Igo Limited · ASX:IGO
Igo — Diggers and Dealers Mining Forum 2021
35 slides from Igo's conference presentation, Aug 2, 2021
Slide 1: Diggers and Dealers Mining Forum Presentation (ASX Release)
ASX RELEASE 2 August 2021 DIGGERS AND DEALERS MINING FORUM PRESENTATION For personal use only IGO Limited (ASX: IGO) (IGO or the Company) is pleased to attach a copy of a presentation which will be presented at the Diggers and Dealer Mining Forum being held this week in Kalgoorlie. Managing Director
Slide 2: IGO Limited Diggers and Dealers Mining Forum
For personal use only IGO Limited Diggers and Dealers Mining Forum 2 August 2021
Slide 3: Thank you
For personal use only Thank you 2
Slide 4: We have transformed ourselves
We have transformed ourselves For personal use only Transformation: a complete change in the appearance or character of something or someone, especially so that that thing or person is improved 3
Slide 5: We are transformed
We are transformed For personal use only Transformed Outlook Transformed Culture Transformed ESG Historic and Projected EBITDA (A$M)1 1200 1000 800 600 400 200 0 Long (A$M) Jaguar (A$M) Tropicana (A$M) Nova (A$M) Greenbushes (A$M) Kwinana Hydroxide (A$M) 1. Source: Macquarie 4
Slide 6: Our transformation journey
Out transformation journey For personal use only 5
Slide 7: Where are we today?
Where are we today? For personal use only Portfolio focused on nickel, copper and lithium Tier-1 jurisdictions Extensive exploration portfolio in Australia and Greenland 6
Slide 8: We have achieved this by living our Purpose
We have achieved this by living our Purpose For personal use only 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. Our people are bold, passionate, fearless and
Slide 9: Why? To create a better planet for future generations
Why? To create a better planet for future generations For personal use only India Gate, New Delhi, India Intelligent Living 8
Slide 10: Our purpose has underpinned our strategy
Our purpose has underpinned our strategy For personal use only 9
Slide 11: What is clean energy?
What is clean energy? For personal use only Renewable Energy Energy Storage Electric Vehicles 10
Slide 12: Let's focus on electric vehicles
Let’s focus on electric vehicles For personal use only Electric vehicles accounted for 4.2% light vehicle sales in 2020 450 electric vehicle models available worldwide by 2022 Western Australia uniquely placed in battery metals supply chain 11
Slide 13: Lithium-ion battery projections
Lithium-ion battery projections For personal use only Lithium-ion battery demand GWh/year outlook (GWh/year)1 3,000 Battery demand set to increase 5x 2,500 over the next decade 2,000 1,500 Passenger vehicle electrification is the primary driver 1,000 500 0 Passenger EVs Commercial EVs Electric two-a
Slide 14: Risk of history repeating itself
Risk of history repeating itself For personal use only Potential for reality to be larger than projections – just like solar panels! Source: International Energy Agency Source: Terra Studio Solar PV Plug-in EV 2015-2021 CAGR = 55% 13
Slide 15: Significant implications for raw materials
Significant implications for raw materials Lithium-ion battery metal For personal use only demand outlook1 Mt 16 2030 vs 2021 Copper 14 Aluminum 12 Copper ▲5.5x Phosphorus 10 Iron Nickel ▲ 5.2x 8 Manganese Graphite 6 Cobalt ▲ 1.5x Nickel 4 Cobalt 2 Lithium ▲ 5.3x Lithium 0 2020 2022e 2024e 2026e 202
Slide 16: IGO portfolio aligned to electric vehicle
IGO portfolio aligned to electric vehicle For personal use only Metal demand for lithium-ion batteries in 2025 (kt) 1 IGO is the only company 719 globally producing four key electric vehicle battery metals 126 658 2,570 Ni Cu Nickel Copper 1,527 Co Li Cobalt Lithium Lithium Cobalt Nickel Copper Othe
Slide 17: FY21 was a highly successful year
FY21 was a highly successful year For personal use only Invested into a lithium joint venture Divested Tropicana Delivered outstanding operational performance Maintained balance sheet strength Built on our ESG credentials Admitted to the S&P ASX 100 16 16
Slide 18: Record financial performance in FY21
Record financial performance in FY21 For personal use only Revenue (A$M) Net Profit After Tax (A$M) 1000 912 892 900 200 778 784 1641 800 155 700 150 600 500 413 423 100 400 76 300 53 50 200 17 100 0 0 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 -50 -59 -100 Underlying Free Cash Flow
Slide 19: Nova continues to perform strongly
Nova continues to perform strongly For personal use only FY21 Nova Performance FY21 Results Tonnes A$/lb 9,000 $2.25 $2.50 FY21 production above guidance for all metals 8,000 $2.10 $1.83 $2.00 7,000 6,000 $1.50 Cash costs below guidance at 5,000 $1.28 A$1.85/lb (payable) 4,000 7,887 7,276 $1.00 3,00
Slide 20: Nova directional guidance
Nova directional guidance For personal use only FY22-24 Nova Guidance1 kt A$/lb 30.0 3.00 25.0 2.50 20.0 2.00 15.0 1.50 10.0 1.00 5.0 0.50 - 0.00 FY21A FY22E FY23E FY24E Ni production minimum Ni production range Cash Cost range 1. Directional guidance based on consensus commodity price forecasts 19
Slide 21: Continued process of optimisation & maximisation
Continued process of optimisation & maximisation For personal use only Investing into smart solutions to deliver improved safety, increased productivity and lower costs Continuous optimisation of mine plan and flotation recoveries Potential to offset inflationary pressures 20 20
Slide 22: We divested Tropicana
We divested Tropicana For personal use only Divestment to Regis Resources for A$903M Completes transformation to be 100% clean energy metals focused Successful partnership with AngloGold Ashanti over ~20 years 21 21
Slide 23: We invested in a Lithium Joint Venture with Tianqi
We invested in a Lithium Joint Venture with Tianqi For personal use only World class lithium portfolio with scale, quality, life and strong ESG credentials Greenbushes CGP2 Kwinana LiOH Plant Greenbushes Kwinana World’s lowest cost and highest grade hard First fully automated LiOH plant rock lithium
Slide 24: Greenbushes growth opportunity
Greenbushes growth opportunity For personal use only Potential spodumene concentrate capacity expansion (Mtpa) Potential Commissioning Date 0.5 2.5 2027 0.5 2024 0.3 2022 1.2 CGP1 & 2 TRP CGP3 CGP4 Total Potential Capacity 23 23 23
Slide 25: Kwinana Lithium Hydroxide Refinery
Kwinana Lithium Hydroxide Refinery For personal use only Lithium Hydroxide Production Capacity (ktpa) (100%) Option to add Train III and IV in the future 24ktpa 96ktpa Expected to commission in 2024 24ktpa Currently completing 24ktpa commissioning 24ktpa Train I Train II Train III Train IV Total Pot
Slide 26: We continued to lead in Sustainability and ESG
We continued to lead in Sustainability and ESG For personal use only Committed to leading performance & reporting Dow Jones Sustainability Australia Index Recognition from external ratings agencies S&P Global 2021 Sustainability Yearbook FY22 focused on carbon neutral roadmap Leading ESG Reporting 2
Slide 27: We have committed to our response to climate change
We have committed to our response to climate change For personal use only Adopted internal carbon price Scope 1 & 2 emissions reduction programs being implemented Committed to establish carbon offset with FY22 Commitment to understand controllable Scope 3 emissions 26
Slide 28: We remain growth focused
We remain growth focused For personal use only Inorganic growth via disciplined, accretive M&A Organic growth via exploration Value add through vertical integration and downstream Strong balance sheet 27 27
Slide 29: We continue to prioritise discovery
We continue to prioritise discovery For personal use only Focus on high value magmatic nickel sulphides and sediment hosted copper Best in class team utilising best science available – geology, geophysics and geochem Extensive & highly prospective landholding across Australia 28
Slide 30: Continued A$65M commitment in FY22
Continued A$65M commitment in FY22 For personal use only FY22 Exploration Budget Lake Mackay Primary focus on Nova & Fraser Copper Coast Range to leverage advanced Raptor A$9M understanding of belt Kimberley Project Nova & A$6M Fraser Range A$33M Secondary focus on Paterson A$65M which prioritises d
Slide 31: Our People
Our People For personal use only A highly engaged team who are driven to Make a Difference 30
Slide 32: Our people & culture are our #1 priority
Our people & culture are our #1 priority For personal use only Attract Develop Retain Developing and fostering the next generation of leaders 31
Slide 33: Concluding comments
Concluding comments For personal use only Transformative transactions complete transition to clean energy metals focus Continued strong operational and financial performance underpin strong balance sheet Investing for the future - in people, exploration, ESG and climate change response 32 32
Slide 34: 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 For personal use only an inducement to make an offer or invitation with
Slide 35: Making a Difference
For personal use only 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. O