Slide 1: 4Q23 Results Presentation
4Q23 Results Presentation IGO Limited 31 July 2023 IGO LIMITED IGO | ASX: LIMITED IGO
Slide 2: Cautionary Statements & Disclaimer
Cautionary Statements & Disclaimer • This presentation has been prepared by IGO Limited (“IGO”) the necessary infrastructure. Where such a reference is made, • Lithium cash costs reported as COGS (cash costs of goods (ABN 46 092 786 304). It should not be considered as an offer it should be read sub
Slide 3: Safety
Safety Continuing to focus on harm reduction, risk minimisation and training TOTAL RECORDABLE INJURY FREQUENCY RATE (TRIFR)1 TRIFR at 30 June 2023 was 16.0, marginally lower than 22 result at prior quarter – but remains too high 21 20 19 18 Significant focus on group risk assessment workshops across
Slide 4: Highlights
Highlights June quarterly result underpinned by strength of our lithium business Another quarter of record financial results Financial Results Strong cash generation continues to build balance sheet strength Excellent quarter of production from Greenbushes – full year production exceeded guidance Li
Slide 5: 4Q23 Financial Results Summary
4Q23 Financial Results Summary Record financial performance driven by outstanding contribution from Greenbushes Units 4Q231 3Q231 QoQ FY231 Greenbushes performance drove higher Sales Revenue A$M 241 236 ▲2% 1,015 QoQ EBITDA and cash flows Share of Net Profit of TLEA A$M 522 450 ▲16% 1,604 Underlying
Slide 6: Cash Reconciliation
Cash Reconciliation Another record dividend from TLEA drives strong cash build CASH – QoQ MOVEMENT1 A$M 1,000 900 20 25 53 11 90 800 21 6 700 423 600 5 500 118 94 400 775 300 200 441 100 - Cash at Nova FCF Forrestania Cosmos FCF TLEA Exploration, Corporate & Proceeds on Finance Debt Income Tax Effec
Slide 7: Capital Management
Capital Management Updated Capital Management Policy Sustaining Capital Special Dividends Share Shareholder Buybacks Returns Seeks to balance reliable and consistent Exploration Target returns of return of capital to shareholders with Operating Cash between balance sheet strength & flexibility for 2
Slide 8: Lithium Business
Lithium Business TLEA Joint Venture (IGO: 49% / Tianqi Lithium Corporation: 51%) IGO Limited | 4Q23 Results Page 8
Slide 9: TLEA Joint Venture
TLEA Joint Venture Outstanding quarterly result with record financial returns to shareholders QUARTERLY DIVIDEND RECEIVED FROM TLEA ($M) 450 IGO share of TLEA NPAT 400 $522M ↑16% QoQ 350 300 Dividend Received from TLEA ↑32% QoQ 250 200 $423M $423M $334M $321M 150 100 FY23 Dividends received from TLE
Slide 10: Greenbushes
Greenbushes Increased production and sales delivers exceptional earnings and margins 100% basis Units 4Q231 3Q231 QoQ FY231 FY23 Guidance Higher QoQ production driven by Spodumene Concentrate Production kt 395 356 ▲11% 1,491 1,350 – 1,450 higher feed grades from CGP1 and CGP2 Spodumene Sales kt 429
Slide 11: Greenbushes
Greenbushes Strong operating performance and focus on growth continues GREENBUSHES PRODUCTION & UNIT COGS Major Capital Project Update kt A$/t 450 350 CGP3 Remaining capex of $555M – $605M1 $304 (~$180M escalation on previous estimate) $292 300 400 $263 $254 $253 $242 $235 250 $219 Steady progressio
Slide 12: Kwinana Refinery
Kwinana Refinery Train 1 performance continues to be challenging Train 1 4Q23 production of 142t of lithium hydroxide significantly below expectations Continuing to work through engineering and rectification works to overcome challenging ramp up Train 2 Lead contractor to complete the required FEED
Slide 13: Lithium Business FY24 Guidance
Lithium Business FY24 Guidance FY24 Guidance Greenbushes Lithium Mine Spodumene Production (100%) kt 1,400 – 1,500 Cash Costs (Production)1 A$/t 280 – 330 Capex (Development, sustaining, improvement & deferred waste) A$M 850 – 950 Kwinana Lithium Hydroxide Refinery Lithium Hydroxide Production (100%
Slide 14: Nickel Business
Nickel Business IGO Limited | 4Q23 Results Page 14
Slide 15: Nova
Nova Strong finish to FY23 with production and cost improvement Units 4Q231 3Q231 QoQ FY231 FY23 Guidance Mill throughput improved QoQ as power Nickel Production t 6,568 5,547 ▲18% 22,915 23,000 – 25,000 related issues from March quarter were resolved Copper Production t 2,985 2,524 ▲18% 10,266 10,0
Slide 16: Forrestania
Forrestania Concluded FY23 within production and cost guidance Units 4Q231 3Q231 QoQ FY23 FY23 Guidance Improved processing capacity and performance drove stronger QoQ production and cost result Nickel Production t 2,981 2,811 ▲6% 11,931 10,500 – 12,500 Cash cost (payable)3 A$/lb Ni 8.67 10.27 ▼16%
Slide 17: Cosmos
Cosmos Project development progressed | Project review underway 4Q23 Project Update • Processing plant construction over 85% complete • Shaft and key shaft infrastructure also over 85% complete with less than 150 meters of shaft sinking left to be completed • Paste fill plant completed, commissioned
Slide 18: Impairment of Western Areas assets
Impairment of Western Areas assets Non-cash impairment to be recorded | Cosmos Project review underway Impairment • Non-cash pre-tax impairment on the assets acquired via the WSA transaction of between A$880M and A$980M to be recorded in FY23 financial statements. • Accounting value of Cosmos and Fo
Slide 19: Nickel Business FY24 Guidance
Nickel Business FY24 Guidance Nickel Production Copper Production Cobalt Production Cash Costs Capex (t) (t) (t) (A$/lb Ni) (A$M) Nova 21,500 – 23,500 8,500 – 10,000 700 – 800 3.40 – 3.90 14 – 18 Forrestania 7,500 – 9,000 N/A N/A 9.50 – 10.50 16 – 22 Cosmos Cosmos guidance is expected to be provided
Slide 20: Exploration
Exploration IGO Limited | 4Q23 Results Page 20
Slide 21: Exploration
Exploration Exploration work continues, aimed at unlocking new discoveries FY24 Exploration Budget: $65M – $75M Fraser Range Project Continued drilling focus around Silver Knight and near Nova with disseminated nickel sulphides intersected at Firehawk and Chimera Paterson Project Diamond drilling of
Slide 22: Summary
Summary IGO Limited | 4Q23 Results Page 22
Slide 23: Summary
Summary Lithium business performance continues to drive outstanding financial returns Record quarterly underlying EBITDA and free cash flow Strong balance sheet with a net cash position of $415M Greenbushes operational performance exceeded guidance, driving exceptional dividend flow to IGO Solid fin
Slide 24: Making a Difference
Making a We believe in a world where people power makes How? Developments in battery storage technology amazing things happen. are enabling the full potential of renewable energy to be realised, by allowing energy produced from the Where technology opens up new horizons and clean sun, wind and other