Igo Limited · ASX:IGO
Igo — Independence Group NL — Diggers & Dealers Mining Forum 2016
28 slides from Igo's conference presentation, Aug 2, 2016
Slide 1: Diggers & Dealers Mining Forum
For personal use only INDEPENDENCE GROUP NL PETER BRADFORD, MANAGING DIRECTOR AND CEO Diggers & Dealers Mining Forum 1-3 August 2016
Slide 2: Cautionary statements & disclaimer
Cautionary statements & disclaimer For personal use only • 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 invit
Slide 3: IGO overview
IGO overview For personal use only Leading Australian diversified mining company ASX listed (IGO) • Based in Perth, Western Australia Diversified portfolio of high margin assets • 3 operating mines and 1 under construction • All located in Western Australia • Gold, Nickel, Zinc, Copper, Cobalt, Silv
Slide 4: Market profile & share ownership
Market profile & share ownership For personal use only Strong domestic institutional and retail support Market profile Share ownership prior to A$250M placement • A$2.2 billion market capitalisation at A$4.24/share(1) • Substantial holders(2) Mark Creasy 18.88% • Share price 52 Week Range Low A$
Slide 5: Balance sheet and funding
Balance sheet and funding For personal use only Cashflow from operations + Bank debt + Placement Unaudited (A$’million) Q4 FY16 FY16 Completion of A$250M placement Revenue 105.9 417.1 • Oversubscribed placement completed 28 July 2016 Underlying EBITDA(1) 38.9 135.7 • Strong support from existing an
Slide 6: Nickel market dynamics
Nickel market dynamics For personal use only Current supply deficit overshadowed by stockpile inventory Upside drivers to the Nickel price Nickel is one of the key ingredients for • Sentiment the manufacture of lithium-ion batteries(1) • Politically driven supply constraint • Why Nickel? • Economica
Slide 7: Tesla Model S Nickel – graphite batteries
Tesla Model S For personal use only Nickel – graphite batteries ““Our cells should be called Nickel-Graphite, because primarily the cathode is nickel and the anode side is graphite with silicon oxide… [there’s] a little bit of lithium in there, but it’s like the salt on the salad.” Elon Musk CEO Tes
Slide 8: IGO asset portfolio
IGO asset portfolio For personal use only Portfolio of gold and base metals assets Mining Construction Permitting Exploration Au Ni Zn/Cu Ni/Cu Cu/Zn TROPICANA LONG JAGUAR NOVA STOCKMAN VARIOUS 30% JV Interest 100% owned 100% owned 100% owned 100% owned 70-100% West Australia West Australia West Aus
Slide 9: Nova overview
Nova overview For personal use only World class, low cost magmatic nickel-copper project Fully funded underground Ni-Cu-Co project in construction • Located in highly prospective Fraser Range, Western Australia • 350km SE of Kalgoorlie and 350km from port of Esperance • Acquired by IGO in 2015 Proje
Slide 10: Nova on schedule and on budget
Nova on schedule and on budget For personal use only Overall project now 93% complete 10
Slide 11: Nova progress
Nova progress For personal use only Project well advanced and de-risked Grinding and Flotation circuit First Breccia ore mined in development 11
Slide 12: Nova optimisation
Nova optimisation For personal use only Improved mining schedules and design realised significant value • Optimisation Study completed in December 2015 moved Nova down the cost curve • Optimisation Study delivered 36% improvement in NPV(1) • FY17 LOM realised an additional 14% improvement in NPV by
Slide 13: Nova concentrates
Nova concentrates For personal use only Highly marketable concentrates Nickel concentrates • Nickel concentrate grading 13.5% Ni • No Arsenic • High Fe to MgO ratio preferred by smelters Nickel offtake agreements • Three year contract • 50% contracted with BHPB Nickel West, delivered via road to Kam
Slide 14: Nova in mine exploration
Nova in mine exploration For personal use only Opportunities for additions to mining inventory prioritised • Areas identified and prioritised for in mine exploration • Untested geophysical targets • Potential to extend mineralisation and Mineral Resources • Some areas require additional work to defi
Slide 15: Tropicana overview
Tropicana overview For personal use only Transitioning to higher milling rates in 2016 30% IGO and 70% AngloGold Ashanti • Located 330km East NE of Kalgoorlie Conventional open pit of scale • 3 Moz Ore Reserves(1) contained within 7 Moz Resources(1) • Open Pit mining with remaining LOM strip ratio o
Slide 16: Tropicana upside
Tropicana upside For personal use only Significant potential to extend mine life beyond initial 10 years Gas project completed • 292km pipeline completed ahead of plan • Powerhouse conversion of gas fired engines complete Process plant debottlenecking ongoing • Increase throughput from 5.8Mtpa to +7
Slide 17: Tropicana pits
Tropicana pits For personal use only Four contiguous pits extending over a five kilometre strike 17
Slide 18: Tropicana growth potential: Long Island Study drilling results
Tropicana growth potential For personal use only Long Island Study – significant drilling results Boston Shaker(1) BSD077 – 19m @ 3.40 g/t Au from 387m BSD078 – 13.5m @ 3.25 g/t Au from 428.5m BSD080 – 14m @ 5.77 g/t Au from 384m BSD081 – 17m @ 3.65 g/t Au from 411m Havana South(1) HSD050 – 16m @ 7.
Slide 19: Tropicana growth potential: Long Island Study mining concept
Tropicana growth potential For personal use only Long Island Study mining concept 100km of drilling in 12 months Preliminary concept – August 2015 Latest concept – August 2016 19
Slide 20: Long overview
Long overview For personal use only History of consistent low cost production and exploration success High grade underground nickel • Located in Kambalda, 60km south of Kalgoorlie 35 year operating history • Acquired by IGO in 2002 • Average grade project to date of 3.8% Ni • Owner operated undergro
Slide 21: Jaguar overview
Jaguar overview For personal use only High grade Zn-Cu VMS camp Production from Bentley underground Zn-Cu-Ag-Au VMS mine • Located 300km north of Kalgoorlie via sealed road, fly in – fly out from Perth Record mining and milling rates achieved in FY16 • Acquired by IGO in 2011 • Owner operated underg
Slide 22: Bentley in-mine resource extension
Bentley in-mine resource extension For personal use only Drilling recently completed at Flying Spur 22
Slide 23: Exploration
Exploration For personal use only IGO remains committed to delivering growth through exploration A$33M exploration budgeted across portfolio • Targeting provinces that can deliver multiple gold and base metals projects • Increasing focus on generative and greenfields projects FY17 Exploration Budget
Slide 24: Nova – Tropicana Belt
Nova – Tropicana Belt For personal use only Two of Australia's best exploration discoveries in the last 15 years 24
Slide 25: Partnering to unlock opportunities
Partnering to unlock opportunities For personal use only Focussed on belt scale opportunities with potential for Tier 1 assets Lake Mackay JV • Partnered with ABM Resources NL • IGO has an option to earn 70% interest • 400km northwest of Alice Springs • Sparsely explored Proterozoic terrane • Prospe
Slide 26: Sustainability
Sustainability For personal use only Continued strengthening and improvement across the business 26
Slide 27: Concluding comments
Concluding comments For personal use only Diversified mining company delivering cash flow and growth Recent placement has strengthened balance sheet Deliver Nova Project on time and on budget with first production in December 2016 Unlock scale and value at Tropicana throughout 2016 Unlock upside thr
Slide 28: Strength to Strength
STRENGTH TO STRENGTH FOLLOW US AS WE GO FROM DA UR De") 105
Independence Group NL — Diggers & Dealers Mining Forum 2016 on 6ix