Igo Limited · ASX:IGO
Igo — Independence Group NL — Shareholder Meeting (November 2018)
37 slides from Igo's shareholder meeting presentation, Nov 23, 2018
Slide 1: Independence Group NL 2018 AGM Presentation
For personal use only INDEPENDENCE GROUP NL 2018 AGM PRESENTATION Peter Bradford Managing Director and CEO 23 November 2018
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 For personal use only inducement to make an offer or invit
Slide 3: Our Winning Aspiration: globally relevant supplier of critical metals
Our Winning Aspiration is to be a globally relevant supplier of metals that are critical for clean energy and future generations For personal use only Globally relevant supplier of metals that are critical to energy storage and renewable energy Delivered by Vertically integrated to produce battery g
Slide 4: IGO Purpose Video
IGO Purpose Video For personal use only http://www.igo.com.au/irm/content/making-a-difference.aspx 4
Slide 5: Focus on high quality, long life assets
Focus on high quality, long For personal use only Share Ownership life assets that deliver great Substantial Holders(1) Institutional Ownership(3) financial outcomes Mark Creasy 15% Australia 70% FIL 9% USA 22% T Rowe Price 8% Europe 5% ASX IGO CBA 6% ROW 3% Base Perth, WA Ausbil 5% Market Cap(1) A$
Slide 6: A Streamlined Portfolio
A Streamlined Portfolio Strategic focus on minerals critical to energy storage and For personal use only electric vehicles IGO EBITDA Profile (A$M)(1) 600 500 400 300 200 100 - FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19E FY20E FY21E Long (A$M) Jaguar (A$M) Tropicana (A$M) Nova (A$M) 1) Macquarie Resear
Slide 7: FY18 Results
For personal use only FY18 Results 7
Slide 8: FY18 highlights
FY18 highlights: For personal use only • Record revenue and EBITDA • Completed first full year of commercial production at Nova • Tropicana and Long production better than mid-point of guidance • Exploration portfolio strengthened and non-core assets divested • Net debt reduced from A$164M to A$4M d
Slide 9: Significantly Improved Financial Results in FY18
Significantly Improved Financial Results in FY18 Driven by first full year of commercial production at Nova and a strong year for Tropicana For personal use only Revenue and Other Income Underlying EBITDA Net Profit after Tax Net Cash from Operating Activities 780.6 277.8 338.6 52.7 421.9 150.5 17.0
Slide 10: 1Q19 Cash Flow Reconciliation
1Q19 Cash Flow Reconciliation 27% increase in cash on hand whilst retiring debt and disciplined payment of dividends For personal use only AUD M 250 2 18 19 12 6 200 29 12 71 150 A$91M cash flow 100 from operating 176 139 50 - Cash at Nova FCF Tropicana FCF Long FCF Exploration & BD Sale of Royalty
Slide 11: ESG
For personal use only ESG 11
Slide 12: Safety & Sustainability
Safety & Sustainability 2018 ACSI Rating of ASX200 Sustainability Reporting(5) Key Lag Safety Metrics(1,2,4) For personal use only 9 8 7 LTIFR 12 MMA MTIFR 12 MMA Leading 6 5 Detailed 4 3 Moderate 2 1 Basic 0 No Reporting Sector Sector ASX 200 Key Lead Safety Metrics(3) Average Leader Average 2.5 “L
Slide 13: Shared Value
For personal use only = SHARED VALUE 13
Slide 14: Part of the IGO Difference is our focus on people
For personal use only Part of the IGO Difference is our focus on people • Strong sense of purpose • Empowered people who are owners of the business • Focus on doing what is right – because we care • Collectively we are making a difference 1 14 4
Slide 15: Creating a strong culture, the IGO Way
For personal use only Creating a strong culture, the IGO Way • Strong employee engagement • Health and wellbeing programs • Paid parental leave • Flexible working arrangements • Graduate and vacation programs • WA Mining Club scholarships “I believe diversity in the working environment is important
Slide 16: We need more mining people
Mining Activity Vs Mining Engineering Enrolments(1,2) For personal use only We need more mining people 9,000,000 350 • Several years of rhetoric 8,000,000 300 perpetuated a myth that the mining Mining Engineering Enrolments 7,000,000 Gold & Iron Ore Production 250 boom had busted 6,000,000 5,000,000
Slide 17: Tropicana
For personal use only Tropicana 17
Slide 18: Tropicana
Tropicana • 30% IGO & 70% AngloGold For personal use only Tropicana Production (100%) & AISC Ashanti (managers) Gold production (oz) AISC (A$/oz) 600,000 1,200 • Higher gold production and lower costs expected in FY19 500,000 1,000 • 8.0 Mtpa processing rate 400,000 800 achieved in 1Q19 300,000 600
Slide 19: Tropicana value drivers
For personal use only Tropicana value drivers • Additional ball mill delivers higher throughput rate and improved gold recovery ─ Commissioning by end CY18 • Boston Shaker Underground Pre- feasibility study nearing completion ─ Market release in 2Q19 • Further underground potential at Havana and Hav
Slide 20: Tropicana – 5km strike of mineralisation
Tropicana – 5km strike of mineralisation For personal use only 1) Refer to AGA ASX release dated 3 Aug 2018: Tropicana Site Visit 20
Slide 21: Nova
For personal use only Nova 21
Slide 22: Nova de-risked
Nova de-risked • Successful first year of commercial For personal use only production with 1.5Mtpa nameplate capacity exceeded • Nova – Bollinger grade control completed • Underground capital development expected to be completed in FY19 22
Slide 23: Strong outlook for Nova
Strong outlook for Nova For personal use only Directional Production and Cash Costs • Consistent and higher production kt A$/lb 30 3.0 rate expected next three years 2.5 • Main driver is higher grade stopes in core of Nova and Bollinger 20 2.0 • Assumes: 1.5 ─ 1.5Mtpa mining/processing rate 10 1.0 ─
Slide 24: Nova Underground Mine Design & Drilling
Nova Underground Mine Design & Drilling For personal use only 24
Slide 25: Zenith Energy to build 12.5GWh solar farm at Nova
Zenith Energy to build 12.5GWh For personal use only solar farm at Nova • First fully integrated commercial hybrid diesel/solar PV facility in Australia • Includes state-of-the-art PV modules, single axis tracking and control systems • First power expected September 2019 quarter • Breakeven at diese
Slide 26: EV Batteries, Nickel & IGO's Opportunity
For personal use only EV Batteries, Nickel & IGO’s Opportunity 26
Slide 27: Trend to Increased EV Penetration & More Nickel in Cathodes
For personal use only Trend to Increased EV Penetration & Vehicle Numbers(1) Trend to More Nickel in Cathodes Global EV sales 2.1% 2.1% (million units) 20 9.0% 4.6% 18 13.8% 30.4% 27.4% 16 14 38% CAGR 12 10 8 30.2% 36.2% 71.9% 6 82.3% 45% CAGR 73.1% 4 2 0 28.3% 25.5% China Europe US Japan ROW 8.4% 1
Slide 28: Nickel stockpiles and supply deficit from EV battery demand
Decreasing stockpiles and Nickel to be a big winner from For personal use only stainless steel demand growth to EV battery demand disruption maintain market supply deficit with 300-900kt of additional Official Nickel Exchange Stockpiles and Price(1) nickel required by 2025(3) Nickel Stocks Nickel Pr
Slide 29: LME Nickel Versus Nickel Sulphate
LME Nickel Versus Nickel Sulphate (US$/t)(1,2) For personal use only 20,000 Downstream processing potential at IGO 18,000 • Produce nickel and cobalt 16,000 sulphates for EV batteries NiSO4 • Delivers potential for higher Price 14,000 Premium payability, premium price and higher concentrator recover
Slide 30: Nickel sulphate hexahydrate crystals produced from Nova nickel concentrate
For personal use only Nickel sulphate hexahydrate crystals produced from Nova nickel concentrate • Demonstrated technical feasibility of process route • Test work validated and improved upon previous metallurgical assumptions indicating potential for lower capex & opex • Prefeasibility underway 1) P
Slide 31: Discovery
For personal use only Discovery 31
Slide 32: A$51M committed to discovery in FY19
A$51M committed to discovery in FY19 For personal use only A$12.0M Nova Tropicana A$3.0M A$33.0M A$2.5M Long Best in Class exploration and discovery capability 32
Slide 33: A$12M commitment on Nova Mine Lease in FY19
For personal use only A$12M commitment on Nova Mine Lease in FY19 to unlock brownfields discovery • Leveraged multiple geophysical platforms • Largest hard rock 3D seismic survey in Australia • Now drill testing first seismic targets with two drill rigs onsite 33
Slide 34: Systematic exploration over ~15,000km2 of consolidated tenure
February 2018 September 2018 Systematic exploration over For personal use only ~15,000km2 of consolidated tenure • Multiple EM platforms • Bedrock geochem using Aircore • Gravity survey & mapping • Follow up RC/DDH Testing numerous targets • Technical success at Andromeda with Cu-Zn-Au-Ag discovery
Slide 35: Lake Mackay greenfields exploration project
For personal use only Lake Mackay is a 12,800km2 belt scale greenfields exploration project for IGO • Polymetallic intersections in drilling at Grapple & Bumblebee • Rock chip samples from Grimlock prospect confirm results with up to 2.5% Co, 1.1% Ni, 46.4% Mn(1) • Spectrem airborne EM survey commen
Slide 36: Concluding Remarks
Concluding Remarks For personal use only • Two low cost assets of scale and long mine life • Strong free cash flow delivering strong and strengthening balance sheet • Strong team passionate about making a difference • Positioned for transformational organic growth: ─ Underground at Tropicana ─ Nicke
Slide 37: For personal use only
“FOLLOW US ~ “AS WE GO FROM STRENGTH TO STRENGTH igo.com.au
Independence Group NL — Shareholder Meeting (November 2018) on 6ix