Igo Limited · ASX:IGO
Igo — Independence Group NL — WA Mining Club (May 2015)
26 slides from Igo's conference presentation, May 28, 2015
Slide 1: Creating a leading Australian diversified mining company
Au Ni Cu/Zn Creating a leading Australian diversified mining company WA Mining Club Peter Bradford – Managing Director / CEO 28th May 2015
Slide 2: Cautionary Notes and Disclaimer
Cautionary Notes and 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 inducement to make an offer or invitation with respect to tho
Slide 3: A Brief History
A Brief History SEPTEMBER 2002 NOVEMBER 2010 SEPTEMBER 2013 • Long Operation acquisition completed • Tropicana Project • First Gold production with production development decision from Tropicana starting October 2002 MARKET CAP MARKET CAP MARKET CAP $1.040 Billion $926.3 Million $23.4 Million 2002 2
Slide 4: Corporate Snapshot
Corporate Snapshot Key Highlights Financial Snapshot to 31 March 2015 Highlights YTD FY15 YTD FY14 Change Revenue $380M $292M 30% Underlying EBITDA(2) $175M $100M 75% Profit after tax(2) $69M $34M 103% Net Operating Cash Flow(2) $157M $79M 99% Leading ASX200 Gold and Base Metals Producer Free Cash F
Slide 5: Tropicana: Producing Tier 1 Gold Project Proximal to Nova
Tropicana: Producing Tier 1 Gold Project Proximal to Nova One of best virgin Australian gold discoveries Open Pit mining with LOM strip ratio of 5.4 : 1 since 2000 Exploration upside Low cost with 9 year mine life – Resource extension 3.6Moz Ore Reserves, 7.5Moz Resources(1) – Near mine
Slide 6: Tropicana: 3.6Moz Reserves Optimised at A$1,249/oz
Tropicana: Producing Tier 1 Gold Project 3.6Moz Reserves Optimised at A$1,249/oz Page 6
Slide 7: Tropicana: Delivering Near Mine Exploration Success - Madras
Tropicana: Producing Tier 1 Gold Project Delivering Near Mine Exploration Success - Madras Cross Section - Madras Regional Geology Map Page 7
Slide 8: Jaguar & Long: High Margin Producing Assets
Jaguar & Long: High Margin Producing Assets Jaguar Long High grade underground Zn / Cu VMS deposit High grade underground Nickel (3.8%) Significant improvement in operation over last High margin and consistent performer 1-2 years FY2015 Guidance FY2015 Guidance – 9,500 – 10,500t containe
Slide 9: Long Operation
Long Operation Continuing to replace resources and reserves targeting extensions to McLeay and Moran Page 9
Slide 10: Jaguar Operation
Jaguar Operation A VMS Camp – committed to the discovery of a new orebody 50km VMS corridor Exploration focused on 15km central zone Multi-disciplinary exploration approach Three orebodies developed to date Number of advanced exploration targets Page 10
Slide 11: IGO Vision
IGO Vision We will be a diversified mining company delivering superior returns for all stakeholders Page 11
Slide 12: Key Criteria for Target Opportunities
Key Criteria for Target Opportunities The Four Targeted Criteria • Bottom third cost curve (minimum all in sustaining cash High Margin margin of 25% and above) • Minimum size of each operation of $200M pa revenue • Equates to 130,000 oz pa Au, 30,000 tpa Cu, 15,000 Scale • tpa Ni or 80,000 tpa Z
Slide 13: Transaction Highlights
Transaction Highlights Creating a leading Australian diversified mining company with a market cap of ~$2.7 billion(1) Clear strategic rationale for transaction Acquisition of SIR is consistent with IGO's clearly defined growth strategy Crystallises significant near term value for SIR sharehold
Slide 14: Transaction Summary
Transaction Summary Transaction implemented via two inter-conditional Schemes of Arrangement(1) whereby SIR shareholders receive: 0.66 IGO shares and 52¢ in cash per SIR share A shareholding in S2 Resources containing Polar Bear & Scandinavian assets on the basis of circa 1 new S2 share for 2.
Slide 15: Creating a Leading Australian Diversified Mining Company
Creating a Leading Australian Diversified Mining Company Strategic Scale Supported Value Makes strong strategic sense Creates a ~$2.7 billion Strong support for Delivers significant value to on multiple levels diversified mining company transaction shareholders of both parties Directly aligned wit
Slide 16: A focussed portfolio
A focussed portfolio “This transaction brings together the producing assets of Independence and the near production asset of Sirius.” Mark Creasy, 25 May 2015 Page 16
Slide 17: Nova – A Tier 1 Asset in Development
Nova – A Tier 1 Asset in Development Globally significant Ni-Cu discovery Located 350km from Esperance and Kalgoorlie Project construction commenced in January 2015 DFS completed in June 2014 and mining lease Project significantly de-risked with major granted in August 2014 construction and
Slide 18: Nova – A World Class Ni-Cu Mine
Nova – A World Class Ni-Cu Mine High margin asset DFS forecast C1 cash cost of US$1.50/lb (based on 100% payability) (1) DFS forecast all-in-sustaining cash cost of US$2.09/lb (based on 100% payability) Positions Nova-Bollinger as 12th lowest cost nickel asset in the world Lowest cost nickel
Slide 19: Fraser Range exploration
Fraser Range exploration Expected to unlock additional value Page 19
Slide 20: High margin assets
High margin assets Tropicana Jaguar Long Nova (SIR) Stockman Ownership 30% 100% 100% 100% 100% Location Western Australia Western Australia Western Australia Western Australia Victoria Stage Production Production Production Construction Permitting Mine Type Open Pit Underground Underground Undergrou
Slide 21: Exploration: Consolidation of Fraser Range–Tropicana Belts
Exploration: Consolidation of Fraser Range –Tropicana Belts IGO / SIR land holding Dominant land position Allows a focused and efficient exploration effort Both provinces under-explored “The shareholders of the merged entity will be exposed to the unrealised exploration potential of both the F
Slide 22: Greater scale & liquidity
Greater scale & liquidity Pro forma Market Cap(1)(2) (A$M) 3,000 2,706 2,500 2,000 1,508 Significantly greater scale 1,500 1,370 1,336 1,280 than its listed peers 1,000 927 850 842 828 819 Becomes one of the most 607 liquid mid-cap resource 500 369 170 114 companies on ASX Potential to leverag
Slide 23: Board of Directors
Board of Directors Peter Bilbe Neil Warburton B.Eng. (Mining) (Hons), MAusIMM Mining Engineer, FAusIMM Non-executive Chairman Non Executive Director Peter Bradford Keith Spence BAppSc Metallurgy, FAusIMM BSc (Geophysics) (Hons) MD and CEO Non-Executive Director Mark Bennett Geoff Clifford BSc (geolo
Slide 24: Summary of Transaction
Summary of Transaction Creation of a leading Australian diversified mining company with a market cap of ~$2.7 billion(1) Clear strategic rationale for transaction Acquisition of SIR is consistent with IGO's clearly defined growth strategy Crystallises significant near term value for SIR shareh
Slide 25: Conclusion
Conclusion Tropicana Long Creation of a leading Australian diversified mining company Low risk jurisdiction with proximity of assets providing business simplicity Au Ni High-margin quality assets Long life of mines with significant exploration Nova Jaguar potential Scale that provides global relevan
Slide 26: Competent Persons Statement
Competent Persons Statement Independence Group NL Exploration Results The information in this report that relates to Exploration Results is a compilation of previously published data for which Competent Persons consents were obtained. Their consents remain in place for subsequent releases by the Com