Igo Limited · ASX:IGO
Igo — Independence Group NL — Diggers & Dealers 2013
38 slides from Igo's conference presentation, Aug 5, 2013
Slide 1: Growing a Great Australian Mining Company
GROWING A GREAT For personal use only AUSTRALIAN MINING COMPANY DIGGERS & DEALERS 2013 Chris Bonwick, Managing Director 5 August 2013
Slide 2: Disclaimer
DISCLAIMER L For personal use only l Certain oral and written statements contained or incorporated by reference in this presentation, including information as to the future financial or operating performance of the Company and its projects, constitute forward-looking statements. All statements, othe
Slide 3: Financial Summary
FINANCIAL SUMMARY L For personal use only Capital Structure: ASX 200 Code : IGO 233.3M shares l Financials: Market Cap. (1/8/13): A$769.9M Cash (at 30/6/13): A$ 27.2M Debt (at 30/6/13): (A$ 20.0M) Undrawn Corporate Loan (at 30/6/13): A$120.0M FY2013 NPAT (unaudited): A$ 18.9M Underlying EBITDA (unau
Slide 4: IGO Asset Pipeline
IGO ASSET PIPELINE L Combination of low cost cash flows from current operating mines with significant long-life For personal use only development projects and highly prospective exploration portfolio l l L Highly complementary management and technical capabilities, with proven successful track r
Slide 5: Protection Against Uncertainty
PROTECTION AGAINST UNCERTAINTY L Loan Facilities A$170M A$130M Revolving Corporate Loan For personal use only l Available on an “as needs” basis Drawn A$10M to 30 June 2013 Expires 31 Dec 2015 A$20M Asset Finance Replacement of an existing A$15M asset finance agreement A$20M Continge
Slide 6: IGO Major Projects
IGO MAJOR PROJECTS L For personal use only l 6
Slide 7: Tropicana Gold Project
TROPICANA GOLD PROJECT L L IGO 30%, AGA 70%, MANAGER For personal use only NEW AUSTRALIAN GOLD PROVINCE UNDERl SAND l DUNES 7
Slide 8: Tropicana Gold Project
TROPICANA GOLD PROJECT L IGO 30%, AGA (MANAGER) 70% For personal use only l References : IGO & AGA 4/12/2012 ASX Releases for Tropicana Gold Project Mineral Resource Estimate IGO & AGA 27/7/2011 ASX Releases for Tropicana Ore Reserve Estimate 8
Slide 9: Tropicana Gold Project: Project Commissioning Underway
TROPICANA GOLD PROJECT L IGO 30%, AGA (MANAGER) 70% For personal use only PROJECT COMMISSIONING UNDERWAY l Project 93% complete at 30th June 2013 First gold expected September Qtr 2013 CAPEX estimate unchanged IGO share A$246M – A$254M IGO spend A$214M Estimate A$35M remaining IGO attribut
Slide 10: Tropicana Gold Project: 2012 Domestic Gold Production Comparison
TROPICANA GOLD PROJECT L 2012 DOMESTIC GOLD PRODUCTION COMPARISON For personal use only l Gold Ounces Top 20 Australian Gold Mines by Production 2012 800,000 Tropicana* (100%) 700,000 600,000 500,000 Tropicana* (30% IGO) 400,000 300,000 200,000 100,000 0 Source: * Based on BFS Production Years 1-3
Slide 11: Tropicana Gold Project: Upside Studies & Potential
TROPICANA GOLD PROJECT LL UPSIDE STUDIES & POTENTIAL For personal use only ll References : IGO & AGA 4/12/2012 ASX Releases for Tropicana Gold Project Mineral Resource Estimate IGO & AGA 27/7/2011 ASX Releases for Tropicana Ore Reserve Estimate 11
Slide 12: Tropicana Gold Project: Untested Down Plunge Potential
TROPICANA GOLD PROJECT L LL UNTESTED DOWN PLUNGE POTENTIAL l For personal use only ll Drill widths approximate true widths 12
Slide 13: Tropicana Gold Project: Significant Regional Potential
TROPICANA GOLD PROJECT L LL SIGNIFICANT REGIONAL POTENTIAL l For personal use only ll Tenement Area 12,400 km2 Of the 60 Geochem Prospects ~ 32 have been drilled with RC or DD Geochem Coverage over 7,000 km2 Of the 32 Prospects drilled ~14 have Geochem Based Prospects ~ 60 drill intercep
Slide 14: Tropicana Gold Project: Fly Through
TROPICANA GOLD PROJECT L FLY THROUGH For personal use only l 15
Slide 15: Long Nickel Operation (IGO 100%)
LONG NICKEL OPERATION (IGO 100%) L FY 2013 Record^ Production – 11,180t Ni t For personal use only IGO produced over 95,000t Ni since acquisition l Consistent low cost production Year on Year 9% reduction in payable cash costs (A$/lb Ni) Exploration success continues to add to mining inven
Slide 16: Long Nickel Operation: Years of Low Cost Nickel Production
LONG NICKEL OPERATION (IGO 100%) L OVER 10 YEARS OF LOW COST NICKEL PRODUCTION For personal use only l LOM PRODUCTION AVERAGE Cash Cost + Royalties A$4.14/lb Ni Realised Price A$9.92/lb Ni 16
Slide 17: Long Nickel Operation: Innovative Research and Development
LONG NICKEL OPERATION (IGO 100%) L INNOVATIVE RESEARCH AND DEVELOPMENT For personal use only l High powered TEM transmitter **exclusive to IGO** 10 x more powerful than conventional systems. Nickel sulphides are very Doubles search radius conductive and can be detection up to 200m. detected
Slide 18: Long Nickel Operation: Deposits & Targets Longitudinal Projection
LONG NICKEL OPERATION (IGO 100%) L DEPOSITS & TARGETS LONGITUDINAL PROJECTION For personal use only l References: IGO 19/10/2012 ASX Release: Annual Report for Long Nickel Mine Mineral Resource and Ore Reserve Statement 18
Slide 19: Jaguar Operation: Operational Improvements Continue
JAGUAR OPERATION (IGO 100%) L OPERATIONAL IMPROVEMENTS CONTINUE For personal use only l Record production in June Qtr 2013 Year on Year 15% reduction in payable cash costs (A$Zn/lb) On the path to consistent and lower cost production ZINC-COPPER-SILVER FY2013 FY2013 FY2014 OPERATION GUIDANCE
Slide 20: Jaguar & Bentley: Bentley Deposit
JAGUAR & BENTLEY (IGO 100%) L BENTLEY DEPOSIT New mining plan achieving more consistent production For personal use only Balance of production changing to Stoping rather than Development l Reference: IGO ASX Release 19/10/2012 for Annual Report: Jaguar/Bentley Operation Mineral Resource and Ore
Slide 21: Jaguar & Bentley: Bentley Deposit
JAGUAR & BENTLEY (IGO 100%) L BENTLEY DEPOSIT For personal use only Discovered – 2008 Development – 2011 First Stoping – Sept Qtr 2012 l Bentley - Mineral Resource Total Tonnes Cu % Zn % Ag g/t Au g/t Total Resource 2,914,000 1.9 10.2 134 0.7 Bentley – Contained Metal Cu t Zn t Ag Moz Au oz Total
Slide 22: Jaguar & Bentley: Prospective VMS Corridor
JAGUAR & BENTLEY (IGO 100%) L Under-explored 50km long prospective Cu-Zn-Ag VMS corridor. High Prospectivity around existing 3 mines. For personal use only Ten Cu-Zn-Ag alteration anomalies under cover being systematically l tested. Golden Grove Gossan Hill : discovery history Bentley Deposit
Slide 23: Stockman Project (IGO 100%)
STOCKMAN PROJECT (IGO 100%) L Currawong Deposit Wilga Deposit For personal use only l Stockman Total Tonnes Cu % Zn % Ag g/t Au g/t Total Ore Reserve 8,432,000 2.3 4.3 39 1.1 Total Resource 13,986,000 2.1 4.3 38 1.0 Reference: IGO ASX Release 19/10/2012 for Annual Report: Stockman Project Mineral Re
Slide 24: Stockman Project: Permitting Process Underway
STOCKMAN PROJECT (IGO 100%) L PERMITTING PROCESS UNDERWAY l For personal use only L l Two underground mines - Wilga and Currawong Feeding a 1Mtpa flotation plant over 9 years LOM Payable Metals 144,000t Cu, 229,000t Zn, 4.1Moz Ag & 44,000oz Au Recent discoveries at Bigfoot and Eureka immedia
Slide 25: Karlawinda Gold Project: New Gold Province in Iron Ore Country
KARLAWINDA GOLD PROJECT (IGO 100%) L NEW GOLD PROVINCE IN IRON ORE COUNTRY Mineral Resource 674,300 oz Au (June 2012) For personal use only Potential to increase resources down dip and along strike l Exploration testing prospective corridors Reference: IGO 28/06/2012 ASX Release for Karlawinda
Slide 26: De Beers Database (IGO 100%)
DE BEERS DATABASE (IGO 100%) L L Long term exploration asset to find new Australian mineral camps. 293,000 geochemical samples collected by De Beers over 30 years. l For personal use only IGO analysing samples for 57 elements including Ni, Cu, Pb, Zn, Au,l Ag, Pt, Pd, U, rare earths, Sn, Li, K
Slide 27: De Beers Database: Unlocking the Potential
DE BEERS DATABASE (IGO 100%) L L UNLOCKING THE POTENTIAL l For personal use only De Beers Targets Under Review l 57 Gold Anomalies 23 Base Metal Anomalies 14 Other/Strategic Metal Anomalies Anomalous base metal and sulphur rich gossan found by Independence Group geologists following upstream
Slide 28: IGO Transformation
IGO TRANSFORMATION L GROWING A GREAT For personal use only AUSTRALIAN MINING COMPANY l Planning for the Next Ten Years Continue and Improve our excellent safety record Target low cash costs Long: A$4.30-4.70lb Ni Jaguar: A$0.40-0.60lb Zn Tropicana: A$590-630oz Au Pay consistent dividends I
Slide 29: Contact Details
INDEPENDENCE GROUP L CONTACT DETAILS L l For personal use only l Perth Office Chris Bonwick, Managing Director Suite 4, Level 5, South Shore Centre 85 South Perth Esplanade South Perth, Western Australia, 6151 PO Box 496, South Perth, Western Australia, 6951 Telephone: +61 8 9238 8300 Facsimile: +61
Slide 30: Appendix: Reserves and Resources Statements
L For personal use only l APPENDIX RESERVES AND RESOURCES STATEMENTS 30
Slide 31: Reserves and Resources: Long Nickel Operation
RESERVES AND RESOURCES L For personal use only LONG NICKEL OPERATION Mineral Resources 30 June 2012 l 30 June 2012 Ore Reserve Cut-off 1% Ni at Economic Ni Cut-off Classification Tonnes Ni% Ni Tonnes Classification Tonnes Ni% Ni Tonnes LONG Measured 47,000 3.7 1,700 LONG Indicated 220,000 5.1 11,200
Slide 32: Reserves and Resources: Tropicana Gold Project JV
RESERVES AND RESOURCES L For personal use only TROPICANA GOLD PROJECT JV l Mineral Resources Ore Reserves December 2012 June 2011 Contained Contained Tonnes Grade Gold Tonnes Grade Gold Classification (Mt) (g/t)1 (Moz)2 Classification (Mt) (g/t)3 (Moz)4 Measured 29.8 2.1 2.03 Indicated 76.4 2.0 4.78
Slide 33: Reserves and Resources: Jaguar / Bentley Operation
RESERVES AND RESOURCES L For personal use only JAGUAR / BENTLEY OPERATION JAGUAR / BENTLEY OPERATION Mineral Resources 30 June 2012 l Ore Reserve 30 June 2012 Classification Tonnes Cu% Zn% Ag g/t Au g/t Classification Tonnes Cu% Zn% Ag g/t Au g/t JAGUAR Measured 429,000 2.5 4.4 61 - JAGUAR Proven 73
Slide 34: Reserves and Resources: Stockman Project
RESERVES AND RESOURCES L For personal use only STOCKMAN PROJECT l Mineral Resources 30 June 2012 Ore Reserve January 2013 Classification Tonnes Cu% Zn% Ag g/t Au g/t Classification Tonnes Cu% Zn% Ag g/t Au g/t CURRAWONG Indicated 9,548,000 2.0 4.2 42 1.2 Proven 0 0 0 0 0 Inferred 781,000 1.4 2.2 23
Slide 35: Reserves and Resources: Karlawinda Gold Project
RESERVES AND RESOURCES L For personal use only KARLAWINDA GOLD PROJECT : l BIBRA DEPOSIT (INFERRED RESOURCES - JUNE 2012) Tonnes Au Grade Contained Au Mineralisation Type (Mt) (g/t) (oz) Laterite 2.2 1.1 77,100 Upper Saprolite 0.9 1.1 31,000 Lower Saprolite 1.9 1.1 63,600 Transitional 2.1 1.0 68,200
Slide 36: Competent Persons Statements
COMPETENT PERSONS STATEMENTS L For personal use only Notes: l JORC Code Competent Persons Statements Exploration Results The information in this report that relates to Exploration Results is based on information compiled by Mr Christopher Bonwick. Mr Bonwick is a full-time employee of the Company an
Slide 37: Competent Persons Statements
COMPETENT PERSONS STATEMENTS For personal use only Notes: Tropicana Ore Reserves 27 July 2011 In the 27th July 2011 ASX announcement, the information that related to Ore Reserves was based on information compiled by Mr Marek Janas, a former full-time employee of AngloGold Ashanti Limited, who is a m
Slide 38: Competent Persons Statements
COMPETENT PERSONS STATEMENTS Notes: For personal use only Long Mineral Resources and Ore Reserves 17 October 2012: The information in this report that relates to the Long Nickel Mine’s Mineral Resources is based on information compiled by Ms Somealy Sheppard and Mr Jason Harris. The information in t