Igo Limited · ASX:IGO
Igo — Independence Group NL — Q1 FY2018 Earnings Presentation
17 slides from Igo's earnings presentation, Oct 25, 2017
Slide 1: 1Q18 Quarterly Results Presentation
INDEPENDENCE GROUP NL For personal use only 1Q18 Quarterly Results Presentation Nova Delivers Solid Results To Underpin Strong Start To FY18 25 October 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: 1Q18 Highlights
1Q18 Highlights Nova Delivers Solid Results To Underpin Strong Start To FY18 For personal use only • Successful maiden quarter of commercial production from Nova with nickel production and cash costs within guidance • Nova activities now at steady state level and 2Q18 expected to be at nameplate 1.5
Slide 4: Sustainability
Sustainability Focused on better outcomes for our people For personal use only • One lost time injury bringing LTIFR to 2.75(3) Key Lag Safety Metrics(1,2,3) 9 • Visible safety leadership focus continues 8 • Good progress in a number of areas and no environmental incidents 7 LTIFR 12 MMA • Active en
Slide 5: Strengthening Financial Results
Strengthening Financial Results Transitioned to cash generation with Nova in commercial production For personal use only UOM 1Q18 4Q17 QoQ Revenue and Other Income A$M 146.6 114.2 28% Underlying EBITDA(1) A$M 68.9 34.1 102% Profit (Loss) After Tax A$M 4.7 (15.5) n/a Net Cash from Operating Activitie
Slide 6: 1Q18 Cash Flow Reconciliation
1Q18 Cash Flow Reconciliation Net debt reduced from A$164M to A$142M For personal use only A$M 90 80 10 10 70 5 10 2 60 11 50 29 16 40 6 30 20 36 29 10 - Tropicana Jaguar Nova Long Exploration Corporate Finance Costs Borrowings Dividend FCF FCF FCF FCF & BD costs & WC Cash at 30 Operations Cash at 3
Slide 7: Nova
Nova Nickel production at top end of guidance in maiden quarter of commercial production For personal use only Tonnes Nova Production Metric Units Guidance(2) 1Q18 4Q17 5,000 4,500 Nickel in concentrate t 3,750 - 4,500 4,500 2,477 4,500 4,000 Copper in concentrate t 2,000 - 2,250 1,844 1,329 3,500 3
Slide 8: Nova Grade Control
Nova Grade Control(1) Early de-risking of mineral resource For personal use only • Grade control drilling well progressed • Priorities to shift in 2Q18 Plan view of Nova- - Drill inferred mineralisation Bollinger grade control drilling - Drill potential extensions Section view of - Bollinger grade c
Slide 9: Nova Mine Lease Exploration
Nova Mine Lease Exploration Surface exploration commenced For personal use only Initial work program completed: • Drilling historical EM plates • Drilling Western Mafic complex • Framework drilling on 2D seismic line - testing a number of reflective positions Positive results • Disseminated and bleb
Slide 10: Tropicana
Tropicana Consistent performance with all metrics within guidance For personal use only oz Tropicana A$/oz Production (100%) and AISC Metric Units Guidance(2) 1Q18 4Q17 140,000 1,286 1,400 1,229 1,167 Gold produced (100%) koz 110.0 – 122.5 114.1 110.5 120,000 1,200 1,051 Gold Sold (IGO 30%) koz 33.0
Slide 11: Jaguar
Jaguar Solid contribution from Jaguar For personal use only Tonnes Jaguar Production Metric Units Guidance(2) 1Q18 4Q17 9,000 8,331 8,105 8,000 7,399 Zinc in concentrate t 7,250 – 8,250 8,105 7,399 7,000 6,599 Copper in concentrate t 650 – 750 530 1,121 6,000 Cash cost (payable)(1) A$/lb Zn 0.85 – 1
Slide 12: Long
Long Lower than expected grade offset by higher tonnes mined For personal use only Tonnes Long Production Metric Units Guidance(2) 1Q18 4Q17 2,500 2,063 2,136 2,069 Contained nickel produced t 1,350 – 1,500 1,572 2,069 2,000 Cash cost (payable)(1) A$/lb Ni 4.40 – 4.90 4.80 3.47 1,572 1,500 Sustainin
Slide 13: FY18 Exploration
FY18 Exploration A$50M commitment to exploration in FY18 For personal use only FY18 Exploration Budget A$10M Fraser Range Nova A$1.5M A$21M Tropicana A$4M Jaguar Long A$4.5M Other Greenfields A$9M 13
Slide 14: Fraser Range Exploration
Fraser Range Exploration 12,000km2 of tenure consolidated For personal use only Systematic exploration continued in 1Q18: • EM surveys identified conductors that warrant follow up • Ongoing gravity survey and mapping of mafic/ultramafic intrusives • Aircore program with 57,724m drilled to Quarter en
Slide 15: Lake Mackay Exploration
Lake Mackay Exploration Belt scale greenfields project For personal use only Access to tenure progressed in 1Q18 • Exploration deeds signed with CLC • Licences over expanded tenure granted First diamond drilling at Grapple(1) • Six holes completed for 2,917m • Multiple narrow sulphide intervals in a
Slide 16: Concluding Comments
Concluding Comments • Nova in commercial production with For personal use only solid 1Q18 delivered • Nova expected to be at 1.5Mtpa run rate for 2Q18 • Solid contributions from Tropicana, Jaguar and Long • All financial metrics stronger in 1Q18 and net debt reduced from A$164M to A$142M • COO trans
Slide 17: For personal use only
Nye Nad “AS WE GO FROM STRENGTH TO STRENGTH igo.com.au
Independence Group NL — Q1 FY2018 Earnings Presentation on 6ix