Igo Limited · ASX:IGO
Igo — Melbourne Mining Club (February 2020)
45 slides from Igo's conference presentation, Feb 6, 2020
Slide 1: Melbourne Mining Club
Melbourne Mining Club Peter Bradford, MD & CEO, IGO Limited 6 February 2020
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
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Slide 4: Esperance Care Services, Oz Harvest and community partners
Esperance Care Services Oz Harvest Dandjoo Darbalung Up All Night Teach Learn Grow Millennium Kids
Slide 5: Big Walk fundraiser
https://bigwalk.pchf.org.au/fundraisers/peterbradford
Slide 6: 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 – we are a smarter, kinder and more innovative company. Our work is ma
Slide 7: We are bold, passionate, fearless and fun
“We are bold passionate, fearless and fun – a smarter, kinder, more innovative company”
Slide 8: We believe in a green energy future
“We believe in a green energy future and by delivering the metals for new age batteries, we are making it happen”
Slide 9: Our teams are finding and producing specialist metals
“Our teams are finding and producing the specialist metals that will make energy storage mobile, efficient and effective enough to make long term improvements to the lifestyles of hundreds of millions of people across the globe”
Slide 10: Strategically focused on metals critical to clean energy
Strategically focused on metals critical to clean energy Globally High-quality Relevant Products Vertically Proactively Integrated People Green
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Slide 18: Increasing CO2 emission regulations
CO2 Emissions and Regulations CO2 g/km L/100km 300 12 Increasing 250 CO2 emission 10 regulations 200 8 150 6 Govt 100 Incentives 4 50 2 Clean energy Infrastructure 0 0 2000 2005 2010 2015 2020 2025 2030 EU Australia China US Canada Source: International Council on Clean Energy and Australian Nationa
Slide 19: Changing consumer preferences toward green alternatives
Battery cost and CO2 regulations drive sales EV Sales US$/kWh Millions and g/km Changing consumer 50 250 preferences toward green 45 alternatives 40 200 35 30 150 Increasing affordability and 25 vehicle quality 20 100 15 10 50 5 Improving performance and 0 0 2017 2020 2025 2030 2035 2040 range EV Sa
Slide 20: 80% of batteries to be NMC811 or NCA by 2025
Cathode Chemistries Higher nickel content batteries deliver greater energy density 30% 36% 72% Higher energy density means better 82% 73% performance and range 80% of batteries to be NMC811 or NCA by 2025 NMC (111) NMC (433) NMC (811) NCA NCA+ Aluminium Cobalt Nickel Manganese Lithium 1) Sources: Pr
Slide 21: Nickel market to continue in sustained deficit
Nickel market kt 300 in surplus 200 100 0 Nickel market to -100 continue in -200 sustained deficit -300 Nickel market in -400 deficit -500 -600 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 1) Source: Roskill
Slide 22: Nickel Copper
Ni Cu Nickel Copper
Slide 23: Nickel and Copper Exploration Expenditure
Nickel and Copper Exploration Expenditure Nickel US$ Bn Copper US$ Bn 1.4 5.0 4.5 Deceasing global 1.2 4.0 nickel and 1.0 3.5 copper 3.0 0.8 exploration 2.5 spend over last 0.6 2.0 decade 0.4 1.5 1.0 0.2 0.5 0.0 0.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Nickel Co
Slide 24: Number of significant mineral discoveries over time
200 The number of significant mineral discoveries has 150 been slowly rising over time…. 100 ….but has this trend 50 started to reverse? 1900 2017 Source: Minex Consulting
Slide 25: Discovery
Discovery
Slide 26: Exploration spend by project
$6M $3M $3M $4M $66M $26M $24M Tropicana Nova Fraser Range West Kimberley Lake Mackay Other Greenfields & Generative
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Slide 31: Fraser Range Near Nova
Fraser Range Legend 1GO managed tenure ‘Tropicana joint venture (AGG 70% and IGO 30%) Operation / mine Drill eady EM plates Early stage geochem/ 3 ‘geophys anomaly NW Passage 0 so ‘llometres GA Zone 51(60A94) Mawson Discovery (Legend) Tropicana (Au) Near Nova Nova - Bolinger ‘S20000E Legend | [[] Mi
Slide 32: Nova
Nova
Slide 33: Five Years From Discovery to Commercial Production
Five Years From Discovery to Commercial Production Construction Ni & Cu first GC drilling Exceeded Discovery start Offshore shipment complete guidance Jul 2012 Jan 2015 Jun 2017 Jun 2018 Jun 2019 2012 2013 2014 2015 2016 2017 2018 2019 Feasibility Acquired First Nameplate 1.87 Mtpa run Study by IGO
Slide 34: Strong First Ten Quarters of Delivery
Strong First Ten Quarters of Delivery Tonnes A$/lb Average DFS Nickel 9,000 4.50 production 8,000 4.00 7,000 3.50 6,000 3.00 5,000 2.50 4,000 2.00 3,000 1.50 2,000 1.00 1,000 0.50 - - 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Nickel Copper Ni C1 Costs & Royalties
Slide 35: Production Outperformance Driving Strong 1H20 Financials
Production Outperformance Driving Strong 1H20 Financials Record NPAT result Cash of A$453M A$100M Net Cash of A$396M Underlying EBITDA Underlying Free Cash Flow A$271M A$206M Nova and Tropicana remain on track to deliver in line with full year production guidance
Slide 36: Nova Underpins Future EBITDA
Nova Underpins Future EBITDA EBITDA A$M 700 600 500 400 300 200 100 0 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20e FY21e FY22e FY23e FY24e FY25e Long (A$M) Jaguar (A$M) Tropicana (A$M) Nova (A$M) Source: Macquarie Research 5 February 2020
Slide 37: Fifth Annual Sustainability Report
Fifth Annual Sustainability Report Admitted to Dow Jones Sustainability Index Nova 5.7MW solar farm operational ~6,500t CO2/year emissions reduction
Slide 38: Smart Solutions Used at Nova Operations
sc * * Renewable Energy Underground EVs Personnel Tracking Surface Blasting Machine Learning Milling Advanced Data Capture, Simulator Automation Drone Technology i Blaster 3000 Process Control Process and Analytics SMART SOLUTIONS USED AT NOVA OPERATIONS
Slide 39: Underground fibreoptic backbone and WiFi
Underground fibreoptic backbone and WiFi Real time data capture & control Real time tracking of people & equipment Remote network blasting from surface
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Slide 41: Downstream Processing
Downstream Processing
Slide 42: High metal extraction, lower cost, emissions and waste
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
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Slide 44: Fostering the Next Generation
Fostering the Next Generation
Slide 45: Looking for career opportunities?
Looking for career opportunities? Email us at igofurther@igo.com.au