IGO Limited (Independence Group)
IGO Limited (Independence Group)
Full text is available to Level 2 subscribers only
Subscribe to Mining Business Media
Full access to Mining Business Media's unique blend of global mining sector news and commentary is available by subscription only.
$A275.00 per year*
(*up to 10 users)
GST included in Australia
Direct debit/cheque/credit card:
Click here
Subscription inquiries, email subscribe@miningbusiness.net or call 61+413 772 044.
Related Content
West Australian miner Independence has won the backing of explorer Windward Resources' board - and tellingly, its major shareholder Mark Creasy - for an all-cash $A20.5M off-market takeover offer that will consolidate landholdings in the Fraser Range region. The 19cps offer represents a 46% premium to Windward's last closing price on Sept 16.
Windward's Fraser Range North project is contiguous with the Nova nickel-copper project being developed by Independence, offering what its MD-CEO Peter Bradford calls a clear rationale for a bolt-on transaction.
AngloGold Ashanti's Tropicana gold mine in Western Australia is facing a second successive year of declining production and higher costs in FY17.
West Australian miner IGO says its 30% share of AngloGold Ashanti's Tropicana gold project will remain a key asset in the coming year despite forecast lower production and higher costs. IGO's other key asset will be the Nova nickel-copper-cobalt mine, where first concentrate production is on target for Dec.
Tropicana produced 448,116oz gold in the year to June 2016, with IGO's 30% share 135,864oz, but it forecasts FY17 output of 390,000-430,000oz. AISC of $918/oz is predicted to rise to $1,150-1,250/oz.
With gold prices rising and the national currency falling, Australian miners are utilising a variety of strategies to take advantage of favourable market conditions.
IGO will take up the search for a prospective new world-class nickel deposit just 60km from its under-development Nova nickel-copper-cobalt project in Western Australia after agreeing a JV with Buxton over its Zanthus and Widowmaker tenements in the Fraser Range.
After paying $A1.5M cash to Buxton for a 90% interest, IGO will be responsible for exploration for all elements other than iron ore through to a decision to mine. Buxton will retain exclusive rights to iron ore deposits including its Zanthus magnetite project.
IGO is chasing higher early cash flow from its Nova nickel-copper-cobalt project in Western Australia by accelerating access to the Bollinger orebody.
It says the optimisation of the Nova mining plan could allow IGO to lift mining rates above 1.5Mtpa and reduce the risk of future production disruptions to lift expected free cash-flow in FY18 by $138M. The early development of the Bollinger decline will be done within the project's $A443M capital cost estimate.
West Australian miner IGO posted on-guidance FY16 production of 134,546oz gold from its 30% holding in the Tropicana project. The AngloGold Ashanti JV mine produced 448,485oz for the year to end-June, down from 494,976oz in FY15.
IGO's Jaguar mine posted 39,334t (FY15: 44,999t) zinc-in-concentrate and 7,411t (7,380t) copper-in-concentrate while the Long project's contained nickel output slid to 8,482t (10,200t).
West Australian miner Independence will gain a 9% shareholding in NT explorer ABM Resources after deciding to exercise its option to enter a JV over ABM's Lake Mackay gold project NW of Alice Springs.
By subscribing for 33.9M shares at 4.42cps, it becomes ABM's third largest shareholder and can earn 70% of Lake Mackay by spending $6M on exploration within 4 years. ABM says the funds from IGO may allow it to defer or vary its currently proposed $8.2M rights issue at 4cps.
Gold-nickel-zinc producer Independence Group has posted a $A31M turnaround from a previous qtr loss to an after tax $2.8M profit for the Mar 2016 qtr (Q3 2016) from its Western Australian operations.
Production from IGO’s 30% stake in the Tropicana Gold JV slid to 30,311oz at cash costs up to $837oz and AISC of $1,067oz sold from the previous qtr’s 40,123oz at cash costs of $625oz and AISC of $796oz.
Independence Q3 profit on reduced production/increased costs and increases Tropicana FY16 gold costs guidance, cuts copper production and increases costs. By Mark Mentiplay