Acquisition of Western Areas Limited
Transaction Benefits
Transaction is a logical consolidation of the WA nickel sector aligned with clean energy metals strategy
igo
•
Aligned with Strategy
• Transaction further
capitalises on the
transition to clean
energy technologies
Aligns with IGO's clean
energy metals strategy
which has been strongly
endorsed by the market
Increased nickel
exposure enhances IGO
position as a global
leader in clean energy
metals
Cash Consideration
• Funding structure results
in no dilution for IGO
shareholders
• Transaction funded from
existing cash reserves
and new debt
IGO balance sheet
remains well positioned
to fund future organic
growth initiatives
•
Accretive
Transaction is FCF
accretive from FY24
once the ramp-up of
Odysseus underground
mine is complete
Increased leverage to
improving nickel outlook
•
Enhances Nickel
Portfolio
A significant and high
quality nickel business
comprising the Nova
and Forrestania Nickel
Mines and the Cosmos
Development Project
Increased nickel
exposure with FY22 pro
forma nickel production
increased by 63% to 41
- 44 kt¹
• Extends IGO's nickel
exposure beyond Nova
°
Logical Consolidation
• Strategic and logical
opportunity to
consolidate the Western
Australian nickel
market, positioning IGO
as Australia's leading
independent nickel
producer
Enhances future
downstream optionality
of the combined nickel
portfolio
IGO well positioned
· Odysseus development
to be derisked through
IGO's nickel
development expertise
and balance sheet
IGO will assume WSA
cash upon completion of
A$148M
IGO exploration
expertise and with
financial commitment to
maximise value from Mt
Goode and broader
combined exploration
portfolio
0
Enhanced exposure to EV and clean energy metals thematic
1. FY22 guidance for nickel in concentrate production is 25-27kt at Nova and 16-17kt at Forrestania, refer to WSA ASX Release titled "Western Areas long term production profile & FY22 guidance metrics", released 30 July 2021 and IGO ASX Release titled
"June 2021 Quarterly Activities Report, released 28 July 2021"
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