Slide 1: IGO Limited 4Q20 Results Presentation
IGO Limited 4Q20 Results Presentation 29 July 2020
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: 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 dated 30 January 2020 (Annual Statement) and lodged with the ASX for which Competent Pers
Slide 4: COVID-19 Response
COVID-19 Response Actively managing and responding to the risks to our people and business Continued focus to protect the wellbeing of our people, safeguard our communities and maintain our business continuity Key protective measures remain in place despite easing of some restrictions in Western Aus
Slide 5: Safety
Safety Work continuing to deliver on safety improvement plan Total Reportable Injury Frequency (TRepIF)1 and Serious Potential Incident Frequency (SPIF) 2 20 7 19 6 18 17 5 16 15 4 14 13 3 12 2 11 10 1 9 8 0 TRepIFR (lhs) SPIFR (rhs) 1) 12 month moving average TRepIF – Total Reportable Injury Freque
Slide 6: FY20 and 4Q20 Highlights
FY20 FY19and and4Q20 4Q19Highlights Highlights Outstanding finish to FY20 despite challenging external conditions Net Profit After Tax Nova exceeded FY20 production guidance 4Q20: A$40M for all metals FY201: A$155M Tropicana delivered within guidance while Underlying FCF the Boston Shaker Undergroun
Slide 7: Financial Results
Financial Results Quarterly improvement across all key metrics Units 3Q20 4Q20 QoQ FY20(1) Revenue and Other Income A$M 187.5 230.6 23% 892.4 Underlying EBITDA(2) A$M 75.8 113.1 49% 459.6 Profit After Tax A$M 15.2 39.8 162% 155.1 Net Cash from Operating Activities A$M 67.3 84.9 26% 397.5 Underlying
Slide 8: 4Q20 NPAT Reconciliation
4Q20 NPAT Reconciliation Strong result driven by higher Nova EBITDA and positive revaluation of investments A$M 60 50 8.8 2.8 6.7 40 28.2 3.2 30 8.2 21.2 0.7 20 39.8 10 15.2 - 3Q20 NPAT Nova Tropicana Exploration & Corporate Mark-to- D&A Other Tax 4Q20 NPAT EBITDA EBITDA Evaluation market EBITDA inv
Slide 9: 4Q20 Cash Flow Reconciliation
4Q20 Cash Flow Reconciliation Cash balance continues to grow A$M 600 15.1 19.1 500 64.5 31.4 24.7 0.3 1.6 6.5 400 300 464.3 510.3 200 100 - Cash at Nova FCF Tropicana FCF Exploration & Payments for Corporate and Other Proceeds from Sale Finance Costs Lease payments Cash at 31 Mar 2020 Evaluation Inv
Slide 10: Nova
Nova 10
Slide 11: Nova
Nova Solid quarterly performance resulted in FY20 metal production higher than guidance Metric Units 3Q20 4Q20 QoQ FY20 FY20 Guidance Nickel in concentrate t 8,019 7,181 (10%) 30,436 27,000 – 30,000 Copper in concentrate t 3,784 3,210 (15%) 13,772 11,000 – 12,500 Cobalt in concentrate t 303 277 (9%)
Slide 12: Nova
Nova EBITDA Margin of 52%, FCF Margin of 40% Nova Production & Cash Costs Nova Cash Flow Reconciliation Tonnes A$/lb A$M 9,000 $3.00 120 $2.59 8,000 $2.70 $2.42 $2.50 100 7,000 14.8 6,000 $1.96 $2.00 32.3 80 5,000 5.7 $1.50 60 4,000 7,724 8,019 7,513 7,181 3,000 $1.00 82.8 40 71.1 2,000 3,784 3,490
Slide 13: Nova FY21 Guidance
Nova FY21 Guidance Metric Units FY21 Guidance Nickel in concentrate t 27,000 to 29,000 Copper in concentrate t 11,000 to 12,500 Cobalt in concentrate t 850 to 950 Cash cost (payable) A$/Ib Ni 2.40 to 2.80 Sustaining/ improvement Capex A$M 18 to 20 Development Capex A$M 2 to 4 • Marginally lower YoY
Slide 14: Nova Directional production and cost guidance
Nova Directional production and cost guidance Nova – Directional Guidance kt A$/lb 35.0 3.50 30.0 3.00 25.0 2.50 20.0 2.00 15.0 1.50 10.0 1.00 5.0 0.50 - 0.00 FY20A FY21E FY22E FY23E Ni production min. Ni production range Cash Cost forecast range 14
Slide 15: Tropicana
oo ANGLO! ASHANTI Tropicana
Slide 16: Tropicana
Tropicana Consistent QoQ performance from Tropicana Metric Units 3Q20 4Q20 QoQ FY20 FY20 Guidance Gold produced (100%) koz 103.9 102.0 (2%) 463.1 450 – 500 Gold Sold (IGO 30%) koz 33.0 30.6 (7%) 141.2 135 – 150 Cash cost A$/oz 877 953 9% 806 700 – 780 AISC A$/oz 1,303 1,440 10% 1,171 1,090 – 1,210 S
Slide 17: Tropicana
Tropicana Strong EBITDA margins maintained at 56% Tropicana Production (100% ) and AISC Tropicana Cash Flow Reconciliation oz A$/oz A$M 160,000 $1,600 $1,440 40 140,000 $1,303 $1,400 0.5 0.9 35 120,000 $1,200 $1,066 30 $948 100,000 $1,000 25 80,000 $800 20 133,932 36.6 35.2 60,000 123,320 $600 103,8
Slide 18: Boston Shaker Underground development on track
Tropicana Development of the Boston Shaker Underground remains on track First ore production stope fired in June 2020 Third jumbo commissioned to generate additional headings Commercial production expected during 1Q21 1) Refer to ASX release dated 28 March 2019: Tropicana Joint Venture Approves Bost
Slide 19: Tropicana FY21 Guidance
Tropicana FY21 Guidance Metric Units FY21 Guidance Gold produced (100%) koz 380 to 430 Gold Sold (IGO 30%) koz 114 to 129 Cash cost A$/oz 1,040 to 1,120 AISC A$/oz 1,730 to 1,860 Sustaining/improvement A$M 11 to 16 Waste stripping A$M 65 to 70 Underground capex (30%) A$M 10 to 14 • FY21 production e
Slide 20: Tropicana Directional production and cost guidance
Tropicana Directional production and cost guidance Tropicana – Directional Guidance (100% basis) koz AISC/oz 500 2,000 1,800 400 1,600 Gold production expected 1,400 to revert to 300 1,200 450koz – 500koz p.a. 1,000 from FY22 following year of investment 200 800 600 100 400 200 0 - FY20A FY21E FY22E
Slide 21: Exploration
Exploration 21
Slide 22: Exploration Overview
Exploration Overview High level of activity continues despite COVID-19 related restrictions Focus of activity remains to drill test targets on the Fraser Range Greenfields copper portfolio expanded in the Paterson province through new joint ventures Activity in Kimberley, Northern Territory and Gree
Slide 23: Nova
Nova Active drill testing program continues Various diamond and aircore programs underway Positive results from drilling at Kaon 2 and Chimera warrant further follow up Drilling ongoing at NE Bollinger, testing geophysical ‘blind-spot’ 23
Slide 24: Fraser Range
Fraser Range Target generation and target testing continuing New tenements added to portfolio through agreements with Matsa and others Ongoing surface and downhole electromagnetic surveys identified multiple new targets for testing Tight-spaced infill aircore drilling program tested multiple geochem
Slide 25: Paterson Project
Paterson Project Significant expansion of greenfields copper-focused exploration portfolio Belt-scale land holding of ~6,700km2 prospective for Tier-1 sediment-hosted copper- (cobalt / gold) systems Paterson region is a proven mineral province with multiple commercial operations and ongoing discover
Slide 26: Kimberley Project
Kimberley Project Merlin Deeps target to be tested in September 2020 quarter COVID-19 related restrictions lifted during 4Q20 Strong EM conductors identified down DMDD018 plunge from known massive sulphides (237.8m) Deep diamond drill hole planned during September quarter 1) Refer to Buxton Resource
Slide 27: Exploration Guidance for FY21
Exploration Guidance for FY21 Enduring commitment to growth through brownfield and greenfield discovery FY21 Exploration Budget 1 A$5.0M A$1M A$2M A$2M A$3M A$65M A$11M A$38M A$3M Fraser Range & Nova Near Mine Tropicana Paterson Kimberley Frontier Lake Mackay Raptor Generative Exploration 1) Amounts
Slide 28: Summary
Summary 28
Slide 29: Concluding Comments
Concluding Comments FY19 and 4Q19 Highlights Strong 4Q20 result completes a successful FY20 Nova and Tropicana deliver on full year production and cost guidance Outstanding financial position with high margin operations and strong balance sheet Continued focus on generating organic and inorganic gro
Slide 30: 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