Igo Limited · ASX:IGO
Igo — Independence Group NL — 13th China Nickel Conference (May 2016)
31 slides from Igo's conference presentation, May 24, 2016
Slide 1: 13th China Nickel Conference
INDEPENDENCE GROUP NL For personal use only PETER BRADFORD, MANAGING DIRECTOR AND CEO 13th China Nickel Conference May 2016
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: IGO overview
IGO overview Leading Australian diversified mining company For personal use only ASX listed (IGO) • Based in Perth, Western Australia Diversified portfolio of high margin assets • 3 operating mines and 1 under construction • All located in Western Australia • Gold, Nickel, Zinc, Copper, Cobalt, Silv
Slide 4: Market profile & share ownership
Market profile & share ownership Strong domestic institutional and retail support For personal use only Market profile Share ownership • $1.5 billion (US$ 1.1 billion(1)) market • Substantial holders(3) capitalisation at $2.97/share(2) Mark Creasy 18.88% • Share price 52 Week Range FIL Limited 9
Slide 5: IGO asset portfolio: Company in transition
IGO asset portfolio Company in transition Macquarie Research: IGO Macquarie Research: IGO For personal use only EBITDA - FY15 EBITDA - FY18e Long Jaguar Tropicana Long Jaguar Tropicana Nova 600 Macquarie Research EBITDA Profile 600 Unlocking Value 500 500 • Development of world class Nova project 40
Slide 6: IGO asset portfolio: Portfolio of gold and base metals assets
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 7: Balance sheet and funding
Balance sheet and funding Existing operations continue to deliver robust free cash flow For personal use only $200M remaining construction capex at Nova(1) Free cash flow from operating activities $41M cash and bullion(1) $310M of $550M debt facilities undrawn(1) 1) At 31 March 2016 7
Slide 8: Tropicana overview
Tropicana overview Transition to higher process rates For personal use only 30% IGO and 70% AngloGold Ashanti • Located 370km East NE of Kalgoorlie Low cost and long mine life • 3 Moz Ore Reserves(1) contained within 7 Moz Resources(1) • Open Pit mining with remaining LOM strip ratio of 5.7(1) Scale
Slide 9: Tropicana upside
Tropicana upside Significant potential to extend mine life beyond initial 10 years For personal use only Gas project well progressed • 292km pipeline completed ahead of plan • Powerhouse conversion underway 10 of 17 gas fired engines commissioned Process plant debottlenecking ongoing • Increase thro
Slide 10: Tropicana pits
Tropicana pits Four contiguous pits extending over a five kilometre strike For personal use only 10
Slide 11: Long overview
Long overview History of consistent low cost production and exploration success 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 operated undergro
Slide 12: 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 operated undergro
Slide 13: Jaguar in-mine resource extension
Jaguar in-mine resource extension Drilling recently completed at Flying Spur For personal use only 13
Slide 14: Nova overview
Nova overview World class, low cost magmatic nickel-copper project For personal use only Fully funded underground Ni-Cu-Co project in construction • Located in highly prospective Fraser Range, Western Australia • 350km SE of Kalgoorlie and 350km from port of Esperance • Acquired by IGO in 2015(1) Pr
Slide 15: Nova on schedule and on budget
Nova on schedule and on budget Overall project now 85% complete For personal use only 15
Slide 16: Nova progress
Nova progress All major long lead items now on site For personal use only Underground Face Mapping Underground Equipment Workshop Crushing Circuit Grinding Circuit Flotation Circuit Concentrate Filtration Circuit 16
Slide 17: Nova mine layout
Nova mine layout Designed for flexibility and productivity For personal use only Portal • Mine development ahead of schedule • 4.3km of development completed to 30 April 2016 • Ground conditions are very good • First development in ore expected in June quarter 2016 Upper Nova Lower Nova * Calendar y
Slide 18: 1.5Mtpa Nova processing plant
1.5Mtpa Nova processing plant Conventional design with best in class components For personal use only • Construction based on lump sum turnkey contract with GRES • Process plant and associated infrastructure is ahead of schedule and 66% complete • GRES will complete dry and wet commissioning and ass
Slide 19: Improved mine schedule adds value
Improved mine schedule adds value Updated mining sequence improved project NPV by 26%(1) For personal use only Production Schedule(2) Updated production 2.00 2.50% delivers: Head grade (%) Ore Mined (Mt) 1.75 Accelerated ramp-up to 1.5Mtpa in FY17 & FY18 2.00% 1.50 Consistent 1.5Mtpa production 1.25
Slide 20: Nova concentrates
Nova concentrates Highly marketable concentrates For personal use only Nickel concentrates • Nickel concentrate grading 13.5% Ni • No Arsenic • High Fe to MgO ratio preferred by smelters Nickel offtake agreements • Three year contract • 50% contracted with BHPB Nickel West, delivered via road to Kam
Slide 21: Capital costs reduced
Capital costs reduced Benefiting from downturn in construction industry For personal use only Optimisation % Variance to Capital Cost Unit Study DFS Initial Capital(1) $M 443 6% Sustaining Capital(2) $M 148 3% Initial capital cost revised down to $443M • Resulted from increased competitiveness in co
Slide 22: Competitive operating costs
Competitive operating costs(1) Optimisation Study added 36% more value - reduced risk - future growth For personal use only Operating Costs Per Tonne Ore(2) 120 Operation Costs ($/t ore) 100 4.51 10.24 9.61 80 30.68 60 40 49.37 20 Nova – 2019E 0 OS Mining Processing G&A Haulage and handling Optimisa
Slide 23: Nova in mine exploration
Nova in mine exploration Opportunities for additions to mining inventory prioritised For personal use only Current status • Swick Mining Services awarded underground drilling contract at Nova • Two drill rigs on site • Exploration drilling to be dovetailed with stope definition drilling program • St
Slide 24: Stockman Project
Stockman Project Feasibility completed and permitting well advanced For personal use only Cu-Zn underground VMS project • Located 460km north-east of Melbourne Positioned for development • Feasibility studies completed • Environmental Effects Statement and Federal EPBC Act approval Robust financial
Slide 25: Generative exploration
Generative exploration Long term commitment to delivering organic growth For personal use only • Diverse greenfields and brownfields exploration projects • Targeting provinces that can deliver multiple gold and base metals projects • Portfolio includes belt scale projects with potential for Tier 1 a
Slide 26: Fraser Range – Tropicana exploration
Fraser Range – Tropicana exploration Base metal exploration underway across province For personal use only Nova regional Salt Creek 26
Slide 27: Lake Mackay exploration
Lake Mackay exploration Target defined at Bumblebee prospect For personal use only Target identified by regional sampling in 2015 • Bumblebee discovery announced in October 2015 • Moving loop electromagnetic survey identified a conductive target below the Bumblebee prospect in 2016 • RC and diamond
Slide 28: Bryah Basin JV
Bryah Basin JV Targeting De Grussa Style high grade Cu-Au deposits For personal use only 28
Slide 29: Sustainability
Sustainability Continued strengthening and improvement across the business For personal use only 29
Slide 30: Concluding comments
Concluding comments Diversified mining company delivering cash flow and growth For personal use only Deliver Nova Project on time and on budget with first production in December 2016 Maintain focus on cash management and operational performance Unlock scale and value at Tropicana throughout 2016 Unl
Slide 31: For personal use only
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