Slide 1: Half Year Results Presentation 1H17
INDEPENDENCE GROUP NL For personal use only Half Year Results Presentation 1H17 Peter Bradford, Managing Director and CEO 21 February 2017
Slide 2: Cautionary statements & disclaimer
Cautionary statements & disclaimer • 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 invitation with respect to
Slide 3: First Half highlights
First Half highlights Strong First Half with significant milestones achieved For personal use only Continued improvement in safety record with LTIFR at 1.2 Gold and base metals prices generally stronger YoY Tropicana and Long production and cash costs beat guidance Tropicana value enhancement delive
Slide 4: Financial results
Financial results Group results relative to corresponding period For personal use only A$M Revenue Underlying NPAT Net cash flow from Underlying Cash Debt (2) (3) EBITDA operations FCF 1H16 218.8 68.1 (77.8) 50.1 (43.6) 58.9 200.1 1H17 223.1 81.8 20.2 25.6 (49.3) 109.2 200.0 Change % 2% 20% n/a (49%
Slide 5: 1H17 cash flow components
1H17 cash flow components Number of one off factors during First Half For personal use only A$M A$M 250 250 200 12 200 8 150 71 150 17 100 100 28 92 31 274 50 109 50 46 12 - 21 - (50) 58 (50) 12 (100) (100) Tropicana Jaguar Long Nova New Mineral Taxes (Stamp Corporate & Equity raise Dividends Net De
Slide 6: 1H17 EBITDA components
1H17 EBITDA components Underlying EBITDA improved 20% YoY For personal use only Underlying EBITDA(1) A$M 80 1H17 A$81.8M 69.9 70 1H16 A$68.1M 60 52.8 50 40 30 27.9 20.5 20 13.7 8.5 10 - (10) (8.8) (10.6) (10.4) (13.7) (20) Tropicana Long Jaguar New Business Corporate 1) Underlying EBITDA is a non-IF
Slide 7: Earnings summary
Earnings summary Higher overall metal prices deliver improved earnings For personal use only A$M Net Profit After Tax A$M Revenue 60 300 274 50 250 219 223 40 200 166 150 20 20 14 100 50 0 1H14 1H15 1H16 1H17 (20) A$M Underlying EBITDA(1) 140 (40) 121 120 100 82 (60) 80 68 60 49 (80) (78) 40 20 (100
Slide 8: Cash flow summary
Cash flow summary Strong balance sheet with net debt of A$91M For personal use only A$M Underlying Free Cash Flow(1) A$M Operating Cash Flow 120 114 150 100 83.6 80 1H17 Operating 100 60 Cash flow is net of 50 75 41 A$58M Taxes 40 (Stamp Duty) 26 payment 50 20 0 1H14 1H15 1H16 1H17 A$M Net Cash at y
Slide 9: Segment financial results
Segment financial results Higher base metals prices drive improved results For personal use only 1H17 1H16 Inc/(Dec) Inc/(Dec) Operation Metric (A$M) (A$M) (A$M) (%) Revenue 106.6 118.2 (11.6) (10%) Tropicana Underlying EBITDA 52.8 69.9 (17.1) (24%) Free Cash Flow 30.9 46.6 (15.7) (34%) Revenue 38.5
Slide 10: Tropicana
Tropicana First Half operational scorecard For personal use only Metric Units Pro-rata Guidance 1H17 1H16 Inc/(Dec) Gold produced (100% basis) oz 195,000 to 215,000 221,232 251,945 (12)% Gold sold (IGO’s 30% share) oz 58,500 to 64,500 65,361 76,055 (14)% Cash cost A$/oz Au 850 to 950 821 625 31% All
Slide 11: Long
Long First Half operational scorecard For personal use only Metric Units Pro-rata guidance 1H17 1H16 Inc/(Dec) Nickel (contained metal) t 3,700 to 4,100 4,229 4,508 (6)% Cash cost (payable) A$/Ib Ni 3.50 to 3.90 3.21 3.97 (19)% Sustaining capex A$M 0.5 0.7 1.4 (50)% Development capex A$M N/A 0.2 0.3
Slide 12: Jaguar
Jaguar First Half operational scorecard For personal use only Metric Units Pro-rata guidance 1H17 1H16 Inc/(Dec) Zinc in concentrate t 19,500 to 21,500 18,641 20,721 (10)% Copper in concentrate t 2,300 to 2,550 2,756 2,876 (4)% Cash cost (payable) A$/Ib Zn 0.70 to 0.80 0.77 0.67 15% Sustaining capex
Slide 13: Nova Project
Nova Project First Half scorecard For personal use only 1H17 drivers • Process plant construction completed and commissioning commenced in October 2016 • First nickel and copper concentrates announced six weeks ahead of schedule on 26 October 2016 • First nickel concentrate delivered to BHP Nickel W
Slide 14: Nova Project
Nova Project Proactive improvements implemented with Barminco For personal use only Development rate slipped in Dec 2016 qtr • Barminco, underground contractor, committed to getting back to planned development rate • Barminco has strengthened site management, strengthened site manning, mobilised add
Slide 15: Concluding comments
Concluding comments Strong first half with significant milestones achieved For personal use only Continued improvement in safety record with LTIFR at 1.2 Gold and base metals prices generally stronger YoY Tropicana and Long production and cash costs beat guidance Tropicana value enhancement delivers
Slide 16: Concluding comments
Concluding comments Outlook and catalysts for value recognition For personal use only Nova ramp up delayed with half of 2H17 production deferred to FY18 Nova in-mine drilling results through CY17 Tropicana Long Island Study to be completed around mid CY17 Jaguar recovery in 2H17 Jaguar maiden resour
Slide 17: For personal use only
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