Independence Group’s Nova Exceeds Yearly Nickel Output Guidance

Independence Group’s Nova nickel-copper asset has knocked it out of the park by surpassing its quarterly and yearly production guidance.

Independence Group’s (ASX:IGO) Australia-based Nova nickel-copper asset has knocked it out of the park by surpassing its quarterly and yearly production guidance.

Nickel guidance for the 2019 fiscal year (FY19) from Nova was docketed at 27,000 to 30,000 tonnes, while copper was in the 11,000 to 12,500 tonne range.

However, according to the company’s latest quarterly report, the project exceeded expectations by producing 30,708 tonnes of nickel and 13,693 tonnes of copper over the year. Quarterly production came in at 7,906 tonnes of nickel, while copper saw 3,462 tonnes.

The company’s Tropicana joint venture, shared with AngloGold Ashanti (NYSE:AU,JSE:ANG,OTC Pink:AULGF) and also located in Australia, met production guidance with 518,172 ounces of gold; the expected range had been 500,000 to 550,000 ounces.

“Nova has now been in commercial production for two years and over the last five quarters has delivered metal production at a higher rate than the average metal production rate projected in the Feasibility Study,” Independence Group Managing Director and CEO Peter Bradford said in a statement.

“Combined with this consistent delivery, Nova is the lowest cost nickel producer in Australia and one of the lowest (costs) in the world despite by-product credit pricing head winds.”

Independence Group raked in AU$204.1 million during the quarter, with Tropicana contributing AU$75.9 million in revenue, a 15 percent increase from the previous quarter. The growth from Tropicana stemmed from higher production due to higher milled grade, better recovery and a stronger gold price.

Meanwhile, Nova’s revenue reached AU$121.9 million, down from the previous quarter’s AU$165.8 million; this was a result of lower metal tonnes sold.

Looking forward, Independence Group has kept its 2020 fiscal year (FY20) production guidance for Nova in the same range as it did for FY19. However, cash cost guidance for the project has gone up for a handful of reasons, including higher expected shipping costs and lower capital development meters.

Sustaining and improvement capex for FY20 is set between AU$24 million and AU$26 million for Nova, versus FY19’s range of AU$21 million to AU$24 million. Cash costs have also been bumped up to a range of AU$2 to AU$2.50 per pound of nickel, as opposed to FY19’s AU$1.65 to AU$2 range.

Independence Group’s share price fell 4.44 percent on the ASX on Wednesday (July 31), ending the day of trading at AU$5.38.

As of Tuesday (July 30), nickel was trading at US$14,200 per tonne on the London Metal Exchange, and copper was trading at US$5,942.5 per tonne.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.

Torian Resources Limited Significant Gold Results from Surface at Mt Stirling

Perth, Australia (ABN Newswire) – Torian Resources Ltd (ASX:TNR) is pleased to advise that recent drilling results continue to extend the Mt Stirling Gold System over ~1.1km of Strike, ~300m at depth, and it remains open in multiple directions.


– The interpreted strike of the Mt Stirling gold system exceeds 1.160km with Mt Stirling Main Zone; Hanging Wall and Viserion lodes all remaining open along strike and down-dip.

Keep reading... Show less

eMetals Limited Updates Shareholders On Exploration – April 12, 2021

eMetals Limited (ASX:EMT) (eMetals or Company) is pleased to update shareholders on exploration activities which have commenced across the Company’s projects.


Keep reading... Show less

Discovery Harbour Provides Newcrest’s Planned Program for Fortuity 89, Nevada

Discovery Harbour Resources Corp. (TSXV: DHR) (OTC Pink: DCHRF) (FSE: 4GW) (the “Company” or “Discovery Harbour”) is pleased to announce that Newcrest Resources Inc., a wholly owned subsidiary of Newcrest Mining Limited (“Newcrest”), has provided the details of its planned program for the Fortuity 89 epithermal gold property in Nevada.

The Fortuity 89 property covers very limited outcrop surrounded by a large covered area. The outcrop and interpreted geology are prospective for concealed low sulphidation epithermal gold mineralization below shallow unconsolidated alluvial gravels. Newcrest’s planned activities include a geophysical program encompassing a 675 line kilometre drone airborne magnetic survey, a 250 station ground gravity survey and a 45 line kilometre audio band magnetotellurics (AMT) resistivity survey. It is intended that geologic and alteration sampling and mapping will also be undertaken with a soil geochemical sampling program. The intended outcome of this program is to identify potential drill targets for testing this calendar year.

Keep reading... Show less

Blackdome-Elizabeth Gold Project 2021 Exploration Plan and Update

Tempus Resources Ltd. (“Tempus” or “the Company”) (ASX:TMR)(TSXV:TMRR) is pleased to provide an update on the exploration plan for the upcoming field season at the Blackdome-Elizabeth Gold Project, located in British Columbia, Canada

The 2021 exploration program at Elizabeth and Blackdome is fully permitted and on schedule to commence at the end of Q2, 2021. The program will consist of 7,500 metres of down plunge and along strike diamond drilling at Elizabeth to expand the known gold mineralisation, in parallel with detailed alteration and mapping studies at Blackdome in support of future resource expansion drilling.

Keep reading... Show less

Rio Tinto reaches agreement with Turquoise Hill Resources on financing plan for Oyu Tolgoi

Rio Tinto has entered into a binding Heads of Agreement (HoA) with Turquoise Hill Resources (TRQ) for an updated funding plan (the “Funding Plan”) for the completion of the Oyu Tolgoi (OT) Underground Project in Mongolia. The Funding Plan addresses the estimated remaining known funding requirement of approximately $2.3 billion 1 , building on and replacing the arrangements established in the Memorandum of Understanding that Rio Tinto and TRQ previously entered into on 9 September, 2020.

Under the HoA, subject to securing approval by OT LLC and any required support from the Government of Mongolia, and subject to timing, availability, and terms and conditions being acceptable to both parties, Rio Tinto and TRQ will:

Keep reading... Show less

Top News

Related News