Igo Limited · ASX:IGO
Igo — Independence Group NL — Investor Presentation (September 2015)
39 slides from Igo's investor presentation, Sep 16, 2015
Slide 1: Independence Group NL
INDEPENDENCE GROUP NL For personal use only Peter Bradford, Managing Director and CEO September 2015
Slide 2: 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 For personal use only subscribe for or purchase any securities in IGO or as an inducement to make an offer or invit
Slide 3: IGO introduction
IGO introduction Leading Australian diversified mining company For personal use only Listed on the ASX (IGO) • Based in Perth, Western Australia Portfolio of high margin assets • All proximally located in West Australia • Nickel, Gold, Zinc, Copper, Cobalt Consistent track record and future • Strong
Slide 4: Recent financial performance
Recent financial performance Record revenue & operating cash flow for year to 30 June 2015 For personal use only Operating Cash flow (A$’M) Revenue (A$’M) 250 600 500 200 400 150 300 100 200 50 100 - - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2005 2006 2007 2008 2009 2010 2011 2012 201
Slide 5: Summary of FY2015 results
Summary of FY2015 results Strong free cash flow resulting in a strong balance sheet For personal use only Highlights (A$’M) FY2015 FY2014 Change Revenue 499 399 25% Underlying EBITDA(1) 213 148 45% Profit after tax 77 49 57% Net Cash Flow From Operating Activities 202 127 59% Free Cash Flow 116 30 2
Slide 6: FY2015 financial results
FY2015 financial results Strong growth in all metrics over last three years For personal use only Revenue (A$’M) EBITDA (A$’M) (1) Profit After Tax (A$’M) 600 250 90 80 500 200 70 400 60 150 50 300 40 100 30 200 20 100 50 10 0 0 0 -10 FY13 FY14 FY15 FY13 FY14 FY15 FY13 FY14 FY15 Operating Cashflow (
Slide 7: Solid improvement in safety
Solid improvement in safety Reduction in harm incidents is a credit to our people For personal use only 16 50 TRIFR (total recordable injuries per million hours worked) 45 LTIFR (lost time injuries per million hours worked) 14 40 12 35 10 30 8 25 20 6 15 4 12 Mthly Rolling LTIFR 12 Mthly Rolling TRI
Slide 8: IGO asset portfolio
IGO asset portfolio Portfolio of gold and base metals assets For personal use only Mining Construction Permitting Exploration Au Ni Zn/Cu Ni/Cu Cu/Zn TROPICANA LONG JAGUAR NOVA STOCKMAN VARIOUS 30% JV Interest 100% owned 100% owned 100% owned 100% owned 70-100% West Australia West Australia West Aus
Slide 9: Tropicana overview
Tropicana overview One of Australia’s lowest cost, open pit gold mines of scale For personal use only 30% IGO • 70% AngloGold Ashanti (Managers) • One of best virgin Australian gold discoveries since 2000 • Located 370 km East NE of Kalgoorlie Low cost and long mine life • 3.6Moz Ore Reserves(1) • C
Slide 10: Tropicana pits
Tropicana pits Four contiguous pits extending over a five kilometre strike For personal use only 10
Slide 11: Tropicana FY15 scorecard
Tropicana FY15 scorecard Consistent performance through the year For personal use only Total Mined (Mt) Mill Throughput (Mt) Milled Grade (g/t) 16 2.0 4.0 14 12 1.5 3.0 10 8 1.0 2.0 6 0.5 1.0 4 2 0.0 0.0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Actual Guidance Actual Guidance Gold recovery (%) Gold Pro
Slide 12: Tropicana production profile
Tropicana production profile Grade streaming drives production and cash flow in early years For personal use only 600 500 Gold Production (koz) 400 300 200 100 0 FY14 FY15 FY16E FY17E FY18E FY19E 1) Gold production shown on 100% basis 2) FY17E and later years assumes +7.0 Mtpa processing rate, avera
Slide 13: Tropicana upside
Tropicana upside Significant potential to extend mine life beyond initial 10 years For personal use only Process plant debottlenecking ongoing • Throughput rates of up to 6.6 Mtpa achieved on a monthly basis • Work underway to debottleneck to +7.0 Mtpa at Life of Mine grade of ~2 g/t Au Resource ext
Slide 14: Resource extension
Resource extension Using 3D seismic to drive brownfields resource extensions For personal use only 14
Slide 15: Conceptual mining study
Conceptual mining study Potential for larger scale equipment and strip mining approach For personal use only Step 1: Mine starter pit - waste dumped ex-pit Blocks are hauled ex-pit Step 2: Mine strips – shallow waste dumped ex-pit and other waste trucked along ramps in pit wall to dump in-pit Hauled
Slide 16: Nova overview
Nova overview World class, low cost magmatic nickel-copper project For personal use only Fully funded underground nickel- copper project in construction • Located in highly prospective Fraser Range • Located 350 km SE of Kalgoorlie, WA • 350km from port of Esperance, WA • Acquired by IGO in 2015(1)
Slide 17: Nova construction underway
Nova construction underway First production scheduled for late 2016 For personal use only Infrastructure work well progressed • 492-person camp operational • 2km long airstrip is operational • Access road due for completion in 2 months (currently using temporary road) • LOM tailings dam completed •
Slide 18: Nova: a world class project
Nova: a world class project Orebody shape, grade and mineralogy underpin low cost profile For personal use only High Grade • Resource: 14.3Mt @ 2.3% Ni and 0.9% Cu • Reserve: 13.1Mt @ 2.0% Ni and 0.8% Cu Flat lying, thick orebody shape • Translates to lower underground development costs per tonne •
Slide 19: Project schedule
Project schedule Work progressing on time and on budget with critical path items currently ahead of schedule For personal use only 2015 2016 2017 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Underground Boxcut excavation Decline
Slide 20: Optimisation study
Optimisation study Focus on accelerating ramp-up and bringing value forward For personal use only Optimisation study currently underway • Scheduled to be completed in December 2015 • Designed to optimise the project on a Present Value & project return basis Key value drivers being captured by the op
Slide 21: Nova Exploration Potential
Nova Exploration Potential Fraser Range: Emerging Province at an early stage For personal use only 21
Slide 22: Jaguar overview
Jaguar overview High grade Zn-Cu VMS camp For personal use only High grade underground Zn-Cu-Ag-Au VMS deposit • Located 300km north of Kalgoorlie via sealed road • Fly in – fly out from Perth Significant improvement in operation over last 1-2 years • Acquired by IGO in 2011 • Owner mining • 450 to
Slide 23: Jaguar performance
Jaguar performance FY15 production and cash costs at, or better than, guidance For personal use only Ore Mined and Milled (kt) Grade (%) Zn in Concentrate (t) 140 12.0 15,000 120 10.5 9.0 12,000 100 7.5 80 9,000 6.0 60 4.5 6,000 40 3.0 20 3,000 1.5 0 0.0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ore Min
Slide 24: Jaguar in-mine resource extension
Jaguar in-mine resource extension Currently drilling off inferred resource at Flying Spur For personal use only 24
Slide 25: Triumph discovery
Triumph discovery New VMS discovery located 6km from processing plant For personal use only 25
Slide 26: Long overview
Long overview History of consistent production and reserve replacement For personal use only High grade underground nickel • Located in Kambalda, 60km south of Kalgoorlie 35 year operating history • Acquired by IGO in 2002 • Average grade project to date of 3.8% Ni • Owner mining • Consistent produc
Slide 27: Long operating performance
Long operating performance FY15 production and cash costs at, or better than, guidance For personal use only Ore Mined (kt) Ni Grade (%) Ni Produced (t) 80 5 3,000 4 2,500 60 4 3 2,000 3 40 1,500 2 2 1,000 20 1 500 1 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ore Mined Guidance Midpoint Ni Grade Guid
Slide 28: Long resource extension
Long resource extension Targeting extensions within lava channel to south For personal use only Moran South • Identified 320m x 60m wide mineralised zone • Infill drilling underway to establish an inferred resource • Pushing drill drive further south to be able to continue to test potential extensio
Slide 29: Greenfields exploration
Greenfields exploration Long term commitment to delivering organic growth For personal use only Transitioned portfolio • Away from smaller “postage stamp” projects • Focus on belt scale opportunities utilising science to drive area selection Fraser Range – Tropicana belt • Hosts two of Australia’s b
Slide 30: Concluding comments
Concluding comments Diversified mining company delivering cash flow and growth For personal use only Strong year to 30 June 2015 • Achieved or bettered guidance on production and cash costs at all mines • Achieved record revenue and operating cash flow • Ended FY15 with net cash of A$121M Completed
Slide 31: As we go from strength to strength
_, AS WE GO FROM ie STRENGTH TO STRENGTH igo.com.au
Slide 32: Mineral resource & ore reserve: Competent Persons Statements
Mineral resource & ore reserve Competent Persons Statements For personal use only Exploration Results • The information in this report that relates to Exploration Results is a compilation of previously published data for which Competent Persons consents were obtained. Their consents remain in place
Slide 33: Mineral resource & ore reserve: Tropicana Operation
Mineral resource & ore reserve Tropicana Operation For personal use only Mineral Resource 30 June 2014 Ore Reserve 30 June 2014 100% Project 100% Project Classification Tonnes Mt Au g/t Contained Au Moz Classification Tonnes Mt Au g/t Contained Au Moz OPEN PIT Measured 22.8 2.11 1.56 OPEN PIT Proved
Slide 34: Mineral resource & ore reserve: Long Operation
Mineral resource & ore reserve Long Operation For personal use only Mineral Resource 30 June 2014 Ore Reserve 30 June 2014 Classification Tonnes Ni% Ni Tonnes Classification Tonnes Ni% Ni Tonnes LONG Measured 70,000 5.5 3,900 LONG Proved 50,000 3.8 1,900 Indicated 270,000 5.5 15,000 Probable 56,000
Slide 35: Mineral resource & ore reserve: Jaguar Operation
Mineral resource & ore reserve Jaguar Operation For personal use only Mineral Resource 30 June 2014 Ore Reserve 30 June 2014 Classification Tonnes Cu% Zn% Ag g/t Au g/t Classification Tonnes Cu% Zn% Ag g/t Au g/t BENTLEY Measured 706,000 2.2 12.3 172 0.8 BENTLEY Proved 499,000 2.1 12.1 168 0.8 Indic
Slide 36: Mineral resource & ore reserve: Nova Project
Mineral resource & ore reserve Nova Project1 For personal use only Mineral Resource 14 July 2014 Ore Reserve 14 July 2014 Classification Tonnes (Mt) Ni% Cu% Co% Ni Kt Cu Kt Co Kt Classification Tonnes (Mt) Ni% Cu% Co% Ni Kt Cu Kt Co Kt NOVA Indicated 9.1 2.5 1.0 0.08 230 94 7.3 NOVA Probable 10.3 2.
Slide 37: Mineral resource & ore reserve: Stockman Project
Mineral resource & ore reserve Stockman Project For personal use only Mineral Resource 30 June 2014 Ore Reserve 28 November 2014 Classification Tonnes Mt Cu% Zn% Ag g/t Au g/t Classification Tonnes Mt Cu% Zn% Ag g/t Au g/t CURRAWONG Measured - - - - - CURRAWONG Proved - - - - - Indicated 9.58 2.0 4.
Slide 38: FY16 guidance
FY16 guidance For personal use only Tropicana Jaguar • 129,000 to 141,000oz (IGO 30% share) • 35,000 to 40,000t Zn in conc. • Average cash cost of $640 to $710/oz Au • 7,500 to 8,500t Cu in conc. • AISC of A$820 to A$910/oz Au sold • Average cash cost of A$0.40 to 0.60/lb Zn • Sustaining capex (IGO
Slide 39: Hedging
Hedging As at 30 June 2015 For personal use only Nickel • Q1 FY16: 250 t/month at avg. price of A$19,701/t Copper • Q1 FY16: 550t at A$8,001/t in Sept 2015 Gold • FY16: Average 3,208 oz/month zero cost collars (range A$1,342 to A$1,672/oz) • FY17: 2,500 oz/month zero cost collars to November 2016 (r
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