IGO - Independence Group

[Huang Chung]

Anyone still following IGO (Tricha,SEC??)

Initial JORC resource for Tropicana released today after the market closed.

http://stocknessmonster.com/news-item?S=IGO&E=ASX&N=388258

Wonder what the market will think....

[SEC]

Yeah HC I still hold IGO. Market estimate was a 3Moz gold resource for Tropicana and they've come up with a 4Moz resource (and counting). Should be a positive reaction, however I think the news has largely been factored into IGO's price which has been a stellar performer in the past month compared to the overall market. Will be interesting to see whether it challenges its all time high tomorrow, just short of $9.

SEC (MCR IGO)

[SEC]

Definitely a 'buy the rumour sell the fact' reaction to the Tropicana resource estimate. However such negative reactions to good news are short lived and I expect IGO to recover quickly to $8+.

SEC

From The Age:

Tropicana has Midas touch for Anglo, Independence
Barry Fitzgerald
December 4, 2007

TROPICANA has been confirmed as one of the best gold discoveries in a decade by the AngloGold Ashanti and Independence Group joint venture.

The partners (AngloGold 70%, Independence 30%) have estimated that the West Australian project contains more than 4.05 million ounces of gold (62.8 million tonnes grading 2.01 grams of gold a tonne).

The estimate is for ore that can be accessed by an open-cut, with the partners noting that mineralisation remains open at depth.

"The mineralisation remains open at depth and further drilling is likely to result in moderate increases to the resource. Higher grade extensions of the resource at depth may represent a future underground mining target," the joint venture partners said.

The grade is about the Australian average for open-cuts but the massive mining and treatment rates planned by the partners in a development likely to cost more than $500 million, is expected to make Tropicana one of the more profitable gold mines.

The discovery is a victory for conceptual geology work, with Independence first pegging the ground in 2001 in what is now shaping up as a new gold province about 450 kilometres north-east of Kalgoorlie.

Independence included Tropicana as one of its main properties in its 2001 float, with its interest in the "virgin" mineral area a response to geochemical sampling work by WMC Resources, now part of BHP Billiton, in the late 1990s. The work by WMC, which identified the initial gold anomalies, was never followed up as its was part of a national diamond hunt.

The AngloGold and Independence joint venture is planning a mining and processing rate of between 4 million and 6.5 million tonnes a year. At an average recovery rate of 91.5%, annual production of 236,000 ounces to 385,000 ounces from Tropicana would be possible.

At that range, Tropicana would be about half the size of Australia's big-three gold operations — Newcrest's Telfer, Newmont/Barrick's Super Pit and AngloGold's Sunrise. It would increase Australian gold output by about 5%.

South African-based AngloGold is one of the world's biggest producers, while Independence is best known for its nickel operations in WA.

The companies expect that Tropicana will not be the end of the story in the new gold province. Numerous "promising early stage targets" have been identified within 20 kilometres of Tropicana, while 220 kilometres to the south, drilling at the Beachcomber prospect has returned a three-metre intersection, grading an impressive 65.8 grams of gold a tonne (more than two ounces a tonne).

Independence shares closed 3¢ higher at $8.20 ahead of the Tropicana resource estimate being released. News of the estimate had been well flagged.

[SEC]

Definitely a 'buy the rumour sell the fact' reaction to the Tropicana resource estimate. However such negative reactions to good news are short lived and I expect IGO to recover quickly to $8+.

SEC


Yep the negative reaction was indeed short lived and IGO's performance has been bullet proof ever since - especially given the carnage elsewhere in the ASX.

I find it a bit perplexing IGO is now considered a 'gold play' when it's years away from gold production. Could mean IGO enjoys a very good 2008 where Tropicana's resource estimates continue to increase and there are no issues with the inevitable ramp-up delays and cost blowouts.

SEC

[tobo]

under $3, and a buyback coming. Gotta be cheap on fundamentals.

ToBo. Don't hold, but looking.

[shasta]

under $3, and a buyback coming. Gotta be cheap on fundamentals.

ToBo. Don't hold, but looking.

IGO buying back it's shares, seems a good show of faith by Mgmt...

http://www.stocknessmonster.com/news-item?S=IGO&E=ASX&N=420227

[winner69]

Been a reasonable amount of activity in IGO lately and now well off it's lows ... esp the solid gains yesterday

Maybe the gold move last year was good planning afterall

Anyhope of this reaching $8 again ... thoughts

[Lizard]

Not sure about $8 again in the short term, Winner, but having a nice little change of trend. So long as gold holds up, there has to be pretty big leverage in IGO share of Tropicana. Valuations for a project this size/mine life and likely costs have to be highly sensitive, so with volatility in gold, nickel and currencies, must change pretty quickly (in either direction). Makes the basis of a good "trading stock"!

Gold firming and nickel seems to have had a bounce last few days, so that's helping off a share price low that came close to cash-backing at one stage. Unless gold turns down, might be worth holding through to Tropicana pre-feasibility (due April)?

http://www.sharetrader.co.nz/picture.php?albumid=2&pictureid=74

[tobo]

mmm, features as a "buy" recommendation in "The Bull" (aka Compareshares) this week.

quote:
Ben Polkinghorne, Patersons Securities
BUY RECOMMENDATIONS
Independence Group (IGO)
Independence Group produces between 8000 and 9000 tonnes of high grade nickel annually from its Long Shaft nickel operation in the Kambalda region of Western Australia. The real value driver though is IGO’s 30 per cent interest in the Tropicana Gold joint venture with partner and project manager AngloGold Ashanti. IGO would substantially benefit if a cashed-up AngloGold Ashanti took over the entire project. The pre-feasibility study for the gold project is due to be released in April 2009.


Discl: don't currently hold. Lookin.

[Lizard]

This was a tenbagger for me once and even gave me a second trade post-GFC, so it crossed my radar again recently.

Good bounce off the lows. Will get good au grades out of Tropicana shortly and the nickel mine life never seems to decrease as they open up new veins. One for contrarians?

[Lizard]

Trading halt pending an announcement in regard to management... this does not sound good. Chris Bonwick has been associated with the success of IGO and a strong driver of the business, so shareholders will be saddened if his temporary leave has become permanent.

[babymonster]

Good HY reprot yesterday, big drop today, I m going in if it drops a bit more tomorrow.

[Daytr]

Picked up some of these puppies today.
Low cost producer making good cash & should be debt free in a year.
Currently have enough cash to repay debt in full.
Now long OZ & these guys.
Both look very cheap in my view & copper is starting to look better also & they have the exposure to the AUD.

[Daytr]

After trading out for a quick 8% the other day, I'm back in at lower levels & doubled up.
Crazy cheap if you ask me.
Copper production cuts have started so I can't see copper going too much lower & China is accelerating some of its infrastructure projects which should also help demand.

[shasta]

Long time since any talk of IGO.

Nickel, Copper and Cobalt from Nova going strong, as is the gold at Tropicana, strong margins and cash flows. Now also debt free.

Stingy dividend but $50m+ going into exploration and they have a few JV earn ins around the highly prospective Fraser Range.

Share price has been strong of late, $5 on the cards?