Independence Group Share Price Marginally Uplifted After The Release Of September Quarter Activities Reports

  • Oct 29, 2018 AEDT
  • Team Kalkine
Independence Group Share Price Marginally Uplifted After The Release Of September Quarter Activities Reports

On 29 October 2018, Independence Group NL (ASX: IGO) released its September quarter activities reports, following which the share price of the company uplifted by 0.758 percent.

As per IGO’s Managing Director & CEO Mr. Peter Bradford, the first quarter results of FY 2019 demonstrate the quality of company’s two outstanding assets in Nova and Tropicana, which underpin the funding for exciting exploration program to drive the company’s future growth. Although cash costs at Nova were higher than guidance which was impacted by lower metal produced and lower by-product metal pricing. The company is expecting that the cash costs will decline in the upcoming quarters due to higher quarterly metal production. 

Despite the higher nickel concentrate sales from Nova and increased gold sales from Tropicana, the total revenue for the September quarter was A$167.4 million which is lower than the last quarter. The revenues were impacted by the Softer base metal prices and lower copper concentrate sales. The total revenues were also impacted by no effective sales contribution from Jaguar and Long.

The Underlying unaudited EBITDA decreased as compared to the last quarter to AUD$62.9 million, mainly due to the lower product revenue from Nova. The unaudited net profit after tax was AUD$0.2 million in the first quarter of FY 2019. As a result of strong cash generation from Nova and Tropicana, and the receipt of proceeds of A$11.5 million from the June 2018 sale of a gold royalty, the Net cash from IGO Operating activities was A$108.1 million in Q1 FY 2019 which was higher than the last quarter.

In the first quarter of FY 2019, the Net cash inflow was A$37.3 million, which included outflows of A$28.6 million for debt repayments, A$11.8 million in final FY 2018 dividends. The company also paid A$5.3 million for an investment in the Southern Hills tenements on the Albany Fraser Range in Western Australia. In September quarter, the strategic agreements were finalized at Nova which includes the renewal of the underground mining contract for a 4-year term and the commitment to the construction of a solar farm.  At Nova, the pre-feasibility study for downstream nickel sulphate processing was Started in September quarter and at Tropicana, the pre-feasibility work on Boston Shaker Underground is progressing to schedule and an update on the Boston Shaker Underground is expected in the second quarter of FY 2019. Also, at Tropicana, the construction of the second ball mill was initiated and it is expected that it will start commissioning before the end of December 2018.

The company’s ongoing AUD$51 million commitment to discovery in FY 2019 is focusing on metals which are important for renewable energy and electric vehicles. The exploration team of the company has increased the activity level, which is in line with the increased commitment to exploration in FY 2019.

In the last six months, the share price of the company decreased by 24.57 percent as on 26 October 2018. IGO’s shares traded at $3.970 with a market capitalization of circa $2.34 billion as on 29 October 2018 (AEST 04:00 PM).


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.




All pictures are copyright to their respective owner(s) 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.

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