Slide 1: June 2014 Quarter Results Presentation
For personal use only June 2014 Quarter Results Presentation
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Independence Group NL (“IGO”). 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 jurisdiction. For perso
Slide 3: Presentation Outline
Presentation Outline Highlights For personal use only June Quarter Results • Financials • Tropicana • Jaguar • Long Exploration and Development Summary Appendices Page 3
Slide 4: June Quarter Highlights
June Quarter Highlights Tropicana For personal use only • Operated at above name plate capacity for June quarter • Gold production at 132,844oz (IGO share = 39,853oz) at cash costs of $521/oz Au • Commitment to gas pipeline project following quarter end Long • Production and cash costs better th
Slide 5: June Quarter Financials
June Quarter Financials June Quarter Highlights QTR YTD For personal use only Unaudited Profit after tax(1) $4.1M $46.2M Unaudited Underlying EBITDA(2) $55.0M $174.8M Net Cash Flow From Operating Activities $55.8M $160.2M Interim Dividend Paid 28 March 2014 - 3.0 cps Cash (as at 30 June 2014) $57.0M
Slide 6: Tropicana – June Quarter (1)
Tropicana – June Quarter (1) Tropicana Statistics(1) Units Mar 14 Qtr Jun 14 Qtr For personal use only Mining Total material Mt 11.8 12.0 ROM Ore (>0.6g/t Au) Mt 1.9 1.8 ROM Ore Grade g/t Au 2.02 2.48 Processing Ore milled Mt 1.4 1.5 Milled grade g/t Au 3.01 3.00 Recovery % 91.0 89.2 Gold Produced o
Slide 7: Tropicana – June Quarter (2)
Tropicana – June Quarter (2) Mining For personal use only • Mining production improved in the quarter to 12.0Mt of total material • Mining occurred in both the Tropicana and Havana Pits with most production being sourced from the Havana Pit • ROM ore (>0.6g/t Au) totalled 1.8Mt at an average grade
Slide 8: Tropicana – Gas Project
Tropicana – Gas Project Commitment made to gas For personal use only project • Pipeline completion early CY16 • Changeover to gas fired power by mid-CY16 Three Contracts: • APA Group to build, own and operate the pipeline • Tropicana to acquire gas via a second contract yet to be finalised • Kal
Slide 9: Tropicana - Exploration
Tropicana - Exploration Tropicana Deeps For personal use only • Survey commenced in July 2014 Near Mine Exploration • 3.7km aircore at Tumbleweed Regional Exploration • 30km of aircore drilling completed at Sanpan, Cobra, Madras, Seahorse, Monsoon East and Lichini • Awaiting results from 6-hol
Slide 10: Long – June Quarter
Long – June Quarter For personal use only Long Statistics Units Mar 14 Qtr Jun 14 Qtr Development Operational m 358 425 Capitalized m 320 301 Mining Ore Mined Kt 70.3 60.3 Grade % Ni 3.72 4.25 Contained Nickel t 2,616 2,564 Payable Nickel t 1,590 1,550 Operating Costs Cash Costs(1) (contained Ni) $/
Slide 11: Long – June Quarter (2)
Long – June Quarter (2) Solid quarter of production from Long For personal use only • 60,268t of ore at 4.25% Ni for 2,564t of contained Nickel • Payable Ni totaled 1,550t • Cash cost(1) of $4.11/lb of payable Ni Good end to a year of consistent delivery • Better than guidance production and cos
Slide 12: Long - Exploration
Long - Exploration Exciting quarter of exploration For personal use only • McLeay South and Long North McLeay South • Four holes drilled • Nickel sulphide intersected in three holes • Best was 4.4m @ 5.4%Ni drilled from surface 450m south of current development Moran South • Development of the
Slide 13: Jaguar – June Quarter (1)
Jaguar – June Quarter (1) Jaguar Statistics Units Mar 14 Qtr Jun 14 Qtr For personal use only Development Operational m 320 232 Capitalized m 333 539 Mining Ore Mined Kt 115.3 103.8 Processing Ore Milled Kt 93.7 130.2 Grade % Zn 10.9 11.1 Grade % Cu 1.94 2.04 Zinc Produced t 8,978 12,611 Copper Prod
Slide 14: Jaguar – June Quarter (2)
Jaguar – June Quarter (2) Mining 100% from Bentley Deposit For personal use only • Mined tonnes of 103,837t to end the year at mid-guidance Record quarter for processing plant • Metal grades improved relative to YTD average resulting in 12,611t Zn and 2,354t Cu produced in concentrate • Cash cos
Slide 15: Jaguar Exploration (1)
Jaguar Exploration (1) Further progress at Flying Spur For personal use only • Four diamond holes completed in the quarter • Extent is now 290m strike and 350m dip • Open up/down plunge and south along strike • Drilling to continue in the September quarter Potential new VMS lode at Triumph • 5km
Slide 16: Jaguar – Exploration (2)
Jaguar – Exploration (2) Darlot JV (IGO earning 70-80%) For personal use only • 740km2 tenure about 60km north and along strike from the Jaguar project • IGO earning 70—80% from Enterprise Metals • Potential VMS horizon identified by geochem in March quarter • 6 prospect areas tested by aircore dr
Slide 17: Exploration and Development
Exploration and Development Stockman (Zn-Cu-Au-Ag VMS, VIC) For personal use only • Permitting progressed to independent panel enquiry – panel to report to Minister in September Quarter • Enhanced feasibility study work to reduce capex and optimize stope mining schedule is ongoing Karlawinda (Au
Slide 18: FY15 Guidance
FY15 Guidance(1)(2) Tropicana For personal use only • 6Mt of ore milled for gold production of 141,000 to 147,000oz (IGO 30% share) at an average cash cost of $590 to $630/oz Au • Sustaining capex and exploration (IGO 30% share) of $12M and $6M respectively Long • 230-270kt of ore mined for prod
Slide 19: Summary
Summary June Quarter 2014 For personal use only • All projects delivering at or above guidance • Operating cashflow of $55.8M • Net cash improved by $31.0M in quarter to $28.0M Outlook • Maintain focus on safety, operational discipline and cost control to meet or better guidance • Exploration fo
Slide 20: 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
Slide 21: Reserves & Resources – Competent Persons Statements
Reserves & Resources For personal use only Competent Persons Statements Exploration Results The information in this report that relates to Exploration Results (excluding Flying Spur exploration results) is based on information compiled by Mr. Timothy Kennedy who is a full-time employee of the Compan
Slide 22: Resources & Reserves – Tropicana JV
Resources & Reserves TROPICANA JV For personal use only Mineral Resource 31 December 2013 Ore Reserve 31 December 2013 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 28.6 2.06 1.89 OPEN PIT Indicated 74.0
Slide 23: Resources & Reserves – Long
Resources & Reserves LONG For personal use only Mineral Resources 30 June 2013 Ore Reserves 30 June 2013 Classification Tonnes Ni% Ni Tonnes Classification Tonnes Ni% Ni Tonnes LONG Measured 61,000 5.4 3,300 LONG Proven 45,000 3.1 1,400 Indicated 213,000 5.2 11,100 Probable 66,000 2.9 1,900 Inferred
Slide 24: Resources & Reserves – Jaguar
Resources & Reserves JAGUAR For personal use only Mineral Resources 30 June 2013 Ore Reserves 30 June 2013 Classification Tonnes Cu% Zn% Ag g/t Au g/t Classification Tonnes Cu% Zn% Ag g/t Au g/t JAGUAR Measured 264,000 2.4 3.4 47 - JAGUAR Indicated 181,000 1.8 2.0 28 - Proven 20,000 1.7 0.4 15 - Inf
Slide 25: Resources & Reserves – Stockman Project
Resources & Reserves STOCKMAN PROJECT For personal use only Mineral Resources 30 June 2011 Mineral Resources 30 June 2013 Ore Reserves 30 June 2013 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 Indicated 9,548,000
Slide 26: Hedging Summary
Hedging Summary Nickel For personal use only • FY15 – 200t/mth averaging $18,128/t Ni Copper • FY15 Q1 - 550t at $8,014/t Cu in September • FY15 Q3 – 400t at $8,502/t Cu in March • FY15 Q4 – 550t at $8,500/t Cu in June Gold • FY15 Q1 & Q2 – 5,500oz/mth zero cost collars (range $1,300 to $1,803