Igo Limited · ASX:IGO
Igo — Independence Group NL — 2017 Macquarie Western Australia Forum
38 slides from Igo's conference presentation, Oct 11, 2017
Slide 1: 2017 Macquarie Western Australia Forum Presentation
11/10/2017 For personal use only 2017 MACQUARIE WESTERN AUSTRALIA FORUM PRESENTATION The attached presentation is being presented today at the Macquarie Western Australia Forum in Perth by our Managing Director and CEO, Peter Bradford. The presentation highlights the continuing positive developments
Slide 2: 2017 Macquarie Western Australia Forum
INDEPENDENCE GROUP NL For personal use only 2017 Macquarie Western Australia Forum Peter Bradford, Managing Director & CEO 11 October 2017
Slide 3: Cautionary Statements & Disclaimer
Cautionary Statements & 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 For personal use only offer or invit
Slide 4: Intro: Corporate overview
Intro…. For personal use only Corporate overview • Balance sheet remains strong Nova value being realised Post-capex and • In commercial production • Focus moving to unlocking upside transitioning to cash Tropicana value enhancement Post-capex and transitioning to generating phase cash generating ph
Slide 5: Corporate Summary
Corporate Summary Post capex and positioned for strong FY18 For personal use only A$M FY17 FY16 Change % Share Ownership(4) Revenue 422 417 1% Substantial Holders Institutional Ownership Underlying EBITDA(1) 151 138 9% Mark Creasy 16% Australia 61% Net Profit after Tax 17 (59) n/a FIL 9% USA 26% Cas
Slide 6: Sustainability
Sustainability Focused on better outcomes for our people For personal use only ACSI Rating of ASX200 Sustainability Reporting(1) Ongoing Improvement in Key Lag Safety Metrics(2,3) 9 Leading 8 LTIFR 12 MMA Detailed 7 MTIFR 12 MMA 6 Moderate 5 Basic 4 3 No Reporting 2 Sector Sector ASX 200 1 Average L
Slide 7: A Company with Purpose
A Company with Purpose To create long-term shareholder value For personal use only GEOGRAPHICAL QUALITY FOCUS LONGEVITY SCALE Acquire Discover Develop Operate 6
Slide 8: Transformational EBITDA Growth
Transformational EBITDA Growth Driven by tier one Tropicana & Nova assets Nova aligned to emerging Electric Vehicle metal demand For personal use only Core Assets IGO EBITDA Profile (A$M)(3) 600 600 500 500 400 400 Nova: Ni/Cu/Co(1) Tropicana: Au(2) 300 300 Other Assets 200 200 100 100 0 0 Jaguar: Z
Slide 9: EVs Create New Source of Nickel Demand
EV’s Create New Source of Nickel Demand(1) For personal use only Electric vehicle battery growth to disrupt markets… Demand 24kg nickel side disruption ahead 24kg cobalt & 91kg copper in a Chevy Bolt(1) 1) UBS Research 8
Slide 10: Nova
For personal use only Nova 9
Slide 11: Nova
Nova Low cost nickel-copper-cobalt mine For personal use only High grade, thick, flat lying Quality ✓ magmatic sulphide orebody Average 26kt Ni, 11kt Cu & 1kt Scale ✓ Co per annum Initial 10 year mine life with Longevity ✓ huge exploration potential Geographical Located in WA on Fraser Focus ✓ Range
Slide 12: Nova: Commercial production achieved
Nova For personal use only Commercial production achieved in July 2017 – only five years after discovery in July 2012 11
Slide 13: Nova: Ramping up to nameplate capacity
Nova For personal use only Now ramping up to nameplate capacity… 12 months earlier than the Definitive Feasibility Study and within 3% of Jan 2015 capex estimate 12
Slide 14: Nova Capitalised Development Costs
Nova Nova Capitalised Development Costs Capital expenditure reconciliation For personal use only Variance 3% variance from uninflated January 2015 budget Actual Budget(1) Area estimate is a great result A$M A$M A$M(2) % • Demonstrates a good overall discipline in cost Process Plant 161 176 (15) (9%)
Slide 15: Nova: Commercial production from July 2017
Nova Commercial production from 1 July 2017 For personal use only IGO 100% magmatic Ni – Cu – Co Overview 1.5Mtpa underground mine Resource 26 July 2017(1) 271,000t Ni, 113,000t Cu Reserve 14 October 275,000t Ni, 112,000t Cu 2016(2) Production Guidance 23,000 to 27,000t Ni FY18 10,000 to 12,000t Cu
Slide 16: Nova Mine Design & Schedule
Nova Mine Design & Schedule For personal use only • Grade control 100% complete by end CY17 • Capital development substantially complete by end FY18 C5 Nova Bollinger 15
Slide 17: Nova FY18 Mining Plan
Nova FY18 Mining Plan Multiple mining fronts for flexibility For personal use only Nova Completed Bollinger 1Q18 2Q18 3Q18 4Q18 16
Slide 18: Nova Upside
Nova Upside Drilling in progress on Nova mining lease For personal use only One surface diamond drill rig on site • Drilling a number of historical EM plates • Drill testing the western mafic complex • Framework drilling on 2D seismic line testing a number of reflective positions • Underground diamo
Slide 19: Fraser Range Exploration
Fraser Range Exploration New frontier with exploration focus only after Nova discovery For personal use only Belt is underexplored • Prospective for Nova style intrusive hosted discoveries • Held by underfunded juniors at bottom of commodity price cycle IGO consolidated 12,000km2 on belt(1-5) • Now
Slide 20: Nova Regional Exploration
Nova Regional Exploration Fraser Range is a highly prospective – underexplored belt For personal use only All Drilling Drilling >100m depth Drilling >250m depth 19
Slide 21: Tropicana
For personal use only 20 Tropicana
Slide 22: Tropicana Gold Mine
Tropicana Gold Mine Making a great asset better through value enhancement For personal use only Engineering to bring value Quality ✓ forward through grade streaming Scale ✓ +120,000 oz/year (IGO share) Initial 11 year mine life being Longevity ✓ extended by strip mining Geographical Focus ✓ Located
Slide 23: Tropicana Gold Mine: Increasing gold production at improved AISC
Tropicana Gold Mine Increasing gold production at improved AISC For personal use only JV IGO 30% with AngloGold Ashanti 70% Overview Open pit with potential for expansion Resource(1) 8.02Moz (100%) 2.4Moz (30%) Reserve(1) 3.80Moz (100%) 1.1Moz (30%) Production Guidance (100%) (30%) FY18 440 to 490ko
Slide 24: Tropicana Gold Mine: Higher grades and production in CY18-19
Tropicana Gold Mine Higher grades and production scheduled for CY18 and CY19 For personal use only Mining rate accelerated in CY17 Directional Production and AISC(1) • 600t class hydraulic shovel in to the mining fleet in koz A$/oz November 2016 600 1,200 Increased mining rates have improved 550 1,1
Slide 25: Tropicana: Directional Unit Costs and Material Movement
Tropicana Directional Unit Costs and Material Movement(1) Improved mining costs For personal use only Mining cost (A$/wmt) wmt (Mt) 6 110 Mining costs have fallen 37% since CY15 100 • Lower diesel costs (37%) 5 90 • Productivity improvements 80 • Introduction of 600t class hydraulic shovel to mining
Slide 26: Tropicana: Long Island Study
Tropicana Long Island Study For personal use only Based on strip mining and in-pit waste dumping • Possible due to tabular geometry and strike extent Step change in mining costs • Transition to face shovels • Shorter hauls due to in-pit dumping of waste • Mining of bigger benches to reduce drill and
Slide 27: Tropicana Upside
Tropicana Upside Evaluating underground opportunities For personal use only As part of the Long Island drilling several high grade shoot positions have been identified, which will be investigated further in FY18 For further detailed information see Tropicana Gold Mine Investor/Analyst Visit presenta
Slide 28: Tropicana Upside: Drilling at Boston Shaker
Tropicana Upside Currently drilling initial 3,000m at Boston Shaker For personal use only 3.0 g/t grade shell 0.3 g/t grade shell BWD017 31m @ 4.20 g/t from 340m 14m @ 6.10 g/t from 355m BWD019 17m @ 5.53 g/t from 382m BSD054 9m @ 5.39 g/t from 439 m BWD040 12m @ 4.60 g/t from 338m BSD027A 26m @ 3.0
Slide 29: Jaguar & Long
For personal use only Jaguar & Long 28
Slide 30: Jaguar Mine
Jaguar Mine VMS Corridor with cluster of orebodies For personal use only Overview IGO 100% High grade Underground Cu – Zn VMS Resource(1)(2) 62,000t Cu, 389,000t Zn & 18.9Moz Ag Reserve(1)(2) 20,600t Cu, 212,000t Zn & 9.9Moz Ag Production Guidance FY18 29,000 to 33,000t Zn (contained metal in concen
Slide 31: Jaguar Value Enhancement Program
Jaguar Value Enhancement Program(1) Optimising and extending Jaguar’s mine life and overall performance For personal use only Triumph Deposit Triumph Deposit Mineral Resource and Ore Reserve • Mineral Resource: 2.2Mt @ 6.2% Zn, 0.5% Cu, 0.5% Pb, 84g/t Ag and 0.3g/t Au(1) • Ore Reserve: 1.2Mt @ 6.2%
Slide 32: Jaguar Value Enhancement Program: Bentayga Discovery
Jaguar Value Enhancement Program(1) Bentayga Discovery For personal use only Bentley In-Mine Exploration Bentley Mine New massive sulphide lens named Bentayga • Bentayga, ~250m south of the current Bentley decline • Mineralisation extends over ~200m along strike and 150m vertically and contains a ty
Slide 33: Long Mine
Long Mine High grade underground nickel on the Kambalda dome For personal use only IGO 100% high-margin underground nickel Overview Average grade project to date of 3.8% Ni Consistent low cost producer Resource(1) 60,000t Ni Reserve(1) 14,000t Ni Production Guidance FY18 5,400 to 6,000t Ni (containe
Slide 34: Exploration
For personal use only Exploration 33
Slide 35: Exploration: Committed to growth through exploration
Exploration Committed to growth through exploration For personal use only FY18 Exploration Budget A$2M Greenfields & A$4M Generative Nova A$5M Tropicana A$9M A$31M Jaguar Long - Substantial increase in greenfields exploration in FY18 - Fraser Range a key focus of activity - Advancing belt scale Lake
Slide 36: Greenfields Exploration: Lake Mackay Joint Venture
Greenfields Exploration Lake Mackay Joint Venture For personal use only 7,200km2 of underexplored tenure • 400km north east of Alice Springs • Proterozoic gold and base metals • Continental-scale geophysical gravity ridge • Central Australian Suture Grapple Prospect drilling update(1) • Assay result
Slide 37: Wrap up
Wrap up….. For personal use only Corporate overview • Balance sheet remains strong Nova value being realised Post-capex and • In commercial production • Focus moving to unlocking upside transitioning to cash Tropicana value enhancement Post-capex and transitioning to generating phase cash generating
Slide 38: Follow us as we go from strength to strength
FOLLOW US AS WE GO FROM STRENGTH TO STRENGTH igo.com.au
Independence Group NL — 2017 Macquarie Western Australia Forum on 6ix