Igo Limited · ASX:IGO

Igo — Independence Group NL — Macquarie Australia Conference 2014

34 slides from Igo's conference presentation, May 7, 2014

  1. Slide 1: Growing a Great Australian Mining Company

    GROWING A GREAT AUSTRALIAN MINING For personal use only COMPANY Macquarie Australia Conference May 2014

  2. Slide 2: Disclaimer

    DISCLAIMER This presentation has been prepared by Independence Group NL (“IGO”). It should not be considered as an offer or invitation to subscribe for or For personal use only purchase any securities in IGO or as an inducement to make an offer or invitation with respect to those securities in any j

  3. Slide 3: Presentation Outline

    PRESENTATION OUTLINE For personal use only  Introduction to Independence  March Quarter  Operations • Tropicana • Jaguar • Long  Exploration and Development • Stockman • Exploration Strategy • Darlot JV • Lake Mackay JV • Bryah Basin JV  Future Themes  Summary $ CURRENCY - All currency amounts

  4. Slide 4: Introduction to Independence

    INTRODUCTION TO INDEPENDENCE  Listed on the ASX For personal use only • Head Office in Perth  233.3M shares on issue • $959M market capitalisation 1  Multi Commodity focus • Three operating mines • Producing Au, Ni, Zn and Cu  Strong exploration focus • Powered by innovation  Net debt $3.0M  H

  5. Slide 5: The Independence Team

    THE INDEPENDENCE TEAM For personal use only BOARD OF DIRECTORS Peter Bilbe Peter Bradford Kelly Ross Rod Marston Geoff Clifford Chairman Managing Director & Non Executive Non Executive Non Executive CEO Director Director Director MANAGEMENT Brett Hartmann Tony Walsh Scott Steinkrug Andrew Eddowes Ti

  6. Slide 6: March Quarter 2014

    MARCH QUARTER 2014 For personal use only MARCH QUARTER HIGHLIGHTS QTR YTD Unaudited Profit after tax $20.6M $42.1M Unaudited Underlying EBITDA1 $56.5M $119.8M Net Cash Flow From Operating Activities $42.4M $104.4M Interim Dividend Paid 28th March 2014 3.0 cps Cash $47.4M Debt $50.4M $M March Quarter

  7. Slide 7: Tropicana JV

    TROPICANA JV  30% IGO and 70% AGA (Operator) For personal use only  First gold 26th September 2013  Now operating at nameplate capacity  Tropicana Vital Statistics: • 5.8 Mtpa Plant Throughput • 11 Year Mine life • Years 1-3 Production Guidance  Average 141-147,000 oz pa (IGO Share)  Average C

  8. Slide 8: Tropicana JV

    TROPICANA JV For personal use only Reference IGO ASX Release 28/02/2014 Mineral Resources and Ore Reserve Estimates for Tropicana Gold Project 8

  9. Slide 9: Tropicana JV: Havana Deeps PFS and Regional Exploration

    TROPICANA JV HAVANA DEEPS PRE-FEASIBILITY STUDY For personal use only  Enhanced pre-feasibility study commenced  Phased exploration targeting additional high grade shoots  3D Seismic survey planned to map high grade shoots down plunge  Funded separately from Regional Exploration REGIONAL EXPLORA

  10. Slide 10: Tropicana JV Flythrough

    TROPICANA JV FLYTHROUGH For personal use only 10

  11. Slide 11: Long Operation

    LONG OPERATION  12yrs of consistent low cost production For personal use only  History of reserve replacement  Long Vital Statistics: • Mining rate 230,000-270,000tpa • ~3.5 Year Mine Life based on Reserves LONG FY2014 March FY2104 OPERATION GUIDANCE Quarter YTD 2014 Production (Ni 9,000 – 10,000

  12. Slide 12: Long Operation: Deposits & Targets, Longitudinal Projection

    LONG OPERATION DEPOSITS & TARGETS LONGITUDINAL PROJECTION For personal use only * IGO ASX Release 25/10/2013 Mineral Resources and Ore Reserves Estimates for Long Nickel Operation 12

  13. Slide 13: Long Operation: Southern McLeay & Moran Targets

    LONG OPERATION SOUTHERN McLEAY & MORAN TARGETS For personal use only 13

  14. Slide 14: Jaguar Operation

    JAGUAR OPERATION  Production 100% from Bentley Deposit For personal use only  Jaguar Vital Statistics: • Annual mining rate 420,000 – 460,000t • ~3 Year Mine Life based on Reserves JAGUAR FY2014 March FY2104 OPERATION GUIDANCE Quarter 2014 YTD Production 38,700 – 40,500 8,978 28,551 (Zn Tonnes) Pr

  15. Slide 15: Jaguar Operation: Bentley Deposit

    JAGUAR OPERATION BENTLEY DEPOSIT For personal use only  New mining plan achieving more consistent production Reference: IGO ASX Release 25/10/2013 Mineral Resources and Ore Reserves Estimates for Jaguar Operation 15

  16. Slide 16: Jaguar Operation: Bentley Deposit, Flying Spur

    JAGUAR OPERATION BENTLEY DEPOSIT For personal use only  On going drilling at “Flying Spur” discovery Reference: IGO ASX Release 20/02/2014 Jaguar Operation New Flying Spur Sulphide Lens IGO ASX Release 28/04/2014 Independence Group Quarterly Activities Report 16

  17. Slide 17: Jaguar Operation: Prospective VMS Corridor

    JAGUAR OPERATION  Under-explored 50km long prospective Cu-Zn-Ag VMS corridor For personal use only  High prospectivity around existing 3 mines  Ten Cu-Zn-Ag alteration anomalies under cover being systematically tested Golden Grove Gossan Hill : discovery history (Inset: Bentley deposit scale comp

  18. Slide 18: Stockman Project: Permitting Process Underway

    STOCKMAN PROJECT PERMITTING PROCESS UNDERWAY For personal use only Conceptual Layout  Enhanced feasibility study targeting a 30% capital reduction  Mine Life based on Ore Reserves – 9 years  Exploration upside - Bigfoot and Eureka discoveries  All permitting approvals expected 2nd Half 2014 18

  19. Slide 19: Exploration Strategy

    EXPLORATION STRATEGY EXPLORATION IS A CORE COMPETENCY FOR INDEPENDENCE For personal use only  Skilled and experienced team  Technical innovation • Geophysics • Geochemistry • Proprietary Databases • Generative R&D  Commodity focus • Gold • Base Metals  Grade/Quality focus  Australian focus • JV

  20. Slide 20: Exploration – Darlot JV (WA)

    EXPLORATION – DARLOT JV (WA) BASE METALS PROJECT For personal use only  Earn in JV • IGO earning a 70-80% interest • Partner - Enterprise Metals Ltd  Strategy • Past exploration focussed on Au • Updated geological model confirms Jaguar/Bentley style VMS potential • 60 km from Jaguar • Large land h

  21. Slide 21: Exploration – Lake Mackay JV (NT)

    EXPLORATION – LAKE MACKAY JV (NT) GOLD AND BASE METALS PROJECT For personal use only  Earn in JV • IGO earning 70% • Partner - ABM Resources NL  Strategy • Large under-explored Tanami aged province • Large tenure (6,700 km2) • Tanami style Au targets + IOCG potential  Status • First pass surface

  22. Slide 22: Exploration – Bryah Basin JV (WA)

    EXPLORATION - BRYAH BASIN JV (WA) For personal use only  Earn in JV • IGO earning up to 80% interest • Partner – Alchemy Resources Limited  Strategy • Targeting De Grussa style Cu-Au deposits • Limited historical VMS exploration • Utilize in-house VMS expertise • Large land holding (300 km2)  Sta

  23. Slide 23: Future Themes

    FUTURE THEMES For personal use only  Continued focus on operating assets • Cost control and productivity • Delivery against plan and guidance • Resource conversion • Near mine exploration to expand resource and reserves  Exploration and development • Exploration to be a key component of the busine

  24. Slide 24: Summary

    SUMMARY For personal use only GROWING A GREAT AUSTRALIAN MINING COMPANY  March Quarter 2014 • NPAT of $20.6M  Up 200% and 65% on Mar 2013 and Dec 2013 quarters respectively • Tropicana achieves nameplate capacity • Debt reduced by $12M • Interim fully franked dividend of 3.0 cents per share paid 

  25. Slide 25: Contact Details

    CONTACT DETAILS For personal use only Peter Bradford, Managing Director & CEO Suite 4, Level 5, South Shore Centre 85 South Perth Esplanade South Perth, Western Australia, 6151 PO Box 496, South Perth, Western Australia, 6951 Telephone: +61 8 9238 8300 Facsimile: +61 8 9238 8399 Email: contact@igo.c

  26. Slide 26: Appendix: Reserves and Resources Statements and Hedging Summary

    APPENDIX For personal use only RESERVES AND RESOURCES STATEMENTS and HEDGING SUMMARY 26

  27. Slide 27: Competent Persons Statements

    COMPETENT PERSONS STATEMENTS EXPLORATION RESULTS For personal use only The information in this report that relates to Exploration Results (excluding Flying Spur exploration results) is based on information compiled by Mr. Timothy Kennedy who is a full-time employee of the Company and is a member of

  28. Slide 28: Resources & Reserves: Tropicana JV

    RESOURCES & RESERVES For personal use only TROPICANA JV Mineral Resource 31 December 2013 Ore Reserve 31 December 2013 100% Project 100% Project Classification Tonnes Mt Au g/t Contained Au Moz Classification Tonnes Mt Au g/t Contained Au Moz OPEN PIT Measured 28.6 2.06 1.89 OPEN PIT Indicated 74.0

  29. Slide 29: Resources & Reserves: Long

    RESOURCES & RESERVES LONG For personal use only Mineral Resources 30 June 2013 Ore Reserves 30 June 2013 Classification Tonnes Ni% Ni Tonnes Classification Tonnes Ni% Ni Tonnes LONG Measured 61,000 5.4 3,300 LONG Proven 45,000 3.1 1,400 Indicated 213,000 5.2 11,100 Probable 66,000 2.9 1,900 Inferred

  30. Slide 30: Resources & Reserves: Jaguar

    RESOURCES & RESERVES JAGUAR For personal use only Mineral Resources 30 June 2013 Ore Reserves 30 June 2013 Classification Tonnes Cu% Zn% Ag g/t Au g/t Classification Tonnes Cu% Zn% Ag g/t Au g/t JAGUAR Measured 264,000 2.4 3.4 47 - JAGUAR Indicated 181,000 1.8 2.0 28 - Proven 20,000 1.7 0.4 15 - Inf

  31. Slide 31: Resources & Reserves: Stockman Project

    RESOURCES & RESERVES For personal use only STOCKMAN PROJECT Mineral Resources 30 June 2011 Mineral Resources 30 June 2013 Ore Reserves 30 June 2013 Classification Tonnes Mt Cu% Zn% Ag g/t Au g/t Classification Tonnes Mt Cu% Zn% Ag g/t Au g/t CURRAWONG Measured - - - - - CURRAWONG Indicated 9,548,000

  32. Slide 32: Resources & Reserves: Karlawinda Bibra Prospect

    RESOURCES & RESERVES For personal use only KARLAWINDA: Bibra Prospect MINERAL RESOURCES - 30 JUNE 2013 CLASSIFICATION TONNES Mt Au g/t CONTAINED AU oz Measured - - - Indicated - - - Inferred 18 1.1 650,800 GRAND TOTAL 18 1.1 650,800 Notes: 1 The Mineral Resource estimate was estimated within a conce

  33. Slide 33: Hedging Summary

    HEDGING SUMMARY For personal use only HEDGING SUMMARY Nickel Copper Gold Zero Cost Collars 5,500oz/month 600t averaging 550t averaging June Qtr 2014 Sept Qtr 2014 to CY 2014 range $18,900/t $8,014/t $1,300 to $1,783 200t per month Zero Cost Collars 4,375oz/month 400t averaging FY 2015 averaging Marc

  34. Slide 34: Independence Group NL

    4 GROWINGA GREAT AUSTRALIAN MINING COMPANY INDEPENDENCE GROUP NL Suite 4, Level 5 | South Shore Centre 85 South Perth Esplanade, South Perth | Western Australia | 6151 PO Box 496 | South Perth | WA | 6951 ABN 46 092 786 304 T +61 8 9238 8300 F +61 8 9238 8399 E contact@igo.com.au W www.igo.com.au rN

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