Igo Limited · ASX:IGO
Igo — Independence Group NL — Q2 FY16 Earnings Presentation
16 slides from Igo's earnings presentation, Jan 28, 2016
Slide 1: December 2015 Quarter Results Presentation
INDEPENDENCE GROUP NL For personal use only Peter Bradford, Managing Director and CEO December 2015 Quarter Results Presentation 28 January 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: December 2015 quarter highlights
December 2015 quarter highlights Leading Australian diversified mining company For personal use only Tropicana performance better than pro-rata full year guidance • 40,123oz (IGO share) at a cash cost of $625/oz and AISC of $796/oz • Record quarterly processing rate (annualised 6.5Mtpa) Long perform
Slide 4: Sustainability
Sustainability Focus on continuous improvement For personal use only No lost time injuries in December quarter across the business Continued focus is on leading indicators and strengthening of culture + systems 4
Slide 5: Unaudited financial results
Unaudited financial results Balance sheet remains strong For personal use only Unaudited ($’million) Q2 FY16 Q2 FY15 Revenue 98.4 145.2 Underlying EBITDA(1) 29.3 63.4 Net Profit After Tax (7.2) 24.4 Net Cash Flow From Operating Activities 15.9 65.5 Free Cash Flow(2) (59.2) 49.9 Cash (at end of perio
Slide 6: December quarter cashflow
December quarter cashflow Continued discipline and focus on cash management For personal use only • Integration of Sirius transaction completed and Nova optimisation study completed in quarter • Nova Development progressed from 44% to 61% completion with $260M capital remaining • $350M term loan rem
Slide 7: Tropicana
Tropicana Production and cash costs better than annualised guidance For personal use only Gold production and costs • 40,123oz gold produced and 39,714oz sold (IGO share) • Cash costs of $625/oz produced and AISC of $796/oz sold Mining • 5.5M BCM mined and hauled ex-pit Processing • 1.62Mt processed
Slide 8: Long
Long Production and cash costs well inside guidance range For personal use only Production and costs • 2,246t contained nickel produced • Cash costs of $3.68/lb payable Ni net of by-product credits and royalties Underground mining • 57,367t mined at an average grade of 3.87% Ni • Mining for the quar
Slide 9: Jaguar
Jaguar Zinc production on guidance but cash costs impacted by lower Copper by-product credits For personal use only Production and costs • 9,311t Zn and 1,447t Cu produced in concentrates • Cash cost of $0.69/lb payable zinc net of by-product credits and royalties Underground mining • Tonnes mined w
Slide 10: Nova overview
Nova overview Fully financed, in construction, on schedule and on budget For personal use only Overall • Significant progress made during quarter and project now 61% complete • Project remains on track for commissioning in late 2016 and for production of first concentrates in December 2016 • Integra
Slide 11: Nova Project progress
Nova Project progress Project currently on time and on budget For personal use only Access road Crushing section UG Ventilation Fans Ball Mill QC during fabrication 11
Slide 12: Nova Optimisation Study
Nova Optimisation Study Added value - reduced risk - future growth For personal use only Study outcomes • 36% improvement on the Project NPV • 27% reduction in expected C1 cash costs (after by-product credits) in concentrate to $1.21/lb from $1.66/lb nickel • 21% decrease in all-in sustaining cash c
Slide 13: Exploration rationalisation
Exploration rationalisation Long term commitment to delivering organic growth For personal use only CY16 Exploration spend reduced by $20M • In response to continued weak base metal prices greenfields exploration prioritised on core growth projects: Nova – Tropicana Belt Lake Mackay JV Bryah B
Slide 14: FY16 guidance
FY16 guidance Updated exploration expenditure guidance For personal use only Tropicana (IGO share) • 129,000 to 141,000oz at average cash cost of $640 to $710/oz Au • AISC of $820 to $910/oz Au sold • Sustaining capex of $8 to $10M, stripping capex of $18 to $20M and exploration of $9 to $11M Jaguar
Slide 15: Concluding comments
Concluding comments Diversified mining company delivering cash flow and growth For personal use only Strong focus on cash management • Market prices for base metals declined further quarter on quarter • Strong production from Tropicana reflecting improved availability and better than design throughp
Slide 16: As we go from strength to strength
AS WE GO FROM STRENGTH TO STRENGTH igO.com.au
Independence Group NL — Q2 FY16 Earnings Presentation on 6ix