IGO Limited (Independence Group)
IGO Limited (Independence Group)
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The operators of the Greenbushes mine in Western Australia’s southwest are pressing ahead with the latest expansion stage of the world’s lowest-cost and highest-grade hard rock lithium mine, awarding the EPCM services contract for its third chemical-grade processing plant to locally based international engineer Lycopodium.
Leading Australian nickel producer and takeover target Western Areas has achieved a significant milestone at its key growth project with the first ore production from the Odysseus South orebody at its Cosmos operation, 30km N of Leinster in WA.
The development ore is being stockpiled during construction of a concentrator complex, which is due to produce its first concentrate in the Dec 2022 qtr, but Western Areas is also assessing potential ore-tolling opportunities in the interim.
IGO has begun its due diligence investigation of potential takeover target and fellow Western Australia nickel miner Western Areas.
Both companies have confirmed a potential change of control transaction is being discussed, saying they are at an early stage, with IGO confirming due diligence began in recent days. IGO says it will progress due diligence over coming weeks, but there is no certainty that a definitive transaction will result once this period of diligence is complete.
Galileo Mining has received firm commitments for its of $A6.5M, 25M share placement at $0.26cps, primarily to fund ongoing drilling/exploration for Nova-style nickel/copper/cobalt deposits at the company’s Fraser Range project and drilling/exploration for palladium/nickel at its Norseman project, both in S Western Australia.
A large aircore drilling program is due to start at Norseman in late Sept /October 2021, with a diamond drilling campaign planned for the Fraser Range later in the year.
A transitional June 2021 year (FY 21) and a $556.8M pre-tax gain on the divestment of its 30% stake in Tropicana Gold in Western Australia has seen IGO post a record net profit after tax of $A549M, a 254% improvement on FY 20.
Total revenue and other income was up 3% to $918.7M, with underlying EBITDA the same to $474.6M, net cash inflow from operating activities up to $446.1M from $397.5M and net cash outflow from investments up 823% to a negative $1,065M.
Lower nickel production and sales have seen Western Areas’ plunge to a June 2021 year (FY 21) net loss after tax of $A7.7M from the previous year’s $31.9M profit as the company continues preliminary potential takeover discussions with fellow Western Australia nickel miner IGO.
The change-up in the commissioning of the long-delayed Kwinana Lithium Hydroxide Refinery has seen JV partners Tianqi Lithium (51%) and IGO (49%) produce the first lithium hydroxide chemical ahead of their revised schedule at Australia’s first facility of its kind.
It’s just a first step, but it allows the JV to move from batch basis to continuous operation of Train 1 at the refinery just south of Perth while progressively raising product quality to battery grade for qualification by offtake customers.
Western Australian nickel miners Western Areas and IGO have confirmed they are in preliminary discussions over a potential takeover by IGO of Western Areas.
Western Areas has confirmed it is in discussions with IGO in relation to “a change of control proposal and the basis upon which engagement and due diligence between the parties could proceed.”
IGO has also confirmed the reports saying the same.
(DIGGERS AND DEALERS)
Australian mining leaders warn difficulties in recruiting and maintaining the skilled workforce they need is already cramping their efforts to deliver the products that are essential to national economic recovery. John Feary reports from the Australian Diggers and Dealers Mining Forum in Kalgoorlie
West Australian miner IGO has been named Dealer of the Year at the annual Diggers and Dealers mining forum in Kalgoorlie, recognition for the deals in the last year to divest its base metals and gold interests to seize a significant space in the booming battery metals space.
Digger of the Year was West African Resources, the WA company built and commissioned the 250,000ozpa Sanbrado gold mine in Burkina Faso during the COVID-19 pandemic.