Igo Limited · ASX:IGO
Igo — Independence Group NL — Bank of America Merrill Lynch Global Metals, Mining & Steel Conference 2019
36 slides from Igo's conference presentation, May 16, 2019
Slide 1: Bank of America Merrill Lynch Conference
INDEPENDENCE GROUP NL Bank of America Merrill Lynch Conference For personal use only Peter Bradford – Managing Director & CEO 15 – 16 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: 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 20 February 2019 (Annual Statement) and lodged with the ASX f
Slide 4: Corporate Overview
Corporate Overview High quality portfolio of operating and exploration assets For personal use only Market Cap(1) Shares on Issue(1) A$2.6 billion 590 million Cash(2) Debt(2) A$257 million A$86 million Ownership(3) Mark Other Creasy 12% 15% Foreign Institutions 23% Domestic Insitutions 1) As at 30 A
Slide 5: Recent Highlights
Recent Highlights Strong operational and financial performance across the business For personal use only Strong progress on nickel Record production and sulphate downstream lower cash costs at Nova processing study Boston Shaker underground Extensive development approved at exploration program Tropi
Slide 6: IGO's Purpose
For personal use only IGO’s Purpose 6
Slide 7: IGO is Making A Difference
IGO is Making A Difference Strategically focused on metals critical to clean energy For personal use only Globally Relevant Vertically Integrated Large scale, high quality asset portfolio upstream metal production and supplying metals critical to clean energy downstream processing to unlock value Hi
Slide 8: A clear global trend towards clean energy to reduce emissions
A clear global trend towards clean For personal use only energy to reduce emissions • Strong government support for renewable energy and mass adoption of EVs and energy storage ─ Bans on conventional ICE vehicles ─ Subsidies, tax exemptions & rebates ─ Substantial investments in recharge infrastruct
Slide 9: EV sales growth and nickel-intensive battery cathodes
EV sales growth is rapidly gaining Battery cathodes becoming For personal use only momentum increasingly nickel intensive EV sales forecast(1) Nickel metal content in EV battery cathode (2) % of total vehicle sales 100% 90% 2030e: 80% ~65% 70% 60% ~20% CAGR 30.2% 36.2% 71.9% 82.3% 50% 73.1% 40% 30%
Slide 10: Nickel stockpiles at record lows; Class I supply needs to double
Nickel stockpiles are at record lows Class I nickel supply needs to For personal use only with limited new supply double by 2030 to meet new demand Official Nickel Exchange Stockpiles and Price(1) Class I & Class II Nickel Demand Forecast(2) 4,000 Nickel Stocks Nickel Price (kt) (US$/t) 600 23,000 3
Slide 11: Nova
For personal use only Nova 11
Slide 12: Nova Production and Cash Costs
Nova Production and Cash Costs Nova outperformance delivering For personal use only high margin production and Tonnes A$/lb 9,000 $3.00 strong cash flow A$2.78 8,000 • 3Q19 Highlights: $2.50 7,000 ─ Record metal production 6,000 A$1.94 $2.00 ─ Record low cash costs of A$1.50/lb Ni A$1.79 5,000 ─ Str
Slide 13: Nova Mine Development
Nova Mine Development Underground development and grade control drilling complete For personal use only 13
Slide 14: Innovation and Technology
Innovation and Technology Pursuing ongoing improvements in productivity, efficiency, safety and cost For personal use only Control Surface Hybrid Equipment Remote Firing Autonomous Solar-Diesel Real time control and Rhino Raise Bore Optical & Wifi dispatch Bogging Power In collaboration with our ser
Slide 15: Directional Production and Cash Costs
Directional Production and Cash Costs For personal use only Strong outlook for Nova kt A$/lb payable • Consistent and higher production 30 3.0 rate expected next three years 2.5 • Main driver is higher grade stopes 20 2.0 in core of Nova and Bollinger • Assumes: 1.5 ─ 1.5Mtpa mining/processing rate
Slide 16: Tropicana Gold Mine
Tropicana Gold Mine IGO: 30%, AngloGold Ashanti: 70% and managers For personal use only 16
Slide 17: Tropicana continuing to deliver high margin gold production
Tropicana continuing to deliver For personal use only Tropicana Production (100%) & AISC high margin gold production oz A$/oz • 8.0Mtpa annualised processing rate 160,000 $1,200 achieved during FY19 A$1,076 A$1,040 140,000 A$990 • FY19 YTD gold production of A$848 $1,000 120,000 385koz at A$955/oz (
Slide 18: Boston Shaker Underground
Boston Shaker Underground(1) For personal use only Boston Shaker Underground Development Layout (1) • Development to commence in May 2019 following positive feasibility ─ A$105M capital cost (100% basis) ─ A$95/t operating costs(100% basis)(2) Probable Ore Reserve Design ─ 100koz/year average gold p
Slide 19: Tropicana mineralised system
Tropicana mineralised system Significant opportunity for additional value optimisation For personal use only 1) Refer to IGO ASX release dated 20 Feb 2019: CY18 Mineral Resource & Ore Reserve Statement 19
Slide 20: Financial Performance
Financial Performance For personal use only 20
Slide 21: 3Q19 Financial Performance
3Q19 Financial Performance Nova outperformance delivers strong cash flow For personal use only Revenue NPAT Net Cash A$233M A$45M ▲23% QoQ ▲6300% QoQ A$172M ▲83% QoQ Underlying FCF Underlying EBITDA Cash Debt A$89M A$117M ▲207% QoQ ▲72% QoQ A$86M A$257M ▲ 24% QoQ ▼25% QoQ Underlying EBITDA is a non-
Slide 22: Net Cash
Net Cash Strong cash build since commercial production commenced from Nova For personal use only A$(M) Commercial production Current net cash commenced at Nova (31 March 2019) 200 A$172 A$94 100 A$62 0 -A$4 -A$73 -100 -A$120 -A$142 -200 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 22
Slide 23: Growth: Downstream
For personal use only Growth: Downstream 23
Slide 24: Nickel Sulphate
Nickel Sulphate For personal use only • Study has demonstrated the technical viability of the IGO Process™(1) ─ Metal extraction of +97% ─ Battery grade nickel sulphate ─ More efficient, less waste, less emissions ─ Patent application lodged • Optimisation work focused on: ─ Site selection trade-off
Slide 25: The IGO Process
The IGO Process™ Patented process to convert concentrate to 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 25
Slide 26: Growth: Exploration
For personal use only Growth: Exploration 26
Slide 27: IGO's enduring commitment to exploration
IGO’s enduring commitment For personal use only A$51M Exploration Budget to exploration • Future organic growth requires a commitment to exploration and Nova discovery today A$12.0M • A$51M exploration budget for FY19 Tropicana Greenfields, • Extensive drilling program Generative & Other A$3.0M unde
Slide 28: Nova Exploration
Nova Exploration For personal use only • Targeting extensions to Nova system • Diamond drill program expanded to test multiple high quality targets identified from 3D seismic data • Six deep surface drill holes and 15 underground drill holes completed during 3Q19 • Underground drilling extends C5 mi
Slide 29: Fraser Range Regional
February 2018 Fraser Range Regional For personal use only • Drill testing 40 targets in 2019 • RC drilling and DHEM program has commenced in northern Fraser Range • Regional aircore drilling continues to identify new mafic and ultramafic intrusions across entire length of Fraser Range Project ─ Kaon
Slide 30: Widowmaker
Widowmaker For personal use only • 30km NE of Nova, immediately south of Creasy Group’s Silver Knight discovery • Active drilling at Ecliptic and Solar prospects with results expected during 4Q19 ─ Aircore drilling at Ecliptic contained disseminated sulphides with two follow- up RC holes just comple
Slide 31: Lake Mackay
Lake Mackay For personal use only • SpectremAir airborne EM survey completed in January 2019 • Project expanded to 19,200km2 with nine new exploration licence applications • RC drilling commenced in April 2019, targeting; ─ Priority EM targets prospective for sulphide mineralisation including Blaze
Slide 32: ESG
For personal use only ESG 32
Slide 33: Sustainability & Safety
Sustainability & Safety Industry leading achievements across all key metrics For personal use only Sustainability Reporting Safety 2018 ACSI Rating of ASX200 Sustainability Reporting (1) Key Lag Injury Metrics(2,3) 6 5 LTIFR 12 MMA MTIFR 12 MMA Leading 4 3 2 Detailed 1 0 Dec-17 Mar-18 Jun-18 Sep-18
Slide 34: People & Culture
People & Culture For personal use only • Strong sense of purpose • Collectively we are making a difference • Focus on doing what is right – because we care • Empowered people who are owners of the business • Fostering the next generation of industry leaders • Achieving above benchmark levels of staf
Slide 35: Concluding Comments
Concluding Comments For personal use only Boston Shaker Outstanding operational underground development performance from Nova commenced Operations on track to Nickel sulphate study deliver on FY19 production progressing guidance Net cash position increases Significant exploration to A$172M activity
Slide 36: Follow Us
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