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Independence Group Beats Metal Production Guidance

THE BOURSE WHISPERER: Independence Group (ASX: IGO) reported preliminary metal production for the Nova and Tropicana operations for the December 2019 Quarter (2Q20) and for the first half of the 2020 Financial Year (1H20).

Independence Group declared a consistently strong operational performance at Nova resulted in nickel, copper and cobalt production for 2Q20 and 1H20, exceeding the company’s pro-rata guidance range for FY20.

Meanwhile at Tropicana, gold production and gold sales also exceeded pro-rata FY20 guidance following an excellent 2Q20 result.

“Production at Nova and Tropicana beat guidance in the December Quarter and the first half of FY20 reflecting the quality of both operations and the dedication and focus of the Nova and Tropicana teams,” Independence Group managing director and CEO Peter Bradford said in the company’s announcement to the Australian Securities Exchange.

“Looking ahead to the second half of FY20, we are expecting Nova to maintain performance in line with guidance as we continue to focus on delivering cost improvements and continuous improvement of operational efficiencies.

“At Tropicana, we also expect to produce within guidance for the year, with lower gold production during 2H20, in line with our mine plan.”

 

Email: contact@igo.com.au

Web: www.igo.com.au

 

Panoramic Resources Says No Thanks to Independence Group Take Over

THE BOURSE WHISPERER: Independence Group (ASX: IGO) rattled the boards of the ASX in November when it declared its intention to make an off-market takeover offer to acquire all of the ordinary shares of Panoramic Resources (ASX: PAN) it does not already own.

At the date of the announcement, Independence Group’s interest in Panoramic consisted approximately 24.9 million shares, representing approximately 3.8 per cent of the target company’s total issued capital.

IGO explained it opted to directly engage Panoramic shareholders following a number of unsuccessful attempts to engage with the Panoramic Board on a change of control transaction.

The company cited Panoramic’s recent operational performance and the lack of engagement from Panoramic’s Board to date as the impetus behind the offer.

The conditions to the offer include a number of conditions that IGO believes to be necessary to confirm the current status of operating performance at Savannah.

The offer is in the form of one IGO Share for every 13 Panoramic shares held, giving Panoramic a share price of 47.6 cents per Panoramic share, which values the company at around $312 million.

IGO indicated its preference is to conduct an expedited and thorough due diligence process, and to proceed with a recommendation from the Panoramic Board rather than seek the confirmations required under the offer conditions, however IGO said it is prepared to see the offer to completion should the offer conditions be satisfied.

“The Offer represents a rare instance of genuine and obvious mutual benefit for both Panoramic and IGO shareholders,” Independence Group managing director and CEO Peter Bradford said in the company’s announcement to the Australian Securities Exchange.

“Panoramic shareholders will be able to crystallise future value from Savannah at a very attractive price and retain exposure to its upside potential, while also gaining exposure to Nova and Tropicana and IGO’s extensive portfolio of belt-scale exploration projects prospective for nickel and copper.

“The company remains leveraged to the nickel market and we believe IGO has the financial, operational and technical capability to fully unlock value from Savannah and Panoramic’s exploration portfolio.

“Given our unique positioning as Australia’s largest independent producer of nickel, to unlock value at Savannah, we have decided to provide the offer for the consideration of all Panoramic shareholders.”

In response, Panoramic did nothing to surprise anybody by recommending its shareholders take no action in relation to the IGO takeover offer.

“The Board will evaluate the offer and Independence Group’s Bidder’s Statement and provide shareholders with a recommendation in due course,” Panoramic Resources said.

“Until then, shareholders should take no action.”

And no action they did take.

The Directors of Panoramic bounced back this week to inform their shareholders that they didn’t think the offer from IGO was in their best interests.

They recommended that having carefully considered the terms and conditions of the IGO Takeover Offer and taking into account the results of the company’s recently announced operational review at Savannah and other information available to them at the current time, shareholders should REJECT the IGO Takeover Offer.

They must have been serious because the recommendation was in capital letters.

The key reasons for the Panoramic Board’s unanimous recommendation were:

The IGO Takeover Offer is opportunistically timed, which could deprive Panoramic shareholders of future potential value;

Panoramic shareholders’ exposure to the company’s assets and potential upside would be diluted through accepting the IGO Takeover Offer;

Panoramic shareholders’ nickel exposure would be diluted through accepting the IGO Takeover Offer;

The IGO Takeover Offer consideration was for IGO shares, which PAN considered, based on several objective measures, to appear to be trading at an elevated valuation, presenting downside risk to the implied IGO Takeover Offer value;

Accepting the IGO Takeover Offer meant shareholders risk missing out if a superior offer from a third party if it emerges;

Panoramic’s largest shareholder, Zeta Resources, which holds 35.17 per cent of Panoramic indicated it does not intend to accept the IGO Takeover Offer; and

The IGO Takeover Offer is highly conditional and there is no certainty it will proceed.

In response, Independence Group said it would not be taking up the offer to use its 38 per cent holding to participate in Panoramic’s announced non-renounceable entitlement offer to raise approximately $31 million stating the Entitlement Offer breaches a condition of IGO’s takeover offer.

We can only assume this is not the end of this discussion.

 

 

THE DAILY ROADHOUSE

 

Stavely Minerals Continues Thursday’s Gossan Growth

THE DRILL SERGEANT: Stavely Minerals (ASX: SVY) reported further news from the shallow, high-grade copper-gold discovery at the Thursday’s Gossan prospect, part of the company’s 100 per cent-owned Stavely copper-gold project in Victoria.

Calidus Resources Hits More Gold in Planned Klondyke Pit

THE DRILL SERGEANT: Calidus Resources (ASX: CAI) reported a further batch of high-grade RC drilling results from the company’s Warrawoona gold project in the Pilbara of Western Australia.

Independence Group Makes Take-Over Bid for Panoramic Resources

THE BOURSE WHISPERER: Independence Group (ASX: IGO) rattled the boards of the ASX by announcing its intention to make an off-market takeover offer to acquire all of the ordinary shares of Panoramic Resources (ASX: PAN) it does not already own.

Galileo Mining Confirms Fraser Range Nickel Target

THE DRILL SERGEANT: Galileo Mining (ASX: GAL) recently completed aircore drilling at the company’s Lantern prospect, within the Fraser Range nickel belt of Western Australia.

Rox Resources Hits Healthy Gold Intersections at Youanmi

THE DRILL SERGEANT: Rox Resources (ASX: RXL) released results of an air core drilling program undertaken at the company’s VMC Joint Venture, located north of the historical Penny West gold mine and the historical Magenta and Columbia gold prospects in Western Australia.

 

Independence Group Makes Take-Over Bid for Panoramic Resources

THE BOURSE WHISPERER: Independence Group (ASX: IGO) rattled the boards of the ASX by announcing its intention to make an off-market takeover offer to acquire all of the ordinary shares of Panoramic Resources (ASX: PAN) it does not already own.

At the date of the announcement, Independence Group’s interest in Panoramic consisted approximately 24.9 million shares, representing approximately 3.8 per cent of the target company’s total issued capital.

IGO explained it opted to directly engage Panoramic shareholders following a number of unsuccessful attempts to engage with the Panoramic Board on a change of control transaction.

The company cited Panoramic’s recent operational performance and the lack of engagement from Panoramic’s Board to date as the impetus behind the offer.

The conditions to the offer include a number of conditions that IGO believes to be necessary to confirm the current status of operating performance at Savannah.

The offer is in the form of one IGO Share for every 13 Panoramic shares held, giving Panoramic a share price of 47.6 cents per Panoramic share, which values the company at around $312 million.

IGO indicated its preference is to conduct an expedited and thorough due diligence process, and to proceed with a recommendation from the Panoramic Board rather than seek the confirmations required under the offer conditions, however IGO said it is prepared to see the offer to completion should the offer conditions be satisfied.

“The Offer represents a rare instance of genuine and obvious mutual benefit for both Panoramic and IGO shareholders,” Independence Group managing director and CEO Peter Bradford said in the company’s announcement to the Australian Securities Exchange.

“Panoramic shareholders will be able to crystallise future value from Savannah at a very attractive price and retain exposure to its upside potential, while also gaining exposure to Nova and Tropicana and IGO’s extensive portfolio of belt-scale exploration projects prospective for nickel and copper.

“The company remains leveraged to the nickel market and we believe IGO has the financial, operational and technical capability to fully unlock value from Savannah and Panoramic’s exploration portfolio.

“Given our unique positioning as Australia’s largest independent producer of nickel, to unlock value at Savannah, we have decided to provide the offer for the consideration of all Panoramic shareholders.”

I response, Panoramic did nothing to surprise anybody by recommending its shareholders take no action in relation to the IGO takeover offer.

“The Board will evaluate the offer and Independence Group’s Bidder’s Statement and provide shareholders with a recommendation in due course,” Panoramic Resources said.

“Until then, shareholders should take no action.”

 

Email: investor.relations@igo.com.au

 

Web: www.igo.com.au

 

THE DAILY ROADHOUSE

 

Independence Group Maximises Value of Nova Concentrates

THE DRILL SERGEANT: Independence Group (ASX: IGO) has been busy of late working to maximise value from the high-quality nickel and copper concentrates produced at the company’s Nova Operation in Western Australia.

Ausgold Scoping Study Shows Katanning Gold Mine Potential

THE DRILL SERGEANT: Ausgold Limited (ASX: AUC) has completed a Scoping Study for the company’s 100 per cent-owned Katanning gold project in Western Australia.

Golden Rim Resources Identifies 1.6km Gold Anomaly at Kouri

THE DRILL SERGEANT: Golden Rim Resources (ASX: GMR) copleted an Induced Polarisation (IP) survey at the company’s Kouri gold project in Burkina Faso.

NTM Gold Raising Funds to Continue Redcliffe Exploration

THE BOURSE WHISPERER: NTM Gold (ASX: NTM) announced an equity issue to Institutional and Sophisticated Investors, funds from which will be used to accelerate exploration on the company’s Redcliffe gold project near Leonora in Western Australia.

 

Independence Group Maximises Value of Nova Concentrates

THE DRILL SERGEANT: Independence Group (ASX: IGO) has been busy of late working to maximise value from the high-quality nickel and copper concentrates produced at the company’s Nova Operation in Western Australia.

The recent work includes the completion of a highly competitive concentrate tendering process and conclusion of a Downstream Nickel Sulphate Pre-Feasibility Study.

A binding concentrate offtake agreement for a three-year term has been executed with Trafigura for 50 per cent of nickel concentrate and for 100 per cent of copper concentrate produced from Nova.

An offtake term sheet with BHP Billiton Nickel West for an additional 50 per cent of the nickel volume for a period of five years has been executed, subject to the completion of a formal agreement within one month and all necessary internal approvals of both parties.

Having identified the potential value of downstream processing and, following scoping and proof-of-concept studies, IGO initiated a PFS on the technical and financial merits of converting nickel sulphide concentrate from Nova into high quality nickel sulphate via its trademarked (patent pending) The IGO Process.

The company declared the study demonstrated the technical feasibility of The IGO Process, which it describes as being “a technically advanced process for converting nickel sulphide concentrate directly to battery grade nickel sulphate”.

The study involved extensive pilot and continuous plant testwork to be completed on The IGO Process that achieved metal extraction rates of better than 97 per cent for both nickel and cobalt.

The results underlined IGO’s confidence in the potential for The IGO Process to become an established flowsheet for the production of nickel sulphate.

The IGO Process has a smaller carbon and environmental footprint compared with traditional methods for nickel sulphate production due to much lower emissions, power consumption and waste generation.

“It is pleasing to have brought these two workstreams to completion, and to have achieved the material improvement in commercial terms for our new offtake agreements,” Independence Group managing director and CEO Peter Bradford said in the company’s announcement to the Australian Securities Exchange.

“The tightening supply and strong demand forecast for nickel and copper has led to strong competition for Nova concentrate, which is now established as a high quality, highly desirable product for end users.

“The work we have completed as part of the nickel sulphate downstream prefeasibility study has demonstrated that IGO has developed an innovative processing technology to more efficiently produce nickel sulphate for the clean energy and the electric vehicle battery market at a lower cost and in an environmentally sustainable manner.

“We recognised that this project would have to compete with tightening supply and higher payabilities in the market and as a result of the improved nickel payabilities obtained, the returns on this project are unlikely to meet IGO investment hurdles for construction of such a facility in Western Australia, hence the decision not to advance this project beyond the pre-feasibility study.

“We remain committed to our strategy to focus on metals critical to clean energy.

“We will continue to explore partnering opportunities, leveraging the technology we have developed on downstream processing to create additional value for shareholders.”

 

Email: contact@igo.com.au

Web: www.igo.com.au

 

THE DAILY ROADHOUSE

Stavely Minerals Undertaking $19.6 Million Raising

THE BOURSE WHISPERER: Stavely Minerals (ASX: SVY) is conducting a capital raising of $19.6 million by way of a share placement of 19.6 million shares at $1.00 per share.

Saturn Metals Upgrades Apollo Hill Gold Resource

THE DRILL SERGEANT: Saturn Metals (ASX: STN) has completed an updated Mineral Resource estimate for the Apollo Hill gold deposit at the company’s 100 per cent-owned Apollo Hill gold project near Leonora in the Western Australian Goldfields.

Meteoric Resources Continues Juruena Golden Run

THE DRILL SERGEANT: Meteoric Resources (ASX: MEI) announced the latest batch of assays from the company’s 100 per cent-owned Juruena gold project in Brazil.

Auroch Minerals Progresses Saints Nickel Project Drill Program

THE DRILL SERGEANT: Auroch Minerals (ASX: AOU) kept the market up to date on the progress of its maiden drilling program underway at the company’s recently-acquired Saints nickel project near Kalgoorlie in Western Australia.

Independence Group Teams up with Apollo Consolidated at Louisa Nickel Sulphide Project

THE BOURSE WHISPERER: Independence Group (ASX: IGO) has entered a farm-in and joint venture with Apollo Consolidated Limited (ASX: AOP).

 

Independence Group Teams up with Apollo Consolidated at Louisa Nickel Sulphide Project

THE BOURSE WHISPERER: Independence Group (ASX: IGO) has entered a farm-in and joint venture with Apollo Consolidated Limited (ASX: AOP).

Apollo Consolidated announced the deal in relation to the company’s early-stage Louisa project located near Fitzroy Crossing in the West Australian Kimberley Province.

Independence is a highly-regarded nickel-copper sulphide producer and explorer that is actively exploring for nickel-copper sulphide mineralisation in the region.

Under the term sof the agreement, a wholly-owned subsidiary of Independence will spend initial expenditure of a minimum of $350,000 on the project within 24 months.

Once the initial expenditure has been reached the subsidiary may elect to continue to spend an additional $3 million within four years to earn a 75 per cent interest in the project, otherwise the subsidiary can withdraw at its election at any time provided the project tenement remains in good standing.

Apollo considers Independence Group’s interest to be a ringing endorsement of its conceptual targets in the emerging nickel-copper sulphide province.

“The entrance of Independence into the project is an endorsement of the potential for magmatic mineralisation styles in the area and will allow this potential to be rapidly evaluated by an active and highly respected nickel-copper sulphide exploration team,” Apollo Consolidated said in its ASX announcement.

Apollo said the arrangement allows it to prioritise exploration efforts at its gold discoveries at the Lake Rebecca gold project near Kalgoorlie.

Should a discovery be made at Louisa under the farm-in, Apollo retains the ability to participate as a 25 per cent partner, an equity position it believes could deliver value to shareholders.

Independence intends to apply its in-house geophysical team and state-of-the-art geophysical tools to the evaluation of the prospective mafic and ultramafic intrusions identified on the tenements.

Remote sensing work is scheduled to commence in the December 2019 Quarter, followed by field programs during the 2020 dry season.

 

Email: info@apolloconsolidated.com.au

Web: www.apolloconsolidated.com.au