Slide 1: IGO Limited 1Q21 Results Presentation
IGO Limited 1Q21 Results Presentation 29 October 2020
Slide 2: Cautionary Statements & Disclaimer
Cautionary Statements & Disclaimer • This presentation has been prepared by IGO Limited (“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 inducement to make an offer or invitation with respect to those secu
Slide 3: Competent Person's Statements
Competent Person’s Statements • Any references to IGO Mineral Resource and Ore Reserve estimates should be read in conjunction with IGO’s Annual Update of Exploration Results, Mineral Resources and Ore Reserves dated 30 January 2020 (Annual Statement) and lodged with the ASX for which Competent Pers
Slide 4: 1Q21 Highlights
1Q21 FY19Highlights and 4Q19 Highlights A strong start to FY21 Nova Tropicana Financial Consistent production Strong group margins Stronger QoQ production performance maintained Boston Shaker No debt following final Lower costs Underground commercial payment production Commencement of Strong recover
Slide 5: Our People
Our People Continued focus on safety, wellbeing and COVID-19 preparedness Total Reportable Injury Frequency (TRepIF)1 and Serious Potential Incident Frequency (SPIF) 2 20 7 19 6 18 17 5 16 15 4 14 13 3 12 2 11 10 1 9 8 0 TRepIFR (lhs) SPIFR (rhs) 1) 12 month moving average TRepIF – Total Reportable
Slide 6: Sustainability
Sustainability Sixth Sustainability Report released in September Key Achievements in FY20 Nova Solar Farm TCFD alignment1 Climate Change Policy Dow Jones Sustainability Index Australia admission Continued commitment to creating shared value 1) Task Force on Climate-related Financial Disclosures (TCF
Slide 7: Financial Results
Financial Results 7
Slide 8: Financial Results
Financial Results Solid financial results underpinned by quality, high margin assets Units 4Q20 1Q21 QoQ Revenue and Other Income A$M 230.6 226.6 (2%) ▼ Underlying EBITDA(1) A$M 113.1 121.3 7% ▲ Profit After Tax A$M 39.8 45.4 14% ▲ Net Cash from Operating Activities A$M 84.9 109.6 29% ▲ Underlying F
Slide 9: 1Q21 NPAT Reconciliation
1Q21 NPAT Reconciliation Operational EBITDA contributed to strong NPAT result A$M 60 0.9 0.6 5.9 7.2 50 4.3 3.2 3.7 9.2 40 30 39.8 45.4 20 10 - 4Q20 NPAT Nova Tropicana Exploration & Corporate Mark-to- D&A Other Tax 1Q21 NPAT EBITDA EBITDA Evaluation market EBITDA investments 9
Slide 10: 1Q21 Cash Flow Reconciliation
1Q21 Cash Flow Reconciliation Cash position stable following dividend and final debt repayment A$M 700 600 22.7 22.5 0.1 1.6 17.8 8.2 26.9 91.1 57.1 29.5 5.8 500 400 300 510.3 508.5 200 100 - Cash at Nova FCF Tropicana Exploration Payments Corporate Proceeds Finance Lease Debt Dividend Purchase of C
Slide 11: Nova
Nova 11
Slide 12: Nova
Nova Consistent performance in line with mine plan Metric Units 4Q20 1Q21 QoQ FY21 FY21 Guidance1 Nickel in concentrate t 7,181 7,276 1% ▲ 7,276 6,750 – 7,250 Copper in concentrate t 3,210 3,278 2% ▲ 3,278 2,750 – 3,125 Cobalt in concentrate t 277 278 - - 278 213 – 238 Cash cost (payable) A$/Ib Ni 2
Slide 13: Nova
Nova Higher metal prices helped drive strong 1Q21 result Nova Production & Cash Costs Nova Cash Flow Reconciliation Tonnes A$/lb A$M 120 9,000 $3.00 $2.70 8,000 $2.42 $2.50 100 $2.25 3.7 2.0 7,000 0.2 $1.96 6,000 $2.00 80 5,000 $1.50 60 4,000 7,513 8,019 7,276 92.0 93.5 3,784 7,181 40 3,000 $1.00 3,
Slide 14: Nova
Nova Established track record of high margins and strong free cash generation Nova historic cumulative free cash flow and margins Margin Cumulative Free Cash Flow (A$M) 110% 800 A$756M 103% 700 90% 600 70% 70% 70% 500 67% 67% 61% 59% 60% 59% 56% 57% 50% 54% 53% 53% 400 52% 49% 46% 43% 41% 40% 300 37
Slide 15: Tropicana
Tropicana 15
Slide 16: Tropicana
Tropicana Strong milling performance offsets lower grades Metric Units 4Q20 1Q21 QoQ FY21 FY21 Guidance1 Gold produced (100%) koz 102.0 107.1 5% ▲ 107.1 95,000 – 107,500 Gold Sold (IGO 30%) koz 30.6 31.4 2% ▲ 31.4 28,500 – 32,250 Cash cost A$/oz 953 947 (1%) ▼ 947 1,040 – 1,120 AISC A$/oz 1,440 1,52
Slide 17: Tropicana
Tropicana High margin operation continuing to generate strong free cash flow Tropicana Production (100% ) and AISC Tropicana Cash Flow Reconciliation A$M oz A$/oz 160,000 $1,800 50 45 0.9 140,000 $1,440 $1,527 $1,600 3.5 $1,303 40 $1,400 120,000 35 $1,200 100,000 $948 30 $1,000 80,000 25 $800 45.1 4
Slide 18: Tropicana
Tropicana A long life asset with excellent margins Tropicana historic cumulartive free cash flow and margins Margin Cumulative Free Cash Flow (A$M) 70% 300 A$278M 66% 60% 64% 64% 62% 61% 61% 250 59% 59% 57% 57% 58% 57% 56% 50% 200 40% 41% 38% 150 35% 34% 30% 31% 31% 29% 30% 30% 29% 28% 26% 100 20% 2
Slide 19: Tropicana
Tropicana Commercial production declared from Boston Shaker Underground Development completed safely, on time and on budget Ramp up to nameplate 1.1 Mtpa production rate expected by March 2021 Depth extensions to be tested with upcoming drilling 1) Refer to ASX release dated 28 March 2019: Tropicana
Slide 20: Tropicana
Tropicana Strategic Review underway focused on delivering value for all shareholders Motivated by conviction that Tropicana is not fully valued in IGO portfolio Initial phase focused on technical review to inform strategy and decision making 20
Slide 21: Exploration
Exploration 21
Slide 22: Exploration Overview
Exploration Overview Portfolio focused on Tier 1 nickel and copper discovery Commodity and Deposit Style High value magmatic nickel sulphides and sediment hosted copper deposits Terrane Selection & Portfolio Development Driven by leading generative geoscience Equity joint venture structures to secur
Slide 23: Near Nova
Near Nova High priority for our exploration team Multiple holes drilled from surface and underground High-tenor disseminated and blebby nickel and copper sulphides intersected Future work focused on Orion, Hercules and Symons Hill next to Nova following agreement on Boadicea tenements 23
Slide 24: Fraser Range
Fraser Range Systematic process to drill high priority targets Thick intervals of mineralised mafic-ultramafic intrusions intersected at Ecliptic Abundant disseminated to locally semi- massive Ni-Cu sulphides at Kaon 2 and Chimera with follow-up drilling required Widespread gold mineralisation ident
Slide 25: Paterson Project
Paterson Project Work commences to unlock value from newly consolidated belt Significant copper soil geochemical anomalies returned from Encounter JV1 Extensive analysis of historic Metals X drill core commencing Drilling has begun on Antipa Minerals’ Paterson project tenements2 1) Refer to Encounte
Slide 26: Kimberley Project
Kimberley Project Ongoing work program to identify Nova-style nickel-copper-cobalt Airborne geophysics completed over West Kimberley Government co-funded drilling at Merlin JV intersected evidence of deeper sulphide mineralisation1 Heritage clearances completed at Merlin JV and surrounds; Sentinel h
Slide 27: Summary
Summary 27
Slide 28: Concluding Comments
Concluding Comments A great start to FY21 Operations continue to Balance sheet Tropicana Strategic generate high margins providing strong Review underway to and outstanding free platform for organic unlock value for all cash flow and inorganic growth shareholders 28
Slide 29: We believe in a world where people power makes amazing things happen
We believe in a world where people power makes amazing things happen. Where technology opens up new horizons and clean energy makes the planet a better place for every generation to come. We are bold, passionate, fearless and fun - a smarter, kinder, more innovative company. Our work is making funda