IGO LIMITED — Investor Presentation 2017

Nov 23, 2017

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. 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 publicly 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 should be read in conjunction with IGO's 2017 Mineral Resource and Ore Reserve announcement dated 23 October 2017 and lodged with the ASX, which 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, redundancy and restructuring costs, 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.
• Free Cash Flow comprises Net Cash Flow from Operating Activities and Net Cash Flow from Investing Activities. Underlying adjustments exclude acquisition costs, proceeds from investment sales and payments for investments.

Corporate Summary

Post capex and positioned for strong FY18

A\$M	FY17	FY16	Change %
Revenue	422	417	1%
Underlying EBITDA(1)	151	138	9%
Net Profit after Tax	17	(59)	n/a
Cash Flow from Operations(2)	78	102	(24%)
Underlying Free Cash Flow(3)	(113)	(142)	n/a
Cash	36	46	(23%)
Debt	200	271	26%

Strong balance sheet	\$200M undrawn revolver open
Dividend policy of ~30%	First loan repayment made
NPAT	in 1Q18

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

• 2) Cash Flow from Operating Activities from Tropicana, Jaguar and Long Operations.
• 3) Underlying Free Cash Flow is a non-IFRS measure (refer to Disclaimer page). It also excludes net payment for the acquisition of Sirius Resources NL in FY16
• 4) As at 31 October 2017
• 5) As at market close 23 November 2017

Share Ownership
Substantial Holders		Institutional Ownership(4)
Mark Creasy	16%	Australia	61%
FIL	9%	USA & Canada	27%
T Rowe Price	8%	UK & Europe	9%
CBA	7%	ROW	3%
Ausbil	5%

Share Price Performance(5)

Steady FY17 and Step Change FY18

Nova transition from construction and development to commercial production

FY17 vs FY16 1Q18 vs 4Q17

4

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

2) As represented by reduction in net debt

A Company with Purpose

To create long-term shareholder value

IGO EBITDA Profile (A\$M)(1)(2)

¹⁾ EBITDA (Underlying EBITDA) is a non-IFRS measure (refer to Disclaimer page)

2) Macquarie research dated 14 August 2017

• Nova in commercial production from 1 July 2017
• Project delivered earlier than feasibility study
• Costs within 3% of January 2015 uninflated estimate
• Nova delivers step change to IGO EBITDA profile

Right people in the right place at the right time

• Common Purpose
• Culture of growth and performance
• Nurturing the IGO Way

Investing in our future

• Learning & Development
• Graduate interns
• Apprentices
• Vacation work
• Scholarships
• Support / guidance for secondary students

Sustainability and Safety

Focused on better outcomes for our people

ACSI Rating of ASX200 Sustainability Reporting(1)

1) ACSI (Australian Council of Superannuation Investors) has reviewed IGO's sustainability disclosure and assessed the company at a 'Leading' level

• 1) 12 month moving average MTIFR Medically Treated Injury Frequency Rate: calculated as the number of medically treated injuries x 1,000,000 divided by the total number of hours worked
• 2) 12 month moving average LTIFR Lost Time Injury Frequency Rate: calculated as the number of Lost Time injuries x 1,000,000 divided by the total number of hours worked
• 3) LTIFR rate has increased from 2.20 (IGO rate) to 2.75 due to an injury reclassification for Jaguar from December 2016

IGO Portfolio Overview

Diversified portfolio of nickel, gold, zinc and copper production

Long

A solid and consistent performer in the IGO portfolio

• Acquired in 2002
• Since produced c.133,000t of contained Ni
• A\$199M free cashflow from FY11 to FY17
• Care and maintenance plan for late FY18
• Greenfields exploration will continue

Jaguar

Improving performance

Jaguar Production

Tonnes

Zinc in concentrate Copper in concentrate

Jaguar Upside(1)

Depth extensions at Bentley, new deposit at Triumph and ongoing regional exploration

Tropicana

Tropicana Production (100%) and ASIC

Directional Production and AISC

Tropicana

14

Value Enhancement

• Plant nameplate expanded from 5.8 to 7.5Mtpa - further expansion to 8.1Mtpa (+better recovery) in CY18
• Long Island to extend mine life with larger diggers, strip mining & in-pit dumping of waste to reduce mining cost – three decision points

Tropicana Upside

Evaluating underground and regional opportunities

For further detailed information see Tropicana Gold Mine Investor/Analyst Visit presentation and ASX release dated 4 Aug 2017

Nova Fly-through

Commitment to Discovery

A\$50M commitment to exploration in FY18

FY18 Exploration Budget

Nova Tropicana Jaguar Long Other Greenfields

Fraser Range Exploration

In search of the next Nova

• 12,000km2 tenure consolidated
• Systematic exploration underway
• Bedrock geochem sampling with aircore
• Multiple geophysics programs
• Spectrem airborne EM survey started
• Drilling of targets progressively as identified

Nova & Fraser Range aligned to growing demand for metals for energy storage

• 24kg nickel
• 24kg cobalt &
• 91kg copper

in a Chevy Bolt

EV Disruption

Nickel expected to be a big winner from this

• Nickel market already in supply deficit
• Growing demand for nickel in stainless steel
• Positive global growth outlook continues to be positive for stainless steel
• EV will generate additional demand
• Continuing supply deficit expected

Increased Nickel demand

Nickel to out-perform gold, copper & zinc

Positive Outlook for Nickel Price(3)

1) UBS Research dated 1 November 2017 Nickel: Electric Vehicle Demand Refinements

2) Macquarie research dated October 2017 Nickel Outlook: Demand drives the market from now on

3) Consensus forecast commodity prices are real US\$2017 converted to A\$ at consensus exchange rates at November 2017

• Our business is strong
• Underpinned by long life assets at Nova & Tropicana
• Now in positive cashflow stage and balance sheet strengthening
• Nickel upside looks great
• Actively exploring for more exposure on Fraser Range
• Opportunity to unlock more value from Nova