Slide 1: Austmine 2019
INDEPENDENCE GROUP NL Austmine 2019 For personal use only Matt Dusci – Chief Operating Officer 23 May 2019 ASX:IGO | ADR:IIDDY
Slide 2: 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 For personal use only securities in IGO or as an inducement to make an offer or invit
Slide 3: Corporate Overview
Corporate Overview High quality portfolio of operating and exploration assets For personal use only Market Cap(1) Shares on Issue(1) A$2.8 billion 590 million Cash(2) Debt(2) A$257 million A$86 million Shareholders(3) Mark Other Creasy 12% 15% Foreign Institutions 23% Domestic Insitutions 1) As at 2
Slide 4: Nova Nickel Operation
Nova Nickel Operation High margin, high quality nickel production For personal use only Nova Development Timeline Nova Nickel Production and Cash Costs Tonnes Feasibility Study average A$/lb 9,000 production rate $4.50 8,000 $4.00 7,000 $3.50 6,000 $3.00 5,000 $2.50 4,000 $2.00 3,000 $1.50 2,000 $1.
Slide 5: IGO is Making A Difference
IGO is Making A Difference Strategically focused on metals critical to clean energy For personal use only Globally Relevant Vertically Integrated large scale, high quality asset portfolio supplying upstream metal production and metals critical to clean energy downstream processing to unlock value Hi
Slide 6: The Clean Energy Evolution
The Clean Energy Evolution For personal use only 6
Slide 7: Policy & regulatory changes
Policy & regulatory changes Global governments focused on demonstrating action to reduce emissions For personal use only • Initiatives to increase renewable energy generation and storage • Bans on conventional fossil fuel powered vehicles • Strong support for mass adoption of electric vehicles (EVs)
Slide 8: Electric Vehicles
Electric Vehicles A rapidly growing market incentivised by lower costs For personal use only • China and Western Europe are EV sales forecast(4,5) leading the market % of total vehicle sales • 65% of new cars sold in 2030 100% expected to be electrified(1) 90% 2030e: • Battery pack costs are falling
Slide 9: Implications for raw materials
Implications for raw materials Battery demand growth driving a new source of demand for raw materials For personal use only High nickel NCM811 and NCM622 • Modern lithium-ion battery Forecast market share by cathode chemistry (1,2) chemistries forecast to dominate(1) technologies demanding 100% 100%
Slide 10: Implications for nickel
Implications for nickel New nickel demand putting pressure on supply For personal use only • Class 1 nickel supply needs to Class I & Class II Nickel Demand Forecast (1) double by 2030 to meet new 4,000 demand from battery industry 3,500 • Market faces unique challenges: 3,000 ─ Less than half of cu
Slide 11: Nickel Sulphate
For personal use only Nickel Sulphate 11
Slide 12: Nickel Sulphate
Nickel Sulphate A key raw material for the nickel in lithium-ion batteries For personal use only • Typical industry nickel concentrate payabilities influenced by: ─ By-product credits ─ Commercial factors • Producing a battery grade nickel sulphate would deliver: ─ Significantly higher payabilities
Slide 13: Nickel Sulphate
Nickel Sulphate Demand growth in line with EV growth projections For personal use only Demand outlook for nickel sulphate • Nickel sulphate is the key raw driven by the battery industry(1,2) material for the nickel in lithium-ion batteries kt Ni 1,200 • Demand for nickel sulphate based 1,000 on ~6x
Slide 14: Nickel Sulphate
Nickel Sulphate Complex value chain For personal use only • Nickel sulphate production processes have typically been complex and costly • Key cost factors include: ─ Traditional processes convert LME grade nickel matte/powder/briquettes into sulphate ─ High capital intensity of nickel sourced from n
Slide 15: Our Solution
For personal use only Our Solution 15
Slide 16: The IGO Process™
The IGO Process™ Extensive testwork conducted at bench and pilot scale For personal use only Flotation optimisation through reduction of S:Ni ratio to lower 1 Feed Optimisation oxygen consumption and waste precipitation Both batch and continuous autoclave testwork to identify 2 Pressure Oxidation co
Slide 17: The IGO Process™
The IGO Process™ A disruptive process to convert nickel sulphide concentrate into nickel sulphate For personal use only High metal extraction Lower cost (1) Lower emissions(1) Lower waste(1) 1) Compared to existing alternative processes to convert nickel concentrate to nickel sulphate 17
Slide 18: The IGO Process™
The IGO Process™ Concentrate feedstock minimises operational risk For personal use only Nickel autoclaves in the mining industry • Pressure oxidation (POX) used in (bubble size = individual autoclave volume) IGO Process requires lower Temperature oC temperature and pressure than 350 HPAL(1) and conv
Slide 19: The IGO Process™
The IGO Process™ Product Quality For personal use only • Testwork has produced high Nickel sulphate product specifications of select offtakers quality, battery grade product Element IGO Europe 1 Europe 2 China 1 China 2 China 3 WA 1 Others • IGO’s process has flexibility Ni (%) 22.1 -22.3 22.3 22.3
Slide 20: Environmental Credentials
Environmental Credentials IGO Process delivers favourable environmental outcomes For personal use only • Hydrometallurgical versus pyrometallurgical processes generating significant lower emissions Low emissions • Aim of The IGO Process is zero emissions Preferred product for the greenest • Producti
Slide 21: Next Steps
Next Steps Optimise and complete the pre-feasibility study For personal use only Site selection trade off studies Partnership opportunities Finalisation of operating and capital costs By-product production Reagent optimisation Complete Pre-feasibility Study by end of CY19 21
Slide 22: Summary
Summary Downstream processing represents a significant value opportunity for IGO For personal use only Battery grade nickel sulphate High metal extractions produced from IGO’s nickel comparable with alternative flow concentrate sheet designs Significant opportunity to Optimisation work underway unlo
Slide 23: For personal use only
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