Igo Limited · ASX:IGO

Igo — Independence Group NL — Investor Presentation (October 2014)

32 slides from Igo's investor presentation, Oct 13, 2014

  1. Slide 1: October 2014 Investor Presentation

    For personal use only Au Ni Cu/Zn October 2014 Investor Presentation Peter Bradford, Managing Director & CEO

  2. Slide 2: Disclaimer

    Disclaimer  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 invitation with respect to those securities in any

  3. Slide 3: Presentation Outline

    Presentation Outline  Introduction to Independence For personal use only  FY14 Financials  Operations • Tropicana • Long • Jaguar  Growth  Summary Page 3

  4. Slide 4: Introduction to Independence

    Introduction to Independence  ASX listed For personal use only • Head Office in Perth Executive Management Team Managing Director & CEO Peter Bradford  234.3M shares on issue GM Operations Brett Hartmann • $0.95 billion market capitalisation(1) GM Finance Scott Steinkrug GM Corporate & Co. Sec Ton

  5. Slide 5: FY14 Financials

    FY14 Financials For personal use only Highlights FY14 FY13 Revenue $399.0M $225.9M Underlying EBITDA(1) $174.8M $56.8M Profit after tax(2) $46.6M $18.3M Net Cash Flow From Operating Activities $153.6M $67.5M Free Cash Flow(3) $30.2M ($147.6M) Final Fully Franked Dividend 5.0 cps 1.0 cps Full Year Fu

  6. Slide 6: FY14 Underlying EBITDA

    FY14 Underlying EBITDA(1) For personal use only $M $250 $85M $2.3M $4.6M $200 $4.3M $12.9M $150 $53M $100 $61M $50 $0 Long Jaguar Tropicana MTM Hedging PRP(2) Exploration Corporate (1) Underlying EBITDA is a non-IFRS measure and comprises net profit or loss after tax, adjusted to exclude tax expense

  7. Slide 7: Year on Year NPAT Analysis

    Year on Year NPAT Analysis $M For personal use only $90 $9.6M $0.7M $6.2M $80 $19.0M $4.2M $1.3M $18.4M $70 $60 $35.2M $1.2M $0.8M $1.5M $4.5M $50 $46.6M $40 $30 $20 $18.3M $10 $0 (1) Underlying EBIT is a non-IFRS measure and comprises net profit or loss after tax, adjusted to exclude tax expense, f

  8. Slide 8: Tropicana JV (IGO 30%)

    Tropicana JV (IGO 30%)  At nameplate capacity since March 2014 For personal use only  Tropicana vital statistics: • 10 year life at 5.8 Mtpa throughput • Years 1-3 gold production guidance  Average 141-147,000 oz pa (IGO Share)  Average Cash Costs of $590-$630/oz Au  Solid maiden year • Gold Pr

  9. Slide 9: Tropicana JV (IGO 30%)

    Tropicana JV (IGO 30%) For personal use only Page 9

  10. Slide 10: Tropicana JV Exploration

    Tropicana JV Exploration  Tropicana Deeps Reference: IGO ASX Release 28/07/2014 For personal use only Independence Group Quarterly Activities Report • 3D seismic survey to map high grade shoots down plunge from pits  Near Mine Exploration • Identified targets in prospective stratigraphy • Under co

  11. Slide 11: Long

    Long  History of consistent low cost production and For personal use only reserve replacement  Long Vital Statistics: • Annual mining rate ~250,000t at average 4.0% Ni • ~3 Year Mine Life based on Reserves • FY14 Free Cash Flow of $55.9M 3,000 $6.00 2,500 $5.00 Cash Costs ($/lb Ni) Contained Nicke

  12. Slide 12: Long Exploration

    Long Exploration For personal use only Reference: IGO ASX Release 28/07/2014 Independence Group Quarterly Activities Report Page 12

  13. Slide 13: Jaguar

    Jaguar  Production 100% from Bentley Deposit For personal use only  Jaguar Vital Statistics: • Annual mining rate ~440,000t @ 10%Zn and 1.8%Cu • ~3 Year Mine Life based on Reserves • FY14 Free Cash Flow of $21.2M 14,000 $0.70 12,000 $0.60 Cash Costs ($/lb Zn) Contained Metal (t) 10,000 $0.50 8,000

  14. Slide 14: Jaguar - Bentley Mine

    Jaguar - Bentley Mine For personal use only Reference: IGO ASX Release 28/07/2014 Independence Group Quarterly Activities Report Page 14

  15. Slide 15: Jaguar - Flying Spur

    Jaguar - Flying Spur Cross Section Long Section For personal use only Reference: IGO ASX Release 22/09/2014 Page 15

  16. Slide 16: Jaguar - Near Mine Exploration

    Jaguar - Near Mine Exploration Under-explored 50km long corridor surrounding three known mines with ten Cu-Zn-Ag alteration For personal use only anomalies under cover, being systematically tested. Reference: IGO ASX Release 28/07/2014 Independence Group Quarterly Activities Report Page 16

  17. Slide 17: Jaguar - Triumph

    Jaguar - Triumph For personal use only Reference: IGO ASX Release 22/09/2014 Page 17

  18. Slide 18: Jaguar - Darlot JV

    Jaguar - Darlot JV  Earn in JV For personal use only • IGO earning a 70-80% interest • Partner - Enterprise Metals Ltd  Location and Tenure • 60 km north of Jaguar • Large land holding (740 km2)  Strategy • Past exploration focussed on Au • Updated geological model confirms Jaguar/Bentley style V

  19. Slide 19: Growth

    Growth For personal use only Lake Mackay De Beers database Discovery Bryah Basin Project generation Rebecca & Darlot Advanced Joint Ventures exploration Acquisition Study & Stockman Joint Ventures develop Acquisition Tropicana Production Brownfields Long Exploration Jaguar Page 19

  20. Slide 20: Growth

    Growth  Primary focus is on organic growth GOLD For personal use only $1,900 • Unlock value through discovery and $1,700 $1,500 development • $1,300 Gold price (USD/oz) First class exploration team using latest $1,100 technology Bloomberg consensus $900  Acquisition and joint ventures to $700 $500

  21. Slide 21: Stockman Project (VIC)

    Stockman Project (VIC)  460 km by road NE of Melbourne $3,000 ZINC For personal use only $2,800 $2,600  Zn-Cu-Au-Ag VMS $2,400 $2,200 • Zinc price (USD/t) Feasibility study completed 2013 $2,000 Bloomberg consensus • $1,800 Enhanced study targeting a 30% capital reduction $1,600 well progressed $1

  22. Slide 22: Lake Mackay JV (NT)

    Lake Mackay JV (NT)  IGO earning 70% over 6 years For personal use only • Phase 1: >$1.6M +$1.0M over 2 years • Phase 2: >$6.0M over 4 years • Partner - ABM Resources NL  Location & Tenure • Southern NT on WA border • Very large tenure - 12,200 km2 (5,000 km2 under application)  Strategy • Under-

  23. Slide 23: Bryah Basin JV (WA)

    Bryah Basin JV (WA)  IGO earning 70-80% For personal use only • Spending $6.5M over 6 years • Partner – Alchemy Resources Ltd  Location & Tenure • Murchison, WA • 300 km2 land holding  Strategy • Targeting De Grussa style Cu-Au deposits • Limited historical VMS exploration • Leveraging in-house e

  24. Slide 24: Summary

    Summary  For personal use only Business is in good shape • Strong FY14 and solid September Quarter production • Consistent history of low cost production  Continued focus on operating assets • Safety, productivity and cost control • Delivery against plan and guidance • Extend mine life through nea

  25. Slide 25: Contact Details

    Contact Details For personal use only Peter Bradford Managing Director & CEO Tony Walsh Company Secretary Suite 4, Level 5, South Shore Centre 85 South Perth Esplanade South Perth, Western Australia, 6151 PO Box 496, South Perth, Western Australia, 6951 Telephone: +61 8 9238 8300 Facsimile: +61 8 92

  26. Slide 26: Resources & Reserves - Competent Persons Statements

    Resources & Reserves Competent Persons Statements 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

  27. Slide 27: Resources & Reserves - Tropicana

    Resources & Reserves TROPICANA (IGO 30% SHARE) For personal use only Mineral Resource 30 June 2014 Ore Reserve 30 June 2014 100% Project 100% Project Classification Tonnes Mt Au g/t Contained Au Moz Classification Tonnes Mt Au g/t Contained Au Moz OPEN PIT Measured 22.8 2.11 1.56 OPEN PIT Proved 20.

  28. Slide 28: Resources & Reserves - Long

    Resources & Reserves LONG For personal use only Mineral Resource 30 June 2014 Ore Reserve 30 June 2014 Classification Tonnes Ni% Ni Tonnes Classification Tonnes Ni% Ni Tonnes LONG Measured 70,000 5.5 3,900 LONG Proved 50,000 3.8 1,900 Indicated 270,000 5.5 15,000 Probable 56,000 3.1 1,700 Inferred 1

  29. Slide 29: Resources & Reserves - Jaguar

    Resources & Reserves JAGUAR For personal use only Mineral Resource 30 June 2014 Ore Reserve 30 June 2014 Classification Tonnes Cu% Zn% Ag g/t Au g/t Classification Tonnes Cu% Zn% Ag g/t Au g/t BENTLEY Measured 706,000 2.2 12.3 172 0.8 BENTLEY Proved 499,000 2.1 12.1 168 0.8 Indicated 1,502,000 1.5 8

  30. Slide 30: Resources & Reserves - Stockman

    Resources & Reserves STOCKMAN For personal use only Mineral Resource 30 June 2014 Ore Reserve 30 June 2014 Classification Tonnes Mt Cu% Zn% Ag g/t Au g/t Classification Tonnes Mt Cu% Zn% Ag g/t Au g/t CURRAWONG Measured - - - - - CURRAWONG Proved - - - - - Indicated 9,548,000 2.0 4.2 42 1.2 Probable

  31. Slide 31: FY15 Guidance

    FY15 Guidance(1)(2) Tropicana Jaguar For personal use only • 141,000 to 147,000oz (IGO 30% share) • 40,000 to 43,000t Zn in conc. • Average cash cost of $590 - $630/oz Au • 5,800 to 6,500t Cu in conc. • Sustaining capex (IGO 30% share) of $9M • Average cash cost of $0.40-0.60/lb Zn • Exploration (IG

  32. Slide 32: Hedging Summary

    Hedging Summary For personal use only Nickel • FY15: 200t/month averaging $18,126/t Copper • FY15 Q1: 550t at $8,014/t in September • FY15 Q2: 550t at $7,018/t in December • FY15 Q3: 550t at $8,294/t in March • FY15 Q4: 550t at $8,500/t in June Gold • FY15 Q1 & Q2: 5,500oz/month zero cost collars (r

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