IGO posts strong FY output

IGO has beaten its production guidance for the second year in a row at the Nova nickel-copper-cobalt mine in Western Australia, with output from the Tropicana joint venture in Kalgoorlie also strong in the last financial year.

The Nova mine, located in the Fraser Range, produced 7,181 tonnes of nickel in the three months to June 30, contributing to full-year nickel output of 30,436t.

That exceeded FY guidance of between 27,000t and 30,000t.

The mine also produced 3,210t of copper over the June quarter and 13,772t in FY20, exceeding guidance of 11,000-12,500t.

Cobalt production was 277t over the June quarter and 1,142t in FY20, well above guidance of 850-950t.

Gold production from IGO’s 30 per cent stake in the Tropicana joint venture with AngloGold Ashanti was 102,007 ounces in the three months to June 30, and 463,118oz in FY20 – within guidance of 450,000-500,000oz.

Managing director Peter Bradford said IGO had achieved a strong operational and financial performance, despite ongoing challenges presented by COVID-19.

The company reported revenue of $230.6 million for the June quarter, which had improved from $187.5 million in the prior quarter.

IGO said this was primarily driven by revenue from its Nova mine, which generated $159.8 million, as a result of higher volumes sold and higher realised metal prices.

This was partially offset by lower revenue from the Tropicana mine, down 6 per cent on the prior quarter to record $65.9 million, which IGO attributed to fewer gold sales.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) was $113.1 million for the quarter, while profit after tax was $39.8 million in Q4 and $155.1 million for the full-year.

Mr Bradford also said IGO’s exploration strategy would deliver significant growth opportunities.

“Our exploration teams have been busy drill testing high priority targets in the Fraser Range and preparing a work program for the newly consolidated Paterson project where we are targeting Tier-1 copper discoveries,” he said.

Over the quarter, IGO signed farm-in deals with both Antipa Minerals and Metals X to explore their tenements in the Paterson copper-gold province.

Shares in IGO were down 13.6 per cent at 12:29pm AEST to trade at $4.78.