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DIGGeRs & DeALeRs

IGO is ready to start testing individual targets
and prospects in the Fraser Range

Strong IGO

eter Bradford is starting the new fi- duced 104,000oz (IGO’s share 30%) at
Pnancial year highly satisfied with his ready to AISC of $1,303/oz.
lot. The IGO Ltd managing director can “The March quarter was a very good
bask in strong performances at his com- result for us,” Bradford told Paydirt. “We
pany’s two cornerstone operations, an were at the extreme upper end of guid-
exploration portfolio stocked with belt- expand on ance for metal production and operating
scale opportunities and, thanks to the costs at Nova. We have indicated that for
lockdown, he hasn’t had to get on a plane the June quarter and we have taken the
in months. foot off the accelerator somewhat. For
The assuredness with which IGO all fronts the financial year we will probably ex-
heads into FY2021 contrasts with the in- ceed guidance for metal production and
dustrywide mood just four months earlier be in the mid-range for costs.”
when the onset of the COVID-19 pan- The sub-$2/lb cash cost figure at Nova
demic was causing uncertainty in every The March quarter saw the company was the lowest in the mine’s existence,
mining house. post revenue of $188 million and net- an achievement Bradford put down to
By the end of the March quarter how- profit after tax of $15 million. The finan- IGO’s decision to spend money upfront
ever, the Australian mining sector had cial result was a consequence of strong on de-risking the operation.
regained its confidence, thanks to gov- numbers out of the Nova nickel-copper “Structurally we did a lot of work early
ernment decisions to deem it an essen- mine and Tropicana gold mine JV with in the mine life to de-risk the mine,” he
tial industry and the low impact on sup- AngloGold Ashanti Ltd. said. “We did life-of-mine grade control
ply chains and markets. Nova, in the Fraser Range region of drilling and capital development, so we
IGO itself hardly made a misstep in the WA, produced 8,109t nickel and 3,74t now know where the nickel metal is, and
process of safeguarding the welfare of copper in the quarter at $1.96/lb, giving we have flexibility to choose where to
employees and communities and secur- it an EBITDA margin of 53%. mine it from.”
ing supply chains. Tropicana, also in south-east WA, pro- That has meant ramping the head

Page 36 JULY 2020 aUSTRaLIa’S PaYDIRT