Shares in Independence Group NL (ASX: IGO) rose 3.5% to $5.08 on Monday, after the miner issued a preliminary report on production for the last quarter of FY18.
The results represent a general improvement on the previous quarter's figures. The company experienced an increase in the quantity of ores milled at its Nova project and an improvement in their grade, and managed to lift production of copper by 30%, while nickel and cobalt volumes grew by approximately 25%.
These three metals are all inputs in the production of batteries, and offer Independence exposure to the electric vehicle industry.
The strong quarter contributed to closing the gap between production volumes and the company's FY18 guidance. Production at Nova is still slightly lower than forecasted – as anticipated two weeks ago by analysts at Macquarie Group Ltd (ASX: MQG), who retained an underperform rating on Independence – but the company expects solid results in 2019 now that the project is fully ramped up.
Independence also has a 30% stake in the Tropicana gold project controlled by ANGLOGOLD/IDR UNRESTR (ASX: AGG). Tropicana produced 467,000 ounces of gold in FY2018, a result around midpoint of the company's guidance.
Independence will be one to watch when they release their FY19 guidance on July 30 2018. In the meantime, I would consider an investment in this small cap star.
