Igo Limited · ASX:IGO
Igo — Independence Group NL — Q2 FY2018 Earnings Presentation
19 slides from Igo's earnings presentation, Jan 31, 2018
Slide 1: 2Q18 Quarterly Results Presentation
INDEPENDENCE GROUP NL For personal use only 2Q18 Quarterly Results Presentation Nova and Tropicana underpin strong quarterly result 31 January 2018
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: 2Q18 Highlights
2Q18 Highlights Nova and Tropicana underpin strong quarterly result For personal use only • Nova production and costs within guidance range ─ Ore mining/milling rate better than nameplate in December ─ Improved metallurgical recoveries ─ Bollinger stoping commenced • Tropicana gold production, cash
Slide 4: Sustainability
Sustainability Focused on better outcomes for our people Key Lag Safety Metrics(1,2,3) For personal use only 9 • No lost time injuries during the Quarter 8 bringing LTIFR(2) down to 2.09 7 LTIFR 12 MMA MTIFR 12 MMA 6 • Visible safety leadership focus continues 5 4 • Good progress in a number of area
Slide 5: Strengthening Financial Results
Strengthening Financial Results Balance sheet continuing to strengthen with net debt reduced to A$120M For personal use only Units 1Q18 2Q18 YTD QoQ Revenue and Other Income A$M 147.5 207.3 354.8 40% Underlying EBITDA(1) A$M 68.9 64.5 133.4 (6%) Profit (Loss) After Tax A$M 4.7 (1.5) 3.2 (132%) Net C
Slide 6: 2Q18 Cash Flow Reconciliation
2Q18 Cash Flow Reconciliation Cash flow lower due to timing of A$27M December sales receipts For personal use only A$M 70 60 4 5 13 2 50 11 5 40 29 30 7 51 20 29 10 - Cash at 30 Sep Nova FCF Tropicana FCF Jaguar FCF Long FCF Exploration & BD Corporate & Proceeds from Net Finance/ Cash at 31 Dec 2017
Slide 7: Nova
Nova Nickel production and costs within guidance, and improved metallurgical recoveries QoQ For personal use only Tonnes Metric Units 1Q18 2Q18 YTD Guidance(1) Nova Production 5,000 4,500 4,454 Nickel in concentrate t 4,500 4,454 8,954 7,500 – 9,000 4,500 4,000 Copper in concentrate t 1,832 2,011 3,
Slide 8: Nova Grade Control
Nova Grade Control(1) Early de-risking of mineral resource For personal use only • Grade control drilling well progressed • Nova main orebody complete with final drilling to commence on the Upper Nova levels Plan view of Nova- Red traces = Remaining Diamond drilling • Drilling of Bollinger Inferred
Slide 9: Nova Mining Lease Exploration
Nova Mining Lease Exploration 3D Seismic program to commence in 3Q18 For personal use only Initial work program completed in 1Q18: • Drilled historical EM plates • Drilled Western Mafic complex • Drilled several stratigraphic holes on the 2D seismic line to aid planning for 3D seismic program Positi
Slide 10: Tropicana
Tropicana Production, cash costs and AISC significantly better than guidance For personal use only Tropicana Metric Units 1Q18 2Q18 YTD Guidance(2) koz Production (100%) and AISC A$/oz 160 1,400 Gold produced (100%) koz 114.1 135.2 249.3 220.0 – 245.0 1,229 1,286 140 1,167 1,200 Gold Sold (IGO 30%)
Slide 11: Tropicana: Boston Shaker drilling and underground studies continue
Tropicana Boston Shaker drilling and underground studies continue For personal use only Underground drilling returned significant intercepts • 18m at 6.58g/t Au from 587m • 37m at 6.49g/t Au from 509m • 20m at 5.82g/t Au from 609m Next steps: • Drill program scheduled for completion 3Q18 • Scoping s
Slide 12: Jaguar
Jaguar Jaguar zinc guidance met YTD, with production expected to increase QoQ in 3Q18 For personal use only Jaguar Production Metric Units 1Q18 2Q18 YTD Guidance(1) Tonnes 9,000 8,105 Zinc in concentrate t 8,105 6,885 14,990 14,500 – 16,500 8,000 7,399 6,599 6,885 7,000 Copper in concentrate t 530 5
Slide 13: Long
Long Long production guidance met YTD For personal use only Tonnes Long Production Metric Units 1Q18 2Q18 YTD Guidance(1) 2,500 2,136 2,069 Contained nickel produced t 1,572 1,374 2,946 2,700 – 3,000 2,000 Cash cost (payable) A$/lb Ni 4.80 5.47 5.10 4.40 – 4.90 1,572 1,500 1,374 Sustaining capex A$M
Slide 14: FY18 Exploration
FY18 Exploration A$50M commitment to exploration in FY18 For personal use only FY18 Exploration Budget A$10M Fraser Range Nova A$1.5M A$21M Tropicana A$4M Jaguar Long A$4.5M Other Greenfields A$9M 14
Slide 15: Fraser Range Exploration
Fraser Range Exploration 12,000km2 of tenure consolidated For personal use only Systematic belt scale exploration activities continued during 2Q18: • Extensive ground, Spectrem and downhole EM surveys ongoing, which have identified conductors that warrant follow up • Ongoing gravity survey and mappi
Slide 16: Lake Mackay Exploration
Lake Mackay Exploration Belt scale greenfields project For personal use only Total area under granted licences and applications increased to 12,800km2 • 6 new exploration licence applications added First diamond drilling at Grapple(1,2) • Six holes completed for 2,917m • Multiple narrow sulphide int
Slide 17: Divestment of Stockman Project and COO change
Corporate Update For personal use only Divestment of Stockman Project to CopperChem completed in December 2017(1) • Proceeds of A$11.2M were received at completion • Further cash payments are scheduled to be received during the 12 months following completion Change of Chief Operating Officer from Fe
Slide 18: Concluding Comments
Concluding Comments • A strong 2Q18 with Nova nickel production For personal use only and costs within guidance ─ Improved metallurgical recoveries ─ Bollinger stoping commenced • Solid contributions from Tropicana, Jaguar and Long • Underlying EBITDA in-line with previous Quarter • Operating cash f
Slide 19: For personal use only
Nye Nad “AS WE GO FROM STRENGTH TO STRENGTH igo.com.au
Independence Group NL — Q2 FY2018 Earnings Presentation on 6ix