IGO Limited (Independence Group)
IGO Limited (Independence Group)
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There’s still no decision from IGO on its forward plans for the 30% JV interest it holds in AngloGold Ashanti’s Tropicana gold mine, but the West Australian miner is pushing forward with its $US1.4B investment in the Greenbushes hard rock lithium mine and Kwinana lithium hydroxide plant held by Tianqi Lithium Corporation.
The agreement last month to acquire a 49% stake in Tianqi Lithium Energy Australia this week won an impressive 99.97% support from the Chinese lithium giant’s shareholders.
Australian miner IGO has advanced its strategy of becoming a globally relevant supplier of clean energy metals with the signing of a binding $US1.4B investment in the struggling WA operations of Chinese lithium giant Tianqi.
IGO will emerge with a 49% stake in Tianqi Lithium Energy Australia, resulting in it holding indirect interests of 24.99% in the Greenbushes hard rock lithium mine 250km S of Perth and 49% of the Kwinana lithium hydroxide plant 40km S of the state capital.
With Sept 2020 qtr (Q1 21) nickel-copper-gold from its 2 Western Australia operations all up, profit up, no debt, a $A30M final dividend and $509M in the bank, IGO M/D-CEO Peter Bradford is right when he says that financially, the company has never been in a better position.
Q1 21 profit after tax jumped 14% on Q4 20 to $A45.4M, underlying EBITDA rose 7% to $121.3M and underlying free cash flow rocketed 49% to $84M.
With the major indicators up, IGO has set a solid $45.5M profit platform for the rest of FY21. By Mark Mentiplay
AngloGold Ashanti has declared commercial production at the Boston Shaker underground mine three months after firing the first production stope, and is now ramping up towards its 1.1Mtpa design production rate expected to be reached by March 2021.
The first underground operation at AngloGold’s 70%-owned Tropicana JV with IGO is forecast to deliver 100,000ozpa gold over seven years from a 317,000oz (2.8Mt @ 3.84g/t) ore reserve, with significant potential to increase at depth.
West Australian miner IGO, the original discoverer of AngloGold Ashanti’s Tropicana gold mine, has floated the option of selling out of its 30% JV interest to focus on commodities relevant to clean energy.
After receiving unsolicited approaches from a number of parties, IGO has launched a strategic review of its holding that will involve detailed technical analysis of opportunities to enhance value through underground development and exploration.
West Australian miner IGO will seek repetitions of its 100%-owned Nova nickel-copper-cobalt mine with a 5-year exclusive agreement with Boadicea Resources to explore nine tenements at Fraser Range in the state’s south. The deal includes the Symons Hill tenement, a little-explored area adjoining the Nova mining lease.
IGO will pay $A5.5M cash upfront and subscribe $1.5M for 6.25M Boadicea shares, plus $50M payable on declaration of a JORC resource and 0.75% NSR royalty.
The ability to achieve production guidance despite bushfire and coronavirus challenges has enabled West Australian miner IGO to lift its revenue for the June year (FY20) to $A892.4M, up from $729.9M a year earlier.
Underlying EBITDA reached $459.6M (FY219: $340.7M) and after-tax profit to $155.1M ($76.1M). Underlying free cash-flow rose to $310.8M ($277.6M), enabling the company to end the year with net cash of $453.2M ($262.5M).
Australian explorer Antipa Minerals has done a series of deals worth $A33.2M, led by miner IGO’s $30M farm-in on 1,563sq km of Antipa’s 100%-owned gold-copper tenements in the Paterson Province, Western Australia.
A year of unique Western Australia challenges, including devastating bushfires and the COVID-19 pandemic, has seen IGO’s June 2020 year (FY20) Tropicana gold production slide, but with its Nova operations steady.