Independence Group NL (ASX:IGO) shares slump on quarterly report

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.

4 Stocks for Building Wealth After 50

Renowned investor Scott Phillips just released a brand-new report detailing his 4 favourite stocks to buy right now.

And I don’t know about you, but I always pay attention when some of the best investors in the world give me a stock tip.

This is your chance to get in at the very beginning of what could prove to be very special investments.

Click here to get started today!

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!