Igo Limited · ASX:IGO
Igo — Independence Group NL — Diggers & Dealers 2010
47 slides from Igo's conference presentation, Jul 30, 2010
Slide 1: Growing a Great Company by Mineral Discoveries & Mine Development
For personal use only INDEPENDENCE GROUP GROWING G O G A GREAT G CO COMPANY BY MINERAL DISCOVERIES & MINE DEVELOPMENT DIGGERS & DEALERS PRESENTATION August 2010 Chris Bonwick – Managing Director
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS For personal use only Certain oral and written statements contained or incorporated by reference in this presentation, including information as to the future financial or operating performance of the Company and its projects, constitute forward‐looking statements. t t t Al
Slide 3: Independence Overview - Corporate
INDEPENDENCE OVERVIEW ‐ CORPORATE For personal use only Capital Structure: ASX 200 Code: IGO 113.8M shares & 1.1M staff options Market Cap. (28/7/10): A$635M $ Daily turnover (6 month average) – 0.4M Substantial shareholders: JF Capital 11.6M shares Orion 8.3M shares NAB 6 8M shares 6.8M Aus Inst :
Slide 4: Independence Overview - Assets
INDEPENDENCE OVERVIEW ‐ ASSETS For personal use only LONG NICKEL 2009/10 Cash Costs without royalty: A$4.01/lb Ni MINE with royalty: A$4.44/lb Ni 2009/10 Revenue: A$9.60/lb Ni Jun 09 Resources: 93,900t Ni @ 5.6% Ni Production Jun 09 Reserves: 51,800t Ni @ 3.9% Ni Extending d mine life l f – New Mor
Slide 5: IGO History and Share Price
IGO HISTORY AND SHARE PRICE For personal use only Monthly Average Share Price to 28.07.10
Slide 6: Long Nickel Mine
LONG NICKEL MINE For personal use only IGO’S CURRENT CASH PRODUCING ASSET 2002 Purchase price = A$15M IGO Profit to date = A$274M Australia’s lowest cost nickel sulphide mine 1979‐1999 1979 1999 WMC Production: 203 184t Ni 203,184t 2002‐2010 IGO Production: 64,109t Ni
Slide 7: Long Nickel Mine - IGO 100%
LONG NICKEL MINE – IGO 100% For personal use only HISTORY • IGO Starting Reserve = 26,800 Ni t • IGO Production to date = 64,109 Ni t • June 2009 Resource = 93,900 Ni t • June 2009 Reserves = 51,800 Ni t GOALS • Sustainable 9,000t Ni pa in bottom 3rd of world‐wide world wide nickel production cash c
Slide 8: Production Forecast & Hedging
PRODUCTION FORECAST & HEDGING For personal use only 2009/10 2009/10 Guidance Actual • Production 8,000‐8,400 Ni t 8,615 Ni t • Grade 4.0% Ni 4.25% Ni • Cash Costs (payable) ‐ with royalty A$4.20‐4.40/lb Ni A$4.44/lb Ni ‐ without royalty A$3.90‐4.10/lb Ni A$4.01/lb Ni 20010/11 Guidance • Production 8
Slide 9: Quarterly Cash Costs & Revenue
QUARTERLY CASH COSTS & REVENUE For personal use only High operating margins Revenue A$/lb Ni R (includes hedging) Payable Cash Costs A$/lb Ni Consistently low cash costs
Slide 10: Mine Geophysics - TEM Equipment
MINE GEOPHYSICS ‐ TEM EQUIPMENT For personal use only High Hi h powered d TEM Underground transmitter Down hole TEM **Exclusive to IGO** surveying • 10 x more powerful than • More accurate drill current systems. Down hole TEM p probe targeting, reduced • Doubles search radius di discovery and d ore
Slide 11: Long Mine Nickel Deposits & Targets
LONG MINE NICKEL DEPOSITS & TARGETS LONGITUDINAL PROJECTION For personal use only June 2009 Mineral Resource: 1,685,000t @ 5.6% Ni (93,900t Ni) June 2009 Ore Reserve: 1,327,000t @ 3.9% Ni (51,800t Ni)
Slide 12: Moran Nickel Deposit
MORAN NICKEL DEPOSIT For personal use only June 2009 Mineral Resource: 456,000t @ 7.1% Ni (32,400t Ni) June 2009 Ore Reserve: 640,000t @ 4.1% Ni (26,300t Ni)
Slide 13: Moran Deposit
MORAN DEPOSIT HIGH‐GRADE MASSIVE NICKEL SULPHIDES For personal use only
Slide 14: Moran Development
MORAN DEVELOPMENT For personal use only Pre‐existingg development p has enabled Moran to be developed p rapidly p y
Slide 15: Long Mine Complex Production / Ore Reserve Comparison
LONG MINE COMPLEX PRODUCTION / ORE RESERVE COMPARISON For personal use only 2002‐10 PRODUCTION SUMMARY Initial Ore Reserve Estimate: 40,373 Ni t Mi d ffrom Ore Mined O Reserve: R 52 665 Ni t (+30%) 52,665 ( 30%) Mined outside Ore Reserve: 11,444 Ni t (+28%) TOTAL: 64,109 Ni t (+58%)
Slide 16: Long Mine Fly Through
LONG MINE FLY THROUGH For personal use only
Slide 17: Tropicana JV - New Gold Province
TROPICANA JV ‐ NEW GOLD PROVINCE IGO’S SECOND POTENTIAL CASH GENERATOR For personal use only AngloGold Ashanti – 70% (Manager) I d Independence d G Group – 30% Tropicana JV “New Gold Province under sand” 1000kms
Slide 18: Tropicana JV Tenements
TROPICANA JV TENEMENTS For personal use only
Slide 19: Tropicana JV Significant Discoveries to Date
TROPICANA JV SIGNIFICANT DISCOVERIES TO DATE For personal use only JV tenure – 396km strike length & 15,000km 2 area (granted & application ML’s & EL’s)
Slide 20: Tropicana JV Pre-Feasibility Resource & Reserve
TROPICANA JV PRE‐FEASIBILITY RESOURCE & RESERVE For personal use only 100% Project: Jun 2009 Open Pit Resource: 75.3Mt @ 2.1g/t Au – 5Moz (A$1,250/oz) Dec 2009 Open Pit Reserve: 45Mt @ 2.3g/t Au – 3.3Moz (A$1,059/oz)
Slide 21: Tropicana JV New Boston Shaker Discovery
TROPICANA JV NEW BOSTON SHAKER DISCOVERY For personal use only Tropicana gold system still growing along‐strike and down‐dip. down dip.
Slide 22: Tropicana JV Underground Potential
TROPICANA JV UNDERGROUND POTENTIAL For personal use only High‐grade, true width in‐pit gold intercepts suggest underground potential
Slide 23: Tropicana JV Havana Deeps Intercepts
TROPICANA JV HAVANA DEEPS INTERCEPTS For personal use only Tropicana gold system still growing along‐strike and down dip. down‐dip.
Slide 24: Tropicana JV Havana Deeps Cross-Section
TROPICANA JV HAVANA DEEPS CROSS‐SECTION For personal use only
Slide 25: Tropicana JV Current Proposed Plant Layout
TROPICANA JV CURRENT PROPOSED PLANT LAYOUT For personal use only
Slide 26: Tropicana JV Pre-Feasibility Outcome (100% Project)
TROPICANA JV PRE‐FEASIBILITY OUTCOME (100% PROJECT) For personal use only Open‐cut Resource: 75.3 Mt @ 2.07g/t Au (5.01 M oz Au) at June 2009 Mining Reserve: 45 Mt @ 2.3g/t Au (3.3 M oz Au) (A$1059/oz Au, US$103/barrel oil & 15% discount rate assumptions) Mill: 5.5 Mt p/a (plant & infrastructure cap
Slide 27: Tropicana Fly Through
TROPICANA FLY THROUGH For personal use only
Slide 28: IGO Gold & Base Metal Exploration Projects
IGO GOLD & BASE METAL EXPLORATION PROJECTS For personal use only
Slide 29: Duketon JV - Project Location
DUKETON JV – PROJECT LOCATION (IGO earning 70%) For personal use only
Slide 30: Duketon JV - C2 Prospect
DUKETON JV – C2 PROSPECT (IGO earning 70%) For personal use only C2 Prospect cross‐section showing disseminated nickel sulphide p system y C2 Prospect disseminated NiS C2 Prospect stringer NiS
Slide 31: Duketon JV - Rosie Prospect Drill Core
DUKETON JV – ROSIE PROSPECT DRILL CORE (IGO earning 70%) For personal use only Rosie Prospect massive nickel sulphides assaying: 5.2m @ 9.13% Ni, 1.09% Cu, 0.21% Co, 7.09g/t PGE’s (2.20g/t Pt, 1.74g/t Pd, 1.79g/t Ru & 0.82g/t Rh)
Slide 32: Duketon JV - Rosie Prospect Longitudinal Projection
DUKETON JV ‐ ROSIE PROSPECT LONGITUDINAL PROJECTION (IGO earning 70%) For personal use only
Slide 33: Holleton Gold Project - New Gold Systems Discovered
HOLLETON GOLD PROJECT (IGO 100%) NEW GOLD SYSTEMS DISCOVERED For personal use only REGIONAL GEOLOGY GOLD GEOCHEMISTRY
Slide 34: Holleton Gold Project - Syme's Find Geochemical Gold Anomaly
HOLLETON GOLD PROJECT (IGO 100%) SYME’S FIND GEOCHEMICAL GOLD ANOMALY For personal use only
Slide 35: Karlawinda Project Location
KARLAWINDA PROJECT LOCATION (IGO 100%) For personal use only Large new gold system close to gas pipeline and existing infrastructure
Slide 36: Karlawinda - Francopan Prospect Cross-Section
KARLAWINDA ‐ FRANCOPAN PROSPECT CROSS‐SECTION For personal use only Very large gold system
Slide 37: Karlawinda Gold Project - Bibra Gold Prospect
KARLAWINDA GOLD PROJECT (IGO 100%) BIBRA GOLD PROSPECT For personal use only Bibra Primary & Oxide Mineralisation
Slide 38: Karlawinda Gold Project - Bibra Shallow Oxide Mineralisation
KARLAWINDA GOLD PROJECT (IGO 100%) BIBRA GOLD PROSPECT For personal use only Bibra Shallow Oxide Mineralisation Enlargement
Slide 39: Project Generation - De Beers Database
PROJECT GENERATION DE BEERS DATABASE (IGO 100%) For personal use only 100% IGO – NO BUY‐BACK OR ROYALTIES 103,000 analysed geochemical samples. 189,000 189 000 unanalysed geochemical samples. 2,278 samples reporting visible gold. 2,025 , ggeophysical p y surveys. y IGO analysing samples fo
Slide 40: De Beers Database Storage Warehouse
DE BEERS DATABASE STORAGE WAREHOUSE For personal use only Preparing geochemical samples for analysis
Slide 41: Project Generation - De Beers Database
PROJECT GENERATION DE BEERS DATABASE (IGO 100%) For personal use only IGO 2009 gold analysis of De Beers samples collected before the discovery of the Plutonic Gold Mine (WA)
Slide 42: FY2010-11 Group Exploration Focus
FY2010‐11 GROUP EXPLORATION FOCUS For personal use only LONG NICKEL MINE Moran, McLeay and Long North extension drilling Budget: A$7M Finalise feasibilityy studyy and fundingg TROPICANA JV Boston Shaker extension and in‐fill drilling Budget: A$12M Havana Deeps drill‐out (IGO share) Exploration drill
Slide 43: Independence Corporate Goals
INDEPENDENCE CORPORATE GOALS For personal use only To improve shareholder returns by growing a highly profitable, multi commodity Australian mining company Focus on: Low cash costs Mine longevity Innovative exploration Strong g balance sheet
Slide 44: IGO Contact Details
IGO CONTACT DETAILS For personal use only COPIES OF PRESENTATION AVAILABLE AT IGO BOOTH Perth Office Managing Director – Chris Bonwick Ground Floor, Suite 1 183 Great Eastern Highway, Belmont, Western Australia Postal: PO Box 496, South Perth, Western Australia 6951 Telephone: +61 8 9479 1777 Facsim
Slide 45: Competent Person Statement
COMPETENT PERSON STATEMENT For personal use only Note: The information in this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Christopher M Bonwick who is a full‐time employee of the Company and is a member of the Australasi
Slide 46: Long Nickel Mine June 2009 Resources and Reserves
LONG NICKEL MINE JUNE 2009 RESOURCES AND RESERVES For personal use only Reserves are included in resources Notes: 1 The cut‐off grade used for the Victor South resource is 0.6% Ni. 2 Ore tonnes have been rounded to the nearest thousand tonnes and nickel tonnes have been rounded to the nearest hundre
Slide 47: Tropicana JV 2009 Resources and Reserves
TROPICANA JV 2009 RESOURCES AND RESERVES For personal use only June 2009 December 2009 Open Pit Resources Open Pit Reserves Tonnes Grade Contained Tonnes Grade Contained (Mt) (g/t) 1 Gold (Mt) (g/t) 3 Gold 2 4 (Moz) (Moz) Measured 24.2 2.3 1.79 Proved 22 2.4 1.7 Indicated 39.8 2.0 2.58 Probable 23 2