AUS
NZ
UK
CA
USA
IND
_06_04_2026_00_29_48_108019.jpg)
The shares of Independence Group NL (ASX:IGO) surged on ASX amid strong quarterly financial results, published on 31 January 2019.
2Q19 Financial Results
The company's revenue and other income surged to A$189.0 million in the second quarter of 2019, from A$167.4 million reported in the first quarter of 2019.A rise of 13% on the revenue was noticed on the quarter-on-quarter (QoQ) basis.
The Underlying EBITDA also surged from A$62.9 million to A$67.6 million, representing a 7% increase as compared to the previous quarter. The company reported a Net Cash from Operating activities at A$54.8 million, a decrease of 49% from the previously reported Net Cash of A$108.1 million, which as per the company was mainly due to the working capital movements.
The cash position of the company continued to build from A$176.0 million to A$208.1 million, an increase of 18% and Debt position for the quarter remained unchanged as compared to the previous quarter at A$114.3 million. The cash flow in Q12019 benefitted from A$38 million 4Q2018 Nova proceeds and A$12M Dacian royalty sale proceeds. The 2Q19 cash flow impacted by A$22 million proceeds delayed to 3Q2019.
1H19 Financial Results
The company's 1H2019 revenue and other income increased from A$354.8 million to A$ 356.4 million. However, the underlying EBITDA decreased from A$133.4 million to A$130.5 million, down by 2%. But, for the first half, Debt significantly reduced by 33% amid debt repayment of A$29 million in 1H19. The Debt for the 1H18 was A$ 171.4 million and for the 1H19 was reported at A$ 114.3 million.
The operating cash flow for the 1H2019 increased by 46% and was noticed at A$163.0 million from previously reported of A$111.4 million amid improved sales volumes from Nova and Tropicana. The underlying free cash flow increased drastically for the 1H2019 and was noticed at A$ 111.4 million as compared to A$40.6 million, an increase of 174%. The total cash increased by 306% in the 1H2019 and was noticed at A$208.1 million as compared to A$51.3 million in 1H2018.
Production and Costs
Nova:
The production increased in line with the production guidance for 1H2019. The nickel in concentrate increased from 6,854 tonnes to 7,574 tonnes in 2Q2019, and a total of 14,424 tonnes was reported in 1H2019, whereas the production guidance was for 13,500-15,000 tonnes. Copper in concentrate increased from 3,019 tonnes to 3,482 tonnes in 2Q2019, and a total of 6,501 tonnes was reported in 1H19.
Cobalt in concentrate increased from 245 tonnes to 274 tonnes in 2Q2019, and a total of 519 tonnes was reported in 1H2019. The production increased in line with the production guidance. The cash cost payable in A$/lb Ni decreased from 2.78 to 1.94 in 2Q2019 which was 30% better on QoQ basis majorly due to higher production and lower overall cost as per the company.
Tropicana:
The production increased in line with the production guidance for 1H2019. The gold produced (100%) increased from 125.1koz in 1Q2019 to 136.9Koz in 2Q2019, and a total of 262.0koz was reported in 1H2019, whereas the production guidance was for 250.0-275.0. The Gold sold (IGO 30%) increased from 35.1koz in 1Q2019 to 42.9koz in 2Q2019, and a total of 78.0koz was reported in 1H2019, whereas the guidance was for 75.0-82.5koz. The reduction in nickel prices mainly offsets from the higher prices in gold as per the company.
On 20 December 2018, IGO announced that a prefeasibility study into the development of an underground mine beneath the Boston Shaker pits at Tropicana, which confirmed that underground mining was technically and financially viable.
By the end of the trading session, the stock price of the company stood at A$4.800 (as at 18 February 2019), up by 1.266% or 0.060 points.
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.
