Igo Limited · ASX:IGO
Igo — Australian Nickel Conference 2021
38 slides from Igo's conference presentation, Oct 5, 2021
Slide 1: Presentation to Australian Nickel Conference
ASX RELEASE 5 October 2021 PRESENTATION TO AUSTRALIAN NICKEL CONFERENCE For personal use only IGO Limited (ASX: IGO) (IGO or the Company) is pleased to attach a copy of the presentation materials provided to the Australian Nickel Conference which is being held today in Perth, Western Australia. Mana
Slide 2: IGO Limited Australian Nickel Conference
For personal use only IGO Limited Australian Nickel Conference 5 October 2021
Slide 3: Building a clean energy metals business
IGO Limited Building a clean energy metals business Upstream Production For personal use only Outstanding operational and financial delivery in FY21 Ni Cu Co Li Nickel Copper Cobalt Lithium IGO portfolio transformed to be 100% focused on clean energy metals Downstream Conversion New lithium JV
Slide 4: Clean Energy Metals Strategy
For personal use only Clean Energy Metals Strategy 3
Slide 5: Clean Energy
Clean Energy Three key industries driving uptake of clean energy technologies For personal use only Renewable Energy Energy Storage Electric Vehicles 4
Slide 6: Lithium-ion Battery Demand
Lithium-ion Battery Demand Substantial growth expected For personal use only Lithium-ion battery demand GWh/year outlook (GWh/year)1 3,000 Lithium-ion battery demand set to 2,500 increase 5x over the next decade 2,000 1,500 Passenger vehicle electrification is the primary driver 1,000 500 0 Passenge
Slide 7: Implications for raw materials
Implications for raw materials Battery demand will drive significant increases in demand for key raw materials Lithium-ion battery metal For personal use only demand outlook1 Mt 16 2030 vs 2021 Copper 14 Aluminum 12 Copper ▲5.5x Phosphorus 10 Iron Nickel ▲ 5.2x 8 Manganese Graphite 6 Cobalt ▲ 1.5x N
Slide 8: Risk of history repeating itself
Risk of history repeating itself Plug-in EV sales up 150% YTD with 2015-2021 CAGR of 55% For personal use only Potential for reality to be larger than projections – just like solar panels! Source: Terra Studio 7
Slide 9: Our Strategy
Our Strategy Purpose of Making a Difference has underpinned our strategy For personal use only 8
Slide 10: Our Transformation
Our Transformation We have transformed our business and the way we work For personal use only Transformed Outlook Transformed Culture Transformed ESG Historic and Projected EBITDA (A$M)1 1200 1000 800 600 400 200 0 Long (A$M) Jaguar (A$M) Tropicana (A$M) Nova (A$M) Greenbushes (A$M) Kwinana Hydroxid
Slide 11: Recent Achievements
Recent Achievements FY21 was a highly successful year For personal use only Invested into a lithium joint venture with Tianqi Divested our 30% interest in Tropicana Delivered outstanding operational & financial performance Built on our ESG credentials Admitted to the S&P/ASX 100 10
Slide 12: Our Portfolio
Our Portfolio Aligned to clean energy metals strategy For personal use only Portfolio focused on nickel, copper, cobalt and lithium Tier-1 jurisdictions Significant brownfields expansion potential at Greenbushes and Kwinana Extensive exploration portfolio in Australia and Greenland 11
Slide 13: FY21 Results
FY21 Results Record results across all key financial metrics For personal use only Revenue1 (A$M) 300 NPAT (A$M) 5492 1000 892 919 250 900 778 784 800 200 700 1642 155 600 150 500 413 423 400 100 76 300 53 200 50 17 100 0 0 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 -50 -59 -100 Und
Slide 14: Nova Operation
For personal use only Nova Operation Nova 13
Slide 15: Nova: Outstanding performance for FY21
Nova Outstanding performance for FY21 For personal use only Metal production exceeded guidance for all metals FY21 Cash Costs A$1.85/lb Ni payable significantly lower than guidance Underlying Free Cash Flow: A$393M Underlying Free Cash Flow Margin: 59% 14
Slide 16: Nova: Operational performance delivers strong financial outcomes
Nova Operational performance continues to deliver strong financial outcomes For personal use only Nova Production & Cash Costs Nova Financial Performance A$/lb A$M Tonnes 9,000 A$2.25 A$2.50 700 669 8,000 A$2.10 593 600 A$1.83 A$2.00 7,000 504 500 6,000 436 405 A$1.50 393 400 5,000 A$1.28 349 351 33
Slide 17: Nova: Operation significantly de-risked
Nova Operation significantly de-risked For personal use only Nova Underground Development at 30 June 2021 Underground capex development and grade control substantially complete Leveraging smart technology in collaboration with Barminco FY22 Development Capex A$5M – A$7M 16
Slide 18: Nova: Progress toward carbon neutrality
Nova Making strong progress toward carbon neutrality For personal use only Ventilation on Demand Solar Optimisation Nova Solar Farm delivered ~11% of total power consumption in FY21 ~4,500t CO2-e per annum ~1,300t CO2-e per annum Four key emissions reductions projects to be delivered in FY22 – expec
Slide 19: Nova Near Mine Exploration
Nova Near Mine Exploration Targeting step change in Nova mine life within a proven magmatic nickel sulphide province For personal use only High priority target at Orion Prospect on the Boadicea JV tenement Several intrusions encountered at Chimera with demonstrated mineralisation processes Extensive
Slide 20: Fraser Range
Fraser Range Targeting magmatic nickel sulphide deposits For personal use only Extensive and highly prospective tenement portfolio over ~10,000km2 Prospective chonolith mafic-ultramafic intrusions with disseminated magmatic Ni-Cu sulphides intersected at many prospects FY22 drilling program to conti
Slide 21: Fraser Range: Silver Knight deposit acquisition
Fraser Range Silver Knight deposit to be acquired from Creasy Group For personal use only IGO acquiring Silver Knight for A$45M cash consideration Open pit nickel resource located 35km from Nova Operation Infill drilling program to define updated resource and reserve estimate in CY22 20
Slide 22: Lithium Joint Venture
For personal use only Lithium Joint Venture Greenbushes Mine 21
Slide 23: Lithium Joint Venture
Lithium Joint Venture Transformational transaction with Tianqi completed in June 2021 For personal use only World class lithium portfolio with scale, quality, life and strong ESG credentials Greenbushes CGP2 Kwinana LiOH Plant Greenbushes (25%) Kwinana (49%) World’s lowest cost and highest grade har
Slide 24: Greenbushes expansion opportunities
Greenbushes Expansion opportunities through additional concentrator capacity For personal use only Potential spodumene concentrate capacity expansion (Mtpa) (100%) Potential Commissioning Date 0.5 2.5 2027 0.5 2024 0.3 2022 1.2 CGP1 & 2 TRP CGP3 CGP4 Total Potential Capacity 23
Slide 25: Kwinana Lithium Hydroxide Refinery
Kwinana Lithium Hydroxide Refinery First hydroxide successfully produced from Train I For personal use only Lithium Hydroxide Production Capacity (ktpa) (100%) Option to add Train III and IV in the future 24ktpa 96ktpa Expected to commission in 2024 24ktpa Currently completing 24ktpa commissioning 2
Slide 26: Kwinana: Train I commissioning in progress
Kwinana Lithium Hydroxide Refinery Train I commissioning in progress For personal use only First lithium hydroxide successfully produced during August 2021 Saleable chemical grade product expected during December 2021 Quarter Battery grade product for customer accreditation expected during March 202
Slide 27: Growth & Transformation
For personal use only Growth & Transformation 26
Slide 28: Exploration Strategy: FY22 Exploration Budget
Exploration Strategy Committed to investing in growth through discovery For personal use only FY22 Exploration Budget Lake Mackay Copper Coast Raptor A$9M Kimberley Project A$6M A$65M A$33M A$17M Paterson Project Nova & Fraser Range 27
Slide 29: Exploration Strategy
Exploration Strategy Portfolio aligned to clean energy metals strategy For personal use only Primarily focused on high value magmatic nickel and sediment hosted copper deposits Pipeline of opportunities across the western half of Australia Leveraging IGO’s best in class exploration team and the late
Slide 30: The IGO Process
The IGO Process™ Opportunity to capture value by delivering nickel sulphate for the battery industry For personal use only High metal extraction Lower cost (1) Lower emissions(1) Lower waste(1) 1. Compared to existing alternative processes to convert nickel concentrate to nickel sulphate 29
Slide 31: Sustainability
For personal use only Sustainability 30
Slide 32: Sustainability
Sustainability Continued our commitment to leading performance and transparency For personal use only Dow Jones Sustainability Australia Index S&P Global 2021 Sustainability Yearbook ESG Reporting rated as “Leading” 31
Slide 33: Our Response to Climate Change
Our Response to Climate Change Accelerating our proactive response in FY22 For personal use only Adopted an internal carbon price Scope 1 & 2 emissions reduction programs being implemented Investing in carbon removal and offsets programs in FY22 Commitment to understand controllable Scope 3 emission
Slide 34: Our People
Our People Enduring focus on people and building an iconic culture For personal use only Attract Develop Retain Developing and fostering the next generation of leaders 33
Slide 35: Summary
For personal use only Summary 34
Slide 36: FY22 Focus
FY22 FY19Focus and 4Q19 Highlights Building our clean energy metals business For personal use only Execute on Lithium JV growth opportunities Continue delivering operational excellence at Nova Maintain our commitment to unlocking value through exploration and discovery Disciplined investigat
Slide 37: Making a Difference
For personal use only We believe in a world where people power makes amazing things happen. Where technology opens up. new horizons and clean energy makes the planet a better place for every generation to come. We are bold, passionate, fearless and fun - a smarter, kinder, more innovative company. O
Slide 38: Cautionary Statements & Disclaimer
Cautionary Statements & Disclaimer • This presentation has been prepared by IGO Limited (“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 For personal use only an inducement to make an offer or invitation with