Igo Limited · ASX:IGO
Igo — Independence Group NL — BMO Global Metals & Mining Conference 2018
38 slides from Igo's conference presentation, Feb 23, 2018
Slide 1: BMO Global Metals & Mining Conference 2018
INDEPENDENCE GROUP NL For personal use only BMO Global Metals & Mining Conference 2018 Peter Bradford, Managing Director and CEO Delivery and Discovery 25 – 28 February 2018
Slide 2: Cautionary statements & disclaimer
Cautionary statements & disclaimer For personal use only • 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 invit
Slide 3: A Company with Purpose
A Company with Purpose Nickel and Cobalt Sulphate To create long-term shareholder value • A strong West Australian business underpinned by long life assets For personal use only ─ World class Nova Nickel-Copper- Cobalt Operation GEOGRAPHICAL QUALITY FOCUS ─ 30% interest in the Tropicana Gold Mine •
Slide 4: IGO Portfolio Overview
IGO Portfolio Overview Diversified portfolio of nickel, gold, zinc and copper production For personal use only A$55M A$138M FY18E EBITDA Split(1) FY18E EBITDA Split(1) A$18M A$142M FY18E EBITDA Split(1) FY18E EBITDA Split(1) 4 1) Macquarie Research dated 21 Feb 2018
Slide 5: IGO EBITDA Profile (A$M)
For personal use only IGO EBITDA Profile (A$M)(1) 600 Nova delivers 500 step change to IGO EBITDA profile 400 300 200 100 - FY12 FY13 FY14 FY15 FY16 FY17 FY18e FY19e FY20e Long (A$M) Jaguar (A$M) Tropicana (A$M) Nova (A$M) 1) Macquarie Research – 21 Feb 2018 5
Slide 6: Tropicana Gold Mine
For personal use only 6 Tropicana Gold Mine
Slide 7: Tropicana
Tropicana JV – IGO 30% with AngloGold Ashanti 70% • Open pit, contract mining For personal use only Overview 7.8Mtpa open pit and processing plant • Production from up to four contiguous pits, extending some 5km in strike Resource(1) 7.5Moz (100%) 2.2Moz (30%) length Reserve(1) 4.1Moz (100%) 1.2Moz
Slide 8: Tropicana: Transitioning to Long Island Strategy
Tropicana Transitioning to Long Island Strategy For personal use only Based on strip mining and in-pit waste dumping Directional Production and AISC(1) koz A$/oz • Leverages tabular geometry and strike extent 800 1,500 1,162 Step change reduction in mining costs 700 1,000 • Transition to face shovel
Slide 9: Tropicana: Evaluating underground opportunities
Tropicana Evaluating underground opportunities For personal use only 1) Refer to ASX release dated 7 Dec 2017: Tropicana JV Commits to Long Island and Increased Milling Capacity 9
Slide 10: Tropicana: Boston Shaker drilling and underground studies continue
Tropicana Boston Shaker drilling and underground studies continue For personal use only Underground drilling returned significant intercepts • 18m at 6.58g/t Au from 587m • 37m at 6.49g/t Au from 509m • 20m at 5.82g/t Au from 609m Next steps: • Infill drilling • Pre-feasibility study • Potential for
Slide 11: Nova
For personal use only Nova 11
Slide 12: Nova: Tier one, low cost Ni-Cu-Co mine
Nova Tier one, low cost Ni – Cu – Co mine • High grade, thick, flat lying magmatic sulphide orebody For personal use only 1.5Mtpa underground mine and Overview processing plant • Located in Western Australia on the Resource(1) 271,000t Ni, 113,000t Cu, 9,000t Co Fraser Range Reserve(1) 274,000t Ni,
Slide 13: For personal use only
• Nova-Bollinger to be fully grade control drilled and de-risked by end of FY18 • Substantially all development capital For personal use only expected to be complete by end of FY18 13
Slide 14: Nickel and the EV Battery
Nickel and the EV Battery Nickel expected to be a big winner For personal use only Nickel market already in a supply deficit Nickel Mine Supply by Product (kt)(1) • Growing demand for nickel in stainless steel Ni ktpa Ni ktpa 2018E supply 3,500 deficit of 3,500 • Positive global growth outlook conti
Slide 15: Nickel and Cobalt Sulphate
Nickel and Cobalt Sulphate LME Nickel Versus Nickel Sulphate (US$/t)(1,2) Nova Downstream Processing Potential US$/t For personal use only 20,000 Scoping study to investigate the potential for downstream processing to produce 18,000 nickel and cobalt sulphates for EV batteries • Metallurgical testwo
Slide 16: Exploration
For personal use only Exploration 16
Slide 17: FY18 Exploration
FY18 Exploration A$50M commitment to exploration in FY18 For personal use only FY18 Exploration Budget Fraser Range A$10M Nova A$1.5M A$21M Tropicana A$4M Jaguar A$4.5M Long A$9M Lake Mackay & Other 17
Slide 18: Why Explore in the Fraser Range
September 2015 Why Explore in the Fraser Range “Where there’s smoke there’s fire” For personal use only • Several mafic/ultramafic intrusions are known to occur along the Fraser Range • Multiple companies have reported magmatic Ni-Cu sulphides in mafic and ultramafic rocks along the entire belt • Su
Slide 19: Fraser Range Exploration Program
February 2018 Fraser Range Exploration Program >330% tenure increase since September 2015 For personal use only Creation of Belt Scale opportunity by consolidation of 14,300km2 • Most recent JV: Arrow Minerals(1) Systematic belt scale exploration activities continue • Spectrem and downhole EM survey
Slide 20: Nova Mining Lease Exploration
Nova Mining Lease Exploration 3D Seismic program commenced For personal use only Initial work program completed in late 2017: • Drilled historical EM plates • Drilled Phoenix – targeting mafic intrusive with magmatic sulphides • Drilled several stratigraphic holes on the 2D seismic line to aid plann
Slide 21: Nova Mining Lease Exploration
Nova Mining Lease Exploration Near mine exploration space is wide open For personal use only 21
Slide 22: Magmatic Sulphide Mineralisation
Magmatic Sulphide Mineralisation What do mafic Ni-Cu deposits and camps look like – Voisey’s Bay example For personal use only Deposit analogues • Chonoliths have a small footprint • The small size is important to the genesis of world class deposits 1500E 3000E 4500E 6000E Scale 00 2 • Mineralisatio
Slide 23: Lake Mackay Exploration
Lake Mackay Exploration Belt scale greenfields project For personal use only Total area under granted licences and applications increased to 12,800km2 • Six new exploration licence applications added First diamond drilling at Grapple(1,2) • Six holes completed for 2,917m • Multiple narrow sulphide i
Slide 24: Corporate
For personal use only Corporate 24
Slide 25: Corporate Summary
Corporate Summary Positioned for a strong 2H18 For personal use only Units 1H17 1H18 Inc/(Dec) Share Ownership Revenue and Other Income A$M 223.1 354.8 59% Substantial Holders(5) Institutional Ownership(4) Underlying EBITDA(1) A$M 81.8 133.4 63% Mark Creasy 16% Australia 61% Profit After Tax A$M 20.
Slide 26: Sustainability
Sustainability Focused on better outcomes for our people Key Lag Safety Metrics(1,2,3) For personal use only Endeavour to create an organisation which: 9 • Generates superior long-term return for our 8 7 LTIFR 12 MMA investors 6 MTIFR 12 MMA • Improves the socio-economic conditions of the 5 areas in
Slide 27: Concluding Comments
Concluding Comments • A strong West Australian business For personal use only underpinned by long life assets - World class Nova nickel-copper- cobalt operation - 30% interest in the Tropicana Gold Mine • Now in positive cash flow stage at all assets and balance sheet strengthening • An exciting and
Slide 28: Appendix
For personal use only Appendix 28
Slide 29: Tropicana: Production, cash costs and AISC significantly better than guidance
Tropicana Production, cash costs and AISC significantly better than guidance For personal use only Tropicana Metric Units 1H17 1H18 Inc/(Dec) Guidance(2) koz Production (100%) and AISC A$/oz 160 1,400 Gold produced (100%) koz 221.2 249.3 28.1 220.0 – 245.0 140 1,229 1,286 1,167 1,200 Gold Sold (IGO
Slide 30: Nova: Successful first half of commercial production
Nova Successful first half of commercial production For personal use only Tonnes Metric Units 1H17 1H18 Inc/(Dec) Guidance(1) Nova Production 5,000 4,500 4,454 Nickel in concentrate t - 8,954 8,954 7,500 – 9,000 4,500 4,000 Copper in concentrate t - 3,843 3,843 4,000 – 4,500 3,500 Cobalt in concentr
Slide 31: Jaguar & Long
For personal use only Long Jaguar & 31
Slide 32: Jaguar
Jaguar 100% owned underground Cu – Zn VMS For personal use only Overview High grade Underground Cu – Zn VMS Resource(1) 55kt Cu, 364kt Zn & 18Moz Ag, 90koz Au Reserve(1) 16kt Cu, 161kt Zn, 8Moz Ag, 36koz Au Production Guidance FY18 31,000t Zn (contained metal in 2,800t Cu concentrate) Operating cost
Slide 33: Jaguar: Zinc production met YTD
Jaguar Zinc production met YTD For personal use only Jaguar Production Metric Units 1H17 1H18 Inc/(Dec) Guidance(1) Tonnes 9,000 8,105 Zinc in concentrate t 18,641 14,990 (3,651) 14,500 – 16,500 8,000 7,399 6,599 6,885 7,000 Copper in concentrate t 2,756 1,121 (1,635) 1,300 – 1,500 6,000 Cash cost (
Slide 34: Jaguar Upside
Jaguar Upside(1) Depth extensions at Bentley, new deposit at Triumph and ongoing regional exploration For personal use only Bentley Mine Triumph Deposit 1) For further information see ASX release 26 Jul 2017 – Jaguar Value Enhancement Programs 34
Slide 35: Long
Long 100% owned high-margin underground nickel mine For personal use only Average grade project to date of 3.8% Ni Overview Consistent low cost producer Resource(1) Mining to cease 31 May 2018 Reserve(1) Production Guidance FY18 (contained metal in 5,700t Ni concentrate) Operating cost Guidance A$4.
Slide 36: Long: A solid and consistent performer in the IGO portfolio
Long A solid and consistent performer in the IGO portfolio For personal use only • Acquired in 2002 • Since FY03 produced c.133,000t of contained Ni • A$199M free cashflow from FY11 to FY17 • Care and maintenance planned for May 2018 • Greenfields exploration will continue Long Life of Mine Producti
Slide 37: Long: production guidance met YTD
Long Long production guidance met YTD For personal use only Tonnes Long Production Metric Units 1H17 1H18 Inc(Dec) Guidance(1) 2,500 2,136 Contained nickel produced t 4,229 2,946 (1,283) 2,700 – 3,000 2,069 2,000 Cash cost (payable) A$/lb Ni 3.21 5.10 1.89 4.40 – 4.90 1,572 1,500 1,374 Sustaining ca
Slide 38: For personal use only
a el a “FOLLOW US ~ UAS WE GO FROM STRENGTH TO STRENGTH igo.com.au
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