Slide 1: IGO Limited – BMO Global Metals & Mining Conference
For personal use only IGO Limited BMO Global Metals & Mining Conference 25 February 2020
Slide 2: Making a Difference
Making a Difference Strategically focused on metals critical to clean energy For personal use only Globally High-quality Relevant Products Vertically Proactively Integrated People Green 2
Slide 3: Our Focus
For personal use only Our Focus 3
Slide 4: Our Portfolio
Our Portfolio Aligned to clean energy metals with a focus on nickel and copper For personal use only Ni Critical for lithium ion batteries Increasing nickel intensity in LiBs Underinvestment in new supply Established stainless steel demand Nickel Cu Critical for reticulation of electricity
Slide 5: Electric Vehicles
Electric Vehicles Multiple factors driving strong demand growth for EVs For personal use only Upward revisions in EV sales projections1 Increasing CO2 emission regulations Increasing Changing affordability consumer and vehicle preferences quality toward green alternatives 1) Source: BNEF 2020 5
Slide 6: Nickel Market
Nickel Market Market deficits expected to be positive for nickel price For personal use only Nickel Stockpiles (kt) Nickel Price (US$/tonne) 600,000 25,000 500,000 20,000 400,000 Consensus forecast nickel price range 15,000 300,000 10,000 200,000 LME Stockpile (1 January 2020) 150,690t 5,000 100,000
Slide 7: Nova Nickel Operation
For personal use only Nova Nickel Operation 7
Slide 8: Nova Operation
Nova Operation Strong track record of production and cost performance For personal use only Nova Production & Cash Costs t A$ Flexibility 9,000 4.50 Capital development substantially complete 8,000 4.00 enabling mining from multiple fronts 7,000 3.50 6,000 3.00 Consistency 5,000 2.50 Steady state op
Slide 9: Nova Operation: Excellent 1H20 production and financial results
Nova Operation Excellent 1H20 production and financial results For personal use only Strong and consistent metal production Nickel Copper Cobalt in Concentrate in Concentrate in Concentrate 15,236t 6,779t 561t ▲6% vs 1H19 ▲ 4% vs 1H19 ▲ 8% vs 1H19 Sector leading cost performance Cash Costs EBITDA Ma
Slide 10: Nova Operation: Fully developed and grade control drilled
Nova Operation Fully developed and grade control drilled For personal use only Ni kt Cu kt Co kt 1) Refer: Annual Update of Exploration Results, Mineral Resources and Ore Reserves released to ASX on 30 January 2020 10
Slide 11: Nova Operation: Focus on optimisation
Nova Operation Focus on optimisation to improve productivity and reduce costs For personal use only Implemented renewable energy via Nova solar farm Piloting electric vehicles on-site Remote bogging and blasting 11
Slide 12: Nova Near Mine Exploration
Nova Near Mine Exploration Significant opportunity to unlock value through discovery For personal use only 12
Slide 13: Tropicana Joint Venture
For personal use only Tropicana Joint Venture (IGO 30%, AngloGold Ashanti 70% and manager) 13
Slide 14: Tropicana: Strong performance in 1H20
Tropicana Strong performance in 1H20 For personal use only Gold Production (100%) 257koz AISC A$1,007/oz Mine life remaining 7 years 14
Slide 15: Tropicana: Track record of consistent performance
Tropicana Track record of consistent operational and financial performance For personal use only Strong production and cost performance Excellent FCF generation and margins oz A$/oz A$M Margin (%) 600,000 1400 300 40% 35% 1200 500,000 250 30% 1000 400,000 200 25% 800 300,000 150 20% 600 15% 200,000
Slide 16: Boston Shaker underground mine making strong progress
Tropicana Boston Shaker underground mine making strong progress For personal use only Decline and raisebore development progressing well Development on schedule – first gold expected 1Q21 Studies on additional underground opportunities being completed 1) Refer: Annual Update of Exploration Results,
Slide 17: Tropicana: Significant upside from underground development
Tropicana Significant upside from underground development For personal use only Boston Shaker Tropicana Havana BS 04 Havana South BS 03 Stg 2 Stg 3 Stg 1 Tropicana Underground Potential N 1 km Havana South Underground Potential Havana 0.3 g/t Wireframe Underground Potential 3.0 g/t Grade Shell 17
Slide 18: Exploration
For personal use only Exploration 18
Slide 19: Unlocking the mines of the future
Unlocking the mines of the future Increased exploration budget in FY20 to accelerate organic growth opportunity For personal use only FY20 Exploration Budget A$6M A$3M A$4M A$26M A$3M A$66M A$24M Nova Fraser Range Tropicana West Kimberley Lake Mackay Other Greenfields & Generative 19
Slide 20: Nova & Fraser Range
Nova & Fraser Range Opportunity to unlock significant value through discovery For personal use only Mafic / ultramafic intrusions with nickel/copper sulphides identified along the entire belt VMS copper/zinc and gold prospects also identified Systematic exploration program underway to unlock the min
Slide 21: Lake Mackay
Lake Mackay Belt-scale multi-commodity opportunity For personal use only Belt scale land position in the Northern Territory Land position >18,000km2 of granted ELs and EL applications Grimlock, Phreaker and Arcee prospects identified 1) Lake Mackay is a joint venture between IGO, Prodigy Gold NL and
Slide 22: People and Sustainability
For personal use only People and Sustainability 22
Slide 23: Safety
Safety Actively creating and fostering a positive safety culture For personal use only Key Lead Injury Metrics 25 20 15 10 5 0 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 SPIFR 12 MMA HPIFR 12 MMA Key Lag Injury Metrics 5 4 3 2 1 0 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19
Slide 24: Employee Engagement
Employee Engagement Above benchmark levels of engagement across a range of key metrics For personal use only FY19 Achievements 15% increase in engagement 86% reported pride in working for IGO 37% lower staff turnover rate (YoY) Strong alignment with IGO’s values 24
Slide 25: Sustainability
Sustainability Demonstrated commitment to best in class sustainability practices For personal use only Nova hybrid solar PV-diesel facility completed – set to reduce emissions by ~6,500t CO2/year 2019 Sustainability Report published IGO included in Dow Jones Sustainability Index at 78th percentile 2
Slide 26: Financial Performance
For personal use only Financial Performance 26
Slide 27: 1H20 Results Highlights
1H20 FY19Financial and 4Q19Results Highlights Highlights Record half yearly profit and strengthening balance sheet For personal use only Record half yearly NPAT result Cash of A$453M A$100M Net Cash of A$396M Underlying EBITDA Underlying Free Cash Flow A$271M A$206M Nova and Tropicana remain on trac
Slide 28: Financial Performance
Financial Performance Strong momentum continues For personal use only Revenue & Other Income Underlying EBITDA EBITDA Profile (A$M)1 A$M A$M 700 500 300 250 400 600 200 300 150 200 500 100 100 50 0 0 400 1H17 2H17 1H18 2H18 1H19 2H19 1H20 1H17 2H17 1H18 2H18 1H19 2H19 1H20 NPAT Underlying FCF 300 A$
Slide 29: Capital management & cash returns
Capital management & cash returns Record return to shareholders in FY19 For personal use only FY19 Allocation Policy designed to maintain balance sheet strength, fund growth and deliver returns to shareholders ~20% Targeted return of 15 – 25% of FCF ~60% ~20% Capital returns may include dividends or
Slide 30: Concluding Comments
Concluding Comments FY19 and 4Q19 Highlights Excellent operational performance from Nova and Tropicana For personal use only Metal production on track to meet FY20 production guidance Free cash flow generation continuing to strengthen the balance sheet Continued focus on growth through exploration &
Slide 31: Making a Difference
For personal use only 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. O
Slide 32: 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 For personal use only as an inducement to make an offer or invitation with
Slide 33: Competent Person's Statements
Competent Person’s Statements • Any references to IGO Mineral Resource and Ore Reserve estimates should be read in conjunction with IGO’s Annual Update of Exploration Results, Mineral Resources and Ore Reserves For personal use only dated 30 January 2020 (Annual Statement) and lodged with the ASX fo