IGO Reports Q3 FY2019 Results, Delivered Strong EBITDA and PAT

  • May 01, 2019 AEST
  • Team Kalkine
IGO Reports Q3 FY2019 Results, Delivered Strong EBITDA and PAT

A nickel, gold and copper-zinc-silver mining, development and exploration company, Independence Group NL (ASX: IGO), on 30th April 2019, released its quarterly results for the quarter ended 31st March 2019.

During the period, the company has delivered another strong quarter. Nova delivered new production records (8,375 tonnes of nickel and 3,731 tonnes of copper was produced) and cash costs, including royalties worth A$1.50 per payable pound of nickel. At Tropicana, the gold production for the quarter was 123,236oz at an AISC of A$990/oz.

Nova and Tropicana remained on track to deliver full-year production guidance. During the period, the net profit after tax was A$45 million, up by 6300% as compared to its previous quarter. The underlying EBITDA during the period was A$117 million, up by 72% as compared to 2H FY2019. The net cash position by the end of the quarter was A$172 million. The net cash generated from the operating activities was up 94% to A$106.3 million. The company paid a fully franked interim dividend of 2 cents per share on 1st March 2019.

As a result of higher Nova grade as well as productivity, there was an increase in sales. Also, the nickel price was up 7%, which resulted in a growth in the Nova EBITDA. The NPAT was also influenced by the lower exploration expenses and lower amortisation at Tropicana and Nova.

Nova:

Independence Group NL holds 100% interest at Nova. Nova is situated in the Fraser Range, which is approximately 160km east-northeast of Norseman, 360 kilometres south-east of Kalgoorlie as well as 380 kilometres from the Port of Esperance located in Western Australia. The Nova deposit was discovered in 2012, however, the development of deposit actually started in January 2015.

Nova, during the period, delivered a strong EBITDA margin of 56% and FCF margin of 53%. At Nova, the underground development and grade control drilling has been completed. The pre-feasibility study demonstrated that the IGO Process is technically viable. Through the IGO Process, the metal recoveries were extremely high. The rate of extraction surpassed 97% of cobalt as well as nickel in Nova nickel-copper sulphide concentrate feed. The IGO Process helps in the production of battery grade nickel sulphate. Independence Group NL has already lodged a patent application, and the study is expected to complete in late 2019.

Tropicana Gold JV

IGO has a 30% interest in Tropicana, which is situated on the western edge of the Great Victoria Desert. Tropicana reported a strong EBITDA margin of 59% and FCF margin of 31%.

The development of the Boston Shaker will commence in May 2019, after the positive feasibility study. The capital cost is estimated at A$105 million, and the operating cost is estimated at A$95 per tonne. The company expects that the average gold production will be around 100koz per year over seven years.

In the previous six months, the shares of IGO generated a return of 14.07%. IGO is trading at A$4.600 on ASX (as at AEST 12:00PM, 01 May 2019), up by 3.139% as compared to its previous closing price. IGO holds a market capitalisation of A$2.63 billion with approximately 590.48 million outstanding shares.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK