Igo Limited · ASX:IGO
Igo — Independence Group NL — Investor Presentation (October 2013)
35 slides from Igo's investor presentation, Oct 16, 2013
Slide 1: Growing a Great Australian Mining Company
For personal use only GROWING A GREAT AUSTRALIAN MINING COMPANY Investor Presentation October 2013
Slide 2: Disclaimer
DISCLAIMER L For personal use only l Certain oral and written statements contained or incorporated by reference in this presentation, including information as to the future financial or operating performance of the Company and its projects, constitute forward-looking statements. All statements, othe
Slide 3: Financial Summary
FINANCIAL SUMMARY L For personal use only Capital Structure: ASX 200 Code : IGO 233.3M shares l Financials: Market Cap. (9/10/13): A$849.2M Cash (at 30/6/13): A$27.2M Debt (at 30/6/13): (A$20.0M) Undrawn Corporate Loan (at 30/6/13): A$120.0M 2013 FINANCIAL YEAR RESULTS NPAT: A$ 18.3M EBITDA: A$ 56.8
Slide 4: IGO Asset Pipeline
IGO ASSET PIPELINE L For personal use only Combination of low cost cash flows from current operating mines with significant long-life development projects and highly prospective exploration portfolio l l L Highly complementary management and technical capabilities, with proven successful track recor
Slide 5: Protection Against Uncertainty
PROTECTION AGAINST UNCERTAINTY $/oz Year to Date Gold Price Range $/oz L 1,800 For personal use only 1,700 Gold Price Range Year to Date 1,600 l 1,500 AUD 302 per ounce 1,400 1,300 USD 469 per ounce 1,200 1,100 31/12/2012 31/01/2013 28/02/2013 31/03/2013 30/04/2013 31/05/2013 30/06/2013 31/07/2013 3
Slide 6: IGO Major Projects
IGO MAJOR PROJECTS L For personal use only l 6
Slide 7: Tropicana Gold Project
TROPICANA GOLD PROJECT L L IGO 30%, AGA 70%, MANAGER For personal use only NEW AUSTRALIAN GOLD PROVINCE UNDERl SAND l DUNES 7
Slide 8: Tropicana Gold Project
TROPICANA GOLD PROJECT L IGO 30%, AGA (MANAGER) 70% For personal use only l References : IGO & AGA 4/12/2012 ASX Releases for Tropicana Gold Project Mineral Resource Estimate IGO & AGA 27/7/2011 ASX Releases for Tropicana Ore Reserve Estimate 8
Slide 9: Tropicana: First Gold Ahead of Schedule and On Budget
TROPICANA GOLD PROJECT L IGO 30%, AGA (MANAGER) 70% For personal use only FIRST GOLD AHEAD OF SCHEDULE AND ON BUDGET l Milestone first gold pour 26th September 2013 CAPEX estimate unchanged IGO share A$246M – A$254M IGO attributable production to 31/12/2013: 36-48,000 oz Au IGO attributable producti
Slide 10: 2012 Australian Gold Production Comparison
TROPICANA GOLD PROJECT L For personal use only 2012 AUSTRALIAN GOLD PRODUCTION COMPARISON l Gold Ounces Top 20 Australian Gold Mines by Production 2012 800,000 Tropicana* (100%) 700,000 600,000 500,000 Tropicana* (30% IGO) 400,000 300,000 200,000 100,000 0 Source: * Based on BFS Production Years 1-3
Slide 11: Upside Studies & Potential
TROPICANA GOLD PROJECT LL UPSIDE STUDIES & POTENTIAL For personal use only ll References : IGO & AGA 4/12/2012 ASX Releases for Tropicana Gold Project Mineral Resource Estimate IGO & AGA 27/7/2011 ASX Releases for Tropicana Ore Reserve Estimate 11
Slide 12: Untested Down Plunge Potential
TROPICANA GOLD PROJECT L LL UNTESTED DOWN PLUNGE POTENTIAL For personal use only l ll Drill widths approximate true widths 12
Slide 13: Significant Regional Potential
TROPICANA GOLD PROJECT L LL SIGNIFICANT REGIONAL POTENTIAL For personal use only l ll Tenement Area 12,000 km2 Of the 60 Geochem Prospects ~ 32 have been drilled with RC or DD Geochem Coverage over 7,000 km2 Of the 32 Prospects drilled ~14 have Geochem Based Prospects ~ 60 drill intercepts > 5g/t Au
Slide 14: Long Nickel Operation (IGO 100%)
LONG NICKEL OPERATION (IGO 100%) L For personal use only FY 2013 Record Production^ – 11,180t Ni t IGO produced over 95,000t Ni since acquisition l Consistent low cost production Year on Year 9% reduction in payable cash costs (A$/lb Ni) Exploration success continues to add to mining inventory LONG
Slide 15: Over Years of Low Cost Nickel Production
LONG NICKEL OPERATION (IGO 100%) L OVER 10 YEARS OF LOW COST NICKEL PRODUCTION For personal use only l LOM PRODUCTION AVERAGE Cash Cost + Royalties A$4.14/lb Ni Realised Price A$9.92/lb Ni 15
Slide 16: Deposits & Targets Longitudinal Projection
LONG NICKEL OPERATION (IGO 100%) L DEPOSITS & TARGETS LONGITUDINAL PROJECTION For personal use only l References: IGO 19/10/2012 ASX Release: Annual Report for Long Nickel Mine Mineral Resource and Ore Reserve Statement 16
Slide 17: Jaguar Operation: Operational Improvements Continue
JAGUAR OPERATION (IGO 100%) L OPERATIONAL IMPROVEMENTS CONTINUE For personal use only l Record production in June Qtr 2013 Year on Year 15% reduction in payable cash costs (A$Zn/lb) On the path to consistent and lower cost production ZINC-COPPER-SILVER FY2013 FY2013 FY2014 OPERATION GUIDANCE ACTUAL
Slide 18: Jaguar & Bentley: Bentley Deposit
JAGUAR & BENTLEY (IGO 100%) L BENTLEY DEPOSIT For personal use only New mining plan achieving more consistent production Balance of production changing to Stoping rather than Development l Reference: IGO ASX Release 19/10/2012 for Annual Report: Jaguar/Bentley Operation Mineral Resource and Ore Rese
Slide 19: Jaguar & Bentley (IGO 100%)
JAGUAR & BENTLEY (IGO 100%) L Under-explored 50km long prospective Cu-Zn-Ag VMS corridor. For personal use only High Prospectivity around existing 3 mines. l Ten Cu-Zn-Ag alteration anomalies under cover being systematically tested. Golden Grove Gossan Hill : discovery history Bentley Deposit Scale
Slide 20: Stockman Project (IGO 100%)
STOCKMAN PROJECT (IGO 100%) L Currawong Deposit Wilga Deposit For personal use only l Stockman Total Tonnes Cu % Zn % Ag g/t Au g/t Total Ore Reserve 8,432,000 2.3 4.3 39 1.1 Total Resource 13,986,000 2.1 4.3 38 1.0 Reference: IGO ASX Release 19/10/2012 for Annual Report: Stockman Project Mineral Re
Slide 21: Stockman Project: Permitting Process Underway
STOCKMAN PROJECT (IGO 100%) L PERMITTING PROCESS UNDERWAY l For personal use only L l Two underground mines - Wilga and Currawong Feeding a 1Mtpa flotation plant over 9 years LOM Payable Metals 144,000t Cu, 229,000t Zn, 4.1Moz Ag & 44,000oz Au Recent discoveries at Bigfoot and Eureka immediately nor
Slide 22: Karlawinda Gold Project: New Gold Province in Iron Ore Country
KARLAWINDA GOLD PROJECT (IGO 100%) L NEW GOLD PROVINCE IN IRON ORE COUNTRY For personal use only Mineral Resource 674,300 oz Au (June 2012) Potential to increase resources down dip and along strike l Exploration testing prospective corridors Reference: IGO 28/06/2012 ASX Release for Karlawinda Gold
Slide 23: De Beers Database (IGO 100%)
DE BEERS DATABASE (IGO 100%) L L Long term exploration asset to find new Australian mineral camps For personal use only 293,000 geochemical samples collected by De Beers over 30 years l IGO analysing samples for 57 elements including Ni, Cu, Pb, Zn, Au,l Ag, Pt, Pd, U, rare earths, Sn, Li, K etc Ove
Slide 24: De Beers Database: Unlocking the Potential
DE BEERS DATABASE (IGO 100%) L L UNLOCKING THE POTENTIAL For personal use only l IGO 2009 gold analysis of archived De Beers samples collected before the discovery of the Plutonic Gold Mine (WA). l 24
Slide 25: IGO Transformation: Planning for the Next Ten Years
IGO TRANSFORMATION L GROWING A GREAT For personal use only AUSTRALIAN MINING COMPANY l Planning for the Next Ten Years Continue and Improve our excellent safety record Target low cash costs Tropicana: A$590-630/oz Au Long: A$4.30-4.70/lb Ni Jaguar: A$0.40-0.60/lb Zn Pay consistent dividends Innovati
Slide 26: Contact Details
INDEPENDENCE GROUP L CONTACT DETAILS L For personal use only l l Perth Office Chris Bonwick, Managing Director Suite 4, Level 5, South Shore Centre 85 South Perth Esplanade South Perth, Western Australia, 6151 PO Box 496, South Perth, Western Australia, 6951 Telephone: +61 8 9238 8300 Facsimile: +61
Slide 27: Appendix: Reserves and Resources Statements
L For personal use only l APPENDIX RESERVES AND RESOURCES STATEMENTS 27
Slide 28: Reserves and Resources: Long Nickel Operation
RESERVES AND RESOURCES L For personal use only LONG NICKEL OPERATION Mineral Resources 30 June 2012 l 30 June 2012 Ore Reserve Cut-off 1% Ni at Economic Ni Cut-off Classification Tonnes Ni% Ni Tonnes Classification Tonnes Ni% Ni Tonnes LONG Measured 47,000 3.7 1,700 LONG Indicated 220,000 5.1 11,200
Slide 29: Reserves and Resources: Tropicana Gold Project JV
RESERVES AND RESOURCES L For personal use only TROPICANA GOLD PROJECT JV l Mineral Resources Ore Reserves December 2012 June 2011 Contained Contained Tonnes Grade Gold Tonnes Grade Gold 1 2 3 4 Classification (Mt) (g/t) (Moz) Classification (Mt) (g/t) (Moz) Measured 29.8 2.1 2.03 Indicated 76.4 2.0
Slide 30: Reserves and Resources: Jaguar / Bentley Operation
RESERVES AND RESOURCES L For personal use only JAGUAR / BENTLEY OPERATION JAGUAR / BENTLEY OPERATION Mineral Resources 30 June 2012 l Ore Reserve 30 June 2012 Classification Tonnes Cu% Zn% Ag g/t Au g/t Classification Tonnes Cu% Zn% Ag g/t Au g/t JAGUAR Measured 429,000 2.5 4.4 61 - JAGUAR Proven 73
Slide 31: Reserves and Resources: Stockman Project
RESERVES AND RESOURCES L For personal use only STOCKMAN PROJECT l Mineral Resources 30 June 2012 Ore Reserve January 2013 Classification Tonnes Cu% Zn% Ag g/t Au g/t Classification Tonnes Cu% Zn% Ag g/t Au g/t CURRAWONG Indicated 9,548,000 2.0 4.2 42 1.2 Proven 0 0 0 0 0 Inferred 781,000 1.4 2.2 23
Slide 32: Karlawinda Gold Project: Bibra Deposit Inferred Resources
RESERVES AND RESOURCES L For personal use only KARLAWINDA GOLD PROJECT : l BIBRA DEPOSIT (INFERRED RESOURCES - JUNE 2012) Tonnes Au Grade Contained Au Mineralisation Type (Mt) (g/t) (oz) Laterite 2.2 1.1 77,100 Upper Saprolite 0.9 1.1 31,000 Lower Saprolite 1.9 1.1 63,600 Transitional 2.1 1.0 68,200
Slide 33: Competent Persons Statements
COMPETENT PERSONS STATEMENTS L For personal use only Notes: l JORC Code Competent Persons Statements Exploration Results The information in this report that relates to Exploration Results is based on information compiled by Mr Christopher Bonwick. Mr Bonwick is a full-time employee of the Company an
Slide 34: Competent Persons Statements
COMPETENT PERSONS STATEMENTS For personal use only Notes: Tropicana Ore Reserves 27 July 2011 In the 27th July 2011 ASX announcement, the information that related to Ore Reserves was based on information compiled by Mr Marek Janas, a former full-time employee of AngloGold Ashanti Limited, who is a m
Slide 35: Competent Persons Statements
COMPETENT PERSONS STATEMENTS For personal use only Notes: Long Mineral Resources and Ore Reserves 17 October 2012: The information in this report that relates to the Long Nickel Mine’s Mineral Resources is based on information compiled by Ms Somealy Sheppard and Mr Jason Harris. The information in t
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