Igo Limited · ASX:IGO
Igo — Independence Group NL — 2017 Diggers and Dealers Mining Forum
30 slides from Igo's conference presentation, Aug 9, 2017
Slide 1: 2017 Diggers and Dealers Mining Forum
For personal use only Peter Bradford INDEPENDENCE GROUP NL Managing Director and CEO 2017 DIGGERS AND DEALERS MINING FORUM 9 August 2017
Slide 2: Cautionary statements & disclaimer
Cautionary statements & disclaimer For personal use only • 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 invit
Slide 3: Investment highlights, share ownership and share price performance
Net debt A$164M(2) For personal use only A$200M revolver undrawn • Diversified strategy Share Ownership(1) • Commodity markets Substantial Holders Institutional Ownership Mark Creasy 17% Australia 59% • Nova ramp up FIL T Rowe Price 10% 8% USA UK & Europe 26% 10% • Tropicana value add CBA 5% Share P
Slide 4: Diversified strategy delivers consistent operating margin
Diversified strategy For personal use only delivers consistent operating margin 70% 60% 50% 40% 30% 20% Tropicana Long 10% Jaguar Combined Operations 0% 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 -10%
Slide 5: Commodity prices: Our take on nickel
Commodity prices: Our take on nickel For personal use only
Slide 6: Nickel sentiment and price yo-yo from demand and supply fundamentals and geopolitics
Nickel sentiment and price yo-yo from demand and For personal use only supply fundamentals and geopolitics US$/t 2 Feb 17: Philippines shutters 23 12,000 11 Aug 16: 2 more Philippines mainly nickel mines, suspends nickel mines suspended further 5 15 Sep 15: Panoramic 11,500 halts work at Lanfranchi
Slide 7: Market dynamic to change as a result of electric vehicle batteries
For personal use only Market dynamic to change over the coming years as a result of electric vehicle batteries Demand side disruption ahead! Source Data: UBS Research, Nickel: Big Winner from Electric Vehicles?, 20 July 2017
Slide 8: Electric vehicle battery growth to disrupt markets
Electric vehicle For personal use only battery growth to disrupt markets 24kg nickel 24kg cobalt & 91kg copper in a Chevy Bolt Source data: UBS Research titled Electric Car Teardown – Disruption Ahead dated 18 May 2017
Slide 9: Our flagship Nova nickel-copper-cobalt mine
Our flagship Nova nickel-copper-cobalt mine For personal use only
Slide 10: Discovery to nameplate in 5¼ years
Discovery to nameplate For personal use only in 5¼ years High grade, thick, Quality flat lying magmatic sulphide orebody Scale Average +26kt Ni, 11kt Cu & 1kt Co per annum Initial 10 year mine life Longevity with huge exploration potential Geographical On Fraser Range focus (proximal to Trop
Slide 11: Ramp up is on track for delivery in Sept 2017 quarter
For personal use only Ramp up is on track for delivery in Sept 2017 qtr 12 months earlier than the BFS
Slide 12: Ore mined 114,400t in July versus nameplate
For personal use only Ore mined Ore grade 114,400t (kt) 125 (%) 2.50 mined in July 100 2.00 versus nameplate 75 1.50 of 125,000t per month 50 1.00 25 0.50 - - May-17 Jun-17 Jul-17 Ore mined Nickel grade Copper grade For further information see ASX Release dated 9 August 2017 “Nova Site Visit Present
Slide 13: Nova-Bollinger to be fully grade control drilled and de-risked by end-2017
For personal use only Nova-Bollinger to be fully grade control drilled and de-risked by end-2017 Then shift focus to identifying potential extensions, e.g. For further information see ASX Release dated 26 July 2017 Nova Mineral Resource Estimation and Exploration Update”
Slide 14: The big prize is finding the next Nova
For personal use only The big prize is finding the next Nova • Surface drilling • CSIRO embedded R&D • 2D > 3D seismic
Slide 15: Tropicana gold mine: a collaborative partnership
Tropicana gold mine: a collaborative partnership For personal use only
Slide 16: Ongoing work to maximise value
Ongoing work to For personal use only maximise value Engineering to bring Quality value forward through grade streaming +120,000oz/year (IGO Scale share 30%) Initial 11 year mine life Longevity being extended by strip mining Geographical Located in WA; focus proximal to Nova
Slide 17: Accelerated mining in CY17 to deliver higher gold production and lower costs
For personal use only Accelerated mining AISC Gold A$/oz produced koz 700 in CY17 to deliver 1,200 1,100 600 higher gold 1,000 900 500 production 800 700 400 and lower costs 600 300 500 in CY18 & CY19 400 200 300 200 100 100 - - CY14 CY15 CY16 CY17 CY18 CY19 Gold produced AISC Production profile sub
Slide 18: Long Island Study mining cost target
For personal use only Mining cost (A$/wmt) wmt (Mt) 6 110 100 5 90 80 70 4 60 50 3 40 Long Island target A$2.50/t (nominal in 30 2015) 2 20 10 1 0 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 Mining Cost (A$/wmt) Target A$2.50/t wmt (Mt) Long Island Study • For further detailed information on Tropicana m
Slide 19: Operational excellence and underground potential at Tropicana
For personal use only • Operational excellence program embedded • Potential for underground options • Active regional exploration program
Slide 20: Delivering optionality & value at Jaguar
Delivering optionality & value at Jaguar For personal use only
Slide 21: Multiple work programs at Jaguar
Multiple work For personal use only programs at Jaguar(1) • Triumph delivers optionality of longer mine life • Plant upgrades maximise revenue • Promising upside from Bentayga discovery & regional exploration For further information see ASX release 26 Jul 2017 – Jaguar Value Enhancement Programs Dem
Slide 22: Committed to delivering growth through discovery
Committed to delivering growth through discovery For personal use only
Slide 23: Ready to unlock the next big discovery
Ready to unlock the For personal use only next big discovery A$2M A$4M Greenfields & Generative A$5M Nova Tropicana A$9M A$31M Jaguar Long FY18 exploration investment
Slide 24: Fraser Range is a belt scale play for IGO
For personal use only Fraser Range is a belt scale play for IGO with 12,000km2 consolidated tenure and a major commitment to exploration in FY18
Slide 25: Lake Mackay is a second under-explored belt scale project
For personal use only Lake Mackay is a second under- explored belt scale project with potential for gold and base metals Refer to ASX dated 20 Dec 2016: ABM Resources Exploration Update – Grapple Prospect Drill Intersections
Slide 26: People and community
For personal use only People and community
Slide 27: The right people in the right place at the right time
For personal use only The right people in the right place at the right time
Slide 28: Improvement in key lag metrics
Improvement in key For personal use only lag metrics Rated as having 9 Leading Sustainability 8 LTIFR 12 MMA 7 disclosure MTIFR 12 MMA 6 5 for last two reporting 4 periods by 3 Australian Council for 2 Superannuation 1 Investors 0 MTIFR and LTIFR are Medically Treated and Lost Time, respectively, In
Slide 29: Positioned for a great FY18
For personal use only • Focus on delivery & discovery • Nova ramping up • Tropicana grade streaming to lift production • Strong balance sheet Positioned for a great FY18
Slide 30: We are creating long-term value. This is IGO.
For personal Us@soniy WE ARE CREATING LONG-TERM VALUE FOR OUR SHAREHOLDERS, OUR PEOPLE AND OUR COMMUNITY. THIS IS IGO.
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