Igo Limited · ASX:IGO
Igo — Shareholder Meeting (November 2020)
44 slides from Igo's shareholder meeting presentation, Nov 18, 2020
Slide 1: AGM Presentation and Address by the Managing Director & CEO
ASX RELEASE 18 NOVEMBER 2020 AGM PRESENTION AND ADDRESS BY THE MANAGING DIRECTOR & CEO For personal use only IGO Limited (Company) (ASX: IGO) is pleased to attach a copy of the presentation and address to be given by the Managing Director & CEO at IGO’s Annual General Meeting today. This announcemen
Slide 2: IGO Limited Annual General Meeting
For personal use only IGO Limited Annual General Meeting 18 November 2020
Slide 3: 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, purchase or sell any securities in IGO or as an inducement to make an offer or invitation with respect to thos
Slide 4: 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 30 January 2020 (Annual Statement) and lodged with the ASX fo
Slide 5: People, Safety and Sustainability
For personal use only People, Safety and Sustainability 4
Slide 6: Safety
Safety We continued to focus on improving safety and wellbeing For personal use only Total Reportable Injury Frequency (TRepIF)1 and Serious Potential Incident Frequency (SPIF) 2 20 7 19 6 18 17 5 16 15 4 14 13 3 12 2 11 10 1 9 8 0 TRepIFR (lhs) SPIFR (rhs) 1) 12 month moving average TRepIF – Total
Slide 7: COVID-19 Response
COVID-19 FY19 andResponse 4Q19 Highlights We proactively managed and responded to risks to our people and business For personal use only Safeguarded the welfare of our people Protected our communities Ensured business continuity 6
Slide 8: Sustainability
Sustainability We released our 6th Sustainability Report in September For personal use only Key Achievements in FY20 Nova Solar Farm TCFD alignment Climate Change Policy Dow Jones Sustainability Index Australia admission Continued commitment to creating shared value 7
Slide 9: Nova Solar Farm
Nova Solar Farm We are walking the talk on our commitment to ‘clean mining’ For personal use only Carbon Intensity of Nickel Operations1 PT Aneka Tambang PT Vale Indonesia Glencore (global nickel assets) Cleanteq Sunrise BHP Nickel West Eagle mine Vale Canada* IGO Limited - Nova Nickel 0 10 20 30 40
Slide 10: Our Culture
Our Culture We continued to build on our strong culture For personal use only High levels of alignment to our values Consistently strong employee engagement across the business Our team’s response to COVID-19 was enhanced by the strength of our culture 9
Slide 11: Our People
Our People We are proud of our people and they are proud to work with IGO For personal use only “Our people are bold, passionate, fearless and fun – a smarter, kinder, more innovative team” 10
Slide 12: Our Strategy
For personal use only Our Strategy 11
Slide 13: Our Strategy
Our Strategy Focused on high quality, high margin assets aligned to clean energy metals For personal use only Globally Relevant Quality Products Vertically Integrated Proactively Green 12
Slide 14: Clean Energy Metals Focus
Clean Energy Metals Focus EV demand has significant implications for nickel demand For personal use only Tesla’s focus on nickel is clear Class 1 Nickel Supply and Demand Outlook2 kt “Technically, our cells should be called nickel- 2,500 graphite, because the primary constituent in the cell as a who
Slide 15: FY20 – Year in Review
For personal use only FY20 – Year in Review 14
Slide 16: Key Achievements
Key Achievements FY20 was a highly successful year For personal use only Effectively operated throughout a Operational performance met and challenging period exceeded our expectations Delivered outstanding financial Matured our exploration portfolio performance toward discovery Continued to strength
Slide 17: Nova
For personal use only Nova 16
Slide 18: Nova Overview
Nova Overview Excellent operational performance delivered above-guidance metal production For personal use only Nickel Production Cash Costs 30,436t A$2.41/lb Ni (payable) Copper Production Free Cash Flow Margin 13,772t 54% Cobalt Production EBITDA Margin 1,142t 59% 17
Slide 19: Nova Performance
Nova Performance Excellent operational performance generated record financial results For personal use only FY20 Quarterly Production & Cash Costs Nova Financial Results Tonnes A$/lb 600 9,000 $3.00 593 $2.59 8,000 $2.70 $2.42 8,019 500 7,724 $2.50 504 7,000 7,513 7,181 6,000 $2.00 400 $1.96 5,000 3
Slide 20: Nova Track Record
Nova Track Record Established track record of high margins and strong free cash generation For personal use only Nova historic margin and cumulative free cash flow Margin Cumulative Free Cash Flow (A$M) 110% 800 A$756M 103% 700 90% 600 70% 70% 70% 500 67% 67% 61% 59% 60% 59% 56% 57% 50% 54% 53% 53%
Slide 21: Tropicana
For personal use only Tropicana 20
Slide 22: Tropicana Overview
Tropicana Overview FY20 production and costs were within guidance range For personal use only Gold Sold (IGO 30%) AISC EBITDA Margin 141,169 oz A$1,171 /oz 60% Boston Shaker Underground Mine completed on time and on budget 21
Slide 23: Tropicana Performance
Tropicana Performance Record financial results across most metrics For personal use only Tropicana Production (100% ) and AISC Tropicana Financial Results oz A$/oz 300 160,000 $1,600 290 $1,440 279 140,000 $1,303 $1,400 250 133,932 240 120,000 123,320 $1,200 200 $948 100,000 $1,066 103,858 $1,000 10
Slide 24: Tropicana Growth
Tropicana Growth Commercial production declared from Boston Shaker Underground For personal use only Development completed on time and on budget Ramp up to nameplate 1.1 Mtpa production rate expected by March 2021 Depth extensions to be tested with upcoming drilling 1) Refer to ASX release dated 28
Slide 25: Tropicana Strategic Review
Tropicana Strategic Review Strategic Review underway focused on delivering value for all shareholders For personal use only Motivated by conviction that Tropicana is not fully valued in IGO portfolio Initial phase focused on technical review to inform strategy and decision making 24
Slide 26: Financial Results
For personal use only Financial Results 25
Slide 27: Financial Results Summary
Financial Results Summary Sustained improvement across key financial measures For personal use only Revenue1 (A$M) Net Profit After Tax (A$M) 1000 200 892 155 781 793 150 800 100 76 600 53 422 50 417 17 400 0 200 -50 -59 0 -100 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Underlying Free Cash F
Slide 28: FY20 Dividend
FY20 Dividend Enduring commitment to making cash returns to shareholders For personal use only Dividend History (cents per share) Dividend (cents Free Cash Flow Final Dividend per share) (A$M) 14 350 5c per share (unfranked) 12 289 282 300 10 250 5 Total FY20 dividend payout 8 172 200 A$65M (▲10% yo
Slide 29: Exploration
For personal use only Exploration 28
Slide 30: Exploration Overview
Exploration Overview Organic growth through exploration is a key pillar of our growth strategy For personal use only Focus on discovering deposits with scale and high value ore Terranes and JV’s selected due to potential to host multiple Tier-1 discoveries Energised team, prospective portfolio and f
Slide 31: FY21 Exploration Guidance
FY21 Exploration Guidance Financial commitment to exploration maintained at A$65M for FY21 For personal use only FY21 Exploration Budget Substantial work program underway across A$1M A$5.0M the portfolio A$2M A$2M A$3M Work programs include significant drilling of A$65M A$11M A$38M targets in close
Slide 32: Fraser Range Project
Fraser Range Project Significant opportunity to unlock value through discovery For personal use only 31
Slide 33: Kimberley and Raptor Projects
Kimberley and Raptor Projects Pipeline of projects which are prospective for Nova-like nickel sulphide discoveries For personal use only Kimberley Project (WA) Raptor Project (NT) 32
Slide 34: Paterson Project
Paterson Project Recently consolidated land position prospective for Tier-1 sedimentary copper discoveries For personal use only New belt-scale opportunity for IGO Highly prospective for copper-gold discovery IGO holds second largest land package in the region 33
Slide 35: Lake Mackay
Lake Mackay Multiple mineralisation styles discovered For personal use only Grimlock Lateritic nickel-cobalt-manganese prospect Arcee Gold prospect Phreaker Copper-gold-silver + cobalt prospect 34
Slide 36: What to watch for in FY21
For personal use only What to watch for in FY21 35
Slide 37: Our focus for FY21
Our focus for FY21 Enduring commitment to drive value for all our stakeholders For personal use only Our People Accelerating Growth Operational Excellence Maintaining our unique Continued focus on Active Exploration culture being better Progressing Technology driven Disciplined M&A Safety Improvemen
Slide 38: 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
Slide 39: 2020 AGM – CEO Presentation (address transcript)
2020 AGM – CEO Presentation 18 November 2020 Slide 1 – Cover Slide Thank you Peter, and good afternoon everyone. It is great to be here to present IGO to you at our 2020 Annual General Meeting. For personal use only Slide 2 – Cautionary Statements and Disclaimers Slides 2 and 3 set out our cautionar
Slide 40: For personal use only
index in late 2019 at the 78th percentile. I am pleased to advise that IGO continues to be included in the latest index announced this week. Slide 8 – Nova Solar Farm For personal use only Our sustainability report also showcased the development and commissioning of the Nova solar farm in late 2019
Slide 41: Key Achievements (address)
Slide 15 – Key Achievements Operationally and financially we have delivered outstanding performance for the 2020 financial year and into the first quarter of the 2021 financial year, while also continuing to strengthen our culture and focus on ESG. For personal use only We have achieved this under v
Slide 42: Tropicana Performance (address)
Slide 22 – Tropicana Performance Again, like Nova, Tropicana has delivered improving financial metrics over the past few years with increasing revenue, EBITDA and Operational Cash Flow. During the 2020 financial year, we invested into the Boston For personal use only Shaker Underground and, if not f
Slide 43: Exploration (address)
Slide 28 - Exploration Our strong financial results and balance sheet have also enabled us to invest in exploration and discovery to find the mines of the future and to drive long term transformational growth for IGO. For personal use only Slide 29 – Exploration Overview Our exploration strategy pri
Slide 44: Paterson Project (address)
Slide 33 – Paterson Project We expect a higher level of work and expenditure in the Paterson Province during the 2021 financial year, where we are hunting for copper deposits with potential for gold and / or cobalt credits. For personal use only Although we recently expanded our joint venture holdin