Igo Limited · ASX:IGO
Igo — Independence Group NL — RBC Capital Markets 2nd Annual Mining Corporate Day (February 2018)
38 slides from Igo's conference presentation, Feb 22, 2018
Slide 1: RBC Capital Markets 2nd Annual Mining Corporate Day
INDEPENDENCE GROUP NL For personal use only RBC Capital Markets 2nd Annual Mining Corporate Day Investor Information Booklet Discovery and Delivery 22 February 2018
Slide 2: Cautionary statements & disclaimer
Cautionary statements & disclaimer For personal use only • 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 securities in IGO or as an inducement to make an offer or invit
Slide 3: 1H18 Highlights
1H18 Highlights A strong first half for FY18 driven by Nova and Tropicana For personal use only • Successful first half-year of commercial production at Nova; both production and costs within guidance ─ Ore mining/milling rate better than nameplate in December ─ Bollinger stoping commenced • Tropica
Slide 4: A Company with Purpose
A Company with Purpose To create long-term shareholder value For personal use only IGO EBITDA Profile (A$M)(1) 600 GEOGRAPHICAL QUALITY FOCUS 500 400 300 200 LONGEVITY SCALE 100 - FY12 FY13 FY14 FY15 FY16 FY17 FY18e FY19e FY20e Acquire Discover Develop Operate Long (A$M) Jaguar (A$M) Tropicana (A$M)
Slide 5: IGO Portfolio Overview
IGO Portfolio Overview Diversified portfolio of nickel, gold, zinc and copper production For personal use only A$60M A$145M FY18E EBITDA Split(1) FY18E EBITDA Split(1) A$19M A$156M FY18E EBITDA Split(1) FY18E EBITDA Split(1) 5 1) Macquarie Research dated 31 Jan 2018
Slide 6: Tropicana Gold Mine
For personal use only 6 Tropicana Gold Mine
Slide 7: Tropicana
Tropicana JV – IGO 30% with AngloGold Ashanti 70% For personal use only Overview 7.8Mtpa open pit and processing plant Resource(1) 7.5Moz (100%) 2.2Moz (30%) Reserve(1) 4.1Moz (100%) 1.2Moz (30%) Production Guidance (100%) (30%) FY18 465koz 140koz Operating cost Guidance Cash cost AISC FY18 A$715/oz
Slide 8: Tropicana: Production, cash costs and AISC significantly better than guidance
Tropicana Production, cash costs and AISC significantly better than guidance For personal use only Tropicana Metric Units 1H17 1H18 Inc/(Dec) Guidance(2) koz Production (100%) and AISC A$/oz 160 1,400 Gold produced (100%) koz 221.2 249.3 28.1 220.0 – 245.0 140 1,229 1,286 1,167 1,200 Gold Sold (IGO
Slide 9: Tropicana: Transitioning to Long Island Strategy
Tropicana Transitioning to Long Island Strategy For personal use only Based on strip mining and in-pit waste dumping Directional Production and AISC(1) koz A$/oz • Leverages tabular geometry and strike extent 800 1,500 1,162 Step change reduction in mining costs • Transition to face shovels 700 1,00
Slide 10: Tropicana: Evaluating underground opportunities
Tropicana Evaluating underground opportunities For personal use only 1) Refer to ASX release dated 7 Dec 2017: Tropicana JV Commits to Long Island and Increased Milling Capacity 10
Slide 11: Tropicana: Boston Shaker drilling and underground studies continue
Tropicana Boston Shaker drilling and underground studies continue For personal use only Underground drilling returned significant intercepts • 18m at 6.58g/t Au from 587m • 37m at 6.49g/t Au from 509m • 20m at 5.82g/t Au from 609m Next steps: • Drill program scheduled for completion 3Q18 • Scoping s
Slide 12: Nova
For personal use only Nova 12
Slide 13: Nova: Low cost Ni – Cu – Co mine
Nova Low cost Ni – Cu – Co mine For personal use only 1.5Mtpa underground mine and Overview processing plant Resource(1) 271,000t Ni, 113,000t Cu, 9,000t Co Reserve(1) 274,000t Ni, 110,000t Cu, 9,000t Co Production Guidance FY18 25,000t Ni (contained metal in 11,000t Cu concentrate) 925t Co Operatin
Slide 14: Nova: Successful first half of commercial production
Nova Successful first half of commercial production For personal use only Tonnes Metric Units 1H17 1H18 Inc/(Dec) Guidance(1) Nova Production 5,000 4,500 4,454 Nickel in concentrate t - 8,954 8,954 7,500 – 9,000 4,500 4,000 Copper in concentrate t - 3,843 3,843 4,000 – 4,500 3,500 Cobalt in concentr
Slide 15: Nova Grade Control
Nova Grade Control(1) Early de-risking of mineral resource For personal use only • Grade control drilling well progressed • Nova main orebody complete with final drilling to commence on the Upper Nova levels • Drilling of Bollinger Inferred Mineral Resources is largely complete Plan view of Nova- Re
Slide 16: Nickel and the EV Battery
Nickel and the EV Battery Nickel expected to be a big winner For personal use only Nickel market already in a supply deficit Nickel Mine Supply by Product (kt)(1) • Growing demand for nickel in stainless steel Ni ktpa Ni ktpa 2018E supply 3,500 deficit of 3,500 • Positive global growth outlook conti
Slide 17: Nickel and Cobalt Sulphate
Nickel and Cobalt Sulphate LME Nickel Versus Nickel Sulphate (US$/t)(1,2) Nova Downstream Processing Potential US$/t For personal use only 20,000 Scoping study to investigate the potential for downstream processing to produce nickel and 18,000 cobalt sulphates for EV batteries • Metallurgical testwo
Slide 18: Jaguar & Long
For personal use only Long Jaguar & 18
Slide 19: Jaguar: 100% owned underground Cu – Zn VMS
Jaguar 100% owned underground Cu – Zn VMS For personal use only Overview High grade Underground Cu – Zn VMS Resource(1) 55kt Cu, 364kt Zn & 18Moz Ag, 90koz Au Reserve(1) 16kt Cu, 161kt Zn, 8Moz Ag, 36koz Au Production Guidance FY18 31,000t Zn (contained metal in 2,800t Cu concentrate) Operating cost
Slide 20: Jaguar: Zinc production met YTD
Jaguar Zinc production met YTD For personal use only Jaguar Production Metric Units 1H17 1H18 Inc/(Dec) Guidance(1) Tonnes 9,000 8,105 Zinc in concentrate t 18,641 14,990 (3,651) 14,500 – 16,500 8,000 7,399 6,599 6,885 7,000 Copper in concentrate t 2,756 1,121 (1,635) 1,300 – 1,500 6,000 Cash cost (
Slide 21: Jaguar Upside
Jaguar Upside(1) Depth extensions at Bentley, new deposit at Triumph and ongoing regional exploration For personal use only Bentley Mine Triumph Deposit 1) For further information see ASX release 26 Jul 2017 – Jaguar Value Enhancement Programs 21
Slide 22: Long: 100% owned high-margin underground nickel mine
Long 100% owned high-margin underground nickel mine For personal use only Average grade project to date of 3.8% Ni Overview Consistent low cost producer Resource(1) Mining to cease 31 May 2018 Reserve(1) Production Guidance FY18 (contained metal in 5,700t Ni concentrate) Operating cost Guidance A$4.
Slide 23: Long: A solid and consistent performer in the IGO portfolio
Long A solid and consistent performer in the IGO portfolio For personal use only • Acquired in 2002 • Since FY03 produced c.133,000t of contained Ni • A$199M free cashflow from FY11 to FY17 • Care and maintenance planned for May 2018 • Greenfields exploration will continue Long Life of Mine Producti
Slide 24: Long: production guidance met YTD
Long Long production guidance met YTD For personal use only Tonnes Long Production Metric Units 1H17 1H18 Inc(Dec) Guidance(1) 2,500 2,136 Contained nickel produced t 4,229 2,946 (1,283) 2,700 – 3,000 2,069 2,000 Cash cost (payable) A$/lb Ni 3.21 5.10 1.89 4.40 – 4.90 1,572 1,500 1,374 Sustaining ca
Slide 25: Exploration
For personal use only Exploration 25
Slide 26: FY18 Exploration: A$50M commitment
FY18 Exploration A$50M commitment to exploration in FY18 For personal use only FY18 Exploration Budget Fraser Range A$10M Nova A$1.5M A$21M Tropicana A$4M Jaguar A$4.5M Long A$9M Lake Mackay & Other 26
Slide 27: Why Explore in the Fraser Range
September 2015 Why Explore in the Fraser Range “Where there’s smoke there’s fire” For personal use only • Several mafic/ultramafic intrusions are known to occur along the Fraser Range • Multiple companies have reported magmatic Ni-Cu sulphides in mafic and ultramafic rocks along the entire belt • Su
Slide 28: Fraser Range Exploration Program
February 2018 Fraser Range Exploration Program >330% tenure increase since September 2015 For personal use only Creation of Belt Scale opportunity by consolidation of 14,300km2 • Most recent JV: Arrow Minerals(1) Systematic belt scale exploration activities continue • Spectrem and downhole EM survey
Slide 29: Nova Mining Lease Exploration: 3D Seismic program
Nova Mining Lease Exploration 3D Seismic program commenced in 3Q18 For personal use only Initial work program completed in 1Q18: • Drilled historical EM plates • Drilled Phoenix – targeting mafic intrusive with magmatic sulphides • Drilled several stratigraphic holes on the 2D seismic line to aid pl
Slide 30: Nova Mining Lease Exploration: Near mine exploration space is wide open
Nova Mining Lease Exploration Near mine exploration space is wide open For personal use only 30
Slide 31: Magmatic Sulphide Mineralisation
Magmatic Sulphide Mineralisation What do mafic Ni-Cu deposits and camps look like – Voisey’s Bay example For personal use only Deposit analogues • Chonoliths have a small footprint • The small size is important to the genesis of world class deposits Scale 1500E 3000E 4500E 6000E 00 2 Approximate Sur
Slide 32: Lake Mackay Exploration
Lake Mackay Exploration Belt scale greenfields project For personal use only Total area under granted licences and applications increased to 12,800km2 • Six new exploration licence applications added First diamond drilling at Grapple(1,2) • Six holes completed for 2,917m • Multiple narrow sulphide i
Slide 33: Corporate
For personal use only Corporate 33
Slide 34: Corporate Summary
Corporate Summary Positioned for a strong 2H18 For personal use only Units 1H17 1H18 Inc/(Dec) Share Ownership Revenue and Other Income A$M 223.1 354.8 59% Substantial Holders(5) Institutional Ownership(4) Underlying EBITDA(1) A$M 81.8 133.4 63% Mark Creasy 16% Australia 61% Profit After Tax A$M 20.
Slide 35: Sustainability
Sustainability Focused on better outcomes for our people Key Lag Safety Metrics(1,2,3) For personal use only 9 • One lost time injury in 1H18 with the current 8 LTIFR(2) at 2.09 7 LTIFR 12 MMA 6 MTIFR 12 MMA • Visible safety leadership focus continues driving 5 significant improvement in lead metric
Slide 36: Stockman divestment and management changes
Corporate Update For personal use only Divestment of Stockman Project to CopperChem finalised in December 2017(1) • Partial proceeds net of costs of A$10.7M were received at completion • A$21M cash payments are scheduled to be received during the 12 months following completion Change of Chief Operat
Slide 37: Concluding Comments
Concluding Comments • Successful first half-year of commercial For personal use only production at Nova; both production and costs within guidance • Solid contributions from Tropicana, Jaguar and Long • Underlying EBITDA increased by 63% • Operating cash flow increased by 335% • A$29M debt repaid an
Slide 38: For personal use only
a el a “FOLLOW US ~ UAS WE GO FROM STRENGTH TO STRENGTH igo.com.au
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