Shares in mineral exploration company Independence Group NL (ASX: IGO) are down 5.4% to $4.53 at the time of writing after its quarterly report webcast this morning.
According to the report, Independence Group had a "record quarter" – strengthening its balance sheet by increasing nickel production by 23% quarter-on-quarter, but this is still 3% below guidance for FY18.
Copper is also likely to miss guidance for FY18, with cash costs coming in above expectations and the company's flagship Tropicana project only marginally bettering bottom-end guidance.
While Independence Group's CEO maintains the company will end FY18 with a strong balance sheet, investors are understandably disappointed by the production summary tabled.
Analysts at Macquarie slapped an underperform rating on Independence Group late last month, with a price target of $5.10, while fellow miners at the bigger end of town, Rio Tinto Limited (ASX: RIO) and BHP Billiton Limited (ASX: BHP) had their price forecasts upgraded by the broker at the same time.
