Introducing ... IGO Limited’s Nova Operation .
The mine started production in 2017 after IGO acquired it through the $1.8 billion purchase of Sirius Resources in 2015. Nova has been a consistent performer, though it’s faced challenges like market fluctuations and operational setbacks.
Economically, Nova’s strength lies in its production of nickel (a major revenue driver), copper, and cobalt, with by-product credits helping offset costs. For example, in FY22, Nova generated $900.6 million in revenue and a segment operating profit before tax of $456.8 million, according to IGO’s 2022 Annual Report.
That’s a solid margin, reflecting its efficiency. Production that year included 26,675 tonnes of nickel, 11,483 tonnes of copper, and 982 tonnes of cobalt.
Nickel cash costs were around $1.95 per payable pound, with all-in sustaining costs (AISC) at $2.33 per pound—competitive figures for the industry at the time, thanks to by-product credits from copper and cobalt.
Operationally, Nova benefits from a high-grade resource (1.85% nickel, 0.75% copper, 0.07% cobalt in FY22) and investments in sustainability, like a solar-battery system reducing diesel use by about 4 million liters annually and cutting emissions by 24% compared to FY21. This lowers energy costs long-term and aligns with market demand for “greener” metals.
Nickel prices heavily influence Nova’s economics. When prices spiked in 2021-2022 (e.g., reaching over $18 per pound at times), Nova thrived, as seen in its half-year output of 13,876 tonnes of nickel exceeding guidance. But by 2024, prices crashed, down 80% from peaks due to oversupply from places like Indonesia, hurting profitability across IGO’s nickel portfolio, including Nova. While exact 2025 figures aren’t public yet, Nova’s margins are tighter now, though its lower costs and by-products likely keep it viable compared to higher-cost peers.
Looking forward, IGO’s pushing to extend Nova’s mine life via nearby discoveries like Silver Knight, with first ore expected in 2025 if approved. This could bolster economics by spreading fixed costs over more production. Still, the nickel market’s volatility means Nova’s profitability hinges on global demand (e.g., EV batteries) outpacing supply growth.
FY24 Financial Results .https://www.igo.com.au/site/pdf/ac58e18a-1655-41de-acda-21c7563af984/FY24-Financial-Results.pdf
Within our nickel business, our low-cost Nova Operation continued to generate strong free cash flow despite the commodity price
headwinds that contributed to our decision to put Cosmos into care and maintenance.
“Meanwhile, we have worked to position our business for its next chapter. Our refreshed strategy will be
ready for release in a matter of weeks, and we have conducted deep reviews across our corporate and
exploration teams to ensure we have the right team in place, with the right capabilities, to ensure we
can deliver on this new strategic direction.”
The word is "From the horses mouth" is that IGO would acquire another Nova "any day of the week" if the opportunity arose.
IGO runs an efficient operation and was supplying concentrate to the Nickel West smelter until it shut down .
So.
What if BHP and IGO got there heads together and worked out a deal ?
Two Big Australian companies with everything that is needed to Make Australian Nickel's Greenness Obvious .
MANGO.
Watch this space,
I don't know anything, 
(20min delay)