IGO (IGO) Strategy Day 2024 summary

Strategic direction and market context

• Refreshed 10-year strategy centers on battery materials, especially lithium, with copper and nickel as complementary commodities, aiming for resilience and value through cycles.

• Lithium is the primary focus due to its critical role in EVs and energy storage, with global EV adoption, especially in China, driving demand.

• Diversification into copper is essential for stable cash flows, while nickel remains a selective focus due to market challenges.

• Exploration is being refocused toward lithium and copper, with a reduced emphasis on nickel and a more agile, value-driven approach to tenement management.

• The company is open to international expansion but will assess new geographies with caution, prioritizing high standards and sustainability.

Operational execution and business development

• Greenbushes remains the world’s largest, lowest-cost hard rock lithium mine, delivering strong margins (85% EBITDA in FY24) and expanding to 2.0Mt capacity by late 2025.

• Kwinana refinery faces ramp-up challenges but is progressing, leveraging Tianqi's expertise; downstream exposure will be carefully managed.

• Nova is prioritized for safe, stable operations and cash maximization as it nears end of life, while Forrestania is transitioning to care and maintenance.

• Commercial capability is being built to better capture value across the lithium value chain, with a focus on product development and customer alignment.

• Partnerships and technical innovation, especially in lithium extraction and processing, are key levers for future differentiation and cost leadership.

Financial discipline and capital allocation

• Strong balance sheet with $468M cash and $720M undrawn facilities supports patient, disciplined growth.

• Capital allocation is benchmarked against Greenbushes and Nova, with a focus on risk-weighted returns and value over speed; M&A is considered but only for assets meeting strict criteria.

• Over $1B in dividends paid over five years, with a 37% average payout of underlying FCF.

• Exploration and corporate costs are being reduced and reprioritized to align with the refreshed strategy.

• Management incentives are tied primarily to TSR and resource definition, with a future intent to include return on capital metrics.