Slide 1: IGO Limited 3Q22 Results Presentation
IGO Limited 3Q22 Results Presentation 29 April 2022
Slide 2: 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 or purchase any securities in IGO or as an inducement to make an offer or invitation with respect to those secu
Slide 3: Competent Persons Statement
Competent Persons Statement • The information in this presentation that relates to IGO’s Mineral Resources or Ore Reserves is extracted from IGO’s ASX release dated 31 January 2022 titled “Annual Mineral Resource and Ore Reserve Estimates Update – CY21” and is available at https://www.igo.com.au/sit
Slide 4: Safety
Safety No material safety incidents nor major disruption to operations due to COVID-19 Lag Safety Indicators (TRepIFR1 & SPIFR2) Lead Safety Indicators 20 7 500 19 450 6 18 400 17 5 350 16 300 15 4 14 250 13 3 200 12 150 2 11 100 10 1 50 9 8 0 0 TRepIFR (lhs) SPIFR (rhs) Visual Safety Leadership Int
Slide 5: Sustainability
Sustainability Continued focus on industry leading performance and reporting Recognises the top 15% of high performing sustainable companies globally IGO admitted for the second year running IGO was the only Australian company included in the Metals and Mining category 5
Slide 6: 3Q22 Highlights
3Q22 FY19Highlights and 4Q19 Highlights Strong nickel and lithium prices deliver improved margins and quarterly profit result People Continued high level of engagement with our people while keeping them safe Nova Strong nickel price drove improved financial results despite expected lower QoQ metal p
Slide 7: 3Q22 Financial Results
3Q22 Financial Results Consistent operational performance and strong metals prices delivered strong financial results Units 2Q221 3Q221 QoQ1 YTD221 Sales Revenue A$M 188.0 245.5 ▲ 31% 622.7 Underlying EBITDA2 A$M 122.9 232.6 ▲ 89% 458.5 Net Profit After Tax A$M 52.3 133.0 ▲ 154% 233.7 Net Cash from
Slide 8: 3Q22 NPAT Reconciliation
3Q22 NPAT Reconciliation Contribution from Nova and TLEA JV lifts NPAT by 154% QoQ A$M 180 2.9 2.7 160 0.9 33.6 140 51.7 120 10.6 100 3.9 80 43.3 133.0 60 40 52.3 20 - 2Q22 NPAT Nova Exploration & Mark-to- Share of Profits Net Finance Impairment of D&A Tax 3Q22 NPAT EBITDA Evaluation market of TLEA
Slide 9: 3Q22 Cash Flow Reconciliation
3Q22 Cash Flow Reconciliation Stronger Nova FCF generation offset payment of interim dividend and income tax liability A$M 800 700 12.8 4.9 6.0 0.7 1.1 105.5 37.9 600 170.8 500 0.9 400 300 569.8 440.2 200 100 - Cash at Nova FCF Exploration & Corporate and Payments Finance Costs Lease Dividend Income
Slide 10: Nova (Nickel-Copper-Cobalt)
Nova (Nickel-Copper-Cobalt) IGO:100% 10
Slide 11: Nova
Nova QoQ production softer, as expected, due to lower grades Metric Units 2Q221 3Q221 YTD221 YTD22 Guidance1 Nickel in concentrate t 6,987 6,290 20,166 18,750 to 20,250 Copper in concentrate t 2,884 2,762 8,669 8,625 to 9,375 Cobalt in concentrate t 259 237 749 675 to 750 Cash cost (payable) 2 A$/Ib
Slide 12: Nova
Nova On track to beat FY22 cash cost guidance of A$2.00/lb – A$2.40/lb Nova Production & Cash Costs Nova Cash Flow Reconciliation Tonnes A$/lb A$M 9,000 $2.50 200 8,000 FY22 Cash Cost Guidance Range (A$2.00 – A$2.40/lb) 180 6.3 7,000 $2.00 160 $1.73 $1.99 $1.86 140 83.4 6,000 $1.28 $1.50 120 5,000 1
Slide 13: Silver Knight
Silver Knight Resource Development and Exploration Initial Mineral Resource Estimate for Silver Knight Deposit calculated: • 0.39Mt @ 2.81% Ni, 1.46% Cu, 0.14% Co1 • Containing 11kt Ni, 5.7kt Cu, 0.54kt Co1 Infill and extension RC drilling program planned to commence in 4Q22 to support the Feasibili
Slide 14: Lithium Joint Venture (TLEA)
Lithium Joint Venture (TLEA) IGO:49% | Tianqi Lithium Corporation: 51% Kwinana Lithium Hydroxide Refinery 14
Slide 15: TLEA Lithium Joint Venture
TLEA Lithium Joint Venture1 Higher spodumene prices generating strong financials IGO share of NPAT from TLEA A$60.5M (2Q22: A$8.8M) 2H22 Spodumene Revenue Price of US$1,770/t FOB2, with next price reset from 1 July 2022 IGO expects first dividend from TLEA mid-2022 1. IGO 49% non-controlling interes
Slide 16: TLEA NPAT Reconciliation
TLEA NPAT Reconciliation Higher spodumene margins drives A$61M TLEA NPAT result A$M Greenbushes (100% basis) Kwinana (100% basis) 450 400 A$75M NPAT to IGO (Greenbushes) 350 300 (A$7M) NPAT loss to IGO (Kwinana) 250 200 427 (224) 150 299 100 (17) 7 (7) 50 (14) 61 - (50) 1. OEI: Outside Equity Intere
Slide 17: Greenbushes
Greenbushes1 Strong quarterly result with first contribution from Tailings Retreatment Project YTD22 Metric Units 2Q222 3Q222 YTD222 Guidance2 Spodumene Concentrate 3 kt 259 270 797 825 to 938 Cost of Goods Sold (COGS) excl. royalties4 A$/t 242 235 230 225 to 275 Cost of Goods Sold (COGS)4 A$/t 388
Slide 18: Greenbushes processing facilities
Greenbushes1 1.55Mt installed capacity across four processing facilities Technical Grade Plant (TGP) Chemical Grade Plant (CGP1) Chemical Grade Plant (CGP2) Tailings Retreatment Project (TRP) Status Producing Producing Producing Ramp Up Production 150,000 tpa 600,000 tpa 520,000 tpa 280,000 tpa Tech
Slide 19: Greenbushes expansion
Greenbushes1 Additional 1.04Mtpa of installed capacity expected to be built by 2027 Construction of CGP3 proceeding and expected to be completed in early 2025 at a remaining capital cost of A$500 - 550M Significant ongoing investment in infrastructure to support expansion of mining and processing op
Slide 20: Kwinana Refinery
Kwinana Refinery1 Progressing toward battery grade production Good progress made towards delivery of battery grade lithium hydroxide IGO expects decision to recommence construction of Train 2 during 1H23 with A$18M early works budget already committed 3Q22 Financial Results EBITDA: (A$16.6M) Commiss
Slide 21: Exploration
Exploration 21
Slide 22: Near Nova and Fraser Range
Near Nova and Fraser Range Increased activity with multiple targets to be tested Chimera remains prospective for large-scale massive Ni-Cu-Co sulphide accumulations with most of interpreted extent remaining untested Expanded program at Chimera to focus on testing EM conductor and broader intrusive c
Slide 23: Western Areas Transaction Update
Western Areas Transaction Update Western Areas Cosmos Nickel Project 23
Slide 24: Transaction Update
Transaction Update Agreement to increase Scheme Consideration to A$3.87/share1 Increased IGO Offer Price recognises additional value generated by WSA as a result of higher nickel prices since initial transaction was announced Kimberley Amended Scheme has been unanimously Paterson Raptor recommended
Slide 25: Summary
Summary 25
Slide 26: Summary Highlights
Summary FY19 and 4Q19 Highlights Consistently operational performance enhanced by higher commodity prices • Managing COVID-19 impact on operations effectively while supporting our people People & Safety • Strong employee engagement survey results indicate strength of our unique culture • Consistent
Slide 27: We believe in a world where people power makes amazing things happen
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. Our work is making fund