Igo Limited · ASX:IGO

Igo — Independence Group NL — Investor Presentation (May 2015)

35 slides from Igo's investor presentation, May 7, 2015

  1. Slide 1: May 2015 Investor Presentation

    For personal use only Au Ni Cu/Zn May 2015 Investor Presentation

  2. Slide 2: Cautionary Notes and Disclaimer

    Cautionary Notes and 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 For personal use only purchase any securities in IGO or as an inducement to make an offer or invitati

  3. Slide 3: Table of Contents

    Table of Contents  Introduction For personal use only  Financials  Operations • Tropicana • Long • Jaguar  Growth  Summary Page 3

  4. Slide 4: Corporate Overview

    Independence Group NL Corporate Overview Key Highlights Financial Snapshot For personal use only Highlights YTD FY15 YTD FY14 Change Revenue $380M $292M 30% Underlying EBITDA(2) $175M $100M 75% Profit after tax(2) $69M $34M 103% Net Operating Cash Flow(2) $157M $79M 99% Leading ASX200 Gold and Base

  5. Slide 5: Share Ownership and Performance

    Independence Group NL Share Ownership and Performance  ASX listed (IGO.AX) Institutional Retail & other Domestic Instos Foreign Instos For personal use only • Head Office in Perth  234.3M shares on issue • $1.39 billion market capitalisation(1) • 2.4M potentially dilutive employee performance righ

  6. Slide 6: Diversified Mining, Development and Exploration Company

    Independence Group NL Diversified Mining, Development and Exploration Company MINING DEVELOPMENT EXPLORATION For personal use only Au Ni Zn/Cu Cu/Zn TROPICANA LONG JAGUAR STOCKMAN VARIOUS 30% JV Interest 100% owned 100% owned 100% owned 70-100% WA, Australia WA, Australia WA, Australia Vic, Australi

  7. Slide 7: Financials: Underlying EBITDA by Mine

    Financials Underlying EBITDA(1) by Mine For personal use only 80 70 60 Underlying EBITDA ($’M) 50 40 30 20 10 0 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 -10 Tropicana Long Jaguar (1) Underlying EBITDA is a non-IFRS measure and comprises net profit or loss after tax, adjusted to exclud

  8. Slide 8: Commodity Prices

    Commodity Prices Australian Dollar Metal Prices Still Strong Australian Dollar Price Movement For personal use only 150% 140% 130% Movement Since One Year Ago (%) 120% 110% 100% 90% 80% Gold Silver 70% Copper Zinc 60% Nickel IGO share price 50% May-14 Aug-14 Oct-14 Apr-14 Apr-15 Jan-15 Jun-14 Jul-14

  9. Slide 9: Financial Highlights for Mar Quarter

    Financial Highlights for Mar 15 Quarter For personal use only Highlights Mar 15 Qtr Mar 14 Qtr Unaudited Profit after tax $19.8M $20.2M Underlying EBITDA(1) $53.3M $51.8M Net Cash Flow From Operating Activities $42.9M $37.9M Free Cash Flow(2) $24.5M $21.9M Cash (at end of Quarter)(3) $109.8M $47.4M

  10. Slide 10: Quarterly Financials

    Financials Quarterly Financials for the last 21 months $120 For personal use only $M Underlying EBITDA(2)(4) $100 $M Debt (at period end) $M Net Cash (at period end)(5) $80 $M $60 $40 $20 $0 Sept 13 Qtr Dec 13 Qtr Mar 14 Qtr June 14 Qtr Sept 14 Qtr Dec 14 Qtr Mar 15 Qtr ($20) ($40) (1) Profit after

  11. Slide 11: Tropicana: Tier 1 Gold Mine on New Belt

    Tropicana Tier 1 Gold Mine on New Belt  370km northeast of Kalgoorlie by road For personal use only  Unincorporated joint venture • 70% AngloGold Ashanti (Manager) • 30% Independence  Belt scale concession package ~3,000km2 • Eastern edge of the Yilgarn craton along the Fraser-Albany orogeny – pr

  12. Slide 12: Tropicana: March 2015 Quarter

    Tropicana March 2015 Quarter  Health, Safety and Environment For personal use only 16 4.00 Total Mined (Mt) • No lost time incidents for the quarter 14 Milled (Mt) 3.50 Milled (Mt) and Milled Grade (g/t) • 12-month LTIFR is currently 1.06(1) 12 Grade Milled (g/t) 3.00 Total Mined (Mt) 10 2.50  Min

  13. Slide 13: Tropicana: 3.6Moz Reserves Optimized at A$1,249/oz

    Tropicana 3.6Moz Reserves Optimized at A$1,249/oz For personal use only Page 13

  14. Slide 14: Tropicana: Gold Exploration

    Tropicana Gold Exploration  Gold exploration managed by AngloGold For personal use only Ashanti  Tropicana Resource Extension • Confirmation drilling at Boston Shaker in quarter • Drilling commenced at Havana North at the end of quarter  Near Mine Exploration • RC Drilling at Madras, 25km south o

  15. Slide 15: Tropicana: Base Metals Exploration

    Tropicana Base Metals Exploration  Beachcomber JV and Salt Creek JV N For personal use only Tropicana Gold Mine • Managed by IGO • Aggregate area of ~140km2 and ~2,300km2 respectively Domains • IGO spending a aggregate of $6M over 4 years to increase Salt Creek Complex Northern Foreland interest fr

  16. Slide 16: Long Nickel Mine

    Long Nickel Mine High Grade Ni, Good Fe:MgO Ratio, Low Impurities  Located 57km south of Kalgoorlie For personal use only  Fantastic orebody • Over 310kt contained Ni to date at an average mined grade of 3.8% Ni mined over 35 year history • Acquired by IGO in 2002 • Good Fe:MgO ratio (1.4 to 1.7)

  17. Slide 17: Long: Consistent Performance

    Long Consistent Performance 3,500 $7.00  Health, Safety & Environment For personal use only 3,000 $6.00 • No lost time injuries 2,500 $5.00 • 12 month LTIFR improved to 3.1(2) Cash Costs ($/lb Ni) Contained Nickel (t) 2,000 $4.00  Solid quarter 1,500 Contained Nickel (t) $3.00 • 66.5kt ore mined a

  18. Slide 18: Long: Brownfields Exploration Targets Being Tested

    Long Solid Brownfields Exploration Targets Being Tested  Moran South For personal use only • Completed drilling initial 12-hole program • Hole 3 intersected 5.4m at 12.4%Ni • Hole 9 intersected 2.5m at 5.4%Ni • A nickel mineralised envelope (>1% nickel) 320m x 50m in size was defined from six drill

  19. Slide 19: Jaguar Zn/Cu Mine: A Turnaround Success Story

    Jaguar Zn/Cu Mine A Turnaround Success Story  Located 300km north of Kalgoorlie For personal use only  Cu-Zn-AG VMS camp • IGO controls +50km long corridor prospective for Cu-Zn- Ag VMS deposits • Three mines discovered and developed • First discovery at Teutonic Bore made by BP in 1976  Acquired

  20. Slide 20: Jaguar: Strong Contribution

    Jaguar Strong Contribution Over Last 12 Months  Health, Safety & Environment 18,000 Zinc (t) $0.90 For personal use only 16,000 Copper (t) $0.80 • NIL lost time injuries Zinc Guidance Copper Guidance 14,000 $0.70 • 12 month LTIFR improved to 3.4(2) Cash Costs ($/lb Zn) Cost Guidance 12,000 $0.60 Ca

  21. Slide 21: Jaguar: 50km Long Corridor Prospective for Cu-Zn-Ag VMS

    Jaguar 50km Long Corridor Prospective for Cu-Zn-Ag VMS For personal use only Three known mines with similar metal endowment Ten Cu-Zn-Ag alteration anomalies under cover, being systematically tested Page 21

  22. Slide 22: Jaguar: Priority 1, Explore for Resource Extensions at Bentley

    Jaguar Priority 1: Explore for Resource Extensions at Bentley  Inferred Resource For personal use only • Inferred resource at bottom of Arnage and Flying Spur • Drill drive has commenced to provide drill access to drill off inferred resource  Bentley Deeps • 7.8m @ 10% Zn and 2.5% Cu drilled in Oc

  23. Slide 23: Jaguar: Priority 2, Using Science to find the Next Bentley

    Jaguar Priority 2: Using Science to find the Next Bentley  Triumph For personal use only • Diamond drilling planned for June quarter to target up plunge and down plunge extensions of mineralisation  Daimler • New geological model developed for Daimler • 2 diamond drill holes completed in March qua

  24. Slide 24: Stockman Project (VIC)

    Stockman Project (VIC) Continuing to De-risk Project in 2015 $3,000 Zinc price  460 km by road NE of Melbourne For personal use only $2,500  Optimisation study results released 28 Nov 2014 $2,000 • Cu-Zn VMS Price (USD/t Zn) $1,500  10 year mine life based on Ore Reserves(1) Bloomberg consensus $

  25. Slide 25: Lake Mackay JV (NT)

    Lake Mackay JV (NT) Underexplored, belt scale opportunity  Located in NT on WA border For personal use only • Very larger tenure – 12,200km2 (5,000km2 under application)  IGO earning 70% over 6 years • Partner: ABM Resources NL • Phase 1: $1.6M over 2 years followed by election and $1.0M payment •

  26. Slide 26: Bryah Basin JV (WA)

    Bryah Basin JV (WA) Targeting De Grussa Style Cu-Au deposit  Located west of De Grussa For personal use only  IGO earning 70-80% • Partner: Alchemy Resources • $6.5M over 6 years to earn 70-80%  Underexplored base metals potential • 45km strike extent on Narracoota volcanic sequence  Neptune pro

  27. Slide 27: Summary: Business is in good shape

    Summary Business is in good shape  Business is in good shape For personal use only • YTD all projects delivering within guidance • Net Operating cashflows of $42.9M in March quarter (YTD: $157M) • Cash and refined gold bullion improved by $16.5M in March quarter to $109.8M • 6 cent interim dividend

  28. Slide 28: Contact Details

    Contact Details For personal use only Peter Bradford Managing Director & CEO Tony Walsh Company Secretary 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 8 92

  29. Slide 29: Resources & Reserves: Competent Persons Statement

    Resources & Reserves Competent Persons Statement 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 for subsequen

  30. Slide 30: Resources & Reserves: Tropicana

    Resources & Reserves Tropicana (IGO 30% share) 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 20.

  31. Slide 31: Resources & Reserves: Long

    Resources & Reserves Long (100% IGO) 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 3.1 1,700

  32. Slide 32: Resources & Reserves: Jaguar

    Resources & Reserves Jaguar (100% IGO) 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 Indicated 1,50

  33. Slide 33: Resources & Reserves: Stockman

    Resources & Reserves Stockman (100% IGO) 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 4.2 42 1.

  34. Slide 34: FY15 Guidance

    FY15 Guidance(1)(2) Tropicana Jaguar For personal use only • 144,000 to 153,000oz (IGO 30% share) • 44,000 to 48,000t Zn in conc. • Average cash cost of $590 - $630/oz Au • 7,000 to 8,000t Cu in conc. • AISC of $770 - $830/oz Au • Average cash cost of $0.30-0.50/lb Zn • Sustaining capex (IGO 30% sha

  35. Slide 35: Hedging Summary

    Hedging Summary For personal use only Nickel • Q4 FY15: 250t/mth at Avg. price of $18,382/t • Q1 FY16: 250t/mth at Avg. price of $19,701/t Copper • FY15 Q4: 550t at $8,500/t in June 15 Gold • FY15: Average 4,500oz/month zero cost collars (range $1,300 to $1,717/oz) • FY16: Average 3,208oz/month zero

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