Igo Limited · ASX:IGO
Igo — Independence Group NL — Q1 FY2017 Earnings Presentation
19 slides from Igo's earnings presentation, Oct 26, 2016
Slide 1: September 2016 Quarter Results Presentation
INDEPENDENCE GROUP NL For personal use only PETER BRADFORD, MANAGING DIRECTOR AND CEO September 2016 Quarter Results Presentation 26 October 2016
Slide 2: Cautionary statements & disclaimer
Cautionary statements & 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 personal use only for or purchase any securities in IGO or as an inducement to make an offer or invit
Slide 3: 1Q17 highlights
1Q17 highlights Excellent quarter with all mines at or better than guidance For personal use only No lost time safety incidents and no material environmental incidents in 1Q17 • Sustainability report published in October 2016 Tropicana mill expansion project completed • 30,011oz (IGO 30% share) prod
Slide 4: Unaudited financial results
Unaudited financial results A$274 million received as net proceeds to completed equity placement For personal use only Unaudited Metrics Units 1Q17 4Q16 Revenue A$M 94.8 105.9 Underlying EBITDA(1) A$M 38.1 39.2 Net Profit After Tax A$M 10.1 16.5 Net Cash Flow From Operating Activities A$M 6.8 42.9 U
Slide 5: 1Q17 cash flow reconciliation
1Q17 cash flow reconciliation Focus on cash management and realisation of asset optimisation For personal use only A$M 280 260 8 12 240 282 249 220 80 60 5 11 10 40 46 45 20 - 6 5 2 2 6 0 (20) Tropicana Jaguar Long Nova Exploration Corporate Equity Buxton Finance Leasing Debt Capital Capital Dividen
Slide 6: Hedging
Hedging No additional hedging completed during 1Q17 For personal use only Current hedging Units FY17 FY18 FY19 TOTAL Gold Hedging Gold Collars oz 5,000 5,000 Gold Call price A$/oz 1,603 1,603 Gold Put price A$/oz 1,330 1,330 Gold Par Forwards oz 56,300 60,000 47,988 164,288 Gold Price A$/oz 1,653 1,
Slide 7: Tropicana 1Q17 operational scorecard and FY17 guidance
Tropicana 1Q17 operational scorecard and FY17 guidance For personal use only Metric Units FY17 Guidance Range 1Q17 Gold produced (100% basis) oz 390,000 to 430,000 100,038 Gold Sold (IGO’s 30% share) oz 117,000 to 129,000 26,473 Cash cost A$/oz Au 850 to 950 905 All-in Sustaining Costs A$/oz Au 1,15
Slide 8: Tropicana AISC margin reconciliation for 1Q17
Tropicana AlSC margin reconciliation for 1Q17 For personal use only Gold sales lower due to increase in gold dore inventory • IGO attributable gold sold during the quarter 26,473oz Total AISC margin for 1Q17 of A$14.2M • Tropicana All In Sustaining Costs (AISC) for 1Q17 was A$1,097/oz sold • Attribu
Slide 9: Tropicana resource extension
Tropicana resource extension Long Island Study to be completed in 2Q17 For personal use only Long Island Study to Unlock full potential of Tropicana through: • 100km framework drilling beneath existing pits over last 12 months • Step change reduction in mining costs through adoption of a strip minin
Slide 10: Long 1Q17 operational scorecard and FY17 guidance
Long 1Q17 operational scorecard and FY17 guidance For personal use only Metric Units FY17 Guidance Range 1Q17 Nickel (contained metal) tonnes 7,400 to 8,200 2,166 Cash Cost (payable) A$/Ib Ni 3.50 to 3.90 3.23 Sustaining capex A$M 1 0.1 Exploration expenditure A$M 2 to 3 0.3 1Q17 Drivers • Productio
Slide 11: Long: In-mine exploration recommenced
Long In-mine exploration recommenced For personal use only • In-mine exploration commenced in 1Q17 • Three conceptual targets proximal to existing mine development • At quarter end 1,237m drilling was completed at the Victor West target • Results and interpretation are pending 11
Slide 12: Jaguar 1Q17 operational scorecard and FY17 guidance
Jaguar 1Q17 operational scorecard and FY17 guidance For personal use only Metric Units FY17 Guidance Range 1Q17 Zinc in concentrate tonnes 39,000 to 43,000 10,309 Copper in concentrate tonnes 4,600 to 5,100 1,887 Cash cost (payable) A$/Ib Zn 0.70 to 0.80 0.52 Sustaining capex A$M 8 to 9 2.8 Developm
Slide 13: Three areas of exploration focus at Jaguar
Jaguar Three areas of exploration focus at Jaguar For personal use only Ore reserves • Mineral Resource conversion drilling program delivered 155%, 143% and 142% increase in zinc, silver and gold contained metal respectively to the Ore Reserve as at 30 June 2016(1) Three areas of focus for FY17 expl
Slide 14: Nova Project: Significant milestones achieved
Nova Project Significant milestones achieved For personal use only Project remains on budget and ahead of schedule • First stope brought into production during the quarter • Early grade control drilling delivered positive reconciliation • Construction completed 10 October 2016 • Ore commissioning co
Slide 15: Nova Project: 8km of mine development completed to date
Nova Project 8km of mine development completed to date For personal use only Nova Mining Schedule Nova Bollinger 15
Slide 16: Nova Project next steps
Nova Project next steps Ramp up to full production by mid CY17 For personal use only • Process plant performance testing in November 2016 and practical completion in December 2016 • First shipment of concentrates to BHP Billiton Nickel West in December 2016 • Ramp up underground mine to full product
Slide 17: Nova – Tropicana Belt
Nova – Tropicana Belt Two of Australia's best exploration discoveries in the last 15 years For personal use only Consolidation of prospective tenure proximal to Nova Project • IGO entered into JV(1) with Buxton Resources Limited with an initial interest of 90% over 592km2 • Subsequent to quarter end
Slide 18: Concluding comments
Concluding comments Diversified mining company delivering cash flow and growth For personal use only Strong focus on operational performance and cost control • Solid operating performance across the portfolio • Tropicana plant expansion complete • Nova ahead of schedule and on budget • Nova construc
Slide 19: For personal use only
AS WE GO FROM STRENGTH TO STRENGTH igo.com.au
Independence Group NL — Q1 FY2017 Earnings Presentation on 6ix