The sharemarket boom seems to have done nothing for INDEPENDENCE GROUP (IGO). A year ago the nickel miner was $1.23. Yesterday it was $1.14, up 2c on the day, after issuing a quarterly report. We thought the report looked pretty good with Independence achieving record production and record low operating costs. Profit was also a record with after-tax EPS of 14.5c a share, or 11.2c fully diluted. At this rate it's earning better than 40c a shares for the full year, which would put the stock on a low p/e of less than 3 (the market average is more than 13). The company paid an inaugural 5c fully franked dividend in December 2004. Directors believe this level is sustainable for the current life of the mine. "The board will monitor dividend levels to ensure that other investment opportunities are able to be pursued which may generate increased returns to shareholders," they said.
IGO Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
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