Slide 1: IGO Limited FY22 Results Presentation
IGO Limited FY22 Results Presentation 30 August 2022
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 securiti
Slide 3: Safety & Sustainability
Safety & Sustainability Maintained our commitment to industry leading performance and reporting Focused on holistic health and wellbeing and fostering a culture of care for our people and others Accelerated our response to climate change through our commitment to new solar capacity at Nova Internal
Slide 4: FY22 Highlights
FY22 FY19Highlights and 4Q19 Highlights Remained laser focused on delivering our clean energy metals strategy Record EBITDA1 underpinned by record contribution from Nova and maiden TLEA contribution Nova nickel production in line with guidance and cash costs better than guidance Record product
Slide 5: FY22 Results
FY22 FY19Results and 4Q19 Highlights Strong operational performance and higher metal prices drove record earnings FY22 FY21 Inc/(Dec) Strong nickel and lithium prices, combined (A$M) (A$M) with maiden earnings contribution from Revenue from continuing TLEA delivered YoY increase in Revenue1 903 672
Slide 6: FY22 Results
FY22 Results Continuing to build on our track record of financial performance Revenue1 Underlying EBITDA (A$M) 889 915 903 717 778 784 460 475 413 422 339 341 138 151 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Net Profit After Tax (A$M) 5492 Underlying Free Cash Flow (A$M)
Slide 7: FY22 Cash Flow
FY22 Cash Flow Strong operational free cash flow offset by income tax payment Cash Flow Reconciliation (A$M) Record free cash flow from Nova driven by stronger metal prices 900 1,263 71 16 19 64 53 32 14 4 12 574 10 A$199M income tax paid relates 94 199 primarily to taxable gain on sale of 114 Tropi
Slide 8: FY22 NPAT
FY22 NPAT NPAT positively benefited from higher metals prices and TLEA contribution NPAT Variance FY22 vs FY21 Higher metals prices drove considerable increase in segment NPAT YoY (37) (9) (1) (6) 1 (3) 177 (67) 254 (385) (22) TLEA NPAT contribution of A$177M (47) 20 (93) 549 331 FY21 NPAT result en
Slide 9: Shareholder Returns
Shareholder Returns 5c fully franked final dividend declared, consistent with capital management framework Cents per share Dividend History A$M 12 80 76 76 70 10 65 59 60 5 8 5 50 6 8 40 10 30 4 6 20 18 5 2 2 10 2 1 0 0 FY18 FY19 FY20 FY21 FY22 Interim Dividend (lhs) Final Dividend (lhs) Total Divid
Slide 10: Nova
Nova Strong operational performance and higher nickel prices delivered an excellent FY22 FY22 Highlights Production within guidance and cash costs better than guidance at A$1.95/lb - lowest cost nickel operation in Australia Underlying EBITDA: A$631M EBITDA Margin: 70% Underlying Free Cash Flow: A$5
Slide 11: Cosmos
Cosmos Project development strategy set to deliver a robust and resilient mining operation Revising development plan to enable the following to be completed prior to producing first concentrate: • Completion of shaft infrastructure • Development of multiple ore sources underground • Expansion of pro
Slide 12: Forrestania
Forrestania Assessing further nickel and lithium upside Forrestania to contribute to IGO earnings from FY23 (following completion of transaction in June 2022) FY23 Strategic Priorities • Optimise mine and processing activity • Leverage offtake and operational synergies with Nova • Undertake systemat
Slide 13: Greenbushes
Greenbushes Outstanding operating performance in FY22 as mining and processing expansions continues FY22 Highlights Spodumene production and COGS1 delivered within guidance Underlying EBITDA: A$1,348M2 Underlying EBITDA Margin: 72% FY23 Strategic Priorities • Progress construction of CGP33 and suppo
Slide 14: Kwinana
Kwinana Ramping up lithium hydroxide production following successful first production FY22 Highlights • Safely commissioned Train 1 during FY22 • Produced first battery grade lithium hydroxide in May 2022 FY23 Strategic Priorities • Continue to ramp up Train 1 lithium hydroxide production • Complete
Slide 15: Exploration
Exploration Maintaining our commitment to the discovery of the next clean energy metals projects A$75M budgeted in FY23 to pursue brownfields and greenfields discovery Key Priorities • Nova & Silver Knight (brownfield) • Forrestania (brownfield) • Fraser Range Project (greenfield) • Paterson Project
Slide 16: Concluding Remarks
Concluding Remarks FY19 and 4Q19 Highlights FY22 was a highly successful year across all areas of our business Strong financial performance enabled a 5c final dividend for FY22 Nickel business enhanced through the acquisition of Western Areas Continued operational excellence at Nova buoyed by strong
Slide 17: 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 fund
Slide 18: Appendix: FY23 Guidance
Appendix 1 FY23 Guidance Nickel Business Lithium Business FY23 FY23 Guidance Guidance Nickel production Spodumene Production (100%) Nova t 24,000 – 27,000 Forrestania t 10,500 – 12,500 Greenbushes kt 1,350 – 1,450 Total contained nickel t 34,500 – 39,500 Copper production Lithium Hydroxide Productio
Slide 19: 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 fund