Igo Limited · ASX:IGO
Igo — Shareholder Meeting (November 2023)
33 slides from Igo's shareholder meeting presentation, Nov 16, 2023
Slide 1: 2023 Annual General Meeting
2023 Annual General Meeting Acting Chief Executive Officer – Matt Dusci 16 November 2023 IGO LIMITED
Slide 2: Cautionary Statements & Disclaimer
Cautionary Statements & Disclaimer • This presentation has been prepared by IGO Limited (“IGO”) infrastructure. Where such a reference is made, it should be sold) per tonne sold are inclusive of ore mining costs, (ABN 46 092 786 304). It should not be considered as an offer read subject to this para
Slide 3: Our Strategy
Our Strategy Aligned to our purpose – Making a Difference To be a globally relevant supplier of products critical to the clean energy transition Diverse suite of products Made safely, ethically, sustainably and reliably Vertically Integrated Linking upstream and downstream into the supply chain Net
Slide 4: Who we are
Who we are Australia based diversified clean energy metals portfolio with a pipeline of growth Greenbushes Lithium Operation Upstream Nova Operation Forrestania Operation Kwinana Lithium Hydroxide Refinery Downstream IBMF Facility (Study) Cosmos Project Greenbushes Expansions Growth Kwinana Lithium
Slide 5: FY23 Summary
FY23 Summary Building a globally relevant clean energy metals business Delivered outstanding financial results with record NPAT, underlying EBITDA and free cash flow for FY23, supported by the strength of our lithium business Returned record dividends to shareholders, with total FY23 dividends of 74
Slide 6: Market Update
Market Update IGO Limited | 2023 Annual General Meeting Page 6
Slide 7: Electric Vehicles
Electric Vehicles The global electrification of vehicles is rapidly progressing Projected EV sales and market share1 Million Vehicles Market share (%) 140 100% Steep adoption of EVs, with penetration rates 90% reaching 60% in 2035, despite recent macroeconomic 120 trends 80% 100 70% 23 28 33 37 42 4
Slide 8: Lithium-ion Batteries
Lithium-ion Batteries Total metal demand continues to increase with battery demand Lithium-ion battery metal demand outlook1 Metal demand growth 2022 – 2028E1 Million metric tons From 2022 to 2028, total metals in Li-ion 10.0 batteries are forecast to increase 3.5x to ~13Mt1 Li 9.0 8.0 Lithium 3.4x
Slide 9: Lithium Market
Lithium Market Strong market fundamentals over the medium to long term Lithium Supply/Demand Balance (Kt LCE)1 500 6,000 Moderating demand and new supply driving modest - 5,000 surplus over coming years -500 4,000 -1,000 3,000 Market deficit expected from 2028 as battery demand outpaces supply respo
Slide 10: Nickel Market
Nickel Market Market appears supply constrained over the long term Primary Nickel Supply/Demand Balance (Kt Ni)1 8,000 500 Rapid expansion of Indonesian supply (of Class 2 250 7,000 nickel) has delivered surplus nickel unit supply over 1.3Mt Deficit the short term – transitioning to deficit by 20281
Slide 11: Sustainability
Sustainability IGO Limited | 2023 Annual General Meeting Page 11
Slide 12: FY23 Sustainability Highlights
FY23 Sustainability Highlights Committed to a safe, sustainable and diverse business Community Key sustainability index inclusions • ~$800k in corporate giving contributions for FY23 1 • $8.3M spend with Aboriginal owned and managed businesses Dow Jones Sustainability Index – Australia & Asia Pacifi
Slide 13: Safety
Safety Continuing to focus on harm reduction, risk minimisation and training Disappointing increase in TRIFR at 30 June 2023 to 16.0 (from 14.1 at 30 June 2022) Safety improvement has been a high priority for Board and management Recent improvement in TRIFR (12.7 at 30 September 2023) is encouraging
Slide 14: Decarbonisation
Decarbonisation Retaining our focus on building a sustainable business Decarbonisation Fund • Internal Carbon Price is pricing our emissions and driving funding of our Decarbonisation Fund • Expected to raise $9.3M in FY24 Nova • Expanded solar generation and storage capacity enabling 7 – 8 hours of
Slide 15: FY23 Financial Results
FY23 Financial Results IGO Limited | 2023 Annual General Meeting Page 15
Slide 16: Financial Results
Financial Results IGO has established a track record of financial performance Total Revenue1 (A$M) Underlying EBITDA (A$M) 1,024 1,987 889 915 903 177% 785 717 460 475 341 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Net Profit After Tax (A$M) Underlying Free Cash Flow (A$M) 3 5492 549 1,098 Ga
Slide 17: Shareholder Returns
Shareholder Returns Record dividend payments declared for FY23 Dividend history 80 560 200 200 Interim FY23 Dividend 14c per share (fully franked) Final FY23 Dividend: 44c per share (fully franked) 70 180 Final FY23 Dividend 44c per share (fully franked) 16 Special Dividend: 16c per share (fully fra
Slide 18: Lithium Business
Lithium Business IGO Limited | 2023 Annual General Meeting Page 18
Slide 19: Greenbushes
Greenbushes Outstanding operational and financial performance in FY23 Quarterly Production and cash cost (production)1 FY23 Performance 450 300 $271 $262 $253 Spodumene production of 1.49Mt, a record for the 400 $224 $226 250 business with industry leading cash costs $205 $214 $215 (production) of $
Slide 20: Greenbushes
Greenbushes Multiple strategic growth projects Greenbushes Production (100%) Greenbushes Growth Priorities Spodumene Planned total concentrate capacity Processing Expanding processing capacity to ~2.5Mtpa Capacity deliver higher production rates CGP4 ~520ktpa (520ktpa) Subject to FID Improving effic
Slide 21: Kwinana Refinery
Kwinana Refinery Train 1 performance delayed, but rectification works are progressing Train 1 FY23 production of 1,884t of lithium hydroxide was below expectations due on operational challenges Targeting 50% of nameplate capacity during December 2023, and continuing to ramp during 2024 Train 2 FEED
Slide 22: Nickel Business
Nickel Business IGO Limited | 2023 Annual General Meeting Page 22
Slide 23: Our Nickel Business
Our Nickel Business Building an integrated nickel business Strong portfolio of production assets… …with growth & value optimisation opportunities. Nova Operation Forrestania Operation Cosmos Project Downstream Exploration Production Production Development | Review Feasibility study & partnering Ongo
Slide 24: Nova
Nova Strong operational and financial delivery in FY23 Nova Production & Costs1,2 FY23 Performance Tonnes A$/lb Production delivered just below guidance, with 7,000 $6.00 costs within guidance $5.30/lb 6,000 $5.00 • 22,915t nickel 5,000 • $3.54/lb cash costs $4.00 $3.79/lb 4,000 • EBITDA Margin: 62%
Slide 25: Forrestania
Forrestania Solid performance over FY23 Forrestania Quarterly Production & Costs1 FY23 Performance 4,000t $12.0/lb $10.97/lb Production and costs delivered within guidance: $10.27/lb 3,500t $8.70/lb $10.0/lb • 11,931t nickel $8.67/lb 3,000t • $9.65/lb cash costs $8.0/lb 2,500t • FY23 EBITDA margin:
Slide 26: Cosmos
Cosmos Development progressed in parallel to the ongoing project review Processing Plant First concentrate from mill produced in recent weeks Shaft Infrastructure Shaft proper complete taking the shaft to final depth of ~1km Focus on installation of shaft hoisting/loading structures in the com
Slide 27: Integrated Battery Materials Facility
Integrated Battery Materials Facility An opportunity to progress our downstream strategy Proposed IBMF will convert nickel sulphide into IGO PCAM Battery Industry Ni Sulphide cathode precursor for the battery sector. Concentrate ProcessTM Material End product Key work undertaken to date: Multiple
Slide 28: Exploration & Discovery
Exploration & Discovery IGO Limited | 2023 Annual General Meeting Page 28
Slide 29: Exploration
Exploration Exploration work continues, aimed at unlocking new discoveries FY24 Exploration budget of $65M - $75M Ni Nickel • Nova, Cosmos & Forrestania • Fraser Range Project Targeting magmatic and komatiitic • Kimberley Project (Dogleg) nickel sulphide deposits • Irindina Project Cu Copper • Pater
Slide 30: Exploration
Exploration Several interesting developments as we progress our journey of discovery West Kimberley Project Successful drilling at the Dogleg Ni-Co-Cu Prospect1 intersected massive sulphides Forrestania Project Diamond drilling intersected spodumene bearing pegmatites up to 34m in downhole thickness
Slide 31: Summary
Summary IGO Limited | 2023 Annual General Meeting Page 31
Slide 32: Priorities for FY24
Priorities for FY24 Our focus for the year ahead Deliver Greenbushes expansion projects Lithium Business Drive further value recognition at Greenbushes via exploration and underground studies Progress Kwinana Train 1 ramp up Continue to optimise operating assets at Nova and Forrestania Nickel Busine
Slide 33: Making a Difference
Making a We believe in a world where people power makes How? Developments in battery storage technology amazing things happen. are enabling the full potential of renewable energy to be realised, by allowing energy produced from the Where technology opens up new horizons and clean sun, wind and other