Slide 1: Full Year Results Presentation
INDEPENDENCE GROUP NL FULL YEAR RESULTS PRESENTATION For personal use only 24 August 2015
Slide 2: Cautionary Notes and Disclaimer
Cautionary Notes and 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 For personal use only subscribe for or purchase any securities in IGO or as an inducement to make an offer or invitati
Slide 3: Business Highlights
Business Highlights Record year in terms of revenue and operating cash flow For personal use only Significant growth in dividend reflecting the robustness of the diversified business All operations succeeded in meeting or beating all production and cash cost guidance Tropicana has performed,
Slide 4: Safety Highlights
Safety Highlights Significant improvement over the past 1-2 years is a credit to our people For personal use only 16 50 45 14 40 12 35 10 30 LTIFR TRIFR 8 25 20 6 15 4 12 Mthly Rolling LTIFR 12 Mthly Rolling TRIFR 10 2 5 0 0 Jul 13 Oct 13 Jan 14 Apr 14 Jul 14 Oct 14 Jan 15 Apr 15 Jul 15 (1) LTIFR is
Slide 5: Financial Highlights
Financial Highlights Revenue increased by 25% to $499M, a record for IGO For personal use only Underlying EBITDA(1) increased by 44% to $213M Net Profit After Tax increased by 58% to $77M Net cash flows from operating activities increased by 57% to $202M, a record for IGO Net cash (cash eq
Slide 6: Earnings Summary
Earnings Summary Net Profit After Tax ($M) Revenue ($M) For personal use only 90 600 500 80 400 70 300 200 60 100 50 0 FY13 FY14 FY15 40 Underlying EBITDA ($M) 30 250 200 20 150 10 100 0 50 -10 0 FY13 FY14 FY15 FY13 FY14 FY15 6
Slide 7: Cash Flow Summary
Cash Flow Summary Free Cash Flow ($M) Operating Cash Flow ($M) For personal use only 150 250 200 100 150 100 50 50 0 0 FY13 FY14 FY15 Net Cash ($M) -50 140 120 -100 100 80 60 -150 40 20 -200 0 FY13 FY14 FY15 FY13 FY14 FY15 7
Slide 8: Summary Income Statement ($M)
Summary Income Statement ($M) 58% increase in Net Profit after tax For personal use only FY15 FY14 59% higher Tropicana and 16% higher Jaguar Revenue from Operations 493.5 397.5 contribution offset by 6% lower nickel revenue Cost of goods sold (240.0) (200.1) Gross profit 253.5 197.4 Consistent 50%
Slide 9: NPAT Analysis ($M)
NPAT Analysis ($M) Full year of production at Tropicana and better AUD metal prices underpinned higher NPAT For personal use only 160 17.6 (37.4) 140 78.9 120 (32.6) 100 4.4 (11.1) 2.2 1.7 1.5 (0.6) 1.0 2.6 76.8 80 60 48.6 40 20 - 9
Slide 10: Underlying EBITDA Components ($M)
Underlying EBITDA Components ($M) Tropicana and Jaguar delivered higher underlying EBITDA For personal use only 140 135.3 120 FY15 $212.7M FY14 $147.9M 100 84.9 80 67.5 61.4 60 55.1 52.5 40 20 - (4.3) (6.9) (20) (9.5) (10.4) (40) (31.4) (33.5) (60) Tropicana Long Jaguar Exploration & Corporate Other
Slide 11: Summary Balance Sheet ($M)
Summary Balance Sheet ($M) Balance sheet is strong with debt facilities undrawn For personal use only June 2015 June 2014 ASSETS Cash growth of $64M after debt payments of Cash and cash equivalents 121.3 57.0 $28M and Dividend payments of $26M Receivables 22.1 30.1 Inventories 65.3 49.2 Growth in lo
Slide 12: Comparison of Australian open pit gold operations
Comparison of Australian open pit gold operations Tropicana is a premier low cost, long life gold project For personal use only Australian Open Pit Gold Operations (Bubble size is relative production rate) 1,400 2015E Total Cash Cost + Sustaining Capex (US$/oz) 1,200 1,000 800 600 Tropicana (100% ba
Slide 13: Tropicana Production (100% basis)
Tropicana Production (100% basis) Tropicana benefits from grade streaming until end-2015 then expected to consistently produce 400,000 oz/year For personal use only Gold Production (koz) 600 500 400 300 200 100 0 FY14 FY15 FY16E FY17E FY18E 13
Slide 14: Tropicana enhancement opportunities
Tropicana enhancement opportunities Process plant debottlenecking ongoing For personal use only Throughput rates of up to 6.6 Mtpa achieved on monthly basis Work underway to debottleneck to 7.0-7.5 Mtpa at the Run of Mine grade of ~2 g/t Resource extension drilling underway Targets generat
Slide 15: Sirius transaction highlights
Sirius transaction highlights Acquisition agreement announced 25 May 2015 For personal use only Clear strategic rationale for transaction Acquisition of Sirius is consistent with IGO's clearly defined growth strategy Delivers shareholders of both companies exposure to Tropicana and Nova Co
Slide 16: Sirius transaction
Sirius transaction “This transaction brings together the producing assets of Independence and the near production For personal use only asset of Sirius.” Mark Creasy, 25 May 2015 Transaction has strong support including Creasy endorsement Supported Unanimously recommended by boards of directors
Slide 17: Summary remarks
Summary remarks FY15 Full Year For personal use only Achieved or bettered guidance on production and cash costs at all mines Achieved record revenue and operating cash flow Ended FY15 with net cash of $121M Paid 11cps during FY15 and established $13M pool for FY15 fully franked final divid
Slide 18: Questions?
Questions? For personal use only Independence Group NL (www.igo.com.au) Peter Bradford, Managing Director and CEO 24 August 2015
Slide 19: Resources & Reserves: Competent Persons Statements
Resources & Reserves For personal use only Competent Persons Statements 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
Slide 20: Resources & Reserves: Tropicana JV (IGO 30%)
Resources & Reserves: Tropicana JV (IGO 30%) Mineral Resource 30 June 2014 Ore Reserve 30 June 2014 100% Project 100% Project For personal use only 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 20.2
Slide 21: Resources & Reserves: Long Operation
Resources & Reserves: Long Operation Mineral Resource 30 June 2014 Ore Reserve 30 June 2014 For personal use only 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
Slide 22: Resources & Reserves: Jaguar Operation
Resources & Reserves: Jaguar Operation Mineral Resource 30 June 2014 Ore Reserve 30 June 2014 For personal use only 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 1,50
Slide 23: Resources & Reserves: Stockman Project
Resources & Reserves: Stockman Project Mineral Resource 30 June 2014 Ore Reserve 28 November 2014 For personal use only 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 9.58 2.0 4.2 42 1.2
Slide 24: FY16 Guidance
FY16 Guidance For personal use only Tropicana Jaguar 129,000 to 141,000oz (IGO 30% share) 35,000 to 40,000t Zn in conc. Average cash cost of $640 to $710/oz Au 7,500 to 8,500t Cu in conc. AISC of $820 to $910/oz Au sold Average cash cost of $0.40 to 0.60/lb Zn Sustaining capex (IGO 30%
Slide 25: Hedging as at June 2015
Hedging as at 30 June 2015 For personal use only Nickel Q1 FY16: 250 t/mth at avg. price of $19,701/t Copper Q1 FY16: 550t at $8,001/t in Sept 15 Gold FY16: Average 3,208 oz/month zero cost collars (range $1,342 to $1,672/oz) FY17: 2,500 oz/month zero cost collars to November 2016 (range $1,