The Independence Group (ASX: IGO) share price closed 4% higher at $4.16 yesterday despite the gold and nickel miner not delivering any material news to the market since before Christmas.
In FY 2018 Independence Group posted record adjusted free cash flow of $138 million (loss of $113 million in FY 2017) on revenue of $781 million as the group continues to benefit from increased production and a steady gold price.
Weakness in the Australian dollar over the last 18 months has also been tailwind as the WA-based company incurs most of its operational costs in Australian dollars, but sells its nickel and gold product in US dollars.
It owns 100% of the Nova nickel-copper-cobalt mine in WA and has a 30% interest in the Tropicana Gold Mine in a joint venture with gold mining giant AngloGold Ashanti. On December 20 the group reported that a 'pre feasibility study' suggests there's potential to expand an underground pit at the Tropicana Mine.
For the quarter ending September 30 2018 free cash flow hit $82 million and the group has a net cash position of $62 million, alongside some debt and a cash balance of $176 million.
