IGO - IGO Limited

Thanks @Boggo I've always liked your EW charts. However I'm not tempted to buy into a corrective wave 4.
I may be tempted to trade the daily 123 Low that's formed for a quick buck.
I anticipate a year of sloppy (corrective) price action and I'll wait for a clean BO of resistance to form for a longer trend.

peter2 said:

Thanks @Boggo I've always liked your EW charts. However I'm not tempted to buy into a corrective wave 4.
I may be tempted to trade the daily 123 Low that's formed for a quick buck.
I anticipate a year of sloppy (corrective) price action and I'll wait for a clean BO of resistance to form for a longer trend.

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Yes, always a risky play.

sptrawler said:

I definitely think the Chinese are just going to pick IGO up for nothing, the Australian Govt asleep at the wheel yet again, the problem with Canberra is we just keep selling the house to feed the poor.
The problem with that is, eventually everyone is poor.

Where has all this pre election rhetoric gone? Seems like rhetoric is cheap, as always. 12 months is a long time in politics, but the legacy of doing nothing, lasts for generations.

May 2022:

Albo finds his mojo in push for green metals and EV batteries

Albanese pitches vision of a green resources sector and revitalised manufacturing to contrast Morrison’s embrace of fossil fuels.

reneweconomy.com.au

Federal Labor leader Anthony Albanese has pitched a vision of a revived Australian manufacturing sector and a resources sector able to move past fossil fuels as he ‘officially’ launched the party’s election campaign in Perth over the weekend.

The launch on Sunday sought to position Labor as the party embracing Australia’s potential as a global supplier of ‘green’ materials used in the production of clean energy technologies, as well as boosting Australia’s own manufacturing capacity.

“Labor knows the value of resources jobs, and we are firmly focused on a bigger future for the industry. Thanks to Labor’s $1 billion Value-Adding in Resources Fund, we will capture more value from the resources sector here, and create more Australian jobs,” Albanese said.

The $1 billion fund would offer direct investments and loan guarantees in projects that process and increase the potential market value of Australia’s raw mineral resources like lithium, nickel, copper and cobalt.

“We’ll take resources like lithium and nickel – essential elements of the batteries that will power the vehicles of the future – and instead of shipping them to another country to make batteries, we’ll have what we need to make them right here,” Albanese said.

Yeh Right, JEEZ

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poor union officials you ,mean

they need the poor so they cling to the ALP in forlorn hope ( or is it masochistic pleasure )

we got here with the help of BOTH parties in government at various times

BTW both RFX and AVL have battery technologies that don't rely on lithium ( but they are struggling as well )

Sorry, forgot to post the 123 Low setup I mentioned yesterday.
It triggered late yesterday. We'll see how far it can go in this exuberant market.

Approaching first level of potential resistance on the weekly.

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Boggo said:

Approaching first level of potential resistance on the weekly.

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View attachment 167820

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was kind of hoping it would slide more , so i could add more

maybe later in the year

Price is sliding lower. The 123 Low reversal is still intact although price is back down to the entry trigger.

Both Li and Ni prices are very weak. IGO is in for a tough time as costs are rising. It's likely that there's going to be more asset write downs.

LITHIUM BUSINESS UPDATE

IGO Limited (ASX: IGO) (IGO or the Company) wishes to provide an update on its lithium business, which is held via its 49% interest in Tianqi Lithium Energy Australia (TLEA).

As previously announced1, over recent months TLEA and Albemarle Corporation (Albemarle) the joint venture partners of the Windfield Joint Venture (together, the JV Partners) 2 have been considering spodumene concentrate offtake volumes and discussing pricing arrangements that apply to spodumene concentrate sales from the Greenbushes Operation, which is operated by Talison Lithium (Talison) under the Windfield Joint Venture.
IGO can advise that the Windfield Board has agreed to amend the pricing mechanism which will be applied to SC6.0 spodumene concentrate offtake volumes effective 1 January 2024.
Under the new mechanism, pricing will be reset monthly, based on the average of the previous month, referencing the average of four price reporting agencies, including Fastmarkets, Asian Metals, Benchmark Minerals Intelligence and S&P Platts, less a 5% volume discount, FOB Australia.
The JV Partners have also indicated their spodumene concentrate volumes for the second half of FY24. Indicated volumes are below forecast, and as such it is likely that production at Greenbushes will be marginally reduced during this period, to effectively match inventory build with product logistics.
IGO expects that sales for the second half will be approximately 20% lower than production as inventories build at site.
As a result, IGO’s stated FY24 production guidance from Greenbushes has been revised to between 1.3Mtpa to 1.4Mtpa (previously 1.4Mtpa – 1.5Mtpa) of SC6.0 spodumene concentrate.
While there is no change to cash production cost guidance at this point, IGO expects these to be above the top end of its guidance3. Talison is finalising its CY24 budget, after which IGO will provide any required update to cash cost and capex guidance within its Half Year reporting on 22 February 2024.
The JV Partners remain committed to the completion of CGP3 processing plant. IGO’s Managing Director and CEO, Ivan Vella, commented, “Despite the short-term weakness in the lithium market, the JV Partners at Greenbushes are strongly aligned on continuing to drive value from this world class operation.
IGO is pleased with the new arrangements which balance near term market weakness whilst maintaining the leading position of this world class asset, including the commitment to CGP3 development.
I am looking forward to continuing to build our relationship with two industry leaders and realise the full potential of our asset and its impact on this nascent industry.”

This announcement is authorised for release to the ASX by Managing Director and CEO, Ivan Vella.

i hold IGO

TROPICANA GOLD MINE ROYALTY CLAIM

IGO Limited (ACN 092 786 304) (“IGO”) announces that it has been served with a writ of summons issued out of the Supreme Court of Western Australia by South32 Royalty Investments Pty Ltd (“South32”).

The writ (which was received by IGO after close of business on 31 January 2024) claims that IGO is liable to pay royalties to South32 concerning the mining operations at the Tropicana Gold Mine in Western Australia, together with interest and costs.

IGO rejects South32’s allegations and considers the claim to be without merit. South32 has estimated in the writ that the royalties payable by IGO are AUD 122,100,825 (exclusive of interest and costs) for the period from December 2014 until 30 September 2023.

As IGO has previously announced, it no longer has an interest in the Tropicana Gold Mine having sold its 30% interest in the Tropicana Gold Mine Joint Venture to Regis Resources Limited effective 31 May 2021.

As explained below, IGO has an indemnity in its favour from Regis concerning any royalty liability to South 32 from that date onwards. IGO estimates that the relevant portion of the above claim amount in the period from 31 May 2021 to September 2023 (covered by the Regis indemnity) is in the range of approximately AUD 35 to AUD 40 million.

South32 also seeks a declaration from the Court that royalties are payable on gross revenues realised from ongoing mining operations at the Tropicana Gold Mine (as to which IGO also relies upon the Regis indemnity).

South32 makes its claim under an Agreement for Sale of Assets and Mining Tenements dated 1 August 1997 (along with subsequent agreements for its assignment and novation) which granted a license to access certain soil samples subject to an obligation to pay a royalty (“Sample Royalty”) in certain circumstances involving a discovery of minerals related to the use of the soil samples.

South32 asserts that the use of the soil samples by IGO led to the discovery of gold in the area of various exploration licences granted to IGO (and another) in August 2002, and that IGO’s subsequent development of the Tropicana Gold Mine (as part of joint venture operations) renders it liable to pay a 1.5% Sample Royalty to South32 on the gross revenue earned from its interest in the mine as from December 2014.

IGO denies that it has any liability to South 32.

IGO has thoroughly reviewed its obligations under the relevant agreements and maintains that the pre-conditions to the entitlement to be paid the Sample Royalty have not been satisfied.

IGO has instructed lawyers to act on its behalf, and intends to fully and vigorously defend the claim.

IGO notes that as part of IGO’s divestment of its interest in the Tropicana Gold Mine in 2021, the sale agreement between IGO and Regis Resources includes a provision which maintains IGO’s liability for the Sample Royalty prior to completion on 31 May 2021, with Regis Resources assuming those liabilities beyond that date.

From that date, and based on the terms of the sale agreement, Regis agreed to indemnify IGO for any liabilities arising in relation to the royalty obligations.

This announcement is authorised for release to the ASX by Managing Director and CEO, Ivan Vella.

i hold S32 , IGO , RRL , RND and BHP

so where is BHP in all this

BHP used to own S32 outright in 2014

what a tangle

??

so where

One I believe will benefit is IGO, which, if I’m correct, could potentially make it an attractive buying opportunity. This is because the budget has earmarked $13.7 billion for production tax incentives in critical minerals processing, which is great news for IGO, given its involvement in mining and processing crucial minerals like nickel and copper.

Geesh, what a POS this has been the past 18 months. Firstly smashed by Lithium collapse and then Nickel. Seemed to be the perfect vehicle a while ago to ride the battery / EV wave but has been wiped out on the reef. Blame the facts there's lithium laying around everywhere and Indonesia crapped on the market with it's rusty nickel deposits that China loves because they can refine it with cheap, brown coal and don't give a damn.

Is it a turn around story at some stage??

A lot will depend on China, as usual.

Hopefully mgt have gone into survival mode because the nickel and lithium businesses are not looking promising at all. IGO just about needs to go into a care and maintenance coma until Li prices pick up because we know the nickel prices will stay low for longer thanks to Indonesia/China.

How about IGO buying a rare earth exploration permit in Brazil?

peter2 said:

Hopefully mgt have gone into survival mode because the nickel and lithium businesses are not looking promising at all. IGO just about needs to go into a care and maintenance coma until Li prices pick up because we know the nickel prices will stay low for longer thanks to Indonesia/China.

How about IGO buying a rare earth exploration permit in Brazil?

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I think all these Australian battery mineral companies are hopeing the Govt comes good on the battery manufacturing promise, but they need the Chinese to get that up and the Chinese will want sweeteners.

sptrawler said:

I think all these Australian battery mineral companies are hopeing the Govt comes good on the battery manufacturing promise, but they need the Chinese to get that up and the Chinese will want sweeteners.

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well the Governments ( including several state Governments ) are suckers for the climate agenda

will the Aussie taxpayer vote out this nonsense ( subsidy sink-hole )

i hold IGO ( but will i add more ... say sub $5 or is that sub $4 )

MR MARCELO BASTOS APPOINTED AS NON-EXECUTIVE DIRECTOR

IGO Limited (ASX:IGO) (IGO or the Company) is pleased to announce the appointment of highly experienced company director and mining executive Mr Marcelo Bastos to its Board as an independent Non-executive Director.

Mr Bastos will join the IGO Board from the 1st of July 2024.IGO’s Chair, Mr Michael Nossal, said the Company was very pleased that Mr Bastos had accepted the invitation to join the Board.

“Marcelo is a highly regarded company director with significant international experience, and we were delighted that he has chosen to join the IGO Board.

Marcelo has had a highly successful executive career in the mining industry across a full range of companies, commodities and jurisdictions. He is now an experienced ASX and LSE non-executive director who will bring deep skills and knowledge to IGO.

In particular, we will benefit from Marcelo’s strong safety leadership, large capital project and operating experience, as well as his highly developed sustainability oversight skills.

”Mr Marcelo Bastos commented, “I am excited to join the IGO Board at this pivotal time in the company’s transformation. IGO’s purpose and values closely align with my own and I believe that the company is well positioned to continue to support the global transition to renewable energy.
I look forward to contributing to the ongoing development of IGO over the coming years.”Background on Marcelo Bastos (B Eng (Mechanical Engineering), MBA in Management)Marcelo is an experienced international company director with more than 30 years of operational, logistics,project development and senior leadership experience in most of the major sectors of the mining industry.

During a 19 year career with Vale, he held various senior executive in Iron Ore, Gold and as Director of Copper. Marcelo joined BHP in 2004, where he served in roles including President Nickel Americas,President Nickel West, and President Steel Making Coal.

He then joined MMG, where he held the role of Chief Operating Officer from 2011 to 2017, responsible for the group’s global operations, sales and marketing across copper, zinc and gold.

In this role, he also led the planning, development and ramp up of the Las Bambas copper mine in Peru.Marcelo is also a non-executive director of Anglo American PLC, Aurizon Holdings Ltd and Iluka Resources,and has previously held non-executive directorships with OZ Minerals, Golder Associates, AMIRA and Golding Contractors.
Following the appointment of Mr Bastos on 1 July 2024, the Board of IGO will be constituted as follows:
• Michael Nossal, Non-executive Chair
• Samantha Hogg, Non-executive Director
• Ivan Vella, Managing Director and CEO
• Justin Osborne, Non-executive Director
• Trace Arlaud, Non-executive Director
• Keith Spence, Non-executive Director
• Debra Bakker, Non-executive Director
• Xiaoping Yang, Non-executive Director
• Marcelo Bastos, Non-executive Director

This announcement is authorised for release to the ASX by Michael Nossal, Non-executive Chair.

i hold IGO

hmmm being slotted in to replace a director ( and some management ) further down the track

( say some sort of demeger/divestment ) just wondering , because this new guy seems to be super-qualified

LITHIUM BUSINESS – DIVIDEND UPDATE

IGO Limited (ASX: IGO) (IGO or the Company) is pleased to advise of the receipt of A$159.3M in dividend payments from Tianqi Lithium Energy Australia (TLEA)1 with respect of the June 2024 Quarter.

This brings total dividends received from TLEA during FY24 to A$761.4M.

The release of cash reserves maintained by both Windfield Holdings (Windfield)2 and TLEA follows the drawdown of spodumene concentrate stockpiles at Greenbushes3, the amendment to the spodumene concentrate pricing mechanism during the March Quarter and the reduction in volatility across the broader lithium market in recent months.

Further, the recent refinancing of the Windfield debt facility4 has provided funding to support the ongoing capital expenditure and growth program at Greenbushes.

IGO’s Managing Director and CEO, Ivan Vella commented, “The substantial dividend IGO has received from TLEA during FY24, during a period of heightened market volatility and complexity, is testament to the value our lithium business can generate through the cycle.

We are continuing to work with our partners at Tianqi and Albemarle to grow the value generated from Greenbushes for the benefit of all shareholders.”

i hold IGO

should i have been buying in the last week ( i wasn't )

something to think on over the weekend

divs4ever said:

LITHIUM BUSINESS – DIVIDEND UPDATE

IGO Limited (ASX: IGO) (IGO or the Company) is pleased to advise of the receipt of A$159.3M in dividend payments from Tianqi Lithium Energy Australia (TLEA)1 with respect of the June 2024 Quarter.

This brings total dividends received from TLEA during FY24 to A$761.4M.

The release of cash reserves maintained by both Windfield Holdings (Windfield)2 and TLEA follows the drawdown of spodumene concentrate stockpiles at Greenbushes3, the amendment to the spodumene concentrate pricing mechanism during the March Quarter and the reduction in volatility across the broader lithium market in recent months.

Further, the recent refinancing of the Windfield debt facility4 has provided funding to support the ongoing capital expenditure and growth program at Greenbushes.

IGO’s Managing Director and CEO, Ivan Vella commented, “The substantial dividend IGO has received from TLEA during FY24, during a period of heightened market volatility and complexity, is testament to the value our lithium business can generate through the cycle.

We are continuing to work with our partners at Tianqi and Albemarle to grow the value generated from Greenbushes for the benefit of all shareholders.”

i hold IGO

should i have been buying in the last week ( i wasn't )

something to think on over the weekend

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It was on my list of potential buys and i am not sure why i didnt consider it but i will run the ruler over it over weekend and consider again .

Down 65% from 12 months highs , an obvious tax loss sell last couple weeks . At near enough to 4 year lows . If the balance sheet passes muster will likely add to portfolio

Chipp said:

It was on my list of potential buys and i am not sure why i didnt consider it but i will run the ruler over it over weekend and consider again .

Down 65% from 12 months highs , an obvious tax loss sell last couple weeks . At near enough to 4 year lows . If the balance sheet passes muster will likely add to portfolio View attachment 179514

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i know why i was waiting , i wanted it lower AND some clarity with things that are , waiting for extra cash ( the CSR [payout )

was i too greedy ? have i missed the chance to bulk up the holding ?

i guess time will tell

I took a very big hit selling puts 12 months ago. 63% down.
Unlikely to get back to my buy price of 15.1.
Gonna save the tax loss and use it against the sale of my IP in 18 months time. It’ll save me 47.5% on my loss/gain.

Gunnerguy