IGO banks $53m profit
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Diversified miner Independence Group has reported a big jump in profit for the 2018 financial year, driven by the first 12 months of commercial production at its Nova operation.
Independence posted a 210 per cent hike in net profit to $52.7 million, with revenue up 85 per cent on last year to a record $780.6 million.
Underlying earnings before interest, taxes, depreciation and amortisation rose 125 per cent to $338.6 million.
IGO said the improved result was attributable to a number of factors, including the $348.8 million in revenue from Nova and a 13 per cent increase in revenue from its Tropicana operations to $240.4 million.
Managing director Peter Bradford said it had been a successful year.
“Nova delivered its first full year of production during which we demonstrated the capability to sprint at 20 per cent above name plate capacity both underground and through the processing plant,” he said.
“We also completed grade control drilling of the entire known resource at Nova-Bollinger in July 2018 delivering improved geological understanding and greater certainty.
“We enter FY19 with a strong balance sheet, strong free cash flow generation, a strong portfolio with a robust mix of high-quality production assets, and belt scale exploration projects with the potential to deliver multiple tier one discoveries.”
For the year, Nova produced 22,258 tonnes of nickel, along with 9,545t of copper and 740t of cobalt.
Revenue from the company’s Jaguar operation fell from $137.5 million to $112.1 million in FY18 due to lower zinc and copper production.
IGO also sold its Jaguar project in May for $73.2 million, meaning production only totalled 11 months.
The company also announced a final dividend of 2 cents per share, fully franked.
The company has flagged higher production and lower unit costs for both Nova and Tropicana in FY19.
Shares in the miner were 0.81 per cent higher at $4.34 each at 2.45pm AEDT.