Igo Limited · ASX:IGO
Igo — Independence Group NL — Merger or Acquisition (May 2015)
22 slides from Igo's merger presentation, May 25, 2015
Slide 1: Independence to acquire Sirius
For personal use only Independence to acquire Sirius Creation of a leading Australian diversified mining company Au Ni Ni/Cu Cu/Zn 25 May 2015
Slide 2: Cautionary note and disclaimer
Cautionary note and disclaimer This presentation has been prepared by Independence Group NL (“IGO”) (ABN 46 092 786 304) and Sirius Resources NL ("SIR") (ABN 46 009 150 083). It should not be considered as an offer or For personal use only invitation to subscribe for or purchase any securities in
Slide 3: Transaction highlights
Transaction highlights Creation of a leading Australian diversified mining company with a market cap of ~$2.7 billion(1) For personal use only Clear strategic rationale for transaction Acquisition of SIR is consistent with IGO's clearly defined growth strategy Crystallises significant near ter
Slide 4: Transaction summary
Transaction summary Transaction implemented via two inter‐conditional Schemes of For personal use only Arrangement(1) whereby SIR shareholders receive; 0.66 IGO shares and 52¢ in cash per SIR share A shareholding in S2 containing SIR’s Polar Bear and Scandinavian assets on the basis of circa 1
Slide 5: Creation of a leading Australian diversified mining company
Creation of a leading Australian diversified mining company Strategic Scale Supported Value For personal use only Makes strong strategic sense Creates a ~$2.7 billion Strong support for Delivers significant value to on multiple levels diversified mining company transaction shareholders of both parti
Slide 6: Benefits for IGO and Sirius shareholders
Benefits for IGO and Sirius shareholders For personal use only Benefits for IGO shareholders Benefits for Sirius shareholders Gain exposure to the world class Nova‐Bollinger Receive significant premium to the Sirius closing price nickel/copper development project while retaining the and the Siri
Slide 7: Group capital structure
Group capital structure Pro‐forma capital Structure Shareholding For personal use only IGO SIR Pro forma IGO SIR Substantial Fidelity 9.7% Mark Creasy 35.0% Share price shareholders Blackrock 5.0% JCP Investment 7.3% 5.85 3.24 (close 22 May 2015) Vinva 5.0% LSV 5.0% % institutional ~80% ~44% Shares
Slide 8: Overview of combined portfolio
Overview of combined portfolio For personal use only 7
Slide 9: Diversified mining, development and exploration company
Diversified mining, development and exploration company Tropicana Jaguar Long Nova Stockman For personal use only Ownership 30% 100% 100% 100% 100% Location Western Australia Western Australia Western Australia Western Australia Victoria Stage Production Production Production Construction Permitting
Slide 10: Tropicana – producing tier gold project
Tropicana – producing tier 1 gold project Proximal to Nova For personal use only One of best virgin Australian gold discoveries Open Pit mining with LOM strip ratio of 5.4 : 1 since 2000 Exploration upside Low cost with 9 year mine life – Resource extension 3.6Moz Ore Reserves, 7.5Moz Reso
Slide 11: Jaguar & Long are complementary
Jaguar & Long are complementary Jaguar Long For personal use only High grade underground Zn / Cu VMS deposit High grade underground Nickel (3.8%) Significant improvement in operation over last High margin and consistent performer 1‐2 years FY2015 Guidance FY2015 Guidance – 9,500 – 10,500
Slide 12: Nova-Bollinger – a tier asset in development
Nova‐Bollinger – a tier 1 asset in development Globally significant Ni‐Cu discovery For personal use only Located 350km from Esperance and Kalgoorlie Project construction commenced in January 2015 DFS completed in June 2014 and mining lease Project significantly de‐risked with major granted
Slide 13: Nova Bollinger – one of the best undeveloped Ni-Cu mines
Nova Bollinger – one of the best undeveloped Ni‐Cu mines High margin asset For personal use only DFS forecast C1 cash cost of US$1.50/lb (based on 100% payability) (1) DFS forecast all‐in‐sustaining cash cost of US$2.09/lb (based on 100% payability) Positions Nova‐Bollinger as 12th lowest cost
Slide 14: Consolidation of Fraser Range - Tropicana belts
Consolidation of Fraser Range ‐ Tropicana belts IGO / SIR land holding For personal use only Securing a dominant land position in the Fraser Range and Tropicana Belts allowing a focused exploration effort Both provinces under‐explored, with tier 1 virgin discoveries Mark Creasy commented: “Thi
Slide 15: Western Australia operational focus delivers synergies
Western Australia operational focus delivers synergies For personal use only Combining unique exploration, development, operational and marketing capability of IGO and SIR Scale delivers greater capacity and leverage for procurement, contractor and off‐take benefits Consolidation of entities r
Slide 16: S2 Resources to contain Baloo gold prospect
S2 Resources to contain Baloo gold prospect For personal use only SIR shareholders receive a distribution of shares in S2 through capital reduction S2 Resources contains Polar Bear & Scandinavian assets Approximately $22M of working capital Includes Baloo discovery – Virgin gold discovery up
Slide 17: Market relevance
Market relevance Significantly greater scale than its listed peers For personal use only Pro forma Market Cap(1)(2) (A$M) 3,000 2,706 2,500 2,000 1,508 1,500 1,370 1,336 1,280 1,000 927 850 842 828 819 607 500 369 170 114 IGO+SIR OZL IGO SIR NST OGC AQG EVN SFR WSA RRL SAR PAN MCR Source: Datastream
Slide 18: Liquidity
Liquidity Becomes one of the most liquid mid‐cap resource companies on ASX For personal use only Pro forma LTM average daily liquidity(1)(2) (A$M) Pro 12 forma LTM average daily liquidity1,2 (A$M) 10.6 10.2 10 8.9 8 7.1 6.3 6 5.7 5.0 4.1 4 2.5 2 1.3 1.2 0.8 0.8 0.2 IGO+SIR NST OZL WSA RRL IGO SIR SF
Slide 19: Board of directors
Board of directors For personal use only Peter Bilbe Chairman of IGO since 2009 B.Eng. (Mining) (Hons), MAusIMM Mining engineer with 40 years Australian and international mining experience Non‐executive Chairman Held senior positions at Mount Gibson Iron, Aztec Resources , Portman, Aurora Gold
Slide 20: Indicative timetable
Indicative timetable For personal use only 19
Slide 21: Summary
Summary Creation of a leading Australian diversified mining company with a market cap of ~$2.7 billion(1) For personal use only Clear strategic rationale for transaction Acquisition of SIR is consistent with IGO's clearly defined growth strategy Crystallises significant near term value for SIR
Slide 22: Competent Persons Statement
Competent Persons Statement Independence Group NL For personal use only Exploration Results The information in this report that relates to Exploration Results is a compilation of previously published data for which Competent Persons consents were obtained. Their consents remain in place for subseque
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