Igo Limited · ASX:IGO

Igo — Independence Group NL — Shareholder Meeting (November 2003)

46 slides from Igo's shareholder meeting presentation, Nov 20, 2003

  1. Slide 1: Annual General Meeting November 2003

    Annual General Meeting 19 November 2003

  2. Slide 2: Talk Outline

    ma ad TALK OUTLINE INDEPENDENCE e Corporate Vision e Long Nickel Mine - Operations - Exploration Upside e Exploration Philosophy e Nickel & Gold Targets e Growth strategy

  3. Slide 3: Independence at a Glance

    nN ea INDEPENDENCE INDEPENDENCE AT A GLANCE as at 17.11.03 | S4M raised 42,7001 @ 4.5% Ni 4.6M Sep Qir Profit B iden profit $1.4M Feb Apr

  4. Slide 4: Corporate Vision

    CORPORATE VISION VISION: e To build a major Australian resource house. EXECUTION: e Mining - growing reserve base by innovation and exploration e Exploration - discover & develop new gold & nickel camps e Corporate - mergers & acquisitions

  5. Slide 5: Share Structure & Market Capitalisation

    CS SHARE STRUCTURE & MARKET CAPT ALISATION, Independence shares on issue (M) INDEPENDENCE Ordinary shares 68.5M 0 50 190 150 200 Feb) rdinary shares (tradable — 50.4M) BE Continuing shares [1] Options EZ Uniisted options wooo Market capitalisation Options 28.7M 2002 Contributing shares 9.9M Unlisted

  6. Slide 6: Top Ten Shareholders

    TOP TEN SHAREHOLDERS Ordinary Shares Perilya 20.7M 30.4% ANZ Nominees 2.4M 3.5% Virtual Genius 2.4M 3.5% IME 2.0M 2.9% J Schiller 2.0M 2.9% Lion Selection 1.5M 2.2% Rothschild 1.5M 2.2% Westpac Nominees 0.7M 1.1% J P Morgan Nominees 0.7M 1.1% P Parker 0.7M 1.0% (As at 13.11.03) 34.5M 50.7%

  7. Slide 7: Long Nickel Mine

    i) LONG NICKEL MINE e One of the biggest Kambalda deposits, discovered in 1971. e Past production: 5.43Mt @ 3.7% Ni >200,000t Ni ($2.4 billion @ $12,000/Ni t) e Starting reserve: 27,000t Ni e Known metal in mine: 113,000t in 2 lava channels

  8. Slide 8: Purchase Cost

    i) PURCHASE COST / INDEPENDENCE (Aus$) 700.00 600.00 500.00 400.00 300.00 200.00 100.00 0.00

  9. Slide 9: Long Cash Flow

    CS LONG CASH FLOW Production Aim: e Safely produce +$60M net cash after debt repayment and tax over 5 years. Production Statistics: e Nov 02 — Sep 03 = 129,886t @ 3.8% Ni e Cash costs = A$2.18/Ib Ni* e IGO’s Ni share = 2,908t Ni e Revenue = $39.6M e Operating cash flow =$12.5M e Pre tax profit = $8.

  10. Slide 10: Long Production to Date

    nN ea INDEPENDENCE LONG PRODUCTION TO DATE Ore tonnes & grade Nickel tonnes Production Head Grade Ore Nickel {tonnes} (%) 60,000; 40,000}-— 20,000— Sep0z Dec 02 Mar 03 Jun 03 Sep 03 {7H Production tonnes tom Head grade IGO Cash Cost Quarterly Produced (Ni t) (Aus$/ib) 2506 3 2000 F-—- 1500 F- 1000 5

  11. Slide 11: 2003 - 2004 Production Budget

    w) 2003 — 2004 ENDENCE Production Head Grade Ore Tonnes % Ni 5.0 ACTUAL ~~... BUDGET 60,000/-. > Bo fi 4.0 40,000/- 20,000/— 2.0 Dec 02 Mar03 Jun03 Sep03 Dec03 Mar04 Jun 04 Production tonnes Forecast tonnes

  12. Slide 12: Key Factors for Sustainable, Profitable Mining at Long

    _—sKEY FACTORS FOR SUSTAINABLE, INDEPENDENCE PROFITABLE MINING AT LONG Safety. Stable, experienced & motivated work force. Maximizing grade, minimizing dilution using innovative geology and geophysics. Cost control. Mine life. Exploration upside. Annual production increase.

  13. Slide 13: Long Safety

    La. Cat LONG SAFETY INDEPENDENCE Reasons: e Shifts: 2 x 10.5 hrs/day (not 12hrs). « Salaried employees - risk taking is reduced. « Regular safety meetings involving all. e Regular compulsory training. e Remote controlled equipment reduces exposure hours. e Highly experienced workforce.

  14. Slide 14: Long Mining Team

    La. Cat LONG MINING TEAM INDEPENDENCE e 72 full time very experienced mining team. e Underground experience 1,240 man years e Average experience 19.4 man years e Long experience 240 man years e Owner operator with almost all of the team on salary. « 99% retention rate.

  15. Slide 15: Maximizing Head-Grade, Reducing Dilution

    i) MAXIMIZING HEAD-GRADE INDEPENDENCE REDUCING DILUTION e Team work: e Integrated geology, engineering and operator approach resulting in good forward planning. e Mining method: e Jumbo flat-backing e Long hole pillar recovery e Hand-held mining ¢ Innovation: e Mining - underhand flat-backing trial

  16. Slide 16: Visual Blast Hole Logging

    } VISUAL BLAST HOLE LOGGING ENDENCE @ >5% Ni 1 - 5% Ni —— Conductivity logged 30% less dilution 48% more ore Blasthole © logging ore | EM logging ore Ore boundary interpreted from Ore boundary interpreted from sludge hole | | EM blast hole E logging logging 4 Blast hole (Sem diam.} {sees 80cm diam.)

  17. Slide 17: Portable Underground EM System (EM Torch)

    e Very portable PORTABLE UNDERGROUND EM SYSTEM (EM TORCH) | « Runs on 12 volt batteries « 3 different operating systems using same hardware: Scale Search (m) | Target size Stope 0- 30m 5x 10m Stope 0 — 50m 50 x 50m extensions Exploration | 0 — 100m 100 x 100m

  18. Slide 18: Long Cost Control

    La. al LONG COST CONTROL INDEPENDENCE e Gain share bonus — employees share in above budget positive cash flow. « New mining gear maximizes availability. e Daily cost monitoring. e Very low personnel turnover. e Forward planning.

  19. Slide 19: Increasing Mine Life

    INCREASING MINE LIFE Resources — Reserves. « +20% nickel tonne resource increase & 20% mine life increase. e IGO believes a minimum of 12,000t Ni will be converted to reserves in 2003 / 2004 increasing mine life to 8 years. e Further reserve increases are likely.

  20. Slide 20: In Situ Massive Ni Tonnes

    ma ad IN SITU MASSIVE Nit INDEPENDENCE (tonnes) 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0

  21. Slide 21: Long Complex June 2003 Reserves, Resources & Pillars

    i) LONG COMPLEX JUNE 2003 - RESERVES RESOURCES & PILLARS INDEPENDENC Long Complex - June 30, 2003 Reserves: 688 ,000t @ 4.0% Ni (27,300t Ni) noma. Z Resources: 1,368,600t @ 6.0% Ni (82,700t Ni) Pillars: 421,000t @ 6.45% Ni (27 ,200t Ni) NB: Reserve Nit are included in resource Nit GIBB GIBB VICTOR {

  22. Slide 22: Future High-Grade Ore: Victor South

    i) FUTURE HIGH-GRADE ORE INDEPENDENCE VICTOR SOUTH : Victor South - June 2003 uaa Reserves : 105,000t @ 5.7% Ni (5,900t Ni) Resources : 364,000t @ 5.7% Ni (20,800t Ni) NB: Reserve Ni t are included in resource Nit SHEET 1 Significant intersections: SHEET 1: 11.20m @ 13.7% Ni 29.90m @ 3.8% Ni 24.55m

  23. Slide 23: Long/Victor Complex

    © _- LONG/ VICTOR COMPLEX INDEPENDENCE mm oN : A _¢@ INDEPENDENCE GOLD NL

  24. Slide 24: Annual Production Profile Goal

    i) ANNULAL PRODUCTION ENDENCE PROFILE GOAL Gibb South | Victor.South Decline - -Decline | Long South* Shaft & Decline ¢ 160,000tpa @ 3.3% Ni increasing to 370,000tpa @ 3.8% Ni. e Shaft and Decline haulage capacity under utilized. * Yet to be proven up

  25. Slide 25: Exploration Strategy

    EXPLORATION STRATEGY Looking for new mineral camps: * undercover, at depth and * in lightly or unexplored terrains

  26. Slide 26: WMC Diamond Division Database

    i) WMC DIAMOND DIVISION DATABASE -— 100% IGO INDEPENDENCE 24,000 samples . « $40M replacement cost. e Cannot be duplicated due to Native Title. e Exclusive to IGO until August 2009. e WNC 1.5% gross royalty. Numerous untested gold, nickel etc anomalies

  27. Slide 27: Nickel Exploration

    ya N Cat NICKEL EXPLORATION INDEPENDENCE Hon OTN sae

  28. Slide 28: Chromite Morphology

    ow) CHROMITE MORPHOLOGY INDEPENDENCE Independence can distinguish chromite grains that: e form in ultramafics which carried nickel sulphides. e precipitate with nickel sulphides (also picks up Ni rich meteorites and kimberlites). Chromite grains which crystallise with nickel sulphides romite grains

  29. Slide 29: Cosmos Example

    La. at COSMOS EXAMPLE INDEPENDENCE e Kambalda, Cosmos, Widgiemooltha and NICKEL | other nickel camps DEPOSIT | rediscovered using this 7 technique. e >40 new nickel targets defined with potential CHROMITE new surface nickel GRAIN |} — sulphides.

  30. Slide 30: Thadoona Hill Ni & Diamond Target

    i) THADOONA HILL Ni & DIAMOND TARGET INDEPENDENCE vx Chromite sample NiS anomalous chromite sample i Image Legend Magnetic high Magnetic low

  31. Slide 31: Anomalous Ironstone

    CS ANOMALOUS IRONSTONE Nis e Potential for new outcropping nickel sulphide camps ~ 3600 ppm Ni - (Fe concentrate) 2km

  32. Slide 32: Musgrave Gravity

    La. Cat MUSGRAVE GRAVITY INDEPENDENCE Docker River Pele : j ~ DeRose Hill | WMC Nebo-Babel : ) : f Location of surface Ni, Cu, Co, Au, PGE | ’ / j nickel anomalies

  33. Slide 33: Musgrave JV - De Rose Hill Nickel Anomalies

    iY MUSGRAVE JV — DE ROSE HILL INDEPENDENCE NICKEL ANOMALIES Soil Geochem Ni (ppm) me (cut) a 50 30 20 ) TERRITORY Area of soil g AUSTRALIA eo chern Tenerments CJ Granted Me CZ Applied for NORTHERN DeRose Hill Project SOUTH —_ Wanka Van ka Hill Prospect Wee O 100km

  34. Slide 34: Gold Exploration

    ma ad GOLD EXPLORATION INDEPENDENCE EXAMPLE OF DATABASE AU ANOMALY e Anomaly generated before Kanowna Belle was discovered. e Other anomalous belts not followed up: Jundee Bronzewing Kanowna Belle example

  35. Slide 35: New Gold Province - Tropicana JV

    i) NEW GOLD PROVINCE INDEPENDENCE EXAMPLE — TROPICANA JV_ -~if-SOH image IGO |S. S|. Reconnaissance drilling TPA 120: 10m @ 2.3g/t Au & 7.2m @ 2.2g/t Au EOH TPA 027: 7m @ 2.0g/t Au TPA 136: 4m @ 3-1g/t Au TPSL 05: 13m @ 1.9g/t Au | AngloGold JV 25ppb Au 34opb Au Gold-in-soil + fonconcentrate samples

  36. Slide 36: Tropicana East

    i) TROPICANA EAST INDEPENDENCE SECTION 142800N 7m. @ 2.2g/t Au s incl. 1m @6.3g4A Y | Alteration _ Exsolved pyrite | Pyrite , >1.0g/t Au | Intercepts sed g 50m

  37. Slide 37: Tropicana Project

    i) TROPICANA PROJECT PEELE ee Archaean-Proterozoic Collision Z

  38. Slide 38: New Gold Province - Example Nambi

    i) NEW GOLD PROVINCE EXAMPLE - NAMBI INDEPENDENCE ® >i{Moz deposit @ 0,5-1M oz deposit Au (ppb) contours (@ >10 (i 8-10 [| &8

  39. Slide 39: New Gold Province - Example Mt Isdell

    nN ea INDEPENDENCE NEW GOLD PROVINCE EXAMPLE - MT ISDELL 12ppb Au, 145ppm Pb| Sy Mt isdell Project | 245ppm Pb Up to

  40. Slide 40: New Gold Province - Example Dalwallinu

    i) NEW GOLD PROVINCE INDEPENDENCE EXAMPLE - DALWALLINU 100% IGO Surface geochemistry L

  41. Slide 41: New Gold Province - Example Wackilina

    i) NEW GOLD PROVINCE INDEPENDENCE EXAMPLE - WACKILINA 100% IGO 433.3ppb Au 17-2pph Av) 7

  42. Slide 42: Exploration Targets and Budget

    w EXPLORATION / INDEPENDENCE Nickel: e Delineate an additional +50,000t Ni metal. e Production cost <US$2 /Ib Ni. Gold: e Delineate 2 x +500,0000z gold deposits. e Production cost <Aus$350/oz. Exploration Budget: e Approx. $4M per year: Ni - $2M Au - $2M

  43. Slide 43: Planned December Quarter

    Co PLANNED DEC 03 QTR INDEPENDENCE LONG NICKEL MINE ¢ Commencing 8,000m 25 hole DDH surface and underground drill program testing 7 targets including Long South REGIONAL EXPLORATION Tropicana West geochem survey Wackilina — drilling NiS and Au prospect pegging Musgrave - geochem & TEM survey Goldswo

  44. Slide 44: Summary

    La. ea SUMMARY ENDENCE Independence is now cash flow positive ($M) ($M) Dec02 Mar03 Jund3 Sep03 E34 IGO Cash + Receivables (net creditors)

  45. Slide 45: Australian Nickel Companies

    i) AUSTRALIAN NICKEL COMPANIES INDEPENDENCE —_ ~ MKT CAP / MASSIVE Nit | (Aus $) 16000.0 14000.0 12000.0 - 10000.0 8000.0 - 6000.0 4000.0 2000.0 0.0

  46. Slide 46: Growth Strategy

    GROWTH STRATEGY e The company plans to continue increasing shareholder wealth by: > profitable mining > exploration discoveries » scientific advances »>mergers & acquisitions > quality management Its our goal to grow Independence intoa oo major Australian mining house

Independence Group NL — Shareholder Meeting (November 2003) on 6ix