Slide 1: IGO Limited 4Q22 Results Presentation
IGO Limited 4Q22 Results Presentation 27 July 2022
Slide 2: Cautionary Statements & Disclaimer
Cautionary Statements & Disclaimer • This presentation has been prepared by IGO Limited (“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 those secu
Slide 3: Safety
Safety Zero HPI and SPIs during the quarter | Continued improvement in lead indicators Lag Safety Indicators (TRepIFR1 & SPIFR2) Lead Safety Indicators 20 7 500 19 450 6 18 400 17 5 350 16 15 300 4 14 250 13 3 200 12 2 150 11 100 10 1 50 9 8 0 0 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-2
Slide 4: 4Q22 Highlights
4Q22 FY19Highlights and 4Q19 Highlights Solid quarter of performance across both nickel and lithium operations Completion of Western Areas Transaction Nova continued to deliver safely • • Integration progressing to plan Downstream nickel sulphate study has • • FY22 Nickel production within guida
Slide 5: 4Q22 Financial Results
4Q22 Financial Results Operational performance from Nova and Greenbushes delivered a strong finish to FY22 Units 4Q221 3Q221 QoQ1 FY22 Sales Revenue A$M 277.9 245.5 ▲ 13% 900.6 Underlying EBITDA2 A$M 258.4 232.6 ▲ 11% 716.9 Net Profit After Tax A$M 107.2 133.0 ▼ 19% 330.9 Net Cash from Operating Act
Slide 6: 4Q22 NPAT Reconciliation
4Q22 NPAT Reconciliation Expected Western Areas transaction related costs drove QoQ decrease in NPAT result A$M 180 7.7 160 1.0 38.2 140 65.7 120 100 19.6 0.7 4.9 80 44.9 41.3 133.0 60 107.2 40 20 - 3Q22 NPAT Nova Exploration Corporate & Acquisition Mark-to- Share of Net Finance D&A Tax 4Q22 NPAT EB
Slide 7: 4Q22 Cash Flow Reconciliation
4Q22 Cash Flow Reconciliation Net debt of A$533M following Western Areas acquisition A$M 1,800 1,600 1,400 1,200 900.0 1,000 1,262.5 800 70.7 18.4 5.2 5.3 10.2 18.8 600 209.0 400 28.3 94.0 1.9 200 440.2 367.1 - Cash at Nova FCF TLEA Dividend Western Areas Exploration & Payments for Corporate & Finan
Slide 8: Nickel Business
Nickel Business 8
Slide 9: Nickel Business
Nickel Business Nickel portfolio expanded following completion of Western Areas acquisition Completed Scheme of Arrangement to acquire Western Areas on 20 June 2022 Portfolio now includes operating, development and feasibility projects and an enlarged exploration portfolio Transaction has enabled do
Slide 10: Nova
Nova Excellent quarter of operations delivers strong finish to FY22 Metric Units 4Q221 3Q221 FY22 FY22 Guidance Nickel in concentrate t 6,509 6,290 26,675 25,000 to 27,000 Copper in concentrate t 2,814 2,762 11,483 11,500 to 12,500 Cobalt in concentrate t 233 237 982 900 to 1,000 Cash cost (payable)
Slide 11: Nova
Nova 4Q22 financial performance enhanced by strong nickel prices Nova Production & Cash Costs Tonnes A$/lb Nickel Price 4Q22 average nickel price of A$43,899/t 9,000 $2.50 $1.99 (vs 3Q22: A$37,637/t) 8,000 $2.24 $1.86 $2.00 7,000 6,000 4Q22 Key Financials $1.73 $1.50 5,000 Underlying EBITDA: A$209.8
Slide 12: Forrestania
Forrestania June quarter performance impacted by COVID-19 Forrestania Production & Cash Costs 1 1 Metric Units 4Q22 3Q22 FY22 Tonnes A$/lb Nickel in concentrate t 2,860 3,339 14,028 4,500 $10.00 $7.87 Cash cost (payable) 2 A$/Ib Ni 8.46 8.54 8.02 $7.46 4,000 $8.54 $8.46 $9.00 $8.00 3,500 $7.00 • Und
Slide 13: Cosmos
Cosmos Project development activity progressed during 4Q22 Shaft Development • Back-reaming of lower section of shaft complete • Temporary winder and headframe complete Underground Development • Lateral development of 1,313m including 251m of Odysseus decline and 1,062m of capital development Infras
Slide 14: Cosmos
Cosmos IGO completing Cosmos development optimisation strategy and plan First concentrate production deferred from late 2022 to mid-2023 Deferral will provide additional time to: • Ensure shaft completion • Complete more mine development to enable multiple ore sources • Expansion of process plant bu
Slide 15: Nickel Operations FY23 Guidance
Nickel Operations FY23 Guidance Nickel1 Copper Cobalt Cash Costs2 Capex3 Nova 24 - 27kt 11 - 12kt 0.9 - 1.0kt 2.60 - 3.00/lb 19 - 26 Forrestania 10.5 - 12.5kt - - 7.50 - 8.50/lb 11 - 12 Total 34.5 - 39.5kt 11 - 12kt 0.9 - 1.0kt 4.10 - 4.70/lb 28 - 38 Note: FY23 guidance for Cosmos to be provided in
Slide 16: Lithium Business
Lithium Business Kwinana Lithium Hydroxide Refinery 16
Slide 17: TLEA Lithium Joint Venture
TLEA Lithium Joint Venture1 Strong production growth at Greenbushes and higher prices delivers maiden dividend IGO share of NPAT from TLEA was A$102M (3Q22: A$60.5M) A$70.7M inaugural dividend payment received from TLEA Chemical Grade Spodumene transfer price for 1H23 expected to be US$4,187/t FOB2
Slide 18: Greenbushes
Greenbushes1 Solid ramp up of operations delivers production and costs within guidance Metric Units 4Q222 3Q222 FY22 FY22 Guidance Spodumene Concentrate 3 kt 338 270 1,135 1,100 to 1,250 Cost of Goods Sold (COGS) excl. royalties4 A$/t 254 235 238 225 to 275 Cost of Goods Sold (COGS)4 A$/t 618 476 45
Slide 19: Greenbushes
Greenbushes1 Improved run time, higher throughout and improving recoveries Greenbushes Production & Cost of Goods Sold A$/t sold Tonnes Processing Operations 350,000 $300 32,884 300,000 $242 $254 Technical Grade Plant (TGP) $235 $250 $219 Stable and consistent production in 4Q22 250,000 39,130 40,62
Slide 20: Greenbushes
Greenbushes1 Site infrastructure being expanded to support planned processing expansion Key Activities in 4Q22 • CGP3 – initial programs of work underway • TSF4 construction • New Mine Services Area • Expanded power supply • Increased water storage • Workshops, warehouses, offices FY23 Capex Estimat
Slide 21: Kwinana Refinery
Kwinana Refinery1 First battery grade lithium hydroxide produced in May 2022 from Train 1 Train 1 • Samples have been provided and verified by an independent third party – qualification with offtake partners can now commence • Train 1 to continue to ramp up to commercial production during FY23 Train
Slide 22: Lithium Operations FY23 Guidance
Lithium Operations FY23 Guidance FY23 Guidance Greenbushes Lithium Mine Spodumene Production (100%) kt 1,350 to 1,450 Cost of Goods Sold (ex-royalties) A$/t 225 to 275 Capex (Sustaining, Improvement and deferred waste) A$M 420 to 480 Kwinana Lithium Hydroxide Refinery Lithium Hydroxide Production (1
Slide 23: Exploration
Exploration 23
Slide 24: Near Nova and Fraser Range
Near Nova and Fraser Range High levels of drilling activity underway Drilling at Silver Knight has identified potential resource extension to the south with further work planned in 1Q23 Testing of Lignum, Vulpecula & Oaktree targets completed during 4Q22 Diamond drilling proposed at Pike North, Skip
Slide 25: Exploration
Exploration Multiple workstreams over several key projects Kimberley Project Paterson Project Broken Hill 4Q22 field work included heli- Extensive program of airborne assisted geological traversing IGO holds an option to earn-in to and ground surveys using cutting around the Yampi Military Training
Slide 26: Exploration
Exploration Retained our commitment to exploration and discovery in FY23 A$75M budgeted exploration expenditure across the expanded portfolio Key priorities include: • Drilling nickel targets around Nova and Silver Knight, including Silver Knight South • Drilling nickel targets around Forrestania •
Slide 27: Summary
Summary 27
Slide 28: Summary
Summary FY19 and 4Q19 Highlights Strong finish to FY22 and a pipeline of growth and development in place for FY23 • Nova delivered within nickel production guidance, better than guidance on costs Nickel Operations • Portfolio expanded with completion of Western Areas acquisition; integration underwa
Slide 29: We believe in a world where people power makes amazing things happen
We believe in a world where people power makes amazing things happen. Where technology opens up. new horizons and clean energy makes the planet a better place for every generation to come. We are bold, passionate, fearless and fun - a smarter, kinder, more innovative company. Our work is making fund