Igo Limited · ASX:IGO
Igo — Independence Group NL — Shareholder Meeting (November 2007)
68 slides from Igo's shareholder meeting presentation, Nov 21, 2007
Slide 1: Delivering Shareholder Wealth by Mining & Exploration Success
For personal use only INDEPENDENCE GROUP NL Delivering Shareholder Wealth by Mining & Exploration Success Investor Investor Update Update November November 2007 2007 Chris Chris Bonwick Bonwick Managing Managing Director Director
Slide 2: Forward Looking Statements
For personal use only FORWARD LOOKING STATEMENTS Certain oral and written statements contained or incorporated by reference in this presentation, including information as to the future financial or operating performance of the Company and its projects, constitute forward-looking statements. All stat
Slide 3: Corporate Overview
CORPORATE OVERVIEW ♦ ASX Code: IGO (S&P / ASX 200) For personal use only ♦ Share Price: A$7.59 (08.11.07) ♦ Fully paid shares: 115.0M ♦ Unlisted Options: 3.7M ♦ Market Capitalisation (undiluted): A$805M ♦ Cash & Receivables net creditors: A$175M (30.09.07) ♦ Daily turnover (6 month average): 714,039
Slide 4: Company History
COMPANY HISTORY Mar 2000 Incorporated – Chris Bonwick founding Director For personal use only Jan 2002 Floated as an exploration company on the ASX Oct 2002 Purchased Long Nickel Mine ($15M) Mar 2005 Admitted to the ASX 300 Sep 2005 Tropicana discovery Dec 2006 Admitted to the ASX 200 Present 149 em
Slide 5: The Board of Independence Group
For personal use only THE BOARD OF INDEPENDENCE GROUP Rod Marston (64) Non Executive Chairman Chris Bonwick (48) Managing Director Kelly Ross (45) Executive Director & CFO John Christie (69) Non Executive Director Oscar Aamodt (61) Non Executive Director Over 140 years experience in junior, mid-cap
Slide 6: Top Ten Shareholders
TOP TEN SHAREHOLDERS Ordinary Shares as at 05.11.07 For personal use only HSBC Custody Nominees 13.6M 11.9% JP Morgan Nominees 11.3M 9.8% ANZ Nominees 9.3M 8.1% National Nominees 9.1M 8.0% Citicorp Nominees 7.6M 6.6% Forty Traders Limited 3.3M 2.9% RBC Dexia Investor Services 2.9M 2.5% Cogent Nomine
Slide 7: 2006/7 Financials
For personal use only 2006/7 FINANCIALS 2007 FY 2006 FY Total revenue $226M $113M EBITDA $161M $60M Profit before tax $151M $50M Net profit after tax $105M $35M Operation cash flow before tax $186M $44M Diluted earnings per share 90c 31c Dividend payment per share 13c 9c
Slide 8: IGO Cash & Investments
IGO CASH & INVESTMENTS Cash Cash & & Receivables Receivables net net of of creditors creditors (08.11.07) (08.11.07) $175M $175M For personal use only Share Share Share Company Number Price* Value* Matrix Metals Limited 124.1M 15.0c $18.6M Atlas Iron Limited 1.8M $2.25 $4.0M Southstar Diamonds 50% U
Slide 9: IGO Financial Year Statistics
For personal use only IGO FINANCIAL YEAR STATISTICS Net Profit after Tax Cash & Net Receivables
Slide 10: IGO Financial Year Statistics
For personal use only IGO FINANCIAL YEAR STATISTICS Earnings per Share Fully Franked Dividends
Slide 11: IGO Share Price to 13.11.07
IGO SHARE PRICE TO 13.11.07 Weekly Average For personal use only
Slide 12: Long Nickel Mine
For personal use only INDEPENDENCE GROUP NL LONG NICKEL MINE IGO’S CURRENT CASH PRODUCING ASSET Purchase price = A$15M
Slide 13: Long Nickel Mine (IGO 100%)
For personal use only LONG NICKEL MINE (IGO 100%) HISTORY: ♦ Starting Reserve = 26,800 Ni t ♦ Production to June = 37,400 Ni t ♦ June 2007 Reserve = 39,600 Ni t GOALS: ♦ Sustainable 9,000t Ni pa in bottom 3rd of world-wide nickel production cash costs. ♦ New Reserves to increase mine life and possib
Slide 14: Long Mine Personnel
LONG MINE PERSONNEL ♦ Owner operator with For personal use only 115 salaried employees & 11 full time contractors. ♦ Only 3 LTI’s since commencement. ♦ Very experienced team. ♦ Turnover extremely low. 96.4% 2006/7 retention rate. ♦ Productivity bonus.
Slide 15: 2006/7 Production
For personal use only 2006/7 PRODUCTION 2006/7 2005/6 ♦ Production 9,825 Ni t 8,897 Ni t ♦ Grade 3.69% Ni 3.73% Ni ♦ Cash Costs (payable) A$4.35/lb Ni A$3.75/lb Ni ♦ Revenue A$18.75/lb Ni A$9.61/lb Ni ♦ Cash & Net Receivables A$165M A$50M ♦ Profit A$105M A$35M ♦ Debt A$2M A$3M
Slide 16: 2007/8 Production Guidance
2007/8 PRODUCTION GUIDANCE 2007/8 2007 For personal use only Budget Sep Qtr ♦ Production 8,800-9,000 Ni t 2,838 Ni t ♦ Grade 3.8% Ni 4.08% Ni ♦ Cash Costs (payable) A$4.50-4.65/lb Ni A$3.42/lb Ni 2007 Sep Qtr $23.6M NPAT
Slide 17: Production to June
PRODUCTION TO JUNE 07 Operator Period tonnes % Ni Ni tonnes For personal use only WMC 1979-1999 5.43 million 3.7 203,184 IGO Oct 02 – Jun 07 0.97 million 3.8 37,439
Slide 18: Quarterly Cash Costs & Revenue
For personal use only QUARTERLY CASH COSTS & REVENUE
Slide 19: Long Mine & Reserves Longitudinal Projection
LONG MINE & RESERVES For personal use only LONGITUDINAL PROJECTION
Slide 20: Long Mine Accumulated Resource & Production
LONG MINE For personal use only ACCUMULATED RESOURCE & PRODUCTION
Slide 21: Long Mine Accumulated Reserve & Production
LONG MINE For personal use only ACCUMULATED RESERVE & PRODUCTION
Slide 22: Long Mine Production Stats
LONG MINE PRODUCTION STATS 2006/7 For personal use only Ore Reserve Est. 6,588 Ni t Ore Reserve Actual 8,492 Ni t Outside Reserve Actual 1,331 Ni t TOTAL 9,823 Ni t OCT 2002 – JUN 2007 IGO PRODUCTION Ore Reserve Est. 24,922 Ni t Ore Reserve Actual 31,808 Ni t Outside Reserve Actual 5,633 Ni t TOTAL
Slide 23: Mine Geophysics
For personal use only MINE GEOPHYSICS High powered TEM 3 component transmitter underground TEM system ♦ 10 x more powerful than current systems. Down hole TEM probe ♦ Doubles search radius ♦ Locates blind detection up to 200m. massive NiS ♦ 100m search radius. ♦ Cleaner data. remnants 10-50m ♦ 3D vi
Slide 24: Mine Geophysics Seismic Reflection
MINE GEOPHYSICS For personal use only SEISMIC REFLECTION
Slide 25: Long South Seismic Survey
LONG SOUTH For personal use only SEISMIC SURVEY Seismic Survey Coverage Long South Target
Slide 26: McLeay and Long South Seismic Section
McLEAY AND LONG SOUTH For personal use only SEISMIC SECTION
Slide 27: Long Fly Through
For personal use only LONG FLY THROUGH
Slide 28: McLeay 3D Model Showing Nickel Shoots
McLEAY For personal use only 3D MODEL SHOWING NICKEL SHOOTS
Slide 29: McLeay Shoot – Intercepts, Resource Boundaries & Drill Drive Location
McLEAY SHOOT 2 – INTERCEPTS, RESOURCE For personal use only BOUNDARIES & DRILL DRIVE LOCATION
Slide 30: McLeay Shoot - Intercepts, Shoot Boundary & Drill Drive Location
McLEAY SHOOT 3 - INTERCEPTS, SHOOT For personal use only BOUNDARY & DRILL DRIVE LOCATION
Slide 31: Regional Exploration Strategy
REGIONAL EXPLORATION STRATEGY Discovering new, high profit mines by - For personal use only ♦ Technical Innovation • Geophysical tools to see “under cover” • New targeting techniques • Database licensing and evaluation ♦ Unlocking value in established and emerging belts • Examples: Wiluna, Ravenstho
Slide 32: IGO Nickel Exploration Projects
For personal use only IGO NICKEL EXPLORATION PROJECTS
Slide 33: Exploration Geophysics
For personal use only EXPLORATION GEOPHYSICS High powered TEM transmitter truck developed in conjunction with Curtin University Squid TEM sensor Photo courtesy of Anglo American
Slide 34: Lake Lefroy Joint Ventures
For personal use only LAKE LEFROY JOINT VENTURES
Slide 35: Lake Lefroy – Gladiator JV
LAKE LEFROY – GLADIATOR JV For personal use only TEM ANOMALIES OVER MAGNETIC IMAGE
Slide 36: North-Eastern Goldfields Nickel Projects
NORTH-EASTERN GOLDFIELDS For personal use only NICKEL PROJECTS
Slide 37: Wiluna JV
WILUNA WILUNA JV JV For personal use only (IGO (IGO earning earning 51-70%) 51-70%) JV Partner: Oxiana
Slide 38: Bodkin Cross-Section
For personal use only BODKIN CROSS-SECTION
Slide 39: Wiluna JV – Bodkin Prospect
WILUNA JV – BODKIN PROSPECT For personal use only (IGO earning 51-70%)
Slide 40: North-Eastern Goldfields Nickel Projects
NORTH-EASTERN GOLDFIELDS For personal use only NICKEL PROJECTS
Slide 41: Duketon JV – Bulge Prospect
For personal use only DUKETON JV – BULGE PROSPECT JV Partner: South Boulder
Slide 42: Duketon JV – Bulge Nickel Prospect
DUKETON DUKETON JV JV –– BULGE BULGE NICKEL NICKEL PROSPECT PROSPECT For personal use only (IGO (IGO earning earning 70%) 70%) JV Partner: South Boulder
Slide 43: Ravensthorpe JV Regional Air Magnetics
RAVENSTHORPE JV (IGO earning 51-70%) For personal use only REGIONAL AIR MAGNETICS JV Partner: Traka
Slide 44: Ravensthorpe JV Tenements, Prospects and Intercepts
RAVENSTHORPE JV For personal use only TENEMENTS, PROSPECTS AND INTERCEPTS
Slide 45: Ravensthorpe JV Nickel Prospects
RAVENSTHORPE JV NICKEL PROSPECTS RAV 1, 4 & 4 WEST PROSPECTS For personal use only MS 7 PROSPECT
Slide 46: Storbodsund Nickel JV
STORBODSUND NICKEL JV For personal use only (IGO earning 70%) JV Partner: Mawson Resources
Slide 47: IGO Gold Exploration Projects
For personal use only IGO GOLD EXPLORATION PROJECTS
Slide 48: Dalwallinu Project Location
DALWALLINU (IGO 100%) For personal use only PROJECT LOCATION
Slide 49: Dalwallinu Project – Pithara Prospect Long Section
DALWALLINU PROJECT (IGO 100%) For personal use only PITHARA PROSPECT LONG SECTION
Slide 50: Dalwallinu Project – Pithara Prospect Gold Anomalies
DALWALLINU PROJECT (IGO 100%) For personal use only PITHARA PROSPECT GOLD ANOMALIES
Slide 51: Coomberdale Location
For personal use only COOMBERDALE LOCATION
Slide 52: Coomberdale Project – Gold Anomalies and Intercepts
COOMBERDALE PROJECT (IGO 100%) For personal use only GOLD ANOMALIES AND INTERCEPTS
Slide 53: Holleton Project Regional Geology
HOLLETON PROJECT (IGO 90-100%) For personal use only REGIONAL GEOLOGY
Slide 54: Holleton Mining Centre Au Anomalies
HOLLETON PROJECT (IGO 90-100%) For personal use only HOLLETON MINING CENTRE Au ANOMALIES
Slide 55: Mt Isdell (IGO 100%)
For personal use only MT ISDELL (IGO 100%) Project area over gravity image
Slide 56: Tropicana JV - New Gold Province
TROPICANA JV - NEW GOLD PROVINCE IGO’S SECOND CASH GENERATOR AngloGold Ashanti – 70% (Manager) For personal use only Independence Group – 30% free-carried to completion of pre-feasibility study Tropicana Tropicana JV JV 1000kms “New Gold Province under sand”
Slide 57: Tropicana JV Tenements
For personal use only TROPICANA JV TENEMENTS LAVERTON LAVERTON k m 120 300km LEONORA LEONORA Tropicana Deposit 29 29 00.0 29 00.0 29 29 00.0 00.0 S 00.0 S S S S $ Sunrise Dam Gold Mine $ 55k m m 0k 24 m 0k 30 30 00.0 30 00.0 S 00.0 S S 20 PINJIN PINJIN 450km Tropicana JV Granted Tenure Tropicana JV
Slide 58: Tropicana JV Significant Discoveries to Date
TROPICANA JV For personal use only SIGNIFICANT DISCOVERIES TO DATE
Slide 59: Tropicana Mineralisation Style
TROPICANA MINERALISATION STYLE Yilgarn Greenstone Tropicana Deposit For personal use only Host rocks Greenstone belt rocks Felsic gneiss Shearing and brecciation Shearing and brecciation Structure commonly present absent Alteration Cb/Sr/Py +/- Aspy Bi/Sr/Py Veining Quartz veining common Quartz vein
Slide 60: Tropicana Fly Through
For personal use only TROPICANA FLY THROUGH
Slide 61: Tropicana JV Significant Intercept Locations
TROPICANA JV For personal use only SIGNIFICANT INTERCEPT LOCATIONS
Slide 62: Tropicana Prospect Significant Drill Hole Results
TROPICANA PROSPECT For personal use only SIGNIFICANT DRILL HOLE RESULTS
Slide 63: Tropicana JV - Havana Zone
TROPICANA JV - HAVANA ZONE For personal use only SIGNIFICANT DRILL HOLE RESULTS
Slide 64: Tropicana JV – Tropicana Zone
TROPICANA JV – TROPICANA ZONE For personal use only SIGNIFICANT DRILL HOLE RESULTS
Slide 65: Tropicana JV - Tropicana Zone
TROPICANA JV - TROPICANA ZONE For personal use only SIGNIFICANT DRILL HOLE RESULTS
Slide 66: Tropicana Pre-Feasibility Status
TROPICANA PRE-FEASIBILITY STATUS For personal use only Open-cut Size: 10 years @ 300,000oz/y (AGA Diggers 07) Drilling: 50m x 50m grid with minor 25m x 25m in-fill (~60kms) Pit Design: Currently proposed 2 open cuts Mill: 3 – 5.5 Mt p/a Metallurgy: Free milling Water: Water exploration commenced Flo
Slide 67: Independence Corporate Goals
INDEPENDENCE CORPORATE GOALS For personal use only To improve shareholder returns by becoming a highly profitable, multi commodity Australian mining company Focus on: ♦ Low cash cost assets ♦ Mine longevity ♦ Innovative exploration ♦ Strong balance sheet
Slide 68: IGO Looking Forward
IGO LOOKING FORWARD Targeting +A$100M profit per annum For personal use only FINANCIAL YEAR 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Long Nickel Mine IGO 100% ? ? ? ? ? ? 9000 Ni tonnes pa Existing Reserves McLeay New Discoveries Extensions Tropicana Gold Project – IGO 30% ? ? ? ? ? ?
Independence Group NL — Shareholder Meeting (November 2007) on 6ix