Igo Limited · ASX:IGO
Igo — Independence Group NL — Investor Presentation (December 2011)
47 slides from Igo's investor presentation, Dec 14, 2011
Slide 1: Independence Group – Equity Raising
For personal use only INDEPENDENCE GROUP VALUE THROUGH DISCOVERY AND DEVELOPMENT EQUITY RAISING Chris Bonwick – Managing Director DECEMBER 2011 NOT FOR DISTRIBUTION IN THE UNITED STATES
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER For personal use only Summary information: This document contains summary information about Independence and its subsidiaries and their activities current as at the date of this document. The information in this document is of g general background g and does not p pur
Slide 3: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER For personal use only Investment risk: An investment in Independence shares is subject to investment and other known and unknown risks, some of which are beyond the control of Independence. p Independence p does not gguarantee any yp particular rate of return or the p
Slide 4: Introduction
For personal use only INTRODUCTION
Slide 5: Funding Independence's Growth
FUNDING INDEPENDENCE’S INDEPENDENCE S GROWTH For personal use only Independence is raising up to approximately A$148 million by way of: – An Institutional Placement of approximately A$118 million (“Placement” or “Offer”) – A Share Purchase Plan (“SPP”) of up to A$15,000 per shareholder, capped at
Slide 6: Investment Highlights
INVESTMENT HIGHLIGHTS For personal use only Quality, diversified 930% ownership of Tropicana – world class project in a new gold province with expansion assets potential 9Base and precious metals assets spread across the asset life cycle 9Quality long-life long life producing assets Strong growth pr
Slide 7: Capital Raising Overview
CAPITAL RAISING OVERVIEW For personal use only Offer structure – Institutional Placement of approximately A$118 million – SPP of up to A$15,000 per eligible shareholder, capped at A$30 million Pricing – Fixed price of A$4.00 per share (“Offer Price”) – both Placement and SPP Discount – 8.0% discount
Slide 8: Independence Overview
For personal use only INDEPENDENCE OVERVIEW
Slide 9: Corporate Overview
CORPORATE OVERVIEW For personal use only IGO vs All Ordinaries Index1 Key y information $9.00 IGO ASX All Ordinaries (rebased) Pre-Offer Post-Offer and $8.00 SPP2 $7.00 Share price 4.35 n.a. $6 00 $6.00 52 week high/low (A$) 8 35/3 96 8.35/3.96 $5.00 Shares outstanding 202.9 240.0 $4.00 (m) $3.00 Ma
Slide 10: Diversified Asset Base
DIVERSIFIED ASSET BASE For personal use only Long Ni Stockman Cu, Zn, Ag 9 Continuing to grow resource and mine life 9 High quality asset with development potential Status Producing Status Feasibility ongoing Est. Mine Life 6.5+ years Est. Mine Life 7+ years Est. cash cost (FY12) $4.80 – $5.00/lb1 C
Slide 11: Development and Exploration Pipeline
DEVELOPMENT AND EXPLORATION PIPELINE For personal use only Quality y long-life g producing p g assets underpin p a highly g y prospective p p exploration p portfolio p Opportunities across the entire mine cycle De Beers Database Legend: Gold TEM Zinc and Copper Nickel and Copper Other/various Jaguar
Slide 12: Tropicana Overview – New Gold Province
TROPICANA OVERVIEW – NEW GOLD PROVINCE For personal use only Key y statistics Overview JV (IGO 30%) with AngloGold Ashanti Open pit with potential underground 10+ years current LOM Resource 6.41Moz ((JV)) 1.92Moz ((IGO)) Reserve 3.91Moz (JV) 1.17Moz (IGO) BFS Production 3.45Moz (JV) 1.04Moz (IGO) Sc
Slide 13: Tropicana Development
TROPICANA DEVELOPMENT For personal use only Development p overview Development p plan p and site layout y Timeline Construction commenced: Sept 2011 Expected first gold pour: 2H CY2013 Scalability Ability to significantly expand operations through Boston Shaker, Havana Deeps, Swizzler and regional e
Slide 14: Tropicana Upside Potential
TROPICANA UPSIDE POTENTIAL For personal use only Havana Deeps Tropicana/Havana 9 Swizzler growth 9 Havana Deeps, Boston Shaker Deeps and Swizzler Deeps are not included in current Reserves or BFS 9 Significant intercepts outside current pit designs 9 Open along strike and at depth Regional 9 330km s
Slide 15: Long Overview
LONG OVERVIEW For personal use only Key y statistics Overview Acquired and recommissioned in 2002 Resource 83,000 Ni t (inclusive of reserve) Reserve 58,100 Ni t Production (FY12) 8,800 – 9,200 Ni t Payable cash cost Forecast A$4.80 – 5.00/lb Ni including (A$) (FY12) royalties LOM 6.5+ years Hedging
Slide 16: Long Nickel Mine (IGO 100%)
LONG NICKEL MINE (IGO 100%) For personal use only Low cash cost,, high g margin g self funding g asset. Track record of reserve growth g Accumulated resource and Accumulated reserve and 9Exploration continues to increase reserve and production production mine life, more than replacing production 9TE
Slide 17: Jaguar/Bentley Issues Being Addressed
JAGUAR/BENTLEY ISSUES BEING ADDRESSED For personal use only Key y statistics Overview 2 copper/zinc/silver mines acquired through JML acquisition in 2011 Resource 5,453,000t @ 2.0% Cu, 6.9% Zn, 102 g/t Ag Reserve 3,276,000t @ 1.7% Cu, 7.4% Zn, 93 g/t Ag Forecast 8,500 – 9,500 Cu t Production 15,500
Slide 18: Jaguar/Bentley Operations
JAGUAR/BENTLEY OPERATIONS For personal use only Operations p Exploration p p potential Q3 2011 Oct – Nov 950km FY2012E Actual 2011 prospective Metal in 2,250 Cu t/qtr 1,570 Cu t 1,429 Cu t Cu – Zn – Ag concentrates 4,000 Zn t/qtr 3,714 Zn t 2,481 Zn t VMS corridor Grade 3.00%1 Cu 2.00% Cu 2.60% Cu 9
Slide 19: Stockman Overview
STOCKMAN OVERVIEW For personal use only Key y statistics Currawong g and Wilga g Deposits p Overview Wilga and Currawong Cu-Zn-Ag deposits discovered by WMC in 1978/9 Resource Indicated: 12.7M t @ 2.1% Cu, 4.4% Zn, 39g/t Ag, 1 g/t Au 263,200 Cu t, 552,000 Zn t, 15.7M oz Ag, 0.4Moz Au Capital for Cap
Slide 20: Exploration Portfolio – Karlawinda
EXPLORATION PORTFOLIO – KARLAWINDA For personal use only An emerging g g gold g project p j – further exploration p success expected p Overview Greenfields gold project 65km SE of Newman (WA) Resource Bibra Prospect: maiden Resource of 5.9Mt @ 1.1 g/t 220koz Au Budgeted exploration A$1.1 million and
Slide 21: Exploration Portfolio – Other
EXPLORATION PORTFOLIO – OTHER For personal use only Duketon JV ((IGO earning g 70%)) Orrbacken Nickel Project j ((IGO earning g up p to 73%)) 9Work to date has confirmed prospectivity 9Large concealed TEM anomaly in vicinity of glacially 9Resource drilling complete at Rosie Prospect transported boul
Slide 22: Capital Raising Details
For personal use only CAPITAL RAISING DETAILS
Slide 23: Use of Funds – Funding Growth
USE OF FUNDS – FUNDING GROWTH For personal use only Independence will have available funds of approximately y A$307 million to fund its project j pipeline1 Gross proceeds of up to A$1481 million, together with existing cash of A$1592 million intended to be used as follows: Use Amount Description o
Slide 24: Capital Structure and Balance Sheet Impact
CAPITAL STRUCTURE AND BALANCE SHEET IMPACT For personal use only Strengthened g and conservative balance sheet to continue to grow g Pro-forma Balance Sheet Independence Pro forma post Unit (9 December 2011) Placement and SPP Placement and SPP Share price A$ 4.35 4.00 n.a. (close/offer price) Ordina
Slide 25: Offer Timetable
OFFER TIMETABLE For personal use only Event Date ASX trading halt Monday, 12 December 2011 SPP Record R dDDate t T Tuesday,13 d 13 D December b 2011 Announce capital raising and return to trade Wednesday, 14 December 2011 Settlement of Placement Monday, 19 December 2011 Allotment of Placement shares
Slide 26: Summary of Key Risks
SUMMARY OF KEY RISKS For personal use only There are various risks associated with an investment in Independence Group and many of these are outside the control of the company. Please refer to the expanded key risks section on the following pages of this document. Key risk factors include: – Ope
Slide 27: Key Risks
KEY RISKS For personal use only There are various risks associated with investing in Independence Group, as with any stock market investment, and specifically because of the nature of Independence Group’s mining business and the present stage of development of some of its operations. This includes p
Slide 28: Key Risks
KEY RISKS For personal use only Tropicana gold — Independence Group holds a 30% interest in the Tropicana Joint Venture, with AngloGold Ashanti holding the project remaining 70%. — Independence Group received a bankable feasibility study for the Tropicana Project in 2010. As a result of the BFS, bot
Slide 29: Key Risks
KEY RISKS For personal use only Asset impairment — At each reporting date, the directors of Independence Group assess whether current circumstances indicate that the risk carrying value of any of the company’s assets, including goodwill, should be impaired. Independence Group notes that, as part of
Slide 30: Key Risks
KEY RISKS For personal use only Regulatory risks — Changes in legislative and administrative regimes, taxation laws, interest rates, other legal and government policies in Australia may have an adverse effect on the assets, operations and ultimately the financial performance of Independence Group an
Slide 31: Key Risks
KEY RISKS For personal use only Estimate risk — The Mineral Resources and Ore Reserves for Independence Group’s assets are estimates only and no assurance can be given that any particular recovery level of metals will in fact be realised. Independence Group’s estimates are prepared in accordance wit
Slide 32: Key Risks
KEY RISKS For personal use only Investment risks — There are risks associated with any securities investment. Securities listed on the stock market, and in particular securities of mining and exploration companies, have experienced extreme price and volume fluctuations that have often been unrelated
Slide 33: Key Risks
KEY RISKS For personal use only Risk of dilution — Some existing institutional shareholders are being invited to participate in the Offer. Non-participation or participation below a shareholder’s pro-rata share will result in dilution. Discretion in use — The board and management of Independence Gro
Slide 34: Key Risks
KEY RISKS For personal use only Insurance risk — Independence Group will endeavour to maintain insurance within ranges of coverage in accordance with industry practice. However, in certain circumstances Independence's insurance may not be of a nature or level to provide adequate cover. The occurrenc
Slide 35: Important Information Regarding Foreign Jurisdictions
IMPORTANT INFORMATION REGARDING FOREIGN JURISDICTIONS For personal use only This document does not constitute an offer of securities in any jurisdiction in which it Statutory rights of action for damages or rescission would be unlawful. Offers of New Shares will be made to eligible shareholders with
Slide 36: Important Information Regarding Foreign Jurisdictions
IMPORTANT INFORMATION REGARDING FOREIGN JURISDICTIONS For personal use only Section 138 of the Securities Act (Ontario) provides that no action shall be European Economic Area - Germany, Luxembourg and Netherlands commenced to enforce these rights more than (a) in the case of any action for The info
Slide 37: Important Information Regarding Foreign Jurisdictions
IMPORTANT INFORMATION REGARDING FOREIGN JURISDICTIONS For personal use only France Hong Kong This document is not being distributed in the context of a public offering of financial WARNING: This document has not been, and will not be, registered as a prospectus securities ((offre au p public de titr
Slide 38: Important Information Regarding Foreign Jurisdictions
IMPORTANT INFORMATION REGARDING FOREIGN JURISDICTIONS For personal use only New Zealand c) to fewer than 100 natural or legal persons (other than "professional investors", This document has not been registered, filed with or approved by any New Zealand as defined in clauses (a) and (b) above); or re
Slide 39: Important Information Regarding Foreign Jurisdictions
IMPORTANT INFORMATION REGARDING FOREIGN JURISDICTIONS For personal use only Switzerland In the United Kingdom, this document is being distributed only to, and is directed at, The New Shares may not be publicly offered in Switzerland and will not be listed on persons the SIX Swiss Exchange g (("SIX")
Slide 40: Appendix – Resources and Reserves
For personal use only APPENDIX RESOURCES AND RESERVES
Slide 41: Long Nickel Mine (IGO 100%)
LONG NICKEL MINE (IGO 100%) For personal use only June 2011 – Resources and Reserves RESOURCES MINING RESERVE Undiluted at 1% Ni Cut-off 1, 2 as at 30 June 2011 as at 30 June 2011 Tonnes Ni % Ni Tonnes Tonnes Ni % Ni Tonnes LONG Measured 26 000 26,000 56 5.6 1 500 1,500 LONG Proven - - - Indicated 2
Slide 42: Tropicana JV (AngloGold Ashanti 70%/IGO 30%)
TROPICANA JV (ANGLOGOLD ASHANTI 70%/IGO 30%) For personal use only November 2011 Project j Resources June 2011 Project j Reserves Tonnes Grade Contained Tonnes Grade Contained (Mt) (g/t)1 Gold (Moz)2 (Mt) (g/t)3 Gold (Moz)4 Measured 28.2 2.1 1.95 Proved 25.8 2.3 1.90 Indicated 49.4 2.0 3.25 Probable
Slide 43: Jaguar/Bentley Project
JAGUAR/BENTLEY PROJECT For personal use only Jaguar/Bentley g y Mineral Resource – June 2011 Tonnes Cu % Zn % Ag g/t Au g/t Jaguar Measured 373,000 3.5 5.9 81 – Indicated 441,000 2.1 3.8 57 – Inferred 42,000 2.2 1.8 28 – Stockpiles 5,000 2.0 4.2 55 – TOTAL 861,000 2.7 4.6 66 – Bentleyy Measured – –
Slide 44: Jaguar/Bentley Project
JAGUAR/BENTLEY PROJECT For personal use only Ore Reserves – 30 June 2011 Tonnes Cu % Zn % Ag g/t Au g/t Jaguar Proven 359,000 3.1 4.8 66 – Probable 467,000 1.8 3.3 48 – TOTAL 826,000 2.4 3.9 56 – Bentley Proven – – – – – Probable 2,450,000 1.5 8.6 106 0.5 TOTAL 2,450,000 1.5 8.6 106 0.5 GRAND TOTAL
Slide 45: Stockman Project
STOCKMAN PROJECT For personal use only Mineral Resources – June 2011 Cu Zn Ag Au1 Stockman Classification Tonnes % % g/t g/t Currawong Indicated 9,130,000 2.0 4.2 42 1.2 Currawong Inferred 305,000 1.4 4.1 34 0.5 TOTAL Indicated + Inferred 9,435,000 2.0 4.2 42 1.2 Wilga Indicated 2,368,000 2.1 5.5 32
Slide 46: Karlawinda Gold Project – Bibra Deposit
KARLAWINDA GOLD PROJECT – BIBRA DEPOSIT For personal use only Maiden Inferred Mineral Resource – March 2011 Tonnes Au Grade Contained Au Mineralisation type (Mt) (g/t) (oz) Laterite 1.9 1.2 73,300 Upper Saprolite 0.8 1.1 28,300 Lower Saprolite 1.6 1.1 56,600 Sub-total Oxide Inferred 4.3 1.1 158,200
Slide 47: Competent Person Statements
COMPETENT PERSON STATEMENTS For personal use only Notes: The information in this document that relates to Exploration Results is based on information compiled p byy Mr Christopher p M Bonwick who is a full-time employee p y of the Company and is a member of the Australasian Institute of Mining and M
Independence Group NL — Investor Presentation (December 2011) on 6ix