Slide 1: 2Q22 and 1H22 Results Presentation
IGO Limited 2Q22 and 1H22 Results Presentation 31 January 2022
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 Persons Statement
Competent Persons Statement • The information in this presentation that relates to IGO’s Mineral Resources or Ore Reserves is extracted from IGO’s ASX release dated 31 January 2022 titled “Annual Mineral Resource and Ore Reserve Estimates Update – CY21” and is available at https://www.igo.com.au/sit
Slide 4: Safety
Safety Retained our focus on improving safety and preparedness for next phase of COVID-19 Lag Safety Indicators (TRepIFR1 & SPIFR2) Lead Safety Indicators 20 7 450 19 400 6 18 350 17 5 16 300 15 4 250 14 3 200 13 12 150 2 11 100 10 1 50 9 8 0 0 TRepIFR (lhs) SPIFR (rhs) Visual Safety Leadership Inte
Slide 5: Sustainability
Sustainability Working with Zenith Energy to expand renewable energy solution at Nova 10MWh battery energy storage system to complement an expanded Nova Solar Farm Enables Nova to operate 100% on renewables in “engines off” mode for 9 consecutive hours per day during summer and spring IGO expects fu
Slide 6: Highlights
Highlights FY19 and 4Q19 Highlights Maintained our focus on operational excellence and growth Nova Solid production and higher commodity prices deliver a strong quarterly and half yearly result Greenbushes Tailings Retreatment Project substantially complete, with commissioning to commence during 3Q2
Slide 7: 2Q22 & 1H22 Financial Results
2Q22 & 1H22 Financial Results Consistent operational performance and strong metals prices deliver strong financials Units 1Q221 2Q221 QoQ1 1H212 1H222 HoH2 Sales Revenue A$M 189.2 188.0 ▼ 1% 462.46 377.2 ▼ 18% Underlying EBITDA3 A$M 103.0 122.9 ▲ 19% 242.3 225.9 ▼ 7% Net Profit After Tax4 A$M 38.4 5
Slide 8: 2Q22 Cash Flow Reconciliation
2Q22 Cash Flow Reconciliation Higher metals prices drive strong cash flow generation from Nova A$M 700 20.1 600 102.3 45.6 9.4 5.2 0.6 1.1 0.1 2.7 500 400 300 552.3 569.8 200 100 - Cash at Nova FCF Exploration & Payments for Corporate and Acquisition & Finance Costs Lease Purchase of Effect of Cash
Slide 9: 2Q22 NPAT Reconciliation
2Q22 NPAT Reconciliation QoQ increase in profit driven by Nova performance & gain on listed investments A$M 70 2.2 3.0 1.0 3.1 60 11.6 7.6 50 5.5 0.6 1.7 6.8 40 30 52.3 20 38.4 10 - 1Q22 NPAT Nova Exploration & Corporate & Acquisition Mark-to- Share of Net Finance Impairment of D&A Tax 2Q22 NPAT EBI
Slide 10: Shareholder Returns
Shareholder Returns Interim dividend declared – consistent with stated capital management framework Dividend History Dividend per share (A$ cents) Interim Dividend deferred due to Tianqi Lithium JV investment FY22 Interim Dividend 12 5.0c per share fully franked 10 Record Date: 4 March 2022 8 Paymen
Slide 11: Nova (Nickel-Copper-Cobalt)
Nova (Nickel-Copper-Cobalt) IGO:100% 11
Slide 12: Nova
Nova Strong operating performance places Nova ahead of pro-rata production guidance Metric Units 1Q221 2Q221 1H221 FY22 Guidance1 Nickel in concentrate t 6,889 6,987 13,876 12,500 to 13,500 Copper in concentrate t 3,023 2,884 5,906 5,750 to 6,250 Cobalt in concentrate t 253 259 512 450 to 500 Cash c
Slide 13: Nova
Nova Metal production in line QoQ while cash costs benefited from higher by-product metal prices Nova Production & Cash Costs Nova Cash Flow Reconciliation Tonnes A$/lb A$M 9,000 $2.50 140 8,000 9.8 $1.99 120 $1.83 $2.00 7,000 23.3 $1.73 100 9.6 6,000 $1.28 $1.50 5,000 80 4,000 128.3 60 7,887 6,987
Slide 14: Lithium Joint Venture (TLEA)
Lithium Joint Venture (TLEA) IGO:49% | Tianqi Lithium Corporation: 51% Kwinana Lithium Hydroxide Refinery 14
Slide 15: Lithium Joint Venture
Lithium Joint Venture1 Solid quarter of operations and progress on expansion projects Quarterly Financial Summary 1Q22 2Q22 YTD NPAT (IGO share) (A$M)2 6 9 14 IGO Cash Contribution (A$M) 16 NIL 16 2Q22 Spodumene COGS3 of A$388/t as a result of by higher benchmark derived royalty rate and lower QoQ s
Slide 16: Greenbushes
Greenbushes1 Spodumene concentrate production exceeded plan for the Quarter Metric Units 1Q222 2Q222 1H222 FY22 Guidance5 Spodumene Concentrate 3 kt 268 259 526 Not Provided Cost of Goods Sold (COGS)4 A$/t 310 388 346 Not Provided EBITDA A$M 148 123 271 Not Provided Sustaining & Improvement Capex A$
Slide 17: Greenbushes
Greenbushes1 Expansion projects progressing with TRP commissioning to commence in 3Q22 Greenbushes Mine TGP • Performing better than expected (Technical Grade Plant) CGP1 & TGP CGP1 • Recovery performance impacted by (Chemical Grade Plant 1) temporary bypass of key equipment CGP2 • Concentrator perf
Slide 18: Kwinana Refinery
Kwinana Refinery1 Transitioning from batch to continuous operation Battery grade lithium hydroxide production from Train I expected in March 2022 Product qualification process with offtake customers to commence thereafter A$18M commitment to early works at Train II – focused on pyrometallurgical and
Slide 19: Lithium JV Guidance
Lithium JV Guidance IGO’s expected outlook for full year FY22 Units FY22 Guidance Range1 Greenbushes Mine (100% basis)2 Spodumene concentrate produced kt 1,100 to 1,250 COGS3 A$/t sold 350 to 400 Sustaining & Growth Capex A$M 250 to 300 Capitalised Waste A$M 25 to 30 Kwinana Refinery (100% basis)4 E
Slide 20: Mineral Resource & Ore Reserve Estimates Update
Mineral Resource & Ore Reserve Estimates Update 20
Slide 21: Annual Mineral Resource and Ore Reserve Estimate Update
Annual Mineral Resource and Ore Reserve Estimate Update Reflects transformation and evolution of portfolio to clean energy metals focus Global Hardrock Lithium Projects1 2.5 Core Lithium 15 Significant change to the portfolio compared to CY20 1.32 Sigma 52 1.43 with divestment of Tropicana and forma
Slide 22: Mineral Resource Estimate
Mineral Resource Estimate1 Step change increase in Mineral Resource at Greenbushes Grades In situ product Period IGO Mass Ni Cu Co Au Li2O Ni Cu Co Au 6% Li2O ending2 Interest3 (Mt) (%) (%) (%) (g/t) (%) (kt) (kt) (kt) (koz) (%) CY20 Nova 100% 11.8 1.76 0.711 0.058 — — 208 83.9 6.82 — — Silver Knigh
Slide 23: Ore Reserve Estimate
Ore Reserve Estimate1 Greenbushes interest is a world class addition to the portfolio Grades In situ product Period IGO Mass Ni Cu Co Au Li2O Ni Cu Co Au 6% Li2O ending2 Interest3 (Mt) (%) (%) (%) (g/t) (%) (kt) (kt) (kt) (koz) (%) CY20 Nova 100% 9.0 1.82 0.77 0.07 — — 163 69 6.0 — — Silver Knight4
Slide 24: Exploration
Exploration 24
Slide 25: 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 25
Slide 26: Near Nova
Near Nova Chimera target upgraded and drilling commenced at Silver Knight Deep diamond drill hole completed at Chimera; strong off-hole DHEM conductor detected Continue to delineate mafic-ultramafic complex indicative of a productive nickel-copper-cobalt sulphide system Silver Knight acquisition com
Slide 27: Fraser Range Project
Fraser Range Project Work continues to unlock discovery Six diamond drill holes completed at Red Bull, Celestial, Titan, Hook and Bilby Mafic-ultramafic rocks continue to be encountered in most drill holes, some containing evidence of magmatic sulphides Targeted air-core and moving-loop electromagne
Slide 28: Western Areas Transaction
Western Areas Transaction Western Areas Cosmos Nickel Project 28
Slide 29: Transaction Overview
Transaction Overview IGO to acquire Western Areas for A$3.36 cash per share via a Recommended Scheme of Arrangement1 Combined Portfolio IGO to acquire 100% of Western Areas for cash2 Cash consideration of A$3.36 per share represents a premium to WSA trading price prior to IGO’s Kimberley interest be
Slide 30: Transaction Rationale
Transaction Rationale Acquisition will enhance IGO’s nickel portfolio and deliver strong financial outcomes for IGO shareholders Aligned with Strategy Cash Consideration Accretive In line with IGO’s focus on clean No dilution for IGO shareholders Free cash flow accretive from FY24 energy metal
Slide 31: Summary
Summary 31
Slide 32: Summary
Summary FY19 and 4Q19 Highlights Continued strong operational and performance supporting organic and inorganic growth • Continued focus on improving safety outcomes People & Safety • Strong systems in place to manage next phase of COVID-19 in Western Australia • Production and costs ahead of pro-rat
Slide 33: 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