IGO LIMITED 25 January 2017
Cautionary statements & disclaimerThis 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 jurisdiction.
This presentation contains general summary information about IGO. The information, opinions or conclusions expressed in the course of this presentation should be read in conjunction with IGO's other periodic and continuous disclosure announcements lodged with the ASX, which are available on the IGO website. No representation or warranty, express or implied, is made in relation to the fairness, accuracy or completeness of the information, opinions and conclusions expressed in this presentation.
This presentation includes forward looking information regarding future events, conditions, circumstances and the future financial performance of IGO. Often, but not always, forward looking statements can be identified by the use of forward looking words such as "may", "will", "expect", "intend", "plan", "estimate", "anticipate", "continue" and "guidance", or other similar words and may include statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs. Such forecasts, projections and information are not a guarantee of future performance and involve unknown risks and uncertainties, many of which are beyond IGO's control, which may cause actual results and developments to differ materially from those expressed or implied. Further details of these risks are set out below. All references to future production and production guidance made in relation to IGO are subject to the completion of all necessary feasibility studies, permit applications and approvals, construction, financing arrangements and access to the necessary infrastructure. Where such a reference is made, it should be read subject to this paragraph and in conjunction with further information about the Mineral Resources and Ore Reserves, as well as any Competent Persons' Statements included in periodic and continuous disclosure announcements lodged with the ASX. Forward looking statements in this presentation only apply at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information IGO does not undertake any obligation to publically update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.
There are a number of risks specific to IGO and of a general nature which may affect the future operating and financial performance of IGO and the value of an investment in IGO including and not limited to economic conditions, stock market fluctuations, commodity demand and price movements, access to infrastructure, timing of environmental approvals, regulatory risks, operational risks, reliance on key personnel, reserve and resource estimations, native title and title risks, foreign currency fluctuations and mining development, construction and commissioning risk. The production guidance in this presentation is subject to risks specific to IGO and of a general nature which may affect the future operating and financial performance of IGO.
Any references to IGO Mineral Resource and Ore Reserve estimates, except the Tropicana Mineral Resource and Ore Reserve should be read in conjunction with IGO's 2016 Mineral Resource and Ore Reserve announcement dated 14 October 2016 and lodged with the ASX, which are available on the IGO website.
References to Mineral Resource and Ore Reserve estimates at Tropicana should be read in conjunction with IGO's Tropicana Gold Mine Value Enhancement Update, dated 15 December 2016 and lodged with the ASX, and is available on the IGO website.
All currency amounts in Australian Dollars unless otherwise noted.
Cash Costs are reported inclusive of Royalties and after by-product credits on per unit of payable metal basis, unless otherwise stated
IGO reports All-in Sustaining Costs (AISC) per ounce of gold for its 30% interest in the Tropicana Gold Mine using the World Gold Council guidelines for AISC. The World Gold Council guidelines publication was released via press release on 27 June 2013 and is available from the World Gold Council's website.
Underlying EBITDA is a non-IFRS measure and comprises net profit or loss after tax, adjusted to exclude tax expense, finance costs, interest income, asset impairments, depreciation and amortisation, and once-off transaction costs.
Underlying NPAT comprises net profit (loss) after tax adjusted for; post tax effect of acquisition and integration costs, and impairments.
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2Q17 highlightsStrong quarter with significant milestones achieved
Continued improvement in safety performance
No lost time safety incidents in 2Q17
12 month LTI frequency per million hours worked of 1.2
Tropicana delivers record throughput of 7.6Mtpa
Production and cash costs better than guidance range
Value enhancement increases Ore Reserves by 58% and life of mine NPV by 79%
Long cash costs better than guidance
Production and cash costs better than guidance range
Jaguar payable copper and zinc lower
Weak quarter driven by expected lower Zn and Cu grades and lower mining production due to technical challenges
Nova first concentrate produced and shipped
Strong cash generation and debt reduction
Process plant successfully commissioned.
Ramp up to full production by mid 2017
Cash of A$109M and debt of A$200M at quarter end
Unaudited underlying EBITDA of A$43.7M and unaudited profit after tax of A$10.2M for 2Q17
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Unaudited financial resultsStronger cash generation plus debt retirement during 2Q17
Unaudited Metrics | Units | 2Q17 | 1Q17 |
Revenue | A$M | 128.5 | 94.8 |
Underlying EBITDA(1) | A$M | 43.7 | 38.1 |
Net Profit After Tax | A$M | 10.2 | 10.1 |
Net Cash Flow From Operating Activities | A$M | 17.6 | 8.1 |
Underlying Free Cash Flow(2) | A$M | (48.6) | (59.0) |
Cash (at end of period) | A$M | 109.4 | 249.3 |
Marketable Securities (at end of period) | A$M | 9.4 | 5.6 |
Refined bullion (at end of period) | A$M | 0.2 | 0 |
Debt (at end of period) | A$M | 200.0 | 271.0 |
Underlying EBITDA are non-IFRS measure (refer to Disclaimer page).
Free Cash Flow comprises Net Cash Flow from Operating Activities and Net cash Flow from Investing Activities. Underlying adjustments exclude proceeds from investment 4
sales and payments for investments
Independence Group NL published this content on 25 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 24 January 2017 22:41:07 UTC.
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