The next six months is all about getting Tropicana on track. Assuming that happens, and the dividend is significantly increased, then I would hope that the stock is re rated. Tropicana should have a very long life and now that the infrastructure is in place, future production increases will be more cost effective. Solid cash flow for 10+ years from Tropicana should underpin IGO's development for the foreseeable future. Just hope they don't buy another Jabiru.
I like that Anglo are running Tropicana, given they are in the business of managing large scale gold operations. IGO can concentrate on the nickel operation, improving the Jabiru assets and using the De Beers data base in their exploration activities.
While the share price fell hard and has now recovered well, I guess the question becomes - is it fairly valued? While that subjective, I think the potential cash flows that have now started will result in a significant re rating. But the market will want to see Tropicana running at budget levels first. Just my musings...... Sirecho
IGO Price at posting:
$3.92 Sentiment: Buy Disclosure: Held
