IGO LIMITED — Investor Presentation 2019

Aug 28, 2019

INDEPENDENCE GROUP NL FY19 Results Presentation

Record financial results driven by outstanding operational performance

29 August 2019 ASX:IGO / ADR:IIDDY

FY19 Highlights

Nova and Tropicana operational performance underpins strong result

ESG Performance

Parallel focus on non-financial performance, because we care

High levels of employee engagement and lower turnover rates

Community engagement and corporate giving programs delivering tangible benefits

Ongoing improvement in lead and lag safety metrics

Financial Results Summary

Operational outperformance delivered record financial results in FY19

1) Underlying EBITDA is a 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. Refer to Disclaimer page for "Underlying" adjustments

FY19 Cash Flow

Nova cash generation drove 151% YoY increase in cash to A\$348M

FY19 Full Year Dividend

Record return to shareholders

Nova Results

Strong metal production and high margins in FY19

Metal production exceeded guidance	Nickel in Concentrate	Copper in Concentrate	Cobalt in Concentrate
	30,708t 13,693t ▲38% YoY ▲ 43% YoY		1,090t ▲ 47% YoY
Disciplined operation delivered high margins	Cash Costs	AISC	FY19 FCF Margin
	A\$2.07/lb Ni (payable) ▼26% YoY	A\$2.79/lb Ni ▼38% YoY	50% ▲ 87% YoY

Nova

Strong track record of performance since commencement of commercial production

Tropicana Results

High margin gold production continued in FY19

Tropicana

Consistent performance from Tropicana continued in FY19

Track record of consistent production and cost performance

Second ball mill successfully commissioned during FY19 delivering immediate benefits

First production from Boston Shaker Underground expected during 1Q21

Production & Cost Guidance(1)

Nova			Tropicana
Metric	Units	FY20 Guidance	Metric	Units	FY20 Guidance
Nickel in concentrate	t	27,000 – 30,000	Gold produced (100%)	oz	450,000 – 500,000
Copper in concentrate	t	11,000 – 12,500	Gold Sold (IGO 30%)	oz	135,000 – 150,000
Cobalt in concentrate	t	850 – 950	Cash cost	A\$/oz	700 – 780
			AISC	A\$/oz	1,090 – 1,210
Cash cost (payable)(2)	A\$/Ib Ni	2.00 – 2.50	Sustaining/improvement (30%)	A\$M	13 – 15
Sustaining/ improvement Capex	A\$M	24 – 26	Waste stripping (30%)	A\$M	42 – 47
Development Capex	A\$M	6 – 8	Underground capex (30%)	A\$M	26 – 29

1) Refer to ASX release dated 31 July 2019: IGO June Quarterly Activities Report

2) Cash cost guidance assumes the following commodity prices for payable metal credits: Copper: A\$4.20/lb; Cobalt: A\$24/lb

FY20 – Exploration Guidance

Enduring commitment to exploration continues into FY20

FY20 Exploration Guidance(1,2) A\$26M A\$24M A\$6M A\$4M A\$3M A\$3M Nova Fraser Range Other Greenfields & Generative West Kimberley Tropicana Lake Mackay A\$66M

Exploration a core part of IGO's growth strategy

Increased budget to accelerate drilling at and near Nova

70% of overall expenditure at Nova, Fraser Range, Tropicana and Lake Mackay will be for drilling

2) A\$66M excludes A\$6M budget for project evaluation

FY20 Growth Opportunities

Multiple opportunities to generate additional value for shareholders

Concluding Comments

Strong operational performance delivers record FY19 result

Consistent operational performance at Nova and Tropicana throughout FY19

Outstanding free cash generation continues to strengthen the balance sheet

Growth through exploration, M&A and downstream processing

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.
• All currency amounts in Australian Dollars unless otherwise noted.
• Net Debt is outstanding debt less cash balances and Net Cash is cash balance less outstanding debt.
• Cash Costs are reported inclusive of Royalties and after by-product credits on per unit of payable metal basis, unless otherwise stated.
• All-in Sustaining Costs per payable pound of nickel for Nova include cash costs, royalties and sustaining capital expenditure.
• 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, gain/loss on sale of subsidiary, redundancy and restructuring costs, depreciation and amortisation, and once-off transaction costs.
• 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 and mineral interests.