IGO LIMITED — Interim / Quarterly Report 2016

Jul 26, 2016

PERIOD ENDED 30 JUNE 2016

HIGHLIGHTS

• Cash from Operating Activities increased significantly quarter on quarter to A$39.7 million.

• Unaudited Net Profit After Tax strengthened markedly quarter on quarter to A$16.4 million.

• Tropicana gold production for the quarter was in line with expectation at 95,133oz (on a 100% basis) and cash costs and All in Sustaining Costs were A$895/oz produced and A$1,135/oz sold respectively.

• Long production and cash costs were steady at 2,018t of contained nickel at a cash cost of A$3.51/lb of payable nickel inclusive of by-product credits and royalties.

• Jaguar cash costs at A$0.02/lb payable zinc inclusive of by-product credits and royalties benefited from a 149% increase, to 3,235t, in contained copper production quarter on quarter. Contained zinc produced was 8,937t.

• Construction at the Nova Project continued to progress according to plan and was 93.4% complete at quarter end. We mined the first ore in development during the quarter and the project remains on schedule and on budget, and is expected to commence commissioning in late 2016 and to produce first concentrates in December 2016.

	Units	Q4 FY16	Q3 FY16	Q4 FY15	FY16
Financials (unaudited)
Underlying EBITDA1	A$M	38.9	28.7	38.0	135.7
Profit (Loss) After Tax	A$M	16.4	2.8	7.5	(58.9)
Cash and refined bullion	A$M	46.3	40.8	121.5	46.3
Debt	A$M	271.0	240.0	-	271.0
Net Cash from Operating Activities	A$M	39.7	4.1	47.3	92.6
Tropicana
Gold production (100% basis)	ounces	95,133	101,038	116,600	448,116
Cash Cost	A$/oz	895	837	648	730
All in Sustaining Costs	A$/oz	1,135	1,067	817	918
Long
Contained nickel produced	tonnes	2,018	1,933	2,338	8,493
Cash Costs	A$/lb	3.51	3.29	4.50	3.67
Jaguar
Contained zinc produced	tonnes	8,937	9,680	10,221	39,335
Contained copper produced	tonnes	3,235	1,300	1,449	7,412
Cash Costs	A$/lb	0.02	0.70	0.59	0.53

1 Unaudited Underlying EBITDA excludes acquisition costs (Q4 FY16: -A$1,848,000, FY16: A$63,555,000), impairments (Q4 FY16: A$nil, FY16: A$35,518,000), and gain on investment sales (Q4 FY16: A$1,433,000, FY16: A$2,955,000).

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FINANCIAL AND CORPORATE

	FINANCIAL SUMMARY (unaudited)	Q4 FY16 (A$M)	Q3 FY16 (A$M)	Q4 FY15 (A$M)	FY16 (A$M)
	Total Revenue	105.9	88.5	118.7	417.1
	Underlying EBITDA	38.9	28.7	38.0	135.7
	Profit (Loss) After Tax	16.4	2.8	7.5	(58.9)
	Net Cash Flow From Operating Activities	39.7	4.1	47.3	92.6
	Cash Flows included in the above:
	Finance costs	(0.7)	(5.0)	(0.1)	(6.9)
	Exploration Expenditure expensed	(3.6)	(4.0)	(7.4)	(20.5)
	Net Cash Flow From Investing Activities	(61.5)	(65.8)	(28.9)	(420.9)
	Cash Flows included in the above:
	Mine and Infrastructure Development	(73.5)	(64.1)	(8.9)	(212.9)
	Proceeds from sale of investments	16.0	-	-	17.0
	Payments for investments	(1.5)	(0.1)	(12.4)	(1.6)
	Exploration Expenditure capitalised	-	(0.4)	(2.4)	(10.6)
	Plant & Equipment	(2.5)	(1.2)	(5.2)	(10.7)
	Cash payment for Sirius Resources, net of cash acquired	-	-	-	(202.0)
	Underlying Free Cash Flow2	(36.3)	(61.6)	30.8	(141.6)
	Net Cash Flow From Financing Activities	31.0	39.9	(0.7)	252.3
	Cash Flows included in the above:
	Net proceeds from borrowings	31.0	40.0	(0.7)	270.5
	Facility arrangement fees	-	-	-	(5.4)
	Dividends paid	-	-	-	(12.8)
	Balance Sheet Items
	Total Assets	1,989.0	1,894.3	820.2	1,989.0
	Cash	46.3	37.0	121.3	46.3
	Refined Bullion	-	3.8	0.2	FY16A$-M)
	Marketable Securities	5.0	17.3	15.6	5.0
	Total Debt	271.0	240.0	0.5	271.0
	Total Liabilities	532.9	456.2	154.7	532.9
	Shareholders’ Equity	1,455.7	1,438.1	665.5	1,455.7
	Net tangible assets per share (A$ per share)	A$2.85	A$2.81	A$2.84	A$2.85

2 Free Cash Flow comprises Net Cash Flow from Operating Activities and Net Cash Flow from Investing Activities. Underlying adjustments exclude proceeds from investment sales and payments for investments.

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• Total Revenue for the quarter was A$105.9 million, an increase of 20% on the March 2016 quarter, which was primarily a result of higher sales volume from Jaguar and Long, together with higher realised prices.

• The unaudited profit after tax for the quarter was A$16.4 million (March 2016 quarter: A$2.8 million).

• Cash from operating activities for the quarter was A$39.7 million, compared to A$4.1 million for the March 2016 quarter, which includes A$40.0 million in provisional and final Jaguar copper and zinc shipment receipts, A$14.1 million Long nickel receipts, less A$4.1 million of ongoing exploration expense.

• At 30 June 2016, the Company had cash totalling A$46.3 million and marketable securities of A$5.0 million. Debt drawn during the quarter from the Company’s unsecured debt facilities was A$31 million; A$9 million lower than the previous quarter. Of the A$550 million facility amount available, A$279 million remained undrawn as at 30 June 2016.

Cash Flow	Q4 FY16 (A$M)	Q3 FY16 (A$M)
Cash at beginning of quarter	37.0	58.9
Tropicana Operations Free Cash Flow	16.2	5.8
Jaguar Operations Free Cash Flow	13.9	0.3
Long Operations Free Cash Flow	4.7	6.1
Nova Project Development	(62.8)	(58.3)
New Business and Exploration (greenfields & brownfields)	(4.1)	(5.0)
Corporate and Other Costs	(3.6)	(5.8)
Acquisition and New Business Integration Costs	-	(0.1)
Proceeds from sale of Gold Road investment	16.0	-
Payment for ABM Resources shares	(1.5)	-
Net Finance Costs	(0.5)	(4.8)
Lease Principal Repayments	-	(0.1)
Debt Draw Downs	31.0	40.0
Cash at end of quarter	46.3	37.0

Underlying EBITDA for the quarter was A$38.9 million (March 2016 quarter: A$28.7 million). Variances between the two quarters include:

• Jaguar Operations Underlying EBITDA for the quarter of A$21.2 million compared to March 2016 quarter of A$8.1 million. Revenue was higher due to increased copper concentrate shipped tonnes during the quarter (11,000 wet metric tonnes (wmt) of copper concentrate for June 2016 quarter compared to 5,500wmt of copper concentrate shipped for March 2016 quarter), combined with higher copper and zinc concentrate grades shipped. Zinc concentrate shipped in the quarter was in line with the previous quarter. In addition, average realised A$ copper and zinc prices increased for the quarter, an increase of 15% and 24% respectively.

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• Tropicana’s Underlying EBITDA of A$21.0 million for the quarter (March 2016 quarter: A$23.8 million). Gold ounces sold were 4% lower, offset by a slight increase in the A$ gold price. Deferred stripping was up 23% for the quarter as the removal of waste from the Tropicana 02 pit continued.

• Long Operations Underlying EBITDA of A$7.0 million (March 2016 quarter: A$3.3 million). The higher result was due to 6% higher nickel sold and 23% higher nickel prices.

• Exploration and new business costs at A$5.2 million were largely in line with the preceding quarter at A$5.0 million, following a rationalisation and prioritisation program earlier in the year (ASX release – 21 January 2016).

• Corporate and other Underlying EBITDA loss for the quarter was A$3.3 million compared to A$1.8 million in the March 2016 quarter. The March quarter benefited from combined A$2.8 million higher positive movement in the value of investments held, and A$0.7 million lower hedging losses, quarter on quarter.

Unaudited Net Profit After Tax of A$16.4 million also benefited during the quarter from:

• A$1.8 million reduction in estimated Sirius acquisition expense,

• A$1.9 million after tax gain on sale of investments

• A$1.5 million reversal of previously expensed select Nova borrowing costs.

Hedging as at date of this Report	Units	FY17	FY18	FY19	TOTAL
Gold Collars	oz	12,500			12,500
Call price	A$/oz	1,593			1,593
Put price	A$/oz	1,330			1,330
Gold Par Forwards	oz	72,600	60,000	47,988	180,588
Price	A$/oz	1,641	1,796	1,859	1,750
Total Gold Hedging	oz	85,100	60,000	47,988	193,088
Diesel Par Forwards3	L	7,863,000	9,912,000		17,775,000
Price	A$/L	0.405	0.454		0.432

The Company took advantage of strong gold price appreciation and hedged additional gold production during and after the quarter to further de-risk future cash flow during the expected term of the repayment of the debt to build Nova. Hedging in each of the financial years referred to above represents approximately 70%, 50% and 40% respectively of IGO’s share of forecast annual gold production. The average realised gold price achieved in FY16 was A$1,576/oz.

Further information relating to the performance of the operations of IGO can be found in the Appendices of this report. In addition, the Company has uploaded onto its website, under Financial Reports, a soft copy of the Appendices titled Q4 FY16 Supplementary Information.

3 The component of diesel hedged is Singapore Gasoil 0.05% Sulphur which typically represents ~ 40% to 50% of the pump price of diesel. Nonhedgeable components of diesel comprise shipping, insurance, wharfage, government excise and other taxes, transport, corporate costs and retailer’s margin.

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HEALTH, SAFETY AND THE ENVIRONMENT

Safety

Across our managed activities, we had one lost time injury during the quarter, at Nova. Our 12month lost time injury frequency per million hours worked (LTIF) for the 12 months ended 30 June 2016 was 3.9.

Environment

We have had no material environmental incidents across our managed activities during the quarter.

TROPICANA JOINT VENTURE (TJV)

Open pit gold, north-east of Kalgoorlie, WA: IGO 30%, AngloGold Ashanti 70% (Manager)

Production

During the quarter, a total of 7.0 million bank cubic metres of material were mined and hauled expit. This material comprised of 1.3Mt of full grade ore (>0.6g/t Au), 0.2Mt of marginal ore (grading between 0.4 & 0.6g/t Au) and 14.4Mt of waste material. Ore was sourced from the Havana pit (0.8Mt), the Boston Shaker Pit (0.3Mt) and the Tropicana Pit (0.4Mt) with the average run-of-mine grade for full grade ore (>0.6g/t Au) being 2.10g/t Au for the quarter.

A total of 1.72Mt of ore at an average grade of 1.93g/t Au was processed during the quarter. Average metallurgical recovery was 89.3% for 95,133oz of gold produced.

The reduction in gold production for the quarter compared to the March quarter (101,038oz) continues to trend to long term guidance for gold production following the cessation of grade streaming in December 2015.

The annualised throughput rates for the quarter was a quarterly record at 6.88Mtpa.

Attributable Production

IGO’s attributable gold production during the quarter was 28,540oz and IGO’s attributable share of gold refined and sold was 29,254oz. IGO’s attributable average cash costs for the quarter were A$895/oz gold produced and all-in sustaining costs (AISC) were A$1,135/oz gold refined. Please refer to Table 1 in Appendix 1 for further details.

Tropicana Optimisation Project

Completion of processing plant optimisation work, which is expected to lift throughput to 7.5Mtpa, is anticipated by late September.

During the quarter, as planned, upgrades to the conveyor systems in the secondary crushing, HPGR (high pressure grinding rolls) and milling circuits were carried out during a major shutdown in April. Following this plant shut down, the processing plant throughput ramped up to 7.3Mtpa, on an annualised basis for the months of May and June.

The remaining work, which will be completed in the September 2016 quarter includes conveyor upgrades in the primary crushing circuit, optimisation of screen panels in the secondary and HPGR circuits, completion of the installation of two additional Carbon In Leach tanks and associated upgrades to lime storage, the oxygen plant, air, water and elution systems

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Gas Pipeline Project Update

The gas pipeline project including the installation of the gas fired generators is complete with the last gas generating units commissioned during the quarter.

LONG OPERATION

Underground nickel in Kambalda, WA: IGO 100%

Production

Production was 50,167t of ore mined at 4.02% Ni for 2,018t of contained nickel with the majority of ore being sourced from the Moran orebody. A full breakdown of production statistics is provided in Tables 2 and 3 in Appendix 2.

Nickel was produced at a cash cost of A$3.51/lb of payable nickel inclusive of royalties and net of by-product credits. This is 22% lower than for the same quarter last year, reflecting significant improvement in productivity following the restructuring at Long in September and December 2015.

Development

A total of 203.3m was advanced by jumbo development during the quarter, with the focus on ore development in Moran, totaling 141.3m.

Exploration

Exploration at Long is expected to recommence in the September 2016 quarter.

JAGUAR OPERATION

Underground zinc-copper, north of Leonora, WA: IGO 100%

Mining

During the quarter, mining delivered 117,337t of ore at 8.66% Zn, 2.89% Cu, 0.56% Pb, 143.6g/t Ag and 0.9g/t Au.

Processing Plant

Processing Plant production was 122,332t of ore milled at head grades of 8.61% Zn and 2.88% Cu, 142g/t Ag and 0.87g/t Au, which resulted in 8,937t Zn and 3,235t Cu metal in concentrates produced. Further details of processing plant production in the quarter are set out in Table 4 in Appendix 3.

Average C1 cash costs for the quarter benefited from higher copper production and were A$0.02/lb of payable zinc inclusive of royalties and net of by-product credits, compared to A$0.70/lb in the March 2016 quarter.

Concentrate

The processing plant produced 31,562t of concentrate during the quarter, of which 19,192t was zinc concentrate and 12,370t was copper concentrate (See Table 4 in Appendix 3). Copper and zinc concentrates shipped during the quarter were 11,000wmt and 21,450wmt respectively.

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Mine Development

A total of 745m of advance occurred during the quarter, of which 173m was capitalised, with the remainder accounted for in operating costs.

Jaguar Regional Exploration

An aircore drill program commenced during the quarter with 11 holes for a total of 930m drilled at the Wilson Creek Prospect to the end of the quarter. The program, which is designed to confirm the possible northern extents of the target stratigraphy and effectively geochemically test the target area, is expected to be completed in late July. Results are pending.

NOVA PROJECT

Fully funded underground nickel project in construction, east of Norseman, WA: IGO 100%

Project Progress

Progress at Nova has continued according to plan during the quarter, reaching the 93.4% mark and remaining ahead of schedule and on budget relative to the Optimisation Study schedule. The current schedule indicates concentrate will be produced and ready for shipment, as planned, during December 2016.

Total mine development of 5.53km had been completed by the end of the quarter.

The first ore from development activities was mined and hauled to the surface during the quarter. This marked another milestone in the Project’s development. During the next quarter, ore will be stockpiled on the newly completed ROM pad ready for crushing as soon as the processing plant crushing circuit is commissioned.

Grade control drilling has commenced underground with three drill rigs currently deployed. The initial priority is the drilling of the first production stopes.

Mine development and underground infrastructure construction was concentrated on establishment of the ventilation Fresh Air Rise 2 (FAR2), Return Air Rise 1 (RAR1) raiseboring, drilling of the dewatering rising main to surface, and installation of the 2070mRL level ventilation doors.

Construction works continued across multiple areas and disciplines within the processing plant area throughout the quarter.

• Structural steel erection and installation of mechanical equipment installation activities continued to progress well. Structural steel installation works are now approaching completion.

• Piping and electrical works progressed in multiple areas across the plant, and remain a primary focus for the construction team.

• By quarter end, the SAG mill and Ball mill installation work had progressed through shell and ring gear runouts as well as drive train alignments. Regrind mill shells and drives have also been installed.

Stage 2 of the power station installation progressed during the quarter with the delivery and positioning of the five GE 3.0MW diesel generating sets. Stage 1 of the power station is operational and supplying power for current site loads. The fuel farm construction is complete with the exception of punch list items. Zenith, the power provider, have commenced operation of the power station with full time operating personnel on site.

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The mining heavy workshop shed, and wash-down bay facility were both commissioned during the quarter.

Guidance

Project development and construction activities remain on track for commissioning in late 2016 and production of first concentrates in December 2016.

Exploration

Completion of systematic data coverage over the Nova Mining Lease (ML) continued during the quarter. Additional gravity data was collected to complete coverage of the ML. Completion of effective surface electromagnetic (EM) coverage is scheduled to be finalised in the September 2016 quarter after priority EM surveys in the Fraser Range Project have been concluded.

EXPLORATION AND DEVELOPMENT PROJECTS

Fraser Range/Tropicana Trend

Fraser Range Project (IGO 70% and Manager)

Exploration activities over the Fraser Range Project during the quarter comprised continuation of an extensive moving loop electromagnetic (MLEM) survey over several prospects defined by elevated soil geochemistry. Gravity surveys were completed over extended parts of the project to assist in geological interpretation and target generation.

The MLEM survey completed over the Area 3 Prospect, located 60km southwest of Nova, did not identify any near-surface conductive body.

Salt Creek JV (IGO 70% and Manager)

An extensive regional aircore program was completed during the quarter on the Salt Creek Project for a total of 11,526m. The program was designed to test for extensions to the encouraging initial aircore drill results from the Rising Dragon Prospect, indicating likely magmatic sulphide mineralisation, along with continued reconnaissance testing of target areas of interest fringing the Fraser Zone.

Initial results returned to date have extended the anomalism at the Rising Dragon Prospect. Deeper drill testing of this prospect is being planned, and is likely to be carried out during the December 2016 quarter. Assessment of the regional drilling results is in progress.

Lake Mackay Gold/Base Metals Project (IGO Manager and Option to earn 70%)

Four diamond and three reverse circulation (RC) holes were drilled at the Bumblebee Prospect comprising 617m of RC (including pre-collars) and 518m of diamond coring for a total of 1,135m. The holes were designed to test a strong EM conductor that coincides with multi-element drill intercepts from initial air-core drilling carried out in 2015 (ABM Resources ASX announcement – Geophysical Survey Results Enhance Bumblebee Prospect dated 23 March 2016).

The conductor was found to be associated with an extensive pyrrhotite rich zone intercepted in the deeper holes and was identified in the downhole electromagnetic surveys that were completed on each hole.

Anomalous base metal results were received from all seven drill holes at Bumblebee associated with the EM conductor. The drilling has confirmed proof of concept and prospectivity of this belt scale exploration opportunity.

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FY17 GUIDANCE (Compared to FY16 guidance and performance)

Mining Operation	UOM	FY16 Guidance Range(1)	FY16 Results	FY17 Guidance Range
Tropicana (IGO 30%)
Goldproduced(100% basis)	oz	430,000 to 470,000	448,116	390,000 to 430,000
Gold(IGO’s 30% share)	oz	129,000 to 141,000	134,435	117,000 to 129,000(2)
Cash cost	A$/oz Au	680 to 750	730	850 to 950
All-in SustainingCosts	A$/oz Au	900 to 950	918	1,150 to 1,250
Sustainingcapex	A$M	14 to 16	6.4	2 to 3
Improvement capex	A$M		5.9	2 to 3
Capitalised waste stripping	A$M	18 to 20	16.1	29 to 36
Exploration expenditure	A$M	9 to 11	7.6	6 to 8
Long
Nickel (contained metal)	tonnes	8,500 to 9,000	8,483	7,400 to 8,200
Cash cost (payable)	A$/Ib Ni	3.50 to 4.00	3.68	3.50 to 3.90
Sustainingcapex	A$M	2 to 3	1.7	1
Exploration expenditure	A$M	8 to 9	7.1	2 to 3
Jaguar
Zinc in concentrate	tonnes	38,000 to 40,000	39,335	39,000 to 43,000
Copper in concentrate	tonnes	6,500 to 7,000	7,412	4,600 to 5,100
Cash cost (payable)	A$/Ib Zn	0.60 to 0.70	0.53	0.70 to 0.80
Sustainingcapex	A$M	2 to 3	1.8	8 to 9
Development capex	A$M	11 to 13	12.8	12 to 13
Exploration expenditure	A$M	9 to 10	8.9	3 to 4
Nova
Nickel in concentrate	tonnes			9,000 to 10,000
Copper in concentrate	tonnes			3,900 to 4,400
Cash cost(payable)	A$/Ib Ni			4.00 to 4.50(3)
Capital Build capex (cash basis)	A$M		242	140 to 150
Sustainingcapex	A$M			3 to 5
Development capex	A$M			22 to 25
Exploration expenditure	A$M			3.5 to 4.5
Greenfields & generative	A$M	6 to 8	6	11 to 15

(1) As restated in the March 2016 Quarterly Report

(2) Total gold hedging in FY17 represents 70% of guidance production including 72,600 ounces at A$1,641/oz

(3) Nova cash cost guidance for FY17 is indicative of the period of ramp-up following plant commissioning

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FORWARD LOOKING STATEMENTS

This document may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Independence Group NL’s planned exploration program and other statements that are not historical facts. When used in this document, the words such as "could", "plan", "estimate", "expect", "intend", "may", "potential", "should", and similar expressions are forward-looking statements. Although Independence Group NL believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these Forward Looking statements.

COMPETENT PERSONS STATEMENTS

The information in this report that relates to Exploration Results (excluding Long exploration results) is based on information compiled by Mr. Matthew Dusci who is a full-time employee and security holder of the Company and is a member of the Australasian Institute of Mining and Metallurgy. Mr. Dusci has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Dusci consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

For further information contact:

Peter Bradford Managing Director Independence Group NL Telephone: 08 9238 8300

Joanne McDonald Company Secretary Independence Group NL

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APPENDICES

Tropicana Production Summary

Appendix 1

Table 1: Tropicana Production Summary for the June 2016 Quarter

TROPICANA JV OPERATION	Notes	Units	June 2016 Quarter	Year to Date	Corresponding Quarter June 2015
Safety:
Lost Time Injuries(No.)			0	1	0
Lost Time InjuryFrequency (LTIF)	1		0.5		1.00
Production Details:100% JV Operation
Waste mined		‘000 wmt	14,441	50,350	11,256
Ore Mined(>0.4 and <0.6g/t Au)		‘000 wmt	168	1,210	299
Ore Mined(>0.6g/t Au)		‘000 dmt	1,298	7,289	2,929
Au Grade Mined(>0.6g/t Au)		g/t	2.10	2.13	1.97
Ore Milled		‘000 dmt	1,715	6,528	1,431
Au Grade Milled		g/t	1.93	2.39	2.73
Average metallurgical recovery		%	89.3	89.3	90.3
Gold recovered		oz	94,893	448,546	113,565
Gold-in-circuit adjustment		oz	240	(430)	3,035
Goldproduced		oz	95,133	448,116	116,600
IGO 30% attributable share
Gold refined & sold	2	oz	29,254	135,864	38,910
Revenue/Expense Summary:IGO 30% share
Sales Revenue		$'000	47,478	214,081	59,636
Cash MiningCosts		$'000	(12,139)	(52,407)	(14,100)
Cash ProcessingCosts		$'000	(11,471)	(47,345)	(11,451)
Goldproduction inventoryadjustments		$'000	2,252	20,488	6,560
Gold sales inventoryadjustments		$'000	(839)	(1,168)	(3,004)
Other Cash Costs	3	$'000	(3,191)	(14,373)	(2,583)
Stategovernment royalties		$'000	(1,248)	(5,409)	(1,325)
By-product credits		$'000	249	917	236
Exploration & feasibilitycosts(non-sustaining)		$'000	(1,765)	(7,208)	(2,666)
Exploration & feasibilitycosts(sustaining)		$'000	(62)	(386)	(91)
Plant & Equipment(construction and development capital)		$'000	(938)	(6,386)	(3,364)
Capitalised strippingasset		$'000	(5,138)	(16,061)	(2,152)
Rehabilitation – accretion & amortisation		$'000	(668)	(2,603)	(509)
Depreciation/Amortisation		$'000	(10,310)	(50,454)	(14,684)
Unit Cash Costs Summary: IGO 30% share
Mining& ProcessingCosts		$/oz	827	742	730
Goldproduction inventoryadjustments		$/oz	(79)	(152)	(188)
Other Cash Costs		$/oz	156	147	112
By-product credits		$/oz	(9)	(7)	(7)
Cash costs		$/oz	895	730	648
Unit AISC Summary:IGO 30% share
Cash costs		$/oz	902	731	660
SustainingCapital		$/oz	32	47	86
Capitalised sustainingstripping& other mine costs		$/oz	176	118	55
Exploration & feasibilitycosts(sustaining)		$/oz	2	3	2
Rehabilitation – accretion & amortisation		$/oz	23	19	13
All-in Sustaining Costs	4	$/oz	1,135	918	817

• Note 1: LTIF is a 12 month moving average per million hours worked. Note 2: Attributable share includes sales on a revenue basis, excludes gold-in-transit to refinery. Note 3: Other Cash Costs include costs relating to site management, administration and support services, environmental & sustainability costs. Note 4: The World Gold Council encourages gold mining companies to report an All-in Sustaining Costs metric. The publication was released via press release on 27th June 2013 and is available from the Council’s website.

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Long Operation Production Summary

Appendix 2

Table 2: Long Operation Production Summary for the June 2016 Quarter	Table 2: Long Operation Production Summary for the June 2016 Quarter	Table 2: Long Operation Production Summary for the June 2016 Quarter	Table 2: Long Operation Production Summary for the June 2016 Quarter	Table 2: Long Operation Production Summary for the June 2016 Quarter	Table 2: Long Operation Production Summary for the June 2016 Quarter
LONG OPERATION	Notes	Units	June 2016 Quarter	Year to Date	Corresponding Quarter June 2015
Safety:
Lost Time Injuries (No.)		#	0	1	0
Lost Time Injury Frequency (LTIF)	1		5.28		3.10
Production:
Ore Mined	2	dmt	50,167	215,337	67,958
Reserve Depletion	3	dmt	40,212	168,347	43,219
Ore Milled		dmt	50,167	215,337	67,958
Nickel Grade		%	4.02	3.94	3.44
Copper Grade		%	0.28	0.28	0.25
Metal in Ore Production
Nickel		t	2,018	8,493	2,338
Copper		t	141	610	168
Metal Payable (IGO’s share):
Nickel	4	t	1,220	5,125	1,400
Copper	4	t	57	247	68
Revenue/Expense Summary:
Sales Revenue (incl. hedging)		$'000	16,513	61,987	26,115
Cash Mining Costs		$'000	(5,897)	(24,779)	(8,998)
Other Cash Costs	5	$'000	(3,932)	(18,260)	(5,378)
Copper credits		$'000	376	1,593	502
Exploration		$'000	(2)	(7,129)	(2,499)
Mine Development		$'000	0	(305)	0
Plant & Equipment		$'000	(302)	(1,703)	(3,057)
Depreciation/Amortisation		$'000	(5,493)	(22,503)	(5,676)
Cost /lb Total Ni Metal Produced
Cash Mining Costs		$/lb	1.33	1.32	1.75
Other Cash Costs	5	$/lb	0.88	0.98	1.04
Copper Credit		$/lb	(0.08)	(0.09)	(0.10)
Ni C1 Costs & Royalties		$/lb	2.13	2.21	2.69
Exploration, Development, P&E		$/lb	0.07	0.49	1.08
Depreciation/Amortisation		$/lb	1.23	1.20	1.10
Cost /lb Total Ni Metal Payable
Cash Mining Costs		$/lb	2.19	2.19	2.92
Other Cash Costs	5	$/lb	1.46	1.62	1.74
Copper Credit		$/lb	(0.14)	(0.14)	(0.16)
Ni C1 Costs & Royalties	6	$/lb	3.51	3.67	4.50
Exploration, Development, P&E		$/lb	0.11	0.81	1.80
Depreciation/Amortisation		$/lb	2.04	1.99	1.84

• Note 1: LTIF is a 12 month moving average per million hours worked. Note 2. Production is sourced from both inside and outside reserve. Note 3: Reserve depletion equals production from within reserves base.

• Note 4: Payable metal is a function of recovery from concentrate smelting and refinery and is costed under a BHPB Nickel West contract. Note 5: Other Cash Costs include milling, royalties and site administration costs. Note 6: C1 cash costs include the costs of mining, milling, onsite general administration expenses and royalties, less the net value of copper byproduct credits for the Quarter.

Table 3: Long Operation: production sources in the June 2016 Quarter (see Table 2 above for further detail)

Victor South	1,576t @ 1.79% Ni for 28t Ni
Moran	48,591t @ 4.10% Ni for 1,990t Ni
TOTAL	50,167t @ 4.02% Ni for 2,018t Ni

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Jaguar Operation Production Summary

Appendix 3

Table 4: Jaguar Operation Production Summary for the June 2016 Quarter

JAGUAR OPERATION	Notes	Units	June 2016 Quarter	Year to Date	Corresponding Quarter June 2015
Safety:
Lost Time Injuries (No.)			0	3	0
Lost Time Injury Frequency (LTIF)	1		5.02		3.30
Production Details:
Ore Mined	2	dmt	117,337	497,751	118,240
Reserve Depletion	3	dmt	117,316	490,075	88,892
Ore Milled		dmt	122,332	505,578	124,591
Zinc Grade		%	8.61	8.90	9.29
Copper Grade		%	2.88	1.70	1.38
Silver Grade		g/t	142	128	140
Gold Grade		g/t	0.87	0.75	0.71
Concentrate Production
Copper concentrate		dmt	12,370	28,939	5,566
Zinc concentrate		dmt	19,192	83,772	21,294
Zinc recovery		%	84.9	87.4	88.3
Copper recovery		%	91.8	86.5	84.0
Silver recovery		%	82.2	77.1	76.3
Metal in Concentrate:	4
Copper		t	3,235	7,412	1,449
Zinc		t	8,937	39,335	10,221
Silver		oz	458,353	1,603,565	426,647
Gold		oz	1,396	4,880	1,162
Metal Payable in Concentrate:	4
Copper		t	3,111	7,122	1,393
Zinc		t	7,402	32,634	8,517
Silver		oz	327,474	1,071,989	280,588
Gold		oz	1,277	4,543	1,089
Revenue/Expense Summary:
Sales Revenue (incl. hedging TC’s/ RC’s)		$'000	40,114	133,899	30,420
Cash Mining Costs		$'000	(6,649)	(26,482)	(7,435)
Cash Processing Costs		$'000	(4,974)	(21,075)	(5,284)
Other Site Costs		$'000	(4,467)	(17,834)	(4,238)
Trucking & Wharfage		$'000	(3,159)	(11,989)	(3,211)
Shipping		$'000	(858)	(4,250)	(1,367)
Royalties		$'000	(945)	(4,864)	(1,426)
Exploration		$'000	(894)	(8,943)	(3,181)
Mine Development		$'000	(2,697)	(12,766)	(3,017)
Plant & Equipment		$'000	(456)	(1,835)	(358)
Depreciation/Amortisation		$'000	(6,721)	(25,703)	(4,957)
Notional Cost /lb Total Zn Metal Produced
Mining Costs		$/lb	0.34	0.31	0.33
Processing Costs		$/lb	0.25	0.24	0.23
Other Cash Costs	5	$/lb	0.91	0.78	0.74
Copper, Silver and Gold credits		$/lb	(1.49)	(0.89)	(0.81)
Zn C1 Costs & Royalties	6	$/lb	0.02	0.44	0.49
Exploration, Development, P&E		$/lb	0.21	0.27	0.29
Depreciation/Amortisation		$/lb	0.34	0.30	0.22
Notional Cost /lb Total Zn Metal Payable
Mining Costs		$/lb	0.41	0.37	0.40
Processing Costs		$/lb	0.30	0.29	0.28
Other Cash Costs	5	$/lb	1.10	0.94	0.89
Copper, Silver and Gold credits		$/lb	(1.80)	(1.08)	(0.98)
Zn C1 Costs & Royalties	6	$/lb	0.02	0.53	0.59
Exploration, Development, P&E		$/lb	0.25	0.33	0.35
Depreciation/Amortisation		$/lb	0.41	0.36	0.26
Note 1: LTIF is a 12 month moving average per million hours worked. Note 2: Total mined ore, from inside and outside of reserves. Note 3: Reserve depletion equals production from within reserves base. Note 4: Payable metal is a function of recovery from concentrate, smelting and refinery, controlled by sales contracts. Note 5: Other Cash Costs include, actual maintenance & site administration costs, notional trucking, notional TCs & RCs, notional wharfage, shipping and notional royalties. Note 6: C1 Costs include credits for copper, silver and gold notionally priced at US$2.15 per pound, US$16.92 per ounce and US$1,261 per ounce for the Quarter respectively.

• Note 1: LTIF is a 12 month moving average per million hours worked. Note 2: Total mined ore, from inside and outside of reserves.

• Note 3: Reserve depletion equals production from within reserves base. Note 4: Payable metal is a function of recovery from concentrate, smelting and refinery, controlled by sales contracts. Note 5: Other Cash Costs include, actual maintenance & site administration costs, notional trucking, notional TCs & RCs, notional wharfage, shipping and notional royalties.

Note 6: C1 Costs include credits for copper, silver and gold notionally priced at US$2.15 per pound, US$16.92 per ounce and US$1,261 per ounce for the Quarter respectively.

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