PERTH (miningweekly.com) – Diversified miner Independence Group (IGO) has delivered a strong December quarter, with the cash costs at both its Nova nickel mine and its Tropicana gold joint venture coming in better than guidance.
“Operationally, Nova and Tropicana continue to deliver strongly with both assets demonstrating solid production and cost performance over the quarter. Of note, Nova reached an important milestone during the quarter, achieving a milestone of 100 000 t of nickel production since production started,” said IGO MD and CEO Peter Bradford.
Nickel production from Nova during the second quarter reached 7 024 t, with 3 171 t of copper also produced at a cash cost of A$2.10/lb nickel.
Bradford noted that Nova nickel production in the second half of the financial year is expected to be in line with guidance, while cash costs are expected to continue to benefit from favourable by-product credit pricing.
Nova is expected to produce some 13 500 t to 14 500 t of nickel during the full 2021, and between 5 500 t and 6 250 t of copper at a cash cost of between A$240/lb and A$2.80/lb.
Meanwhile, gold production at Tropicana reached 112 050 oz, up from the 107 060 oz delivered in the previous quarter, with all-in sustaining costs at the operation reaching A$1 537/oz during the quarter under review.
“At Tropicana, production and costs were better than our pro-rata guidance for the quarter. However, as guided, we expect the second half of the 2021 financial year to be weaker at 80 000 oz and 90 000 oz for the third quarter and fourth quarter respectively. Production is then expected to increase in 2022 as a result of investment in 2021 in openpit cutbacks and the full ramp-up of underground ore from Boston Shaker,” said Bradford.
For the 2021 full year, Tropicana is expected to deliver between 190 000 oz and 215 000 oz of gold at an all-in sustaining cost of between A$1 730/oz and A$1 860/oz.
During the quarter under review, IGO also announced a A$1.9-billion deal with lithium producer Tianqi Lithium Corporation to acquire a significant stake in the Greenbushes lithium mining and processing operation, as well as in the Kwinana lithium hydroxide plant, both in Western Australia.
Bradford said on Thursday that the transaction would transform IGO’s growth trajectory and would position the company to become a globally relevant supplier of metals critical to clean energy.
“This transaction is expected to deliver strong returns for IGO shareholders and is aligned with IGO’s strategy to become a globally relevant, vertically integrated producer of quality products critical to enabling clean energy, with strong environmental and social governance credentials.”