Can you provide an overview of IGO’s Nova project and its production expectations?

IGO’s Nova project was discovered in July 2012 and production began in October 2016. The project is expected to be fully ramped up to capacity by September 2017. This was possible due to the project’s location in Western Australia, which is a fantastic mining jurisdiction, and the fact that it is a world-class deposit. Additionally, the downturn in the mining industry enabled IGO to gain access to the right people, equipment, and contractors to fast-track the project. Nova will produce 26,000 mt/y of nickel, 11,500 mt/y of copper, and about 1,000 mt/y of cobalt over an initial 10-year mine life.

What opportunities is IGO exploring to enhance the value of its Tropicana JV with AngloGold Ashanti?

Now that the Tropicana project is running successfully, IGO is looking at opportunities to enhance its value. The first opportunity is to invest incremental capital into the processing plant to increase its capacity, which has already been done. The second opportunity is to drill beneath the pits to demonstrate that the ore body continues at depth. Over the last two years, drilling has been carried out to demonstrate that this is the case, and the necessary engineering is now being executed to enlarge the pits and increase reserves. The next objective at Tropicana is to increase regional exploration, as there is significant opportunity to find either the next Tropicana or satellite deposits that can feed into the centralized processing facility. In 2017, IGO is increasing regional exploration expenditure around Tropicana and expects to spend about $A15 million between the two JV partners.

What is IGO’s strategy to enhance the value of its Jaguar operation?

IGO’s focus for the Jaguar operation is to extend mine life and unlock the potential to scale up the operation. The Jaguar operation comprises a series of VMS deposits that generally occur in clusters. Currently, the Bentley deposit is being mined, but IGO aims to find more of these VMS deposits to increase its reserves. To that end, the Triumph deposit has been discovered, where the maiden resource estimate is currently being completed, and a feasibility study is being conducted. Triumph would give IGO a second mine at Jaguar and the ability to deliver more ore to the surface, which would allow the company to expand the processing plant. With very little incremental capital expenditure, IGO expects to be able to increase plant capacity at Jaguar by about 20%.

Why does IGO tend to concentrate its projects geographically, and does the company have any intentions to expand globally?

IGO utilizes a belt-scale approach, whereby consolidating the surrounding area of a project that sits on fertile land provides an opportunity to drive the next discovery on the belt and to leverage existing infrastructure. After acquiring Nova through a merger with Sirius, IGO completed four additional transactions through JVs and takeovers to consolidate a larger landholding around Nova on the under-explored Fraser Range. The company understands this belt better than anyone else and wants to control the belt to maximize its chances of making the next discovery on the belt. IGO’s stated purpose is to deliver long-term shareholder value by pursuing a diversified risk model, both through commodity and geography. The company will be looking for more world-class, large-scale projects outside of Western Australia to improve the overall quality of its portfolio while maintaining strong regional management.

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