Acquisition of Western Areas Limited
IGO will retain financial strength post transaction
Post Transaction, IGO will remain well funded with pro-forma net debt of A$472M
Pro forma snapshot
igo
IGO's financial strength
Post-acquisition, IGO will retain a strong
balance sheet with modest gearing
IGO will fund the Transaction with new
debt of A$900M and A$272M of existing
cash
Post Transaction completion, IGO will
also assume Western Areas existing
cash of A$148M¹ upon completion
IGO will have pro forma net debt of
A$472M and modest gearing of 5.5%
(Net debt/EV)
IGO
Western Areas
Acquisition
Pro forma IGO
No. Ordinary Shares
Vesting Rights
M
757.3
321.6
757.3
M
4.6
Market Capitalisation
A$M
8,050
1,0966
8,050
Cash and Equivalents1
A$M
552
148
(272)
428
Debt1
A$M
900
900
Net Debt/ (Cash)
A$M
(552)
(148)
1,172
472
IGO will remain well capitalised to fund
further growth initiatives
Enterprise Value
A$M
7,498
948
8,522
Further nickel growth initiatives include
the development of the Cosmos Nickel,
the Mt Goode PFS and the Silver Knight
deposit
Remaining Odysseus development cost
to be funded from IGO's existing cash
and operating cashflows
Gearing (Net Debt / EV)
%
5.5%
Nickel Reserves²
kt
164
277
441
Nickel Resources²
kt
207
941
1,148
Li₂O Reserves³
kt
735
735
Substantial brownfields growth
opportunity within the lithium joint
venture
Li₂O Resources³
kt
936
I
936
FY22F Ni Production
kt
25-27
FY22F Cash Costs
A$/lb
2.00 -2.404
16-17
4.25 -4.655
41-44
n/a
1. As at 30 September 2021; 2. As per IGO CY20 Mineral Resource and Ore Reserve Statement (ASX: 17 March 2021) and Western Areas September Quarterly Presentation (ASX: 28 October 2021); 3. Attributable Lithium Reserves from 24.99% ownership as
per IGO Global Lithium JV with Tianqi Announcement (ASX: 9 December 2020); 4. Per lb of payable nickel; 5; Per lb of nickel, payable terms are not disclosed due to confidentially conditions of the offtake agreements; 6. Western Areas market capitalisation
calculated on a fully diluted basis.
15View entire presentation