Igo Limited · ASX:IGO
Igo — Independence Group NL — Macquarie Australia Conference 2013
39 slides from Igo's conference presentation, May 3, 2013
Slide 1: Growing a Great Australian Mining Company
GROWING A GREAT For personal use only AUSTRALIAN MINING COMPANY Macquarie Australia Conference Presentation Chris Bonwick, Managing Director 3 May 2013
Slide 2: Disclaimer
DISCLAIMER L For personal use only l Certain oral and written statements contained or incorporated by reference in this presentation, including information as to the future financial or operating performance of the Company and its projects, constitute forward-looking statements. All statements, othe
Slide 3: Financial Summary
FINANCIAL SUMMARY L For personal use only Capital Structure: ASX 200 Code : IGO 232.9M l shares Financials: Market Cap. (26/4/13): A$798.8M Cash (end Mar Qtr 2013): A$ 55.6M Debt (end Mar Qtr 2013): (A$ 14.0M) March Qtr 2013 NPAT (unaudited): A$ 6.6M Year to Date: A$ 23.1M Dividends: Interim dividen
Slide 4: Protection Against Uncertainty
PROTECTION AGAINST UNCERTAINTY L Loan Facility A$170M Reference: ASX Release 1st March 2013 For personal use only A$130M Revolving Corporate Loan l Available on a “as needs” basis Expires 31 Dec 2015 A$20M Asset Finance Replacement of an existing A$15M asset finance agreement A$20M Con
Slide 5: IGO Major Projects
IGO MAJOR PROJECTS L For personal use only l 5
Slide 6: Tropicana Gold Project
TROPICANA GOLD PROJECT L L IGO 30%, AGA 70%, MANAGER For personal use only NEW AUSTRALIAN GOLD PROVINCE UNDERl SAND l DUNES 6
Slide 7: Tropicana Gold Project
TROPICANA GOLD PROJECT L IGO 30%, AGA 70%, MANAGER For personal use only l References : IGO & AGA 4/12/2012 ASX Releases for Tropicana Gold Project Mineral Resource Estimate IGO & AGA 27/7/2011 ASX Releases for Reserve Estimate 7
Slide 8: Tropicana Gold Project
TROPICANA GOLD PROJECT L IGO 30%, AGA 70%, MANAGER For personal use only PROJECT UNDER CONSTRUCTION: l Project 84% complete at 31st March 2013** First production estimated December Qtr 2013 CAPEX Estimate IGO share A$246M – A$254M IGO Spend A$183M Estimate A$66M remaining** ^ IGO attributa
Slide 9: Tropicana Gold Project: Domestic Gold Production
TROPICANA GOLD PROJECT L IN 2011 DOMESTIC GOLD PRODUCTION >100Koz For personal use only l Gold Ounces Australian Mine Production 2011 900,000 Tropicana* (100%) 800,000 700,000 600,000 500,000 Tropicana* (30% IGO) 400,000 300,000 200,000 100,000 0 Source: * Based on BFS Production Years 1-3 9
Slide 10: Tropicana Gold Project: Upside Studies & Potential
TROPICANA GOLD PROJECT LL UPSIDE STUDIES & POTENTIAL For personal use only ll References : IGO & AGA 4/12/2012 ASX Releases for Tropicana Gold Project Mineral Resource Estimate IGO & AGA 27/7/2011 ASX Releases for Reserve Estimate 10
Slide 11: Tropicana Gold Project: Significant Down Plunge Potential
TROPICANA GOLD PROJECT L LL SIGNIFICANT DOWN PLUNGE POTENTIAL l For personal use only ll Drill widths approximate true widths 11
Slide 12: Tropicana Gold Project: Significant Regional Potential
TROPICANA GOLD PROJECT L LL SIGNIFICANT REGIONAL POTENTIAL l For personal use only ll Tenement Area 13,480 km2 Of the 60 Geochem Prospects ~ 32 have been drilled with RC or DD Geochem Coverage over 7,000 km2 Of the 32 Prospects drilled ~14 have Geochem Based Prospects ~ 60 drill intercep
Slide 13: Tropicana Gold Project Fly Through
TROPICANA GOLD PROJECT L FLY THROUGH For personal use only l 15
Slide 14: Long Nickel Operation
LONG NICKEL OPERATION (IGO 100%) L For personal use only Record^ Annual 2012 Production – 9,995t Ni (2011/12 Guidance 8,800-9,200t Ni). l IGO produced over 89,000t Ni since acquisition. June 2012 Ore Reserve 41,900t Ni and Mineral Resource 76,600t Ni. Exploration success continues to add to
Slide 15: Long Nickel Operation: 10 Years of Low Cost Nickel
LONG NICKEL OPERATION (IGO 100%) L CELEBRATING 10Yrs OF LOW COST NICKEL PRODUCTION For personal use only l Net Margin 10 YEAR PRODUCTION AVERAGE Cash Cost + Royalties A$4.12/lb Ni Realised Price A$10.06/lb Ni 15
Slide 16: Long Nickel Operation: Innovative Research and Development
LONG NICKEL OPERATION (IGO 100%) L INNOVATIVE RESEARCH AND DEVELOPMENT For personal use only l High powered TEM transmitter **exclusive to IGO** 10 x more powerful than conventional systems. Nickel sulphides are very Doubles search radius conductive and can be detection up to 200m. detected
Slide 17: Long Nickel Operation: Deposits & Targets Longitudinal Projection
LONG NICKEL OPERATION (IGO 100%) L DEPOSITS & TARGETS LONGITUDINAL PROJECTION For personal use only l References: IGO 19/10/2012 ASX Release: Annual Report for Long Nickel Mine Mineral Resource and Ore Reserve Statement IGO 30/4/2013 ASX Release : Quarterly Activities Report to 31 March 2013 17
Slide 18: Jaguar Operation: Production Update & Operational Improvements
JAGUAR OPERATION (IGO 100%) PRODUCTION UPDATE & OPERATIONAL L IMPROVEMENTS For personal use only l ZINC-COPPER-SILVER GUIDANCE FY 13 OPERATION 2012/13 YTD Production (Zn Tonnes) 27,000 – 28,000 23,126 Production (Cu Tonnes) 5,000 – 6,000 3,372 Production (Ag ozs) 700,000 – 800,000 678,882 *Cash Co
Slide 19: Jaguar & Bentley: Bentley Deposit
JAGUAR & BENTLEY (IGO 100%) L BENTLEY DEPOSIT New high grade mining plan For personal use only 2 years of developed long hole ore (lower cost) l Reference: IGO ASX Release 30/04/2013 for ASX March 2013 Quarterly Report. 19
Slide 20: Jaguar & Bentley: Bentley Deposit
JAGUAR & BENTLEY (IGO 100%) L BENTLEY DEPOSIT For personal use only Discovered – 2008 Development – 2011 First Stoping – Sept Qtr 2012 l Bentley - Mineral Resource Total Tonnes Cu % Zn % Ag g/t Au g/t Total Resource 2,914,000 1.9 10.2 134 0.7 Bentley – Contained Metal Cu t Zn t Ag Moz Au oz Total
Slide 21: Jaguar & Bentley
JAGUAR & BENTLEY (IGO 100%) L Under-explored 50km long prospective Cu-Zn-Ag VMS corridor. High Prospectivity around existing 3 mines. For personal use only Ten Cu-Zn-Ag alteration anomalies under- cover being systematically l tested. Golden Grove Gossan Hill : discovery history Bentley Deposit
Slide 22: Jaguar & Bentley Fly Through
JAGUAR & BENTLEY (IGO 100%) L FLY THROUGH For personal use only l 22
Slide 23: Stockman Project
STOCKMAN PROJECT (IGO 100%) L Currawong Deposit Wilga Deposit For personal use only l Stockman Total Tonnes Cu % Zn % Ag g/t Au g/t Total Ore Reserve 8,432,000 2.3 4.3 39 1.1 Total Resource 13,986,000 2.1 4.3 38 1.0 Reference: IGO ASX Release 19/10/2012 for Annual Report: Stockman Project Mineral Re
Slide 24: Stockman Project Feasibility Study
STOCKMAN PROJECT (IGO 100%) L FEASIBILITY STUDY l For personal use only L l Two underground mines - Wilga and Currawong Feeding a 1Mtpa flotation plant over 9 years LOM Payable Metals 144,000t Cu, 229,000t Zn, 4.1Moz Ag & 44,000oz Au Recent discoveries at Bigfoot and Eureka immediately north
Slide 25: Stockman Project Exploration Potential
STOCKMAN PROJECT (IGO 100%) L EXPLORATION POTENTIAL For personal use only l Reference: IGO ASX Release 30/04/2013 for ASX March 2013 Quarterly Report. New Eureka and Bigfoot (gold rich) VMS discoveries IGO high powered TEM system detected “Eureka” below Bigfoot Significant untested regional po
Slide 26: Karlawinda Gold Project
KARLAWINDA GOLD PROJECT (IGO 100%) L New Gold Province in Western Australia’s “Iron Ore Country” No historical gold workings For personal use only Close to infrastructure: major town, airport, sealed roads, majorl highway, gas pipeline, fresh water Similar geological setting to Tropicana 26
Slide 27: Karlawinda Gold Project: Prospective Gold Corridor
KARLAWINDA GOLD PROJECT (IGO 100%) L PROSPECTIVE GOLD CORRIDOR Scoping Study commenced. For personal use only Current Mineral Resource 674,300 oz Au l Potential to increase resources down dip and along strike. Reference: IGO 28/06/2012 ASX Release for Karlawinda Gold Project Mineral Resource E
Slide 28: De Beers Database
DE BEERS DATABASE (IGO 100%) L L Long term exploration asset to find new Australian mineral camps. 293,000 geochemical samples collected by De Beers over 30 years. l For personal use only IGO analysing samples for 57 elements including Ni, Cu, Pb, Zn, Au,l Ag, Pt, Pd, U, rare earths, Sn, Li, K
Slide 29: De Beers Database: Unlocking the Potential
DE BEERS DATABASE (IGO 100%) L L UNLOCKING THE POTENTIAL l For personal use only De Beers Targets Under Review l 69 Gold Anomalies 26 Base Metal Anomalies 16 Other/Strategic Metal Anomalies Anomalous base metal and sulphur rich gossan found by Independence Group geologists following upstream
Slide 30: IGO Strategic Objectives
IGO STRATEGIC OBJECTIVES Future Target : Annual Sustainable Cash Flow of up to A$200M from Operations For personal use only A$M Cash Flow From Operations 225 Target Annual Cash Flow with Tropicana, Long & Bentley 175 at full production 125 75 25 45.2 30.2 58.9 52.8 31.9 *Cash Flow from Operations
Slide 31: IGO Transformation
IGO TRANSFORMATION L GROWING A GREAT For personal use only AUSTRALIAN MINING COMPANY l Planning for the Next Ten Years Continue and Improve our excellent safety record Target annual sustainable Cash Flow of upto A$200M from Operations Target Low cash costs Long: A$4.80-5.00lb Ni Jaguar: A$0.
Slide 32: Independence Group Contact Details
INDEPENDENCE GROUP L CONTACT DETAILS L l For personal use only l Perth Office Chris Bonwick, Managing Director 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
Slide 33: Appendix: Reserves and Resources Statements
L For personal use only l APPENDIX RESERVES AND RESOURCES STATEMENTS 33
Slide 34: Reserves and Resources: Long Nickel Operation
RESERVES AND RESOURCES L For personal use only LONG NICKEL OPERATION Mineral Resources 30 June 2012 l 30 June 2012 Ore Reserve Cut-off 1% Ni at Economic Ni Cut-off Classification Tonnes Ni% Ni Tonnes Classification Tonnes Ni% Ni Tonnes LONG Measured 47,000 3.7 1,700 LONG Indicated 220,000 5.1 11,200
Slide 35: Reserves and Resources: Tropicana Gold Project JV
RESERVES AND RESOURCES L For personal use only TROPICANA GOLD PROJECT JV l Mineral Resources Ore Reserves December 2012 June 2011 Contained Contained Tonnes Grade Gold Tonnes Grade Gold Classification (Mt) (g/t)1 (Moz)2 Classification (Mt) (g/t)3 (Moz)4 Measured 29.8 2.1 2.03 Indicated 76.4 2.0 4.78
Slide 36: Reserves and Resources: Jaguar / Bentley Operation
RESERVES AND RESOURCES L For personal use only JAGUAR / BENTLEY OPERATION JAGUAR / BENTLEY OPERATION Mineral Resources 30 June 2012 l Ore Reserve 30 June 2012 Classification Tonnes Cu% Zn% Ag g/t Au g/t Classification Tonnes Cu% Zn% Ag g/t Au g/t JAGUAR Measured 429,000 2.5 4.4 61 - JAGUAR Proven 73
Slide 37: Reserves and Resources: Stockman Project
RESERVES AND RESOURCES L For personal use only STOCKMAN PROJECT l Mineral Resources 30 June 2012 Ore Reserve January 2013 Classification Tonnes Cu% Zn% Ag g/t Au g/t Classification Tonnes Cu% Zn% Ag g/t Au g/t CURRAWONG Indicated 9,548,000 2.0 4.2 42 1.2 Proven 0 0 0 0 0 Inferred 781,000 1.4 2.2 23
Slide 38: Reserves and Resources: Karlawinda Gold Project
RESERVES AND RESOURCES L For personal use only KARLAWINDA GOLD PROJECT : l BIBRA DEPOSIT (INFERRED RESOURCES - JUNE 2012) Tonnes Au Grade Contained Au Mineralisation Type (Mt) (g/t) (oz) Laterite 2.2 1.1 77,100 Upper Saprolite 0.9 1.1 31,000 Lower Saprolite 1.9 1.1 63,600 Transitional 2.1 1.0 68,200
Slide 39: Competent Persons Statements
COMPETENT PERSONS STATEMENTS L For personal use only l Notes: The information in this summary presentation that relates to Exploration Results is based on information compiled by Mr Christopher M Bonwick who is a full-time employee of the Company and is a member of the Australasian Institute of Mini
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