Igo Limited · ASX:IGO
Igo — 2017 BofAML Global Metals, Mining & Steel Conference
32 slides from Igo's conference presentation, May 18, 2017
Slide 1: BofAML Global Metals, Mining & Steel Conference Presentation
18/05/2017 BOFAML GLOBAL METALS, MINING & STEEL CONFERENCE PRESENTATION Attached is a presentation given by Peter Bradford, Managing Director and CEO at the BofAML Global Metals, Mining & Steel Conference. Speaking at the BofAML Global Metals, Mining & Steel Conference, Peter Bradford, said “IGO has
Slide 2: Independence Group NL - 2017 BofAML Global Metals, Mining & Steel
INDEPENDENCE GROUP NL 2017 BofAML GLOBAL METALS, MINING & STEEL Peter Bradford, Managing Director and CEO 16-18 May 2017
Slide 3: Cautionary Statements & Disclaimer
Cautionary Statements & Disclaimer • This presentation has been prepared by Independence Group NL (“IGO”) (ABN 46 092 786 304). It should not be considered as an offer or invitation to subscribe for or purchase any securities in IGO or as an inducement to make an offer or invitation with respect to
Slide 4: We are a company with purpose
\ ———. _d ’ Legend \ i . ine % atl , i.) A om yee g Jaguar Mine (Zn-Cu-Ag) i x Tropicana Mine (Au) Long Mine (Ni) WNova Mine (Ni-Cu-Co) \ O Stockman Project (Cu-Zn-Ag-Au) ww wv aw
Slide 5: A company with purpose
A company with purpose To create long-term shareholder value Acquire Discover Develop Operate Diversified mining company Core Assets GEOGRAPHICAL FOCUS QUALITY Nova: Ni/Cu(1) Tropicana: Au(2) Other Assets LONGEVITY SCALE Jaguar: Zn/Cu(1) Long: Ni(1) Stockman: Cu/Zn(1) 1) 100% IGO owned 2) 30% IGO ow
Slide 6: Diversified portfolio
Diversified portfolio Delivering consistent operating margin Operating Margin 70% 60% 50% 40% 30% Tropicana 20% Long Jaguar Combined Operations 10% 0% 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 -10% IGO EBITDA FY15(1) IGO EBITDA FY18E(1) Long Jaguar Tropicana Long Jaguar Tropicana Nova 1) Source Data:
Slide 7: Our flagship Nova nickel-copper mine
Our flagship Nova nickel-copper mine
Slide 8: Nova
Nova World class, low cost magmatic nickel-copper mine High grade, thick, flat lying Quality magmatic sulphide orebody Scale Average +26kt Ni, 11kt Cu & 1kt Co per annum Initial 10 year mine life with huge Longevity exploration potential Geographical focus Located in WA on Fraser Range (prox
Slide 9: Nova timeline
Nova timeline World class timetable from discovery to production Nameplate Production Sep 17 Discovery Construction Jul 2012 Start Jan 2015 2012 2013 2014 2015 2016 2017 Feasibility First Study Concentrate Jul 2014 Oct 2016 Nameplate capacity expected to be achieved 12 months earlier than DFS estima
Slide 10: Nova mine design & schedule
Nova mine design & schedule Priority (till now) has been underground development C5 Nova Bollinger 9
Slide 11: Nova processing plant
Nova processing plant Conventional differential flotation plant De-risked and commissioned in Oct 2016 Plant tonnage constrained from underground Ramp-up to nameplate in Sep Q17 Average LOM production 26kt Ni & 11.5kt Cu(1) Highly marketable concentrates 1) Nova production average LOM production fro
Slide 12: Tropicana gold mine, a successful JV
Tropicana gold mine, a successful JV
Slide 13: Tropicana overview
Tropicana overview Making a great asset better through value enhancement Engineering to bring value forward Quality through grade streaming Scale +120,000 oz/year (IGO share) Initial 11 year mine life being Longevity extended by strip mining Geographical focus Located in WA proximal to Nova
Slide 14: Tropicana value enhancement
Tropicana value enhancement Value enhancement delivers 79% increase in value Value enhancement delivered to date % NPV Variance Increased plant throughput 17% to 7.5Mtpa Accelerated mining and 42% grade streaming Long Island Study Dec 2016 Update with LoM 20% extension and waste mining cost reductio
Slide 15: Tropicana production profile
Tropicana production profile Accelerated mining and grade streaming Directional production and AISC(1) Gold produced AISC A$/oz Grade streaming koz 700 1,200 1,100 Grade streaming 600 1,000 900 500 800 700 400 600 300 500 400 200 300 200 100 100 - - CY14 CY15 CY16 CY17 CY18 CY19 1) Grade streaming a
Slide 16: Tropicana LOM extension
Tropicana LOM extension Long Island Study – What is it? Unlock resource extensions beneath pits 160,000m of drilling completed for study Strip mining with in-pit dumping of waste Step change reduction in mining cost Study completion in Sep Q17 15
Slide 17: Positioning to discover the next big one
Positioning to discover the next big one
Slide 18: Exploration
Exploration IGO committed to delivering growth through exploration FY17 Exploration Budget 21% Tropicana Long 48% Jaguar 8% Nova 11% Generative & Projects 12% IGO vs Tropicana Exploration A$M 60 50 50 40 33 30 45 20 23 10 10 5 0 (1) FY17 FY18 Tropicana Exploration (IGO share) IGO Exploration (excl.
Slide 19: Nova exploration
Nova exploration Multiple exploration activities underway in CY17 Nova resource extension Reprocessing EM complete Drill testing of EM targets in Jun Q17 2D seismic data acquisition completed R&D to deliver competitive advantage 18
Slide 20: Fraser Range consolidation
Fraser Range consolidation Positioning for discovery Fraser Range is an under-explored province Multiple programs starting in CY17 Regional geochem & geophysics Deeper drilling on advanced targets Apply learnings from R&D at Nova 19
Slide 21: Corporate and our people
Corporate and our people
Slide 22: People
People Attracting, developing and retaining the best people Consistent improvement in key lag metrics Graduate and apprentice programs 9 8 MTIF 12 MMA Training to strengthen supervisors LTIF 12 MMA 7 Focus on visible leadership 6 5 Safety systems improved 4 3 Lag metrics significantly improved 2 1 0
Slide 23: IGO corporate and market data
IGO corporate and market data Diversified explorer, developer and miner Share Ownership(1) Scale: ~A$1.8 billion market capitalisation Substantial Holders Institutional Ownership Mark Creasy 17% Australia 66% Liquid: ~5.5 million shares per day FIL 10% USA 22% Van Eck 6% UK & Europe 8% CBA 5% ROW 5%
Slide 24: IGO key catalysts
= as = IGO key catalysts
Slide 25: Value delivery and growth
Value delivery and growth Multiple catalysts across the portfolio June Quarter September Quarter December Quarter FY17 FY18 FY18 Drill testing of EM targets 3D Seismic survey & processing Nova Ramp-up to full production Delivery of Long Island Study Tropicana Incremental process plant rates increase
Slide 26: Concluding comments
Concluding comments Diversified mining company delivering cash flow and growth Diversified (gold and base metals) Two core assets with long mine life Quality assets delivering 40-50% historical operating margin Strong balance sheet Positioned to unlock potential of Fraser Range 25
Slide 27: Appendix
Appendix 26
Slide 28: Nova Mine
Nova Mine World class Ni-Cu-Co project in ramp-up IGO 100% magmatic Ni – Cu Overview 1.5Mtpa underground mine Ramp-up expected September 2017 quarter Resource(1) 325,000t Ni, 134,000t Cu Reserve(1) 275,000t Ni, 112,000t Cu 5,000 to 6,000t Ni, Production Guidance FY17 1,900 to 2,300t Cu Key developme
Slide 29: Tropicana Gold Mine
Tropicana Gold Mine One of Australia’s leading open-pit gold mines JV IGO 30% with AngloGold Ashanti 70% Overview Open pit with potential for expansion 7+ years current LOM Resource(1) 8.02Moz (100%) 2.4Moz (30%) Reserve(1) 3.80Moz (100%) 1.1Moz (30%) Production (100%) (30%) Guidance FY17 390 to 430
Slide 30: Jaguar Mine
Jaguar Mine VMS Corridor with cluster of orebodies Overview IGO 100% High grade Underground Cu – Zn VMS 51,000t Cu, 256,000t Zn & 13.1Moz Ag Resource(1) 16,000t Cu, 137,000t Zn & 6.7Moz Ag Reserve(1) Production 39,000 to 43,000t Zn in concentrate Guidance FY17 4,600 to 5,100t Cu in concentrate Opera
Slide 31: Long Mine
Long Mine High grade underground nickel on the Kambalda dome IGO 100% high-margin underground nickel Overview Average grade project to date of 3.8% Ni Consistent low cost producer Resource(1) 66,000 Ni t Reserve(1) 22,000 Ni t Production Guidance 7,400 to 8,200 Ni t FY17 Operating cost A$3.50 to 3.9
Slide 32: As we go from strength to strength
AS WE GO FROM STRENGTH TO STRENGTH igoO.com.au
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