickel shoots, Drill‐Holes, TEM Conductors, Proposed Development and significant Intercepts
Slide 16: Long Mine Complex Production / Ore Reserve Comparison
LONG MINE COMPLEX PRODUCTION / ORE RESERVE COMPARISON For personal use only Consistently mining more nickel than Reserve estimate Oct 2002 – Jun 2010 PRODUCTION SUMMARY Initial Ore Reserve Estimate: 40,373 Ni t Mined from Ore Reserve: 52,665 Ni t (+30%) Mined outside Ore Reserve: 11,444 Ni t (+28%)
Slide 17: Long Mine Fly Through
LONG MINE FLY THROUGH For personal use only
Slide 18: Tropicana JV - New Gold Province
TROPICANA JV ‐ NEW GOLD PROVINCE IGO’S SECOND POTENTIAL CASH GENERATOR For personal use only AngloGold Ashanti – 70% (Manager) Independence Group – 30% Tropicana JV “New Gold Province under sand” 1000kms
Slide 19: Tropicana JV Tenements
TROPICANA JV TENEMENTS For personal use only JV tenure – 396km strike length & 15,000 km 2 area (granted & application ML’s & EL’s)
Slide 20: Tropicana JV Significant Discoveries to Date
TROPICANA JV SIGNIFICANT DISCOVERIES TO DATE For personal use only Numerous gold anomalies and potential for other gold discoveries
Slide 21: Tropicana JV Pre-Feasibility Resource & Reserve
TROPICANA JV PRE‐FEASIBILITY RESOURCE & RESERVE For personal use only 100% Project: Jun 2009 Open Pit Resource: 75.3Mt @ 2.1g/t Au – 5Moz (A$1,250/oz) Dec 2009 Open Pit Reserve: 45Mt @ 2.3g/t Au – 3.3Moz (A$1,059/oz)
Slide 22: Tropicana JV New Boston Shaker Discovery
TROPICANA JV NEW BOSTON SHAKER DISCOVERY For personal use only Boston Shaker will not be included in BFS Tropicana gold system still growing along‐strike and down‐dip.
Slide 23: Tropicana JV Underground Potential
TROPICANA JV UNDERGROUND POTENTIAL For personal use only High‐grade, true width in‐pit gold intercepts suggest underground potential
Slide 24: Tropicana JV Havana Deeps Intercepts
TROPICANA JV HAVANA DEEPS INTERCEPTS For personal use only Havana Deeps will not be included in BFS Tropicana gold system still growing along‐strike and down‐dip.
Slide 25: Tropicana JV Havana Deeps Cross-Section
TROPICANA JV HAVANA DEEPS CROSS‐SECTION For personal use only High‐grade gold shoots open down plunge
Slide 26: Tropicana JV Current Proposed Plant Layout
TROPICANA JV CURRENT PROPOSED PLANT LAYOUT For personal use only
Slide 27: Tropicana JV Pre-Feasibility Outcome (100% Project)
TROPICANA JV PRE‐FEASIBILITY OUTCOME (100% PROJECT) For personal use only Open‐cut Resource: 75.3 Mt @ 2.07g/t Au (5.01 M oz Au) at June 2009 Mining Reserve: 45 Mt @ 2.3g/t Au (3.3 M oz Au) (A$1059/oz Au, US$103/barrel oil & 15% discount rate assumptions) Mill: 5.5 Mt p/a (plant & infrastructure cap
Slide 28: Tropicana Fly Through
TROPICANA FLY THROUGH For personal use only
Slide 29: IGO Gold & Base Metal Exploration Projects
IGO GOLD & BASE METAL EXPLORATION PROJECTS For personal use only
Slide 30: Duketon JV – Project Location
DUKETON JV – PROJECT LOCATION (IGO earning 70%) For personal use only New nickel province
Slide 31: Duketon JV – C2 Prospect
DUKETON JV – C2 PROSPECT DISSEMINATED NICKEL SULPHIDES (IGO earning 70%) For personal use only C2 Prospect cross‐section C2 Prospect disseminated NiS C2 Prospect stringer NiS
Slide 32: Duketon JV – Rosie Prospect
DUKETON JV – ROSIE PROSPECT MASSIVE NICKEL SULPHIDES (IGO earning 70%) For personal use only Rosie Prospect massive nickel sulphides assaying: 5.2m @ 9.1% Ni, 1.1% Cu, 0.2% Co, 7.1g/t PGE’s (2.2g/t Pt, 1.7g/t Pd, 1.8g/t Ru & 0.8g/t Rh)
Slide 33: Duketon JV - Rosie Prospect Longitudinal Projection
DUKETON JV ‐ ROSIE PROSPECT LONGITUDINAL PROJECTION (IGO earning 70%) For personal use only
Slide 34: Orrbacken Project - Sweden
ORRBACKEN PROJECT ‐ SWEDEN (JV: IGO EARNING UP TO 73%) For personal use only Airborne EM anomalies over TEM magnetic image Tenement Boundary
Slide 35: Holleton Gold Project (IGO 100%)
HOLLETON GOLD PROJECT (IGO 100%) NEW GOLD SYSTEMS DISCOVERED For personal use only REGIONAL GEOLOGY GOLD GEOCHEMISTRY
Slide 36: Karlawinda Project Location
KARLAWINDA PROJECT LOCATION (IGO 100%) For personal use only Large new gold system close to gas pipeline and existing infrastructure
Slide 37: Karlawinda - Francopan Prospect Cross-Section
KARLAWINDA ‐ FRANCOPAN PROSPECT CROSS‐SECTION For personal use only Very large gold system
Slide 38: Karlawinda Gold Project - Bibra Gold Prospect
KARLAWINDA GOLD PROJECT (IGO 100%) BIBRA GOLD PROSPECT For personal use only Bibra Primary & Oxide Mineralisation
Slide 39: Project Generation - De Beers Database
PROJECT GENERATION DE BEERS DATABASE (IGO 100%) For personal use only 100% IGO – NO BUY‐BACK OR ROYALTIES ON FUTURE MINERAL DISCOVERIES 103,000 analysed geochemical samples. 189,000 unanalysed geochemical samples. 2,278 samples reporting visible gold. 2,025 geophysical surveys. IGO analysi
Slide 40: De Beers Database Storage Warehouse
DE BEERS DATABASE STORAGE WAREHOUSE For personal use only Preparing geochemical samples for analysis
Slide 41: Example: Potential to Find New Mines
EXAMPLE: POTENTIAL TO FIND NEW MINES DE BEERS DATABASE (IGO 100%) For personal use only IGO 2009 gold analysis of De Beers samples collected before the discovery of the Plutonic Gold Mine (WA)
Slide 42: Birrindudu Project (IGO 100%)
BIRRINDUDU PROJECT (IGO 100%) For personal use only (a) Tin Rich Heavy Mineral Concentrate Location Over Aerial Magnetic Image (b) Photograph of Cassiterite Rich Heavy Mineral Concentrates (a) (b)
Slide 43: FY2010-11 Proposed Group Exploration, Development & Capital Equipment Budget
FY2010‐11 PROPOSED GROUP EXPLORATION, DEVELOPMENT & CAPITAL EQUIPMENT BUDGET For personal use only Capital equipment A$19.4M LONG NICKEL MINE Moran development A$13.5M Budget: A$39.6M Exploration A$6.7M Finalise Bankable Feasibility study A$1.5M TROPICANA JV Budget: A$27.6M Mine Capital development
Slide 44: Independence Corporate Goals
INDEPENDENCE CORPORATE GOALS For personal use only To improve shareholder returns by growing a highly profitable, multi commodity Australian mining company Focus on: Low cash costs Mine longevity Innovative exploration Strong balance sheet
Slide 45: IGO Contact Details
IGO CONTACT DETAILS For personal use only Perth Office Managing Director – Chris Bonwick Ground Floor, Suite 1 183 Great Eastern Highway, Belmont, Western Australia Postal: PO Box 496, South Perth, Western Australia 6951 Telephone: +61 8 9479 1777 Facsimile: +61 8 9479 1877 Email: contact@igo.com.au
Slide 46: Competent Person Statement
COMPETENT PERSON STATEMENT For personal use only Note: The information in this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Christopher M Bonwick who is a full‐time employee of the Company and is a member of the Australasi
Slide 47: Long Nickel Mine June 2010 Resources and Reserves
LONG NICKEL MINE JUNE 2010 RESOURCES AND RESERVES For personal use only RESOURCES RESERVES Undiluted at 1% Ni Cut-off 1, 2 Mining at Economic Ni Cut-off 1, 2 as at 30 June 2010 as at 30 June 2010 Tonnes Ni % Ni Tonnes Tonnes Ni % Ni Tonnes LONG Measured 26,000 5.6 1,500 LONG Proven 15,000 2.8 400 In
Slide 48: Tropicana JV 2009 Resources and Reserves
TROPICANA JV 2009 RESOURCES AND RESERVES For personal use only June 2009 December 2009 Open Pit Resources Open Pit Reserves Tonnes Grade Contained Tonnes Grade Contained (Mt) (g/t) 1 Gold (Mt) (g/t) 3 Gold 2 4 (Moz) (Moz) Measured 24.2 2.3 1.79 Proved 22 2.4 1.7 Indicated 39.8 2.0 2.58 Probable 23 2
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