Igo Limited · ASX:IGO
Igo — Independence Group NL — BMO Global Metals & Mining Conference 2017
39 slides from Igo's conference presentation, Mar 1, 2017
Slide 1: BMO Global Metals & Mining Conference Presentation
1/03/2017 For personal use only BMO GLOBAL METALS & MINING CONFERENCE PRESENTATION Attached is a presentation given by Peter Bradford, Managing Director and CEO at the BMO Global Metals and Mining Conference. Speaking at BMO Global Metals & Mining Conference, Peter Bradford, said “IGO has delivered
Slide 2: Independence Group NL - BMO Global Metals & Mining Conference
INDEPENDENCE GROUP NL For personal use only BMO GLOBAL METALS & MINING CONFERENCE Peter Bradford, Managing Director and CEO 26 February to 1 March 2017
Slide 3: 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 4: Independence Group Overview
Independence Group Overview Value focused strategy and transformational growth of EBITDA For personal use only A$M Macquarie Research EBITDA Profile A$M Diversified mining company 600 600 500 500 Quality 400 400 Scale 300 300 200 200 Longevity Western Australia 100 100 Geographical focus 0 FY08 FY10
Slide 5: Market Profile and Share Ownership
Market Profile and Share Ownership Strong domestic institutional and retail support For personal use only Market Profile and LTM Share Price Performance(1) Share Ownership(2) • A$2.5 billion market capitalisation Substantial Holders Institutional Ownership • 50% share price growth LTM Mark Creasy 16
Slide 6: Financials
Financials Solid start to FY17 For personal use only Highlights (A$M) 1H17 1H16 Commentary Revenue 223.3 218.8 • Higher realised metal prices Underlying EBITDA(1) 81.8 68.1 • Higher realised metal prices Net (Loss) Profit After Tax(2) 20.2 (77.8) • FY16 impairments & acquisition costs Net Cash Flow
Slide 7: IGO Asset Portfolio
IGO Asset Portfolio Portfolio of gold and base metals assets For personal use only Mining Ramp-Up 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 Australi
Slide 8: Tropicana Overview
Tropicana Overview Making a great asset better through value enhancement For personal use only 30% IGO and 70% AngloGold Ashanti • Located 370km East NE of Kalgoorlie Mine life extended • 3.8Moz Ore Reserves(1) • Contained within 8.0Moz Mineral Resources(1) Scale increased • Processing plant rate in
Slide 9: Tropicana: Value enhancement delivers 79% increase in value
Tropicana Value enhancement delivers 79% increase in value For personal use only Value enhancement delivered to date % NPV Variance Increased plant throughput 17% to 7.5Mtpa Accelerated mining and 42% grade streaming Long Island Study Dec 2016 Update with LoM 20% extension and waste mining cost redu
Slide 10: Tropicana: Processing plant optimisation and expansion
Tropicana Processing plant optimisation and expansion For personal use only 29% increase in throughput from as built nameplate capacity 7.5Mtpa expansion successfully completed 200 - 400ktpa additional throughput targeted in CY17 A$6.9M improvement capital estimated in CY17 (100% basis) 9
Slide 11: Tropicana: Mining fleet and grade streaming
Tropicana Mining fleet and grade streaming For personal use only Directional Production and AISC(1) Optimisation of Mining Fleet koz A$/oz 600 1,250 Caterpillar 6060, 600 Reduced waste mining tonne class hydraulic 1,200 costs and increased shovel operational at 550 mining rates to Tropicana from 1,1
Slide 12: Tropicana Exploration
Tropicana Exploration Framework and resource extension drilling For personal use only 160,000m of drilling ~40,000m at Boston Significant results Shaker and Havana South continued to be returned completed as part of Long still to be captured in from Havana South and Island Study resource model updat
Slide 13: Tropicana: Long Island Study - What is it?
Tropicana Long Island Study – What is it? For personal use only Based on strip mining strategy • Possible due to tabular geometry and strike extent • Unlocks additional down plunge resource Strip mining delivers lower mining costs • Shorter hauls due to In-pit dumping of waste • Transition to face s
Slide 14: Long Overview
Long Overview History of consistent production and reserve replacement For personal use only 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 3.9% Ni • Owner operated underground minin
Slide 15: Jaguar Overview
Jaguar Overview High grade Zn-Cu VMS camp For personal use only High grade underground Zn-Cu-Ag-Au VMS deposit • Located 300km north of Kalgoorlie via sealed road • Fly in – fly out from Perth Steady improvements to operating consistency • Owner operated underground mining • 500ktpa processing plant
Slide 16: Jaguar: Four areas of exploration focus
Jaguar Four areas of exploration focus at Jaguar For personal use only Ore Reserves • ~150% increase in Ore Reserves in FY16 from Mineral Resource conversion drilling program(1) Four areas of exploration focus in CY17 • Triumph: Definition drilling completed. Now progressing maiden resource estimate
Slide 17: Jaguar: Triumph Prospect
Jaguar Triumph Prospect For personal use only 1) Refer to ASX Release dated 16 February 2017 – Jaguar Operation – Exploration Update 16
Slide 18: Jaguar: Bentley depth extensions and Heather Bore gold prospect
Jaguar Bentley depth extensions and Heather Bore gold prospect For personal use only 1) Refer to ASX Release dated 16 February 2017 – Jaguar Operation – Exploration Update 17
Slide 19: Nova Overview
Nova Overview World class, low cost magmatic nickel-copper project For personal use only Underground nickel-copper project in ramp up • Located in highly prospective Fraser Range • 350km SE of Kalgoorlie and 350km from port of Esperance in Western Australia • Acquired by IGO in 2015(1) Project timel
Slide 20: Nova Project: Significant value unlocked with improved mining flexibility
Nova Project Significant value unlocked with improved mining flexibility For personal use only Improved engineering unlocks additional value • Optimisation Study, December 2015(1) • Accelerated Development of Bollinger, July 2016 (2) Cumulative 51% increase in NPV relative to the DFS unlocked throug
Slide 21: Nova Project: Project significantly de-risked
Nova Project Project significantly de-risked For personal use only Far better progress than envisaged in Feasibility Study • Process plant construction completed and commissioning commenced in October 2016 • First nickel and copper concentrates announced 6 weeks ahead of schedule on 26 October 2016
Slide 22: Nova Project: 10.2km of mine development completed
Nova Project 10.2km of mine development completed project to end-2016 For personal use only Nova Mining Schedule Nova Bollinger 21
Slide 23: Nova Project: Proactive improvements with underground contractor
Nova Project Proactive improvements implemented with underground contractor For personal use only Development rate slipped in Dec 2016 qtr • Barminco, underground contractor, committed to getting back to planned development rate • Barminco has strengthened site management, strengthened site manning,
Slide 24: Nova Concentrates
Nova Concentrates Highly marketable concentrates For personal use only 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 25: Nova Project: Exploration around Nova to accelerate in CY17
Nova Project Exploration around Nova to accelerate in CY17 For personal use only People • Dedicated Exploration Manager appointed for IGO’s Fraser Range interests R&D • Collaboration with CSIRO and University of WA with post doctoral researcher embedded with IGO team CY17 work programs • Drill testi
Slide 26: Nickel Market
Nickel Market Lots of moving parts but underlying supply-demand is positive For personal use only Supply - Demand Nickel Price US$/t • 60kt Supply deficit in 2016 12,000 • Larger deficit expected in 2017 on back of 11,000 increased demand for nickel in stainless steel 10,000 • Stainless steel produc
Slide 27: Exploration: IGO committed to delivering growth through exploration
Exploration IGO committed to delivering growth through exploration For personal use only A$33M exploration budgeted across portfolio • Targeting provinces that can deliver multiple gold and base metals projects • Increasing focus on generative and greenfields projects • Expect to grow exploration sp
Slide 28: Greenfields Exploration
Greenfields Exploration Building a portfolio of belt scale greenfields projects For personal use only 6,000km2 tenure on Fraser Range 7,200km2 tenure at Lake Mackay 27
Slide 29: Sustainability (or ESG) and Safety
Sustainability (or ESG) and Safety Continued strengthening and improvement across the business For personal use only Lost Time Injury Frequency Rate (LTIFR)(1) 6 5.2 5.0 5 4.8 4.7 4 3.6 3 2.4 2.4 2 1.2 1 LTIFR 12 MMA 0 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2016 2016 2016 2016 2016 2016 201
Slide 30: Concluding Comments
Concluding Comments Diversified mining company delivering cash flow and growth For personal use only Focus on quality, scale and longevity Nova ramping up to name plate in 2017 Tropicana delivering at better than guidance Long and Jaguar delivering strong cash flow Value enhancements initiatives at
Slide 31: Appendix
For personal use only Appendix 30
Slide 32: Tropicana: First Half operational scorecard
Tropicana First Half operational scorecard For personal use only Metric Units Pro-rata Guidance 1H17 1H16 INC/(DEC) Gold produced (100% basis) oz 195,000 to 215,000 221,232 251,945 (12)% Gold sold (IGO’s 30% share) oz 58,500 to 64,500 65,361 76,055 (14)% Cash cost A$/oz Au 850 to 950 821 625 31% All
Slide 33: Long: First Half operational scorecard
Long First Half operational scorecard For personal use only Metric Units Pro-rata Guidance 1H17 1H16 INC/(DEC) Nickel (contained metal) t 3,700 to 4,100 4,229 4,508 (6)% Cash cost (payable) A$/Ib Ni 3.50 to 3.90 3.21 3.97 (19)% Sustaining capex A$M 0.5 0.7 1.4 (50)% Development capex A$M N/A 0.2 0.3
Slide 34: Jaguar: First Half operational scorecard
Jaguar First Half operational scorecard For personal use only Metric Units Pro-rata Guidance 1H17 1H16 INC/(DEC) Zinc in concentrate t 19,500 to 21,500 18,641 20,721 (10)% Copper in concentrate t 2,300 to 2,550 2,756 2,876 (4)% Cash cost (payable) A$/Ib Zn 0.70 to 0.80 0.77 0.67 15% Sustaining capex
Slide 35: Tropicana: Mineral Resource and Ore Reserve Update
Tropicana Mineral Resource and Ore Reserve Update For personal use only Mineral Resources and Ore Reserves Ongoing Technical Studies to be updated at 31 December 2016(1) completed in 2H17 • Updated Mineral Resource • Further Mineral Resource and Ore 148.1Mt at 1.68g/t Au for 8.02Moz Reserve updates
Slide 36: Tropicana Exploration: Significant Drilling Results Havana South
Tropicana Exploration Significant Drilling Results Havana South For personal use only 1) Refer to ASX Release dated 15 December 2016 – Tropicana Value Enhancement Update 35
Slide 37: Tropicana Exploration: Significant Drilling Results Boston Shaker
Tropicana Exploration Significant Drilling Results Boston Shaker For personal use only 1) Refer to ASX Release dated 15 December 2016 – Tropicana Value Enhancement Update 36
Slide 38: Nova Project: In mine exploration at C5 target
Nova Project In mine exploration at C5 target For personal use only • In mine exploration commenced at C5 target adjacent to Bollinger decline • Underground diamond drilling of 18 holes for 2,104m completed to date • Drilling will continue in 3Q17 testing the eastern portion of the C5 target • Prepa
Slide 39: For personal use only
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