IGO - IGO Limited

[sptrawler]

I'm not sure how far advanced they with that solar array. I assume it goes into the control room.

From 30 Aug sustainability report.

(edit: much more advanced than I thought)

View attachment 150087

The investigation will make good reading.

Hundreds of workers evacuated from WA mine site after fire

www.9news.com.au

Sounds as though the fire started in the diesel engine room.

Fire knocks out IGO nickel mine

The battery minerals producer’s Nova nickel mine will be out of action for several weeks after a fire at a power plant attached to the operations.

www.afr.com

From the article:
IGO said the damage was extensive but had been contained to the diesel engine room at the 10-megawatt power station, which is owned and operated by off-grid power supplier Zenith Energy.

The mine is expected to be out of action for several weeks in the aftermath of the fire, which started early on Saturday morning and was put out by the Nova emergency response team.

No one was injured, and only essential staff remain on site after IGO moved to send fly-in, fly-out workers home over the weekend.

 

[Sean K]

Might be a buying opportunity.

Yeah, I'll be tempted to add some more if there's an overreaction. Just hard to gauge what that might be...

 

[Sean K]

The mine is expected to be out of action for several weeks in the aftermath of the fire, which started early on Saturday morning and was put out by the Nova emergency response team.

"mining operations will be able to recommence in two weeks, while restoration of the full power supply to operate the processing facility is expected to take approximately four weeks."

I wonder if Zenith take a hit for this? Might depend on the investigation.

That's not too bad. Might not be much of a knee jerk to that. But you never know. Price action heading down to this general support line will be tempting for me. Maybe even $14.

 

[bk1]

I would have thought that the Kwinana Refinery Train 1 reaching commercial production, announced at the same time, would offset the news about Nova.

 

[sptrawler]

If the power system is owned and operated by Zenith, I would guess it is down to them. There are probably skid mounts on the way up there already, it will be a busy few days for the sparkies.

 

[Sean K]

Well, I didn't think the $14.40ish support would have held after that news but it seems to have stayed above and well above where I thought it might have gone worst case. So, no major buying opportunity on knee jerk sell-off really. Maybe after they've assessed it and it's out for 12 months might be a different story.

 

[peter2]

Yes boss, did it.

Edit: If IGO goes down further to $13 - $14 I'll add it into another conservative portfolio that already holds BHP.
I'm bullish multi-metal producers, especially lithium, nickel, copper.

 

[sptrawler]

View attachment 150163 Yes boss, did it.

Edit: If IGO goes down further to $13 - $14 I'll add it into another conservative portfolio that already holds BHP.
I'm bullish multi-metal producers, especially lithium, nickel, copper.

Good plan Peter, I was reading an article today that was discussing battery technology, CATYL sounds like it might have developed a Li ion blade battery, they are talking 1,000km range. Now if that is accurate that is a huge jump forward and will be a game changer for E.V's, that in turn also means nickel will be back front and centre with lithium.

 

[Sean K]

Well, this is good news. Probably slightly faster than expected?

 

[Sean K]

Good news for ESS holders. Not sure what value this really adds to IGO at this stage.

IGO will now have so many exploration projects after WSA and now this that they won't know where to look next.

 

[Sean K]

Looks like a good quarterly except for the obvious issues at Nova due to the fire, but outlook looks good.

All else pretty good especially lithium royalties except when you get to page 19 of their presentation and the forecast impairment of WSA assets. That doesn't sound very good at all.

 

[Dona Ferentes]

Rio revealed that Its global head of Aluminium Ivan Vella would leave at the end of this year for another job in the resources sector – with Perth-based nickel and lithium group IGO revealing not long after that he would be its new boss.

IGO said Mr Vella will replace the late CEO, Peter Bradfield who died in October 2022.

Before his final position as global head of Rio’s aluminium business, Mr Vella was interim chief executive of the iron ore business following the Juukan Gorge debacle.

He has also been chief operating officer of Rio Tinto Coal and Rio’s Oyu Tolgoi copper operations in Mongolia, so he has an extensive background.

“After a rigorous process that considered many high-quality candidates from a number of different jurisdictions, we are delighted to have appointed Ivan to lead IGO through the next stage of our transformation,” IGO chair Michael Nossal said in a statement on Monday

“Ivan has a wealth of international experience across a range of commodities and markets, and has proven his aptitude in some of the most complex operating environments.”

Vella will commence at IGO no later than December 11 as he finishes up at Rio Tinto and he and his family relocates from Montreal to Perth.
......

 

[sptrawler]

IGO to have a non cash impairment on the Western Areas nickel asset.

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02687107-6A1158569?access_token=83ff96335c2d45a094df02a206a39ff4

What I found interesting, was the last paragraph.

Aspirations to develop an integrated batteries materials facility in Western Australia.

 

[sptrawler]

A bit more info, apparently IGO overpaid for Forrestania and Cosmos, funny that, we on here at the time were saying that Western Areas extraction costs and recovery rates were not looking good. Lucky they have plenty of money and can afford the impairment.
I wonder who did the due diligence.

IGO share price tumbles 7% on 'disappointing' billion-dollar impairment

The IGO Limited (ASX:IGO) share price has come under pressure on Monday after the company made a huge impairment...

www.fool.com.au

 

[Sean K]

A bit more info, apparently IGO overpaid for Forrestania and Cosmos, funny that, we on here at the time were saying that Western Areas extraction costs and recovery rates were not looking good. Lucky they have plenty of money and can afford the impairment.
I wonder who did the due diligence.

IGO share price tumbles 7% on 'disappointing' billion-dollar impairment

The IGO Limited (ASX:IGO) share price has come under pressure on Monday after the company made a huge impairment...

www.fool.com.au

Ultimately the board would have had to approve the buy so the board need to be held to account. Pretty ugly look.

 

[sptrawler]

Ultimately the board would have had to approve the buy so the board need to be held to account. Pretty ugly look.

Yes they overpaid by a LOT, so either someone didn't do their job properly, or something else happened.

 

[divs4ever]

Yes they overpaid by a LOT, so either someone didn't do their job properly, or something else happened.

am wondering how the PAN shareholding is going to be rated

( i hold PAN , deep underwater , and held WSA before IGO crystallized that loss )

am also wondering if cost blowouts in the industry have been underestimated

 

[sptrawler]

am wondering how the PAN shareholding is going to be rated

( i hold PAN , deep underwater , and held WSA before IGO crystallized that loss )

am also wondering if cost blowouts in the industry have been underestimated

My personal belief is that as the requirement for EV batteries is increasing they are moving a lot of production to LiFe polymer and minimising the use of Li ion which is nickel based. This has pushed down the demand and with it the price of nickel, it is now sitting around US $9.50/lb, where it has been around $11-$13/lb.
My guess is, as the EV market picks up, the demand for long range EV's will increase and with it the price of nickel.
I hold PAN as well, average about 18c, the issue they have IMO is a bit like what Forestannia had, low contained content in ore. But they are vertically integrated, so they should be able to reduce overheads, as the labour market cools off.
As with all these small caps, it's a bit crystal ball gazing, isn't it. ?

 

[divs4ever]

My personal belief is that as the requirement for EV batteries is increasing they are moving a lot of production to LiFe polymer and minimising the use of Li ion which is nickel based. This has pushed down the demand and with it the price of nickel, it is now sitting around US $9.50/lb, where it has been around $11-$13/lb.
My guess is, as the EV market picks up, the demand for long range EV's will increase and with it the price of nickel.
I hold PAN as well, average about 18c, the issue they have IMO is a bit like what Forestannia had, low contained content in ore. But they are vertically integrated, so they should be able to reduce overheads, as the labour market cools off.
As with all these small caps, it's a bit crystal ball gazing, isn't it. ?

labour costs cool off , i remain skeptical there , i see them still accelerating

my PAN average is just under 50 cents

however nickel still may have a market as an electrical wire additive as voltages/amps climb but will that need move the needle ??

let's see how the global economy unravels

 

[peter2]

IGO reporting tomorrow. I've sold my positions in IGO before it reports as another selloff would annoy me. I suffered with the write-down of the nickel assets and there may be more selling if rising costs are a problem. This reporting season has resulted in too many share selloffs for me. I've been hit with a few.

I like the outlook for IGO but will wait until after this report to re-buy.

Noticing that there are a rising number of reports of concerns due to ESG, indigenous heritage issues, political, industrial reforms, and union input. Why would anyone invest in major projects with all this uncertainty?