Igo Limited · ASX:IGO
Igo — Independence Group NL — Q3 FY2016 Earnings Presentation
17 slides from Igo's earnings presentation, Apr 28, 2016
Slide 1: March 2016 Quarter Results Presentation
INDEPENDENCE GROUP NL For personal use only PETER BRADFORD, MANAGING DIRECTOR AND CEO March 2016 Quarter Results Presentation 28 April 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: March 2016 quarter highlights
March 2016 quarter highlights Leading Australian diversified mining company For personal use only Tropicana performance as planned during transition • 30,311oz (IGO share) at a cash cost of $837/oz and AISC of $1,067/oz • Significant investment in plant debottlenecking and Long Island study during t
Slide 4: Unaudited financial results
Unaudited financial results Balance sheet remains robust For personal use only Unaudited ($’million) Q3FY16 Q2 FY16 Q3 FY15 Revenue 88.5 98.4 105.5 Underlying EBITDA(1) 28.7 29.3 53.3 Net Profit After Tax 2.8 (28.1) 19.8 Net Cash Flow From Operating Activities 4.1 15.9 40.5 Free Cash Flow(2) (61.8)
Slide 5: March quarter cash flow
March quarter cash flow Continued discipline and focus on cash management For personal use only • As at 31 March $200M capital spend remained to complete the Nova Project • Undrawn debt facilities of $310M out of a total of $550M • Continued Tropicana capital investment and implemented business chan
Slide 6: Hedging
Hedging During the quarter a diesel hedging program was initiated For personal use only • Base diesel price(1) for 25% of diesel requirements hedged at • 36 cents per litre for FY2016 • 40 cents per litre for FY2017 • 45 cents per litre for FY2018 • Overall strategy to increase diesel hedging to cov
Slide 7: Tropicana
Tropicana Transition to higher process rate at lower grade as planned For personal use only Gold production and costs • 30,311oz gold produced and 30,555oz refined (IGO share) • Cash costs of $837/oz produced and AISC of $1,067/oz sold Mining • 5.9M BCM mined and hauled ex-pit Processing • 1.63Mt pr
Slide 8: Long
Long Reaping the benefits of restructuring For personal use only Production and costs • 1,933t contained nickel produced • Cash costs of $3.29/lb payable Ni net of by-product credits and royalties Underground mining • 41,455t mined at an average grade of 4.67% Ni • Mining for the quarter focussed on
Slide 9: Jaguar
Jaguar Mined grades lower than plan due to mining sequence For personal use only Production and costs • 9,680t Zn and 1,300t Cu produced in concentrates • Cash cost of $0.70/lb payable zinc net of by-product credits and royalties Underground mining • Tonnes mined 126,705t Processing • 127,085t mille
Slide 10: Nova overview
Nova overview Fully financed, in construction, on schedule and on budget For personal use only Overall • Substantial progress made during quarter and project 81% complete at quarter end • Project remains on track for commissioning in late 2016 and for production of first concentrates in December 201
Slide 11: Nova Project progress
Nova Project progress Project currently on time and on budget For personal use only Flotation cells Heavy vehicle workshop Power station Low voltage switch room 11
Slide 12: Nova underground drilling
Nova underground drilling Commencement of grade control drilling in June quarter For personal use only • Swick mobilising to site in April 2016 • Secondary objective is to drill test potential • Primary objective is to grade control first year of extensions around current Nova-Bollinger ore producti
Slide 13: Fraser Range – Tropicana exploration
Fraser Range – Tropicana exploration Base metal exploration underway across province For personal use only Nova regional Salt Creek • Moving Loop EM has been completed at • Nickel sulphide targets under transported North Bore with ongoing surveys planned for cover will be drill tested during the Jun
Slide 14: Lake Mackay exploration
Lake Mackay exploration Target defined at Bumblebee prospect For personal use only Drilling in June quarter • A moving loop electromagnetic survey(1) (MLEM) has identified a conductive target at the Bumblebee prospect , located below initial drilling(2) completed in late 2015 • This target will be t
Slide 15: FY16 guidance
FY16 guidance Jaguar copper production trending to low end of guidance For personal use only Tropicana (IGO share) • 129,000 to 141,000oz at average cash cost of $680 to $750/oz Au • AISC of $900 to $950/oz Au sold • Sustaining capex of $14 to $16M, stripping capex of $18 to $20M and exploration of
Slide 16: Concluding comments
Concluding comments Diversified mining company delivering cash flow and growth For personal use only Strong focus on cash management and operational performance • Nova remains on schedule and on budget • $200M spend remaining to deliver Nova Project • At quarter end $310M debt remains undrawn from $
Slide 17: For personal use only
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