consider who is the second largest holder of IGO.....
Now read....IGO weighs strategic review, Macquarie in pole position
Sep 10, 2020 – 9.36pmUnder-fire IGO Ltd is mulling options for its $1 billion-plus stake in the Tropicana Gold Mine.
Following substantial pressure from institutional investors, it is understood IGO has been talking to bankers about a strategic review of the Tropicana stake as a potential way for it to unlock value for its shareholders.
IGO boss Peter Bradford is expected to give the green light on a strategic review of the company's 30 per cent stake in the Tropicana Gold Mine. Philip Gostelow
Sources said Macquarie Capital was well-placed to snare the mandate.
Selling Tropicana would allow IGO to narrow its focus to battery minerals, which is the company’s core strategy.
Retaining the highly cash generative Tropicana stake was an easy way to keep money rolling in the door while its other assets took time to hit their strides.
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IGOIndependence Group
$4.62 2.90%View IGO related articles5.30 at 3/6/20Oct 19Jan 20Apr 20Jul 203.004.005.006.007.00Updated: Sep 14, 2020 – 1.19pm. Data is 20 mins delayed.Analysts reckon it would also allow the company to focus on extending its promising Nova project, which was picked up when it acquired Sirius Resources in 2015.
The mooted review would come just weeks after IGO boss Peter Bradford told shareholders that Tropicana’s gold exposure did not expressly fit within the strategy of exploiting new-energy metals and said it could consider selling the stake at the right time.
Inbound interest
At the time, Bradford said that interest in the IGO stake had increased on the back of the strong gold price.
“Certainly the level of external interest in that asset at these higher gold prices has gone up and we have been batting back a number of unsolicited incoming calls, but at this stage the board has not taken any view on Tropicana,” he said.
Tropicana made IGO $175 million at the EBITDA line in the year to June 30. UBS analysts valued the stake at $1.22 billion following IGO’s annual results in August
IGO owns 30 per cent of Tropicana with the remainder held by AngloGold Ashanti, which operates the mine 330 kilometres east north east of Kalgoorlie.
An IGO spokesperson declined to comment.
