IGO LIMITED — Interim / Quarterly Report 2016

Jan 27, 2016

INDEPENDENCE GROUP NL

Peter Bradford, Managing Director and CEO December 2015 Quarter Results Presentation

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 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. N orepresentation 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 Nova Ore Reserve should be read in conjunction with IGO's 2015 Mineral Resource and Ore Reserve announcement dated 28 October 2015 and lodged with the ASX, which are available on the IGO website. The Nova Ore Reserve was updated during the optimisation study dated 14 December 2015 and lodged with the ASX, which is available in 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 27th 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.

December 2015 quarter highlights

Leading Australian diversified mining company

Tropicana performance better than pro-rata full year guidance

• •40,123oz (IGO share) at a cash cost of \$625/oz and AISC of \$796/oz
• •Record quarterly processing rate (annualised 6.5Mtpa)

Long performance well inside guidance range

•2,246t contained Ni at a C1 cash cost of \$3.68/lb of payable Ni

Jaguar productivity continuing to improve

• •9,311t Zn and 1,447t Cu at a C1 cash cost of \$0.69/lb of payable Zn
• •Record quarterly mining and processing rate (annualised 530,000tpa)

Nova construction on schedule and on budget

• •Project currently 61% complete with first concentrate production forecast for December 2016
• •\$260M capital spend remaining to complete project

Financial and Corporate

• •Cash and bullion of \$59.6M and debt of \$200.1M at quarter-end
• •\$15.9M of operating cash flow for the quarter, which is after expenditure of \$4.3M on exploration
• •Unaudited underlying EBITDA of \$29.3M and unaudited loss after tax of \$7.2M

Sustainability

Focus on continuous improvement

No lost time injuries in December quarter across the business

Continued focus is on leading indicators and strengthening of culture + systems

Unaudited financial results

Balance sheet remains strong

\$ ( ) U d i t d 'm i l l i n a u e o n	Q 2 1 6 F Y	Q 2 1 F Y 5
R e v e n u e	9 8 4	1 2 4 5
( ) 1 U d l i E B I T D A n e r y n g	2 9 3	6 3 4
N P f i A f T t t t e r o e r a x	( 7 2 )	2 4 4
N C h F l F O i A i i i t t t t e a s o r o m p e r a n g c e s w v	1 5 9	6 5 5
( 2 ) F C h F l r e e a s o w	( 9 2 ) 5	4 9 9
C h ( d f i d ) t a s a e n o p e r o	5 8 9	9 3 3
S ( f ) M k t b l i t i t d i d a r e a e e c u r e s a e n o p e r o	1 3 7	1. 0
R f i d b l l i ( d f i d ) t e n e o n a e n o p e r o u	0 7	1. 0
( f ) D b t t d i d e a e n o p e r o	2 0 0 1	1. 8

1) Underlying EBITDA are non-IFRS measure (refer to Disclaimer page).

2) Free Cash Flow comprises Net Cash Flow from Operating Activities and Net cash Flow from Investing Activities.

December quarter cashflow

Continued discipline and focus on cash management

• •Integration of Sirius transaction completed and Nova optimisation study completed in quarter
• •Nova Development progressed from 44% to 61% completion with \$260M capital remaining
• •\$350M term loan remains undrawn
• •Exploration spend reduced by \$20M over next 12 months

Tropicana

Production and cash costs better than annualised guidance

Gold production and costs

• •40,123oz gold produced and 39,714oz sold (IGO share)
• •Cash costs of \$625/oz produced and AISC of \$796/oz sold

Mining

•5.5M BCM mined and hauled ex-pit

Processing

• •1.62Mt processed at average grade of 2.85g/t and 90.0% recovery
• •6.5Mtpa rate achieved in the quarter at an average utilisation of 96%

Capital projects

• • Gas pipeline completed and staged commissioning of the first gas engines underway
• • Process plant debottlenecking to increase production to in excess of 7Mtpa continues and expected to be completed later in 2016

Near mine exploration

• • 14kmof RC and DDH drilling completed with continued positive results
• •Extensional seismic survey completed south of Havana South
• •Focus is down-dip and along-strike extensions of existing ore bodies

Long

Production and cash costs well inside guidance range

Production and costs

• •2,246t contained nickel produced
• •Cash costs of \$3.68/lb payable Ni net of by-product credits and royalties

Underground mining

• •57,367t mined at an average grade of 3.87% Ni
• •Mining for the quarter focussed on the Moran orebody

Near mine exploration suspended

• • In response to low nickel prices, following the end of the quarter exploration activities at Long were suspended
• •Regrettably, as a result, approximately 30 roles were made redundant
• •Production and cash cost guidance is unaffected

Jaguar

Zinc production on guidance but cash costs impacted by lower Copper by-product credits

Production and costs

• •9,311t Zn and 1,447t Cu produced in concentrates
• •Cash cost of \$0.69/lb payable zinc net of by-product credits and royalties

Underground mining

•Tonnes mined were in line with mine plan at 133,552t

Processing

•

• 132,610t milled at average grade of 7.96% Zn and 1.30% Cu
• •Represents annualised rate of 530,000tpa

Near mine exploration

• • Drilling designed to upgrade the Flying Spur mineral resource from inferred to indicated and extend understanding of Arnage lens at depth continued
• •Positive drilling results at depth beneath existing Arnage resource envelope
• • Mineral Resource and Ore reserve updates to be completed in the coming quarters

Nova overview

Fully financed, in construction, on schedule and on budget

Overall

• •Significant progress made during quarter and project now 61% complete
• • Project remains on track for commissioning in late 2016 and for production of first concentrates in December 2016
• •Integration of Sirius and optimisation study completed in December 2015

Infrastructure

• •Permanent access road completed in the quarter
• • First power generation units have been shipped and are expected to be operational in the June quarter. 11kv overhead powerline is +80% complete

Underground development

• Mine development ahead of schedule with 2,441m development to date and the decline reaching the 1,425m mark at quarter-end

Process plant construction

• •Construction of the process plant and associated infrastructure is ahead of schedule and 31% complete
• •Current focus is delivery and installation of structural steel and manufacture and delivery of equipment

Nova Project progress

Project currently on time and on budget

Nova Optimisation Study

Added value - reduced risk - future growth

Study outcomes

• •36% improvement on the Project NPV
• • 27% reduction in expected C1 cash costs (after by-product credits) in concentrate to \$1.21/lb from \$1.66/lb nickel
• • 21% decrease in all-in sustaining cash costs (after by-product credits) in concentrate to \$1.83/lb from \$2.32/lb nickel
• • Capital unchanged, however significantly more development to be completed within January 2015 estimate

Exploration rationalisation

Long term commitment to delivering organic growth

CY16 Exploration spend reduced by \$20M

• • In response to continued weak base metal prices greenfields exploration prioritised on core growth projects:
• Nova – Tropicana Belt
• Lake Mackay JV
• Bryah Basin JV
• • Brownfields programs at Nova, Tropicana and Bentley remain a priority
• •CY16 Exploration budgeted at \$25M(1)

FY16 guidance

Updated exploration expenditure guidance

Tropicana (IGO share)

• •129,000 to 141,000oz at average cash cost of \$640 to \$710/oz Au
• •AISC of \$820 to \$910/oz Au sold
• •Sustaining capex of \$8 to \$10M, stripping capex of \$18 to \$20M and exploration of \$9 to \$11M

Jaguar

• •35,000 to 40,000t Zn and 7,500 to 8,500t Cu in conc. at average cash cost of \$0.40 to \$0.60/lb Zn
• • Sustaining capex of \$4 to \$5M, development of \$12 to \$14M and exploration of \$9 to \$11M down from \$10 to \$12M

Long

• •8,500 to 9,000t contained Ni at average cash cost of \$3.50 to \$4.00/lb Ni
• •Sustaining capex of \$2 to \$3M and exploration of \$8 to \$9M (up to suspension of exploration activities)

Nova

•Total development cost of \$443M of which approximately \$180M spent to 31 December 2015

Greenfields Exploration

•\$6 to \$8M down from \$10 to \$12M on greenfields and generative exploration

Concluding comments

Diversified mining company delivering cash flow and growth

Strong focus on cash management

• •Market prices for base metals declined further quarter on quarter
• • Strong production from Tropicana reflecting improved availability and better than design throughput rates
• •Nova remains on schedule and on budget
• • The \$350M term loan put in place last year to fund Nova construction remained undrawn

Nova optimisation study and integration completed

• •Nova optimisation study delivered a significant improvement to project economics
• •Project start up has been de-risked and additional options to add value recognised

Outlook and catalysts for value recognition

• •Switch to gas power generation at Tropicana
• •Continued progress at Tropicana to ramp up processing capacity to +7Mtpa
• • Nova development milestones including mining of first ore in June quarter, commissioning late-2016 and production of first concentrate in December 2016
• •Mineral Resource updates at Tropicana and Bentley