Slide 1: IGO Limited 4Q21 Results Presentation
IGO Limited 4Q21 Results Presentation 28 July 2021
Slide 2: 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 as an inducement to make an offer or invitation with respect to those secu
Slide 3: Safety
Safety Improvements in lead and lag indicators but there is more work to do Lag Safety Indicators (TRepIFR1 & SPIFR2) Lead Safety Indicators 400 20 7 19 350 6 18 300 17 5 16 250 15 4 14 200 13 3 150 12 2 11 100 10 1 50 9 8 0 0 TRepIFR (lhs) SPIFR (rhs) Workplace Inspection Near Miss Hazard Visual Sa
Slide 4: 4Q21 Financial Highlights
4Q21 FY19Highlights and 4Q19 Highlights Excellent operational performance | Clean energy metals transition complete Nova Lithium Joint Venture Tropicana Quarterly production and cash Completion of transformation Completion of divestment to costs better than guidance transaction with Tianqi Reg
Slide 5: 4Q21 Financial Results
4Q21 Financial Results Excellent end to FY21 driven by strong Nova production and higher metals prices Units 3Q21 4Q21 QoQ FY21(1) Sales Revenue A$M 185.1 266.2 ▲ 44% 912.1 Underlying EBITDA(2) A$M 92.7 139.5 ▲ 50% 474.6 Net Profit After Tax (NPAT) A$M 41.9 452.6 ▲ 981% 548.7 Net Cash from Operating
Slide 6: 4Q21 NPAT Reconciliation
4Q21 NPAT Reconciliation Group NPAT performance driven primarily by Tropicana divestment A$M 700 3.4 17.1 0.7 2.6 600 172.3 500 62.3 400 556.8 300 452.6 200 100 0.4 5.0 1.4 56.8 41.9 - 3Q21 NPAT Nova Tropicana Exploration & Corporate & Gain on Sale of Mark-to- Net Finance D&A Foreign Tax 4Q21 NPAT E
Slide 7: 4Q21 Cash Flow Reconciliation
4Q21 Cash Flow Reconciliation Balance sheet in very strong position post completion of transformational transactions A$M 2,500 16.6 2,000 878.4 1,500 7.6 15.4 1.7 4.7 0.6 1,762.8 130.4 1,000 1,295.9 500 19.5 528.5 - Cash at Nova FCF Tropicana Exploration & Payments for Corporate Acquisition & Procee
Slide 8: Nova
Nova 8
Slide 9: Nova: Full year production exceeded guidance for all metals
Nova Full year production exceeded guidance for all metals Metric Units 3Q21 4Q21 FY21 FY21 Guidance Nickel in concentrate t 6,816 7,887 29,002 27,000 – 29,000 Copper in concentrate t 3,035 3,538 13,022 11,000 – 12,500 Cobalt in concentrate t 256 285 1,084 850 – 950 Cash cost (payable) A$/Ib Ni 1.83
Slide 10: Nova: Strong by-product pricing delivering excellent cash cost performance
Nova Strong by-product pricing delivering excellent cash cost performance Nova Production & Cash Costs Nova Cash Flow Reconciliation Tonnes A$/lb A$M 9,000 $2.25 $2.50 180 8,000 $2.10 160 12.7 $1.83 $2.00 32.6 7,000 140 6.1 6,000 120 $1.50 5,000 $1.28 100 4,000 7,887 80 $1.00 149.3 7,276 135.5 3,000
Slide 11: Nova FY22 Guidance
Nova FY22 Guidance Metric Units FY22 Guidance Nickel in concentrate t 25,000 to 27,000 Copper in concentrate t 11,000 to 12,500 Cobalt in concentrate t 900 to 1,000 Cash cost (payable) A$/Ib Ni 2.00 to 2.40 Sustaining/improvement capex A$M 19 to 22 Development capex A$M 5 to 7 11
Slide 12: Lithium Joint Venture
Lithium Joint Venture Greenbushs Project 12
Slide 13: Lithium Joint Venture: Transaction with Tianqi completed
Lithium Joint Venture Transformational transaction with Tianqi completed Transaction successfully concluded on 30 June 2021 Adds high quality lithium asset exposure for IGO Since transaction agreed: Spodumene price ▲~90% LiOH price ▲ ~50% 13
Slide 14: Lithium Joint Venture: Working with Tianqi on governance and reporting
Lithium Joint Venture Working with Tianqi to implement governance and reporting structures JV to be equity accounted with • Chemical Grade Plant 2 (CGP2) restart opening value of A$1,856M at 30 and ramp up continuing Greenbushes June 2021 (JV: 51%) • Tailings Retreatment Project expected to commence
Slide 15: Tropicana
Tropicana 15
Slide 16: Tropicana Divestment
Tropicana Divestment Transaction with Regis Resources successfully completed Production and Cost Results Transaction settled on 31 May 2021 Metric Units 3Q21 4Q211 FY211 Gold produced (100%) oz 82,393 63,248 364,751 A$889M proceeds received after Gold Sold (IGO 30%) oz 25,667 19,146 110,402 completi
Slide 17: Exploration
Exploration 17
Slide 18: Exploration Strategy
Exploration Strategy Committed to investing in growth through discovery FY22 Exploration Budget Lake Mackay Copper Coast Raptor A$9M Kimberley Project A$6M Nova & A$65M A$33M Fraser Range A$17M Paterson Project Highly prospective Tenure Motivated and talented Team Employing the right Technolog
Slide 19: Near Nova
Near Nova Positive results from drilling at Orion and Chimera June Quarter Progress • Drilling of Orion Prospect intersected target intrusion on Boadicea JV ground • Several intrusions encountered in drilling at Chimera with disseminated to blebby Fe-Ni-Cu magmatic sulphides observed throughout Next
Slide 20: Fraser Range
Fraser Range Various work programs across southern project area June Quarter Progress • Intrusive complex identified by deep diamond hole at Haul Road • Soil surveys and air core drilling to identify new prospective intrusions • Ongoing assessment of recent geophysical and geochemical surveys Next S
Slide 21: Fraser Range: Silver Knight deposit to be acquired
Fraser Range Silver Knight deposit to be acquired from Creasy Group Highlights • Post Quarter-end, agreement reached with Creasy Group to acquire 100% of Silver Knight deposit, located 35km from Nova • Secondary ore source for Nova • Infill drilling program planned to inform updated mineral resource
Slide 22: Paterson Project
Paterson Project Targeting sediment hosted copper deposits June Quarter Progress • Geological, geophysical and geochemical data acquisition programs progressing across the portfolio • Diamond drilling at Windsor and Aria Next Steps • AC drilling programs over Antipa and Cyprium JVs 22
Slide 23: Our Response To Climate Change
Our Response To Climate Change 23
Slide 24: Decarbonisation
Decarbonisation Acceleration of our response to climate change Internal carbon price adopted with funds deployed to reduce our carbon footprint Execution of Scope 1 & 2 emission reduction programs across our business Committed to improved understanding of full carbon footprint (including Scope 3) De
Slide 25: Summary
Summary 25
Slide 26: Summary
Summary FY19 and 4Q19 Highlights Excellent operational performance | Clean energy metals transition complete • Quarterly production and cash costs better than guidance Nova Delivery • FY21 production better than guidance and cash costs at lower end of revised range Lithium Transaction • Completion o
Slide 27: We believe in a world where people power makes amazing things happen
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. Our work is making fund