Slide 1: IGO Limited 3Q21 Results Presentation
IGO Limited 3Q21 Results Presentation 28 April 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: 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 17 March 2021 (Annual Statement) and lodged with the ASX for which Competent Person
Slide 4: Safety
Safety Our priority remains on keeping our people safe 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 Frequency Ra
Slide 5: 3Q21 Highlights
3Q21 FY19Highlights and 4Q19 Highlights Successful quarter of operations while portfolio transitions to 100% clean energy metals Nova Tropicana Tianqi Lithium Investment Nova production in line with Binding agreement to divest Remaining conditions guidance, with cash costs 30% stake to Regis Resourc
Slide 6: 3Q21 Financial Results
3Q21 Financial Results Headline financials impacted by Nova inventory build and lower Tropicana production Units 2Q21 3Q21 QoQ YTD Revenue and Other Income A$M 235.9 185.7 ▼21% 648.1 Underlying EBITDA(1) A$M 120.9 92.7 ▼23% 335.0 Net Profit After Tax (NPAT) A$M 8.8 41.9 ▲378% 96.0 Net Cash from Oper
Slide 7: 3Q21 Cash Flow Reconciliation
3Q21 Cash Flow Reconciliation Balance sheet well positioned prior to Tianqi Lithium settlement A$M 1,400 5.9 52.8 13.7 11.3 15.5 3.0 1.6 1,200 68.7 1,000 800 1,295.9 600 1,186.1 400 200 - Cash at Nova FCF Tropicana FCF Exploration & Corporate and Acquisition & Lease payments Proceeds from Effect of
Slide 8: 3Q21 NPAT Reconciliation
3Q21 NPAT Reconciliation Foreign exchange position driving volatility in profit result A$M Forex gain related to Tianqi 60 transaction funding 50 (13.6) 40 30 62.3 20 41.9 10 8.8 (10.0) - (10) (21.3) 12.9 (20) 3.8 (0.6) (0.4) (30) 2Q21 NPAT Nova Tropicana Exploration & Corporate & Other Mark-to- D&A
Slide 9: Nova
Nova 9
Slide 10: Nova
Nova On track to deliver into FY21 production guidance; costs tracking below guidance Metric Units 2Q21 3Q21 YTD YTD Guidance1 Nickel in concentrate t 7,024 6,816 21,115 20,250 – 21,750 Copper in concentrate t 3,171 3,035 9,484 8,250 – 9,375 Cobalt in concentrate t 266 256 800 638 – 713 2.40 – 2.80
Slide 11: Nova Production
Nova Production Strong by-product pricing delivering excellent cash cost performance Nova Production & Cash Costs Nova Cash Flow Reconciliation Tonnes A$/lb A$M 9,000 $3.00 100 $2.70 90 8,000 $2.25 $2.50 19.6 80 7,000 $2.10 3.8 70 1.8 6,000 $2.00 1.83 60 5,000 $1.50 50 92.5 4,000 7,276 7,024 6,816 4
Slide 12: Tropicana
Tropicana 12
Slide 13: Tropicana
Tropicana Lower production and higher costs with significant focus on Havana cut back Metric Units 2Q21 3Q21 YTD YTD Guidance1 Gold produced (100%) oz 112,050 82,393 301,503 285,000 – 322,500 Gold Sold (IGO 30%) oz 34,230 25,667 91,255 85,500 – 96,750 Cash cost A$/oz 1,023 1,318 1,077 1,040 – 1,120
Slide 14: Tropicana
Tropicana Investment in Havana cutback has impacted production and AISC, as guided Tropicana Production (100% ) and AISC Tropicana Cash Flow Reconciliation oz A$/oz A$M 120,000 $2,500 30 2.4 100,000 2,120 $2,000 8.4 $1,537 80,000 $1,527 $1,440 20 $1,500 60,000 112,050 107,060 102,007 25.7 $1,000 40,
Slide 15: Tropicana Divestment
Tropicana Divestment Highly competitive sales process concludes with divestment to Regis Resources Key Transaction Details Maximises value for IGO shareholders A$903M cash, payable upon Consideration completion2 • AngloGold Ashanti have waived their Delivers IGO with a very strong balance 60-day Rig
Slide 16: Tianqi Lithium Joint Venture
Tianqi Lithium Joint Venture Greenbushs Project 16
Slide 17: Transformational Lithium Transaction
Transformational Lithium Transaction New joint venture into Tianqi’s world class Australian lithium assets Greenbushes World’s lowest cost hard rock lithium mine1 IGO is acquiring an indirect 25% interest in Greenbushes and a 49% interest in Tianqi’s Kwinana Lithium Hydroxide Refinery Purchase price
Slide 18: Transaction Timeline
Transaction Timeline Key transaction milestones Completion of Transaction A$707M Institutional Office of State approved by Tianqi Placement & Revenue Approval Shareholders Entitlement Offer 18 December 2020 5 January 2021 Late February 2021 Transaction Transaction Announcement Completion 9 December
Slide 19: Exploration
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Slide 20: 3Q21 Highlights
3Q21 Highlights Primary focus remains on Near Nova, Fraser Range and Paterson Projects Near Nova Fraser Range Project Paterson Project Orion: Drilling of highly Copernicus: 497m drill hole Cyprium Metals JV: Relogging prospective intrusion on completed; results warrant and resampling program o
Slide 21: Summary
Summary 21
Slide 22: Concluding Comments
Concluding Comments FY19 and 4Q19 Highlights Transformation into a clean energy metals business continues Nova continuing to perform in line with Tianqi transaction progressing toward expectations completion Tropicana strategic review concludes with Exploration teams energised for 2021 successful di
Slide 23: 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