Slide 1: IGO Limited FY20 Results Presentation
IGO Limited FY20 Results Presentation 27 August 2020
Slide 2: Cautionary Statements & Disclaimer
Cautionary Statements & Disclaimer • This presentation has been prepared by IGO Limited (“IGO”) (ABN 46 092 786 304). It should not be considered as an offer or invitation to subscribe for, purchase or sell any securities in IGO or as an inducement to make an offer or invitation with respect to thos
Slide 3: Competent Person's Statements
Competent Person’s Statements • Any references to IGO Mineral Resource and Ore Reserve estimates should be read in conjunction with IGO’s Annual Update of Exploration Results, Mineral Resources and Ore Reserves dated 30 January 2020 (Annual Statement) and lodged with the ASX for which Competent Pers
Slide 4: Our People
Our People Continuing focus on safety, wellbeing and engagement Effectively managing impact of COVID-19 on our people, host communities and business Safety Improvement Plan underway to deliver improved safety outcomes Consistent high levels of employee engagement across the business 4
Slide 5: Making A Difference
Making A Difference Focused on metals critical to enabling green energy Globally Relevant Vertically Integrated supplier of metals that are critical to energy to produce battery grade chemicals and cathode storage and renewable energy precursors Quality Products Proactively Green desired by end user
Slide 6: FY20 Highlights
FY20 FY19Highlights and 4Q19 Highlights Consistent operational performance delivers record financial results Revenue1 Production at Nova exceeded guidance for all metals A$892M NPAT A$155M Tropicana delivered within guidance while development of Boston Shaker Underground progressed toward completion
Slide 7: Financial Results Summary
Financial Results Summary Sustained improvement across key metrics Revenue1 (A$M) Net Profit After Tax (A$M) 1000 200 892 155 781 793 150 800 100 76 600 53 422 50 417 17 400 0 200 -50 -59 0 -100 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Underlying Free Cash Flow2 (A$M) Net Cash (A$M) 400 500
Slide 8: FY20 Cash Flow
FY20 Cash Flow Nova performance drives strong build in cash balance FY20 Cash Flow Reconciliation (A$M) A$M 800 700 85 74 56 21 16 11 29 600 6 83 500 321 3 400 300 510 200 348 100 - Opening cash Nova Free Tropicana Exploration & Investments Corporate & Deferred sale Proceeds on Debt Lease Dividends
Slide 9: FY20 Dividend
FY20 Dividend Enduring commitment to provide cash returns to shareholders Dividend History (cents per share) Dividend (cents Free Cash Flow Final Dividend per share) (A$M) 14 350 5c per share (unfranked) 12 289 282 300 10 250 5 Total FY20 dividend payout 8 172 200 A$65M (▲10% yoy) 6 8 150 4 100 6 2
Slide 10: Capital Management
Capital Management Balanced approach to funding growth and returns to shareholders Group Free Cash Flow 15% - 25% 50% - 70% 15% - 25% Exploration Returns to Capital to grow Balance Sheet Shareholders the business Capital to sustain (Dividends or organically via the business and buyback) exploration
Slide 11: Nova
Nova Strong performance across all key metrics Nickel Production Cash Costs 30,436t A$2.41/lb Ni (payable) Copper Production FCF Margin 13,772t 54% Cobalt Production EBITDA Margin 1,142t 59% 11
Slide 12: Nova
Nova Record Nova financial results across all key metrics FY20 Quarterly Production & Cash Costs Nova Financial Results Tonnes A$/lb 600 9,000 $3.00 593 $2.59 8,000 $2.70 $2.42 8,019 500 7,724 $2.50 504 7,000 7,513 7,181 6,000 $2.00 400 $1.96 5,000 349 351 300 335 $1.50 321 4,000 289 3,784 256 251 3
Slide 13: Nova
Nova Forward production profile reflects planned lower mined grades FY21 Guidance Directional Guidance kt A$/lb Metric Units FY21 Guidance 35.0 3.50 Nickel in concentrate t 27,000 to 29,000 30.0 3.00 Copper in concentrate t 11,000 to 12,500 25.0 2.50 Cobalt in concentrate t 850 to 950 20.0 2.00 Cash
Slide 14: Tropicana
Tropicana FY20 production and costs within guidance range and strong EBITDA margin Gold Sold (IGO 30%) AISC EBITDA Margin 141,169 oz A$1,171 /oz 60% Boston Shaker Underground development on track for commercial production in the September 2020 quarter 14
Slide 15: Tropicana
Tropicana Record Tropicana financial results across most metrics Tropicana Production (100% ) and AISC Tropicana Financial Results oz A$/oz 300 160,000 $1,600 290 $1,440 279 140,000 $1,303 $1,400 250 133,932 240 120,000 123,320 $1,200 200 $948 100,000 $1,066 103,858 $1,000 102,007 173 175 80,000 $80
Slide 16: Tropicana
Tropicana Lower YoY production in FY21 investment year before recovery in FY22 FY21 Guidance Directional Guidance (100% basis) koz AISC/oz Metric Units FY21 Guidance 500 2,000 Gold produced (100%) koz 380 to 430 1,800 400 1,600 Gold Sold (IGO 30%) koz 114 to 129 1,400 Cash cost A$/oz 1,040 to 1,120
Slide 17: Growth Strategy
Growth Strategy Parallel focus on organic and inorganic growth Commodity focus: metals critical to enabling green energy Organic Opportunities Inorganic Opportunities Exploration to unlock the mines of the Disciplined M&A targeting development future and deliver transformative growth stage and opera
Slide 18: FY21 Exploration Guidance
FY21 Exploration Guidance Organic growth through exploration remains a key pillar of our growth strategy FY21 Exploration Budget Financial commitment to exploration A$1M A$5.0M maintained at A$65M for FY21 A$2M A$2M A$3M Work programs include significant drilling of A$65M A$11M A$38M targets in clos
Slide 19: Exploration Portfolio
Exploration Portfolio Expanded portfolio of quality, belt-scale nickel and copper opportunities Focus on discovering deposits with scale and high value ore Terranes and JV’s selected due to potential to host multiple Tier-1 discoveries Energised team, prospective portfolio and financial commitment t
Slide 20: Our focus for FY21
Our focus for FY21 Enduring commitment to drive value for all our stakeholders Our People Accelerating Growth Operational Excellence Effective management of Continued focus on Active Exploration COVID-19 being better Technology driven Safety Improvement Plan Transformative M&A business improvement C
Slide 21: We believe in a world where people power makes amazing things happen
We believe in a world where people power makes amazing things happen. Where technology opens up. new horizons and clean energy makes the planet a better place for every generation to come. We are bold, passionate, fearless and fun - a smarter, kinder, more innovative company. Our work is making fund