Slide 1: AMEC Convention
INDEPENDENCE GROUP NL AMEC Convention For personal use only Peter Bradford, Managing Director and CEO 6 June 2019 ASX:IGO / ADR:IIDDY 1
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) Other Mark Creasy 12% 15% Foreign Institutions 23% Domestic Institutions 50% 1) As at
Slide 5: 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 supplying upstream metal production and metals critical to clean energy downstream processing to unlock value Hi
Slide 6: Corporate Overview
Corporate Overview Strong operational and financial performance across the business For personal use only Performance Growth Strong performance and free cash Boston Shaker flow from Nova & Tropicana underground at Tropicana On track to deliver or beat on FY19 Nickel sulphate downstream production gu
Slide 7: March 2019 Quarter Financial Performance
March 2019 Quarter Financial Performance Nova outperformance delivers strong cash flow For personal use only Revenue NPAT Net Cash A$233M A$45M ▲23% QoQ ▲6,300% QoQ A$172M ▲83% QoQ Underlying FCF Underlying EBITDA Cash Debt A$89M A$117M ▲207% QoQ ▲72% QoQ A$86M A$257M ▲ 24% QoQ ▼25% QoQ Underlying E
Slide 8: Consistent Strengthening of Balance Sheet
Consistent Strengthening of Balance Sheet Strong cash build since commercial production commenced from Nova For personal use only A$M Commercial production Net cash commenced at Nova (31 March 2019) 200 A$172M A$94M 100 A$62M 0 -A$4M -A$73M -100 -A$120M -A$142M -200 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q1
Slide 9: Nova
For personal use only Nova 9
Slide 10: Nova ramped up and delivering strong free cash flow
Nova ramped up and delivering Nova Nickel Production and Cash Costs For personal use only strong free cash flow Tonnes A$/lb Feasibility Study average • Discovered July 2012 9,000 production rate $4.50 • Commercial production July 2017 8,000 $4.00 • De-risked with life of mine capital 7,000 $3.50 de
Slide 11: Nova Mine Development
Nova Mine Development Underground development and grade control drilling complete For personal use only 11
Slide 12: Directional Production and Cash Costs
Directional Production and Cash Costs(1) For personal use only Strong outlook for Nova • Consistent and higher production rate expected next three years • Main driver is higher grade stopes in core of Nova and Bollinger • Assumes: ─ 1.5Mtpa mining/processing rate ─ 89% nickel recovery and 85% copper
Slide 13: Tropicana Gold Mine
Tropicana Gold Mine For personal use only 13
Slide 14: Tropicana: increased production and lower costs in FY19
Tropicana: increased production Tropicana Production (100%) & AISC(1,2) For personal use only and lower costs in FY19 Gold production (oz) AISC (A$/oz) • 30% IGO & 70% AngloGold Ashanti (managers) 600,000 1162 1,200 1061 • High quality asset delivering strong 500,000 1,000 918 935 free cash flow 795
Slide 15: 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 15
Slide 16: Growth
For personal use only Growth 16
Slide 17: Nickel Sulphate Opportunity
Nickel Sulphate Opportunity Patented process to convert nickel sulphide concentrate into 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 17
Slide 18: Organic growth through exploration and discovery
Organic growth through For personal use only FY19 Exploration Budget exploration and discovery • Transformed exploration portfolio and “best in class” exploration team over last 2-3 years Nova • Near mine exploration A$12.0M ─ extensions of Nova and Tropicana ore bodies Greenfields, Tropicana • Gree
Slide 19: Making a Difference
Making a Difference For personal use only • Focus on our people and culture • Strong sense of purpose • Focus on doing what is right – because we care • Empowered and engaged people who are owners of the business • Fostering the next generation of industry leaders • Achieving above benchmark levels
Slide 20: Concluding Remarks
Concluding Remarks Strong operational and financial performance with significant growth opportunities For personal use only Performance Growth Strong performance and free cash Boston Shaker flow from Nova & Tropicana underground at Tropicana On track to deliver or beat on FY19 Nickel sulphate downst
Slide 21: For personal use only
For personal use only 21 www.igo.com.au