11/09/2020 - 14:00

IGO to review Tropicana asset

11/09/2020 - 14:00

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IGO will complete a strategic review of its investment in the Tropicana joint venture after disclosing it has received a number of proposals for its stake in the goldmine.

IGO to review Tropicana asset
IGO holds a 30 per cent interest in the Tropicana gold joint venture and AngloGold Ashanti 70 per cent. Photo: IGO

IGO will complete a strategic review of its investment in the Tropicana joint venture after disclosing it has received a number of proposals for its stake in the goldmine.

The nickel miner has a 30 per cent interest in Tropicana, located 330 kilometres north-east of Kalgoorlie, while joint venture partner AngloGold Ashanti holds the remaining 70 per cent.

The asset produced 463,118 ounces of gold in the year to June 2020, down from 518,172oz in FY19 but well within IGO’s forecast.

The company said it had received unsolicited approaches from a number of parties to purchase its stake in Tropicana, prompting a strategic review that could determine whether it made a full or partial sale of the asset.

The review will also assess opportunities to build value through underground development and exploration, IGO said.

Managing director Peter Bradford said it was clear the Tropicana goldmine was a high-quality asset.

He said the review would best realise the mine’s full value for shareholders.

Both IGO and Johannesburg-based AngloGold will complete work on the review over the next three to six months.

IGO shares were up 1.3 per cent at 12:18pm AEST to trade at $4.46.

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