Igo Limited · ASX:IGO

Igo — Independence Group NL — Shareholder Meeting (November 2014)

38 slides from Igo's shareholder meeting presentation, Nov 20, 2014

  1. Slide 1: 2014 Annual General Meeting Presentation

    For personal use only Au Ni Cu/Zn 2014 Annual General Meeting 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  Corporate Overview For personal use only  Recent Financials  Operations • Tropicana • Long • Jaguar  Growth  Summary Page 3

  4. Slide 4: Corporate Overview

    Corporate Overview  ASX listed (IGO.AX) Board of Directors For personal use only • Head Office in Perth Chairman Peter Bilbe Managing Director & CEO Peter Bradford  234.3M shares on issue Non-executive Director Peter Buck • $1.0 billion market capitalisation(1) Non-executive Director Geoff Cliffor

  5. Slide 5: Shareholders

    Shareholders For personal use only Institutional Retail & other Domestic Instos Foreign Instos Top 100 shareholders Other Substantial shareholders Colonial 7.6% Fidelity 6.8% Vinva 5.0% Page 5

  6. Slide 6: FY14 Financials

    FY14 Financials For personal use only Highlights FY14 FY13 Change Revenue $399.0M $225.9M 77% Underlying EBITDA(1) $174.8M $56.8M 208% Profit after tax(2) $46.6M $18.3M 155% Net Cash Flow From Operating Activities $153.6M $67.5M 128% Free Cash Flow(3) $30.2M ($147.6M) NA Full Year Fully Franked Divi

  7. Slide 7: Q1 FY15 Financials

    Q1 FY15 Financials For personal use only Highlights Q1 FY15(3) Q1 FY14 Change Revenue $128.9M $73.5M 75% Underlying EBITDA(1) $64.0M $24.9M 157% Profit after tax $27.9M $9.7M 188% Net Cash Flow From Operating Activities $55.5M $22.2M 150% Free Cash Flow(2) $25.3M ($25.2M) NA Cash (as at end of quart

  8. Slide 8: Underlying EBITDA (by Mine)

    Underlying EBITDA (by Mine) For personal use only 80 70 60 Underlying EBITDA ($’M) 50 40 30 20 10 0 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Tropicana Long Jaguar Page 8

  9. Slide 9: Australian Dollar Metal Prices

    For personal use only Movement From One Year Ago (%) 100% 110% 120% 130% 140% 150% 160% 70% 80% 90% 18-Nov-13 18-Dec-13 Zinc Gold Nickel 17-Jan-14 Copper 16-Feb-14 18-Mar-14 17-Apr-14 17-May-14 Past 12 months 16-Jun-14 Australian Dollar Metal Prices 16-Jul-14 15-Aug-14 14-Sep-14 14-Oct-14 13-Nov-14

  10. Slide 10: Tropicana Gold Mine

    Tropicana Gold Mine  For personal use only Located 370km northeast of Kalgoorlie by road  Unincorporated joint venture • 70% Anglogold Ashanti (Manager) • 30% Independence  Recent discovery on a new belt • Eastern edge of the Yilgarn craton along the Fraser-Albany orogen • Belt scale (~9,000km2)

  11. Slide 11: Tropicana Gold Mine

    Tropicana Gold Mine  10 year mine life For personal use only • At nameplate capacity since March 2014  Open pit mine • Contract mining by MacMahons • Life of mine strip ratio of 5.4 : 1  Standard CIL processing plant • Nameplate capacity of 5.8 Mtpa • Scope to debottleneck above this • Conversion

  12. Slide 12: Tropicana Pits

    Tropicana Pits For personal use only Page 12

  13. Slide 13: Tropicana Exploration

    Tropicana Exploration  Tropicana Deeps Voodoo Voodoo Child Child For personal use only N • 3D Seismic completed around existing pits • Near surface targets identified in initial results Watch Watch Tower Tower Apocalypse Apocalypse Black Black Dragon Dragon  Near Mine Exploration • Numerous target

  14. Slide 14: Tropicana Exploration

    Tropicana Exploration  Tropicana Deeps N For personal use only Tropicana Gold • Mine 3D Seismic completed around existing pits • Near surface targets identified in initial results Domains Salt Creek Complex  Near Mine Exploration Northern Foreland Tropicana Domain • Numerous targets in prospective

  15. Slide 15: Long Nickel Mine

    Long Nickel Mine  Located 57km south of Kalgoorlie For personal use only  Mechanised underground mine • Owner mining (residential) • Annual mining rate ~250,000t at average 4.0% Ni • Toll treatment processing by BHP Nickel West  Three year reserve life • Track record of replacing production with

  16. Slide 16: Long – consistent production

    Long – consistent production For personal use only 3,500 $7.00 3,000 $6.00 2,500 $5.00 Cash Costs ($/lb Ni) Contained Nickel (t) 2,000 $4.00 1,500 $3.00 Contained Nickel (t) Production Guidance 1,000 $2.00 Cash Costs ($/lb Ni) Cost Guidance 500 $1.00 - $0.00 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12

  17. Slide 17: Long – brownfields exploration

    Long – brownfields exploration  McLeay South For personal use only • Encouraging recent exploration • Potential for new resource at McLeay South • Drill drive development commenced to provide platform for resource drilling  Moran South • First drill position completed • Now drilling EM conductors

  18. Slide 18: Jaguar Zn/Cu Mine

    Jaguar Zn/Cu Mine  Located 300km north of Kalgoorlie For personal use only  Zn-Cu VMS camp • IGO controls +50km long corridor  Mechanised underground mine • Owner mining (fly in – fly out) • Annual mining rate ~440,000t at average 10%Zn and 1.8%Cu • Three year reserve life • Flotation processing

  19. Slide 19: Jaguar Continuous Improvement

    Jaguar Continuous Improvement For personal use only 16,000 $0.80 Zinc (t) Copper (t) Zinc Guidance Copper Guidance 14,000 $0.70 Cash Costs ($/lb Zn) Cost Guidance 12,000 $0.60 Cash Costs ($/lb Zn) Contained Metal (t) 10,000 $0.50 8,000 $0.40 6,000 $0.30 4,000 $0.20 2,000 $0.10 - $- Sep-11Dec-11Mar-1

  20. Slide 20: Jaguar - Near Mine Exploration

    Jaguar - Near Mine Exploration Under-explored 50km long corridor surrounding three known mines with ten Zn-Cu-Ag alteration For personal use only anomalies under cover, being systematically tested. Page 20

  21. Slide 21: Jaguar – Bentley Extensions

    Jaguar – Bentley Extensions For personal use only Page 21

  22. Slide 22: Jaguar – Triumph Drilling

    Jaguar – Triumph Drilling For personal use only Reference: IGO ASX Release 29/10/2014 Independence Group Quarterly Activities Report Page 22

  23. Slide 23: Jaguar – Regional Exploration

    Jaguar – Regional Exploration  Jaguar Concession For personal use only • 50km long corridor prospective for Zn-Cu-Ag VMS deposits • Northern 16km and Southern 6km of Jaguar prospective corridor are untested • New exploration techniques being applied to areas previously explored  Darlot JV • 60 km

  24. Slide 24: Growth

    Growth For personal use only Lake Mackay Discovery Bryah Basin De Beers database Project generation CREATE Tropicana base metals Advanced exploration Joint Ventures SUPPLEMENT Acquisition Study & Stockman develop Tropicana Brownfields Production SUSTAIN Long Exploration Jaguar Page 24

  25. Slide 25: Growth

    Growth  Continued investment in Brownfields exploration For personal use only • Long, Jaguar and Tropicana  Greenfields exploration • Optimised portfolio • Targeting more advanced exploration opportunities  Pursuing opportunities to build project pipeline • Focus on longer life, higher margin ass

  26. Slide 26: Stockman Project (VIC)

    Stockman Project (VIC)  460 km by road NE of Melbourne For personal use only  Zn-Cu-Au-Ag VMS • Optimisation studies being finalised this month  9 year mine life based on Ore Reserves • Average 15Ktpa Cu and 25Ktpa Zn in concentrate  Exploration upside • Bigfoot and Eureka discoveries Zn-Cu outl

  27. Slide 27: Lake Mackay JV (NT)

    Lake Mackay JV (NT) Under explored, belt scale, opportunity prospective for Tanami style gold and IOCG deposits For personal use only Location & Tenure • Southern NT on WA border • Very large tenure - 12,200 km2 (5,000 km2 under application) Joint Venture • Partner - ABM Resources NL • IGO earning 7

  28. Slide 28: Bryah Basin JV (WA)

    Bryah Basin JV (WA) Leveraging in-house expertise to target De Grussa style Cu-Au deposits in an area with limited past For personal use only VMS exploration Location • Murchison, WA • 300 km2 land holding Joint Venture • Partner – Alchemy Resources • IGO earning 70-80% • Spending $6.5M over 6 years

  29. Slide 29: Summary

    Summary  Business is in good shape For personal use only • 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 • Exploration dollars focussed

  30. Slide 30: 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

  31. Slide 31: 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

  32. Slide 32: 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.

  33. Slide 33: 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

  34. Slide 34: 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

  35. Slide 35: 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

  36. Slide 36: 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

  37. Slide 37: Hedging Summary

    Hedging Summary For personal use only Nickel • FY15: 200t/month averaging $18,135/t Copper • FY15 Q2: 550t at $7,700/t in December 14 • FY15 Q3: 550t at $8,294/t in March 15 • FY15 Q4: 550t at $8,500/t in June 15 Gold • FY15 Q2, Q3 & Q4 : 5,056oz/month zero cost collars (range $1,310 to $1,757/oz) •

  38. Slide 38: September 2014 Quarter

    September 2014 Quarter For personal use only Page 38

Independence Group NL — Shareholder Meeting (November 2014) on 6ix