Independence Group has foreshadowed a sharp fall in annual profit to just $5.5 million as a result of costs associated with its takeover of copper producer Jabiru Metals.
The nickel miner said its annual results have not been finalised, however the board has completed a review one-off costs resulting from the Jabiru acquisition and concluded they will be "significantly greater than market consensus earnings forecasts".
The merged group will incur total costs of $21.1 million related to the takeover.
This will result in a net profit of $5.5 million, compared with $28.7 million in the previous financial year.
The $21.1 million comprises legal and consulting costs incurred by both companies, and "an accrual for estimated future landholder stamp duty".
In addition, Jabiru suffered a $14.6 million net loss for the June quarter, with production lower than forecast because of geotechnical issues.