I had not looked much at IGO until this deal came out but after...

I had not looked much at IGO until this deal came out but after doing some very quick due diligence I can see how it fits. I thought a larger cap miner was more likely to exploit the cyclical low in nickel though, but closer to production starting up.

What I like is that IGO are focused on creating and growing revenue and scale, this is an accretive acquisition that will really drive cash flow. If anything, its getting earlier returns to the SIR faithful. IGO are very debt conservative, I like that too, I have read they are looking to fund development at Nova with minimal reliance on the debt facility (which was very well set up by Sirius mind you). Debt has weighed down so many good oil and gas, gold and metals miners, with holders crying themselves to sleep, and I think IGO are looking to avoid that.

Its bold, but they haven't borrowed, haven't raised capital, they have just used a really strong share price and balance sheet to get this deal through. It is a fantastic strategic opportunity, and I strongly suspect once production starts and the cycle in nickel rebounds as expected, that this company will be a serious business.

And after the announcement that NAB has taken an initial substantial holder position in IGO, I think the market will get over the shock and actually see this for what it is.