Slide 1: 2Q23 and 1H23 Results Presentation
2Q23 and 1H23 Results Presentation IGO Limited 31 January 2023 IGO LIMITED IGO | ASX: LIMITED IGO
Slide 2: Cautionary Statements & Disclaimer
Cautionary Statements & Disclaimer • This presentation has been prepared by IGO Limited (“IGO”) applications and approvals, construction, financing • Nickel cash costs are reported inclusive of royalties and after (ABN 46 092 786 304). It should not be considered as an offer arrangements and access
Slide 3: Half Year Overview
Half Year Overview Focused on delivering on our purpose and strategy Building a globally relevant, vertically integrated business delivering products critical to the clean energy transition Supported the significant growth of our lithium business Expanded and diversified our nickel business Progress
Slide 4: People & Safety
People & Safety Making progress toward improving health and safety risks TOTAL RECORDABLE INJURY FREQUENCY RATE (TRIFR)1 22 Decrease in QoQ TRIFR is encouraging however we have 21 more to do to improve safety performance 20 19 18 Emergency response to Nova fire was managed safely 17 16 15 14 Ongoing
Slide 5: Highlights
Highlights IGO has delivered record financial results Record Underlying EBITDA and NPAT1 Financial Performance Record Interim dividend declared of 14 cents per share Net Debt reduced to $175M ($221M lower QoQ) Continued production ramp up at Greenbushes Lithium Business Record financial performance
Slide 6: 2Q23 & 1H23 Financial Results Summary
2Q23 & 1H23 Financial Results Summary Record earnings and net profit, while cash builds strongly Units 2Q231 1Q231 QoQ 1H231 1H221 HoH Sales Revenue A$M 253 285 ▼11% 538 377 ▲43% Share of Net Profit of TLEA A$M 346 286 ▲21% 631 14 ▲4,275% Underlying EBITDA2 A$M 436 398 ▲10% 834 226 ▲269% Net Profit
Slide 7: Net Profit After Tax Reconciliation
Net Profit After Tax Reconciliation Lithium business profitability offsets weaker result from Nova Net Profit After Tax – QoQ Movement1 A$M 400 350 57 300 1 12 60 250 <1 0.3 3 <1 0.4 34 32 18 200 338 150 253 100 50 - 1Q23 NPAT Nova Forrestania Exploration & Corporate & Acquisition Mark-to- Share of
Slide 8: Cash Reconciliation
Cash Reconciliation 2Q23 enhanced by strong dividend flows from TLEA Cash – QoQ Movement1 A$M 800 700 27 6 17 12 10 1 600 102 500 334 400 22 72 103 300 515 200 284 100 - Cash at Nova FCF Forrestania Cosmos FCF TLEA Exploration & Payments for Corporate & Finance Net Debt Purchase of Income Tax Cash a
Slide 9: FY23 Interim Dividend
FY23 Interim Dividend IGO remains committed to shareholder returns Dividend History Cents per share 16 14c per share fully franked interim dividend declared 14 12 10 Interim dividend at upper end of 15 – 25% Underlying 8 5 FCF1 range 5 14 6 8 10 4 6 Capital Management Framework under review, with up
Slide 10: Lithium Business
Lithium Business TLEA Joint Venture (IGO: 49% / Tianqi Lithium Corporation: 51%) IGO Limited | 2Q23 & 1H23 Results Page 10
Slide 11: TLEA Joint Venture
TLEA Joint Venture Continuing to grow a globally significant lithium business 2Q23 Financial Highlights Record financial results driven by exceptionally strong profitability at IGO share of TLEA NPAT Greenbushes, recording a 2Q23 EBITDA margin of 87% $346M 21% QoQ Record dividend from TLEA of $334M,
Slide 12: Greenbushes
Greenbushes Outstanding quarter of operating and financial performance YTD 100% basis Units 2Q231 1Q231 QoQ 1H23 Guidance Stronger QoQ production driven by improved throughput and recovery Spodumene offsetting small dip in overall milled grades Kt 379 361 ▲5% 740 675 – 725 Concentrate Spodumene Sale
Slide 13: Greenbushes
Greenbushes Adding value through multiple drivers • CGP3 construction progressing well. Practical completion on schedule for H2 FY25 Mine and Processing Expansion • Substantial works to advance new mine services area, tailings storage & power • New mining contract awarded to Macmahon, effective 1 Ju
Slide 14: Greenbushes
Greenbushes Rapidly transforming into a highly productive operation; higher prices to benefit 2H23 Tonnes (100% basis) A$/t Greenbushes Outlook 400,000 $263 $300 380,000 $254 $253 3Q23 Chemical Grade Price: $US5,957/t FOB, based on $242 $235 $250 revised pricing mechanism 360,000 $219 340,000 $200 3
Slide 15: Kwinana Refinery
Kwinana Refinery Improving operating performance as production ramps up Commercial production declared at Train 1 during 2Q23 Production during the quarter of 585t battery grade LiOH representing a 200% improvement QoQ First commercial sale in December 2022 as testing and qualification continues 2Q2
Slide 16: Kwinana Refinery
Kwinana Refinery Outlook Train 1 Outlook • Technical review completed • Ramp-up Taskforce established • Ramp-up profile adjusted by ~6 months • 60-70% capacity expected by end CY23 • FY23 Sustaining and Improvement Capex has increased; expected to be between $35M - $45M Train 2 Outlook • Early works
Slide 17: Nickel Business
Nickel Business IGO Limited | 2Q23 & 1H23 Results Page 17
Slide 18: Nova
Nova Quarterly result impacted by fire-related suspension of operations YTD Units 2Q231 1Q231 QoQ 1H231 Guidance2 Operations suspended for 18 days Nickel in concentrate t 4,229 6,572 ▼36% 10,800 12,000 – 13,500 following fire at diesel power station in early December Copper in concentrate t 1,953 2,
Slide 19: Forrestania
Forrestania Softer quarter with lower production and higher costs, offset by higher nickel prices YTD Units 2Q231 1Q231 QoQ 1H231 Guidance2 Lower production driven by lower milled tonnes and lower recoveries Nickel in concentrate t 2,950 3,189 ▼7% 6,139 5,250 – 6,250 Sales revenue benefited from 37%
Slide 20: Cosmos
Cosmos Continued progress on project development Paste Plant 2Q23 Progress Update Final design and long lead ordering complete, works tracking to Processing Plant schedule Paste Plant Key works completed; commissioning expected 3Q23 Second leg (~400m) to commence in 3Q23; head frame assembly Shaft &
Slide 21: Nickel Business Outlook
Nickel Business Outlook Guidance Update for Nova and Forrestania Nova FY23 Restated Units Guidance FY23 Guidance • Reducing FY23 production guidance to reflect production loss as a result of Nova fire Nova • Adjusting cash costs guidance due to impact of lower production and lower copper price Nicke
Slide 22: Exploration
Exploration IGO Limited | 2Q23 & 1H23 Results Page 22
Slide 23: Exploration
Exploration Ongoing work to unlock discovery Extensive portfolio targeting nickel, copper, lithium and rare earths discoveries 2Q23 work programs primarily focused on Nova, Fraser Range, Forrestania, Kimberley and Paterson Projects Ongoing process to identify and test prospective targets across the
Slide 24: Environment & Sustainability
Environment & Sustainability Focused on “never standing still” on our commitment to sustainable practices Maintained membership in Dow Jones Sustainability Index for Australia & Asia Pacific VSUN Energy Ultra Standalone Power Station ready for installation at Silver Knight Exploration Camp to provid
Slide 25: Summary
Summary Lithium business continued to drive outstanding financial results Record quarterly EBITDA and NPAT Record interim dividend of $0.14 per share fully franked Laser focus on growth projects within the Lithium business Strong recovery from fire at Nova Cosmos development progressing to schedule
Slide 26: Making a Difference
Making a We believe in a world where people power makes How? Developments in battery storage technology amazing things happen. are enabling the full potential of renewable energy to be realised, by allowing energy produced from the Where technology opens up new horizons and clean sun, wind and other