Igo Limited · ASX:IGO
Igo — Independence Group NL — Shareholder Meeting (November 2013)
32 slides from Igo's shareholder meeting presentation, Nov 27, 2013
Slide 1: Growing a Great Australian Mining Company - Annual General Meeting
GROWING A GREAT For personal use only AUSTRALIAN MINING COMPANY Annual General Meeting 27 November 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: Introduction
INTRODUCTION L GROWING A GREAT AUSTRALIAN MINING COMPANY For personal use only Strong Conservative balance sheet l Financial Flexibility to fund future growth Position NAB Debt facility in place Quality, Tropicana – world class (Au) project, Long (Ni), Jaguar (Cu, Zn, Ag & Au ) diverse Assets
Slide 4: Corporate Summary
CORPORATE SUMMARY L For personal use only Capital Structure: ASX 200 Code : IGO l 233.3M shares Financials: Market Cap. (26/11/13): A$746.6M Cash (at 30/9/13): A$43.8M Debt (at 30/9/13): (A$65.0M) Undrawn Corporate Loan (at 30/9/13): A$73.0M FY2013 Final Result EBITDA: A$56.8M NPAT: A$18.3M Sept Qtr
Slide 5: Financial Results
FINANCIAL RESULTS L For personal use only FINANCIAL YEAR ENDED 30 JUNE 2013 2012 l INC/(DEC) Total Revenue $225.9M $216.6M 4% Underlying EBITDA $56.8M $33.6M 69% Profit (Loss) Before Tax $27.8M ($368.8)M increased Profit (Loss) After Tax $18.3M ($285.3)M increased Net Cash Flow From Operating $64.0M
Slide 6: Asset Quality & Potential
ASSET QUALITY & POTENTIAL L GROWING A GREAT AUSTRALIAN MINING COMPANY For personal use only Strong Conservative balance sheet l Financial Flexibility to fund future growth Position NAB Debt facility in place Quality, Tropicana – world class (Au) project, Long (Ni), Jaguar (Cu, Zn, Ag & Au ) div
Slide 7: IGO Asset Pipeline
IGO ASSET PIPELINE L For personal use only Combination of low cost cash flows from current operating mines with significant long-life l development projects and highly prospective exploration portfolio l L 7
Slide 8: IGO Major Projects
IGO MAJOR PROJECTS L For personal use only l 8
Slide 9: Tropicana Gold Project
TROPICANA GOLD PROJECT IGO 30%, AGA (MANAGER) 70% L For personal use only FIRST GOLD AHEAD OF SCHEDULE AND ON BUDGET l Milestone first gold pour 26th September 2013 CAPEX estimate unchanged - IGO share A$246M – A$254M IGO attributable production to 31/12/2013: 27-33,000 oz Au IGO attributabl
Slide 10: Tropicana Gold Project - 2012 Australian Gold Production Comparison
TROPICANA GOLD PROJECT L For personal use only 2012 AUSTRALIAN GOLD PRODUCTION COMPARISON l Gold Ounces Top 20 Australian Gold Mines by Production 2012 800,000 Tropicana* (100%) 700,000 600,000 500,000 Tropicana* (30% IGO) 400,000 300,000 200,000 100,000 0 Source: * Based on BFS Production Years 1
Slide 11: Tropicana Gold Project - Upside Studies & Potential
TROPICANA GOLD PROJECT LL UPSIDE STUDIES & POTENTIAL For personal use only ll References : IGO & AGA 4/12/2012 ASX Releases for Tropicana Gold Project Mineral Resource Estimate IGO & AGA 27/7/2011 ASX Releases for Tropicana Ore Reserve Estimate 11
Slide 12: Tropicana Gold Project - Fly Through
TROPICANA GOLD PROJECT L FLY THROUGH For personal use only l 12
Slide 13: Long Operation (IGO 100%)
LONG OPERATION (IGO 100%) L FY 2013 Record Production^ – 11,180t Ni t For personal use only FY 2013 Year on Year 9% reduction in payable cash costs l (A$/lb Ni) Consistent low cost production Strong start to FY2014 LONG OPERATION FY2013 FY2014 Sept Qtr ACTUAL GUIDANCE ACTUAL Production (Ni T
Slide 14: Long Operation - Years of Low Cost Nickel Production
LONG OPERATION (IGO 100%) L OVER 10 YEARS OF LOW COST NICKEL PRODUCTION For personal use only l LOM PRODUCTION AVERAGE Cash Cost + Royalties A$4.14/lb Ni Realised Price A$9.92/lb Ni 14
Slide 15: Long Operation - Deposits & Targets Longitudinal Projection
LONG OPERATION (IGO 100%) DEPOSITS & TARGETS LONGITUDINAL PROJECTION L For personal use only l References: IGO ASX Release dated 25/10/2013 : Mineral Resources and Ore Reserves Estimates for Long Nickel Operation 15
Slide 16: Jaguar Operation (IGO 100%)
JAGUAR OPERATION (IGO 100%) L OPERATIONAL IMPROVEMENTS CONTINUE For personal use only FY2013 Year on Year 15% reduction in payable cash costs (A$Zn/lb) l On the path to consistent and lower cost production SAG Mill gear failure October – resolved FY2014 Guidance unchanged JAGUAR OPERATION
Slide 17: Jaguar Operation - Bentley Deposit
JAGUAR OPERATION (IGO 100%) L BENTLEY DEPOSIT New mining plan achieving more consistent production For personal use only Balance of production changing to Stoping rather than Development l References: IGO ASX Release 25/10/2013 : Mineral Resources and Ore Reserves Estimates for Jaguar Operation
Slide 18: Jaguar Operation - Prospective VMS Corridor
JAGUAR OPERATION (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 19: Stockman Project - Permitting Process Underway
STOCKMAN PROJECT (IGO 100%) L PERMITTING PROCESS UNDERWAY l Conceptual site layout For personal use only L l Feasibility Report completed Mine Life based on Ore Reserves – 9 yrs Exploration upside - at Bigfoot and Eureka discoveries Permitting approvals expected mid 2014 19
Slide 20: Exploration Upside
EXPLORATION UPSIDE L GROWING A GREAT AUSTRALIAN MINING COMPANY For personal use only Strong Conservative balance sheet l Financial Flexibility to fund future growth Position NAB Debt facility in place Quality, Tropicana – world class (Au) project, Long (Ni), Jaguar (Cu, Zn, Ag & Au ) diversifie
Slide 21: Exploration Strategy
EXPLORATION STRATEGY L Adding value to operations and advanced projects Long Operation For personal use only • Moran, McLeay, and Long North discoveries l Jaguar Operation • Bentley discovery Stockman Project • Bigfoot and Eureka discoveries Discovering new mines by Technical Innovation • Ge
Slide 22: Karlawinda Gold Project
KARLAWINDA GOLD PROJECT (IGO 100%) L NEW GOLD PROVINCE IN IRON ORE COUNTRY Mineral Resource 650,800oz Au (June 2013) For personal use only Potential to increase resources down dip and along strike l References: IGO ASX Release dated 25/10/2013 : Mineral Resource Estimate for Karlawinda Gold Proj
Slide 23: De Beers Database - Unlocking the Potential
DE BEERS DATABASE (IGO 100%) L L UNLOCKING THE POTENTIAL l IGO 2009 gold analysis of archived IGO analysis of the De Beers sample For personal use only De Beers samples collected before l has resulted in: database to date the discovery of the Plutonic Gold 7 Gold and 6 Base Metal Projects Mine
Slide 24: IGO Transformation
IGO TRANSFORMATION L GROWING A GREAT For personal use only AUSTRALIAN MINING COMPANY l Planning for the Future Target low cash costs Pay consistent dividends Adding value by focusing on our strengths; Mining & Exploration Our Commitment Continued commitment to safety Creating value
Slide 25: Contact Details
INDEPENDENCE GROUP L CONTACT DETAILS L l For personal use only l Perth Office Brett Hartmann, Acting 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 8 923
Slide 26: Appendix - Reserves and Resources Statements
L For personal use only l APPENDIX RESERVES AND RESOURCES STATEMENTS 26
Slide 27: Competent Persons Statements
COMPETENT PERSONS STATEMENTS L For personal use only l JORC Code Competent Persons Statements Exploration Results The information in this report that relates to Exploration Results is based on information compiled by Mr Tim Kennedy. Mr Kennedy is a full- time employee of the Company and is a member
Slide 28: Reserves and Resources - Lightning Nickel Operation
RESERVES AND RESOURCES LIGHTNING NICKEL OPERATION 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 6
Slide 29: Reserves and Resources - Tropicana Gold Project JV
RESERVES AND RESOURCES TROPICANA GOLD PROJECT JV For personal use only Mineral Resources December 2012 Ore Reserves December 2012 [100% Project (IGO Share 30%] [100% Project, (IGO Share 30%)] Classification Tonnes Mt Au g/t Contained Au Moz Classification Tonnes Mt Au g/t Contained Au Moz OPEN PIT M
Slide 30: Reserves and Resources - Jaguar / Bentley Operation
RESERVES AND RESOURCES JAGUAR / BENTLEY OPERATION Mineral Resources 30 June 2013 Ore Reserves 30 June 2013 For personal use only 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 2
Slide 31: Reserves and Resources - Stockman Project
RESERVES AND RESOURCES STOCKMAN PROJECT For personal use only Mineral Resources 30 June 2013 Ore Reserves 30 June 2013 Tonnes Classification Tonnes Cu% Zn% Ag g/t Au g/t Classification Mt Cu% Zn% Ag g/t Au g/t CURRAWONG Measured - - - - - CURRAWONG Indicated 9,548,000 2.0 4.2 42 1.2 Proved - - - - -
Slide 32: Karlawinda-Bibra Prospect
KARLAWINDA-BIBRA PROSPECT For personal use only Mineral Resources 30 June 2013 Classification Tonnes Mt Au g/t Contained Au (oz) Measured - - - Indicated - - - Inferred 18.0 1.1 650,800 GRAND TOTAL 18.0 1.1 650,800 Notes: 1. The Mineral Resource estimate was estimated within a conceptual A$1,600/oz
Independence Group NL — Shareholder Meeting (November 2013) on 6ix