Wealth Within chief analyst Dale Gillham runs the ruler over the ASX-listed company he believes will benefit significantly from the Federal Government's A Future Made in Australia policies.
The recent budget announcement unveiled a $23 billion investment plan titled A Future Made in Australia, aimed at bolstering domestic manufacturing and fast-tracking the nation's progress towards achieving net zero emissions. Instead of delving into the intricate details of its broader impact on Australia, which will likely unfold over time, the question it raises for investors is which ASX-listed companies will benefit significantly from these transformative policies.
Is IGO a buying opportunity?
One I believe will benefit is IGO Limited (ASX:IGO), which, if I'm correct, will potentially make it an attractive buying opportunity. This is because the budget has earmarked $13.7 billion for production tax incentives in critical minerals processing, which is great news for IGO, given its involvement in mining and processing crucial minerals like nickel and copper.
To further sweeten the deal, a significant portion of the budget, around $19.7 billion, will target initiatives promoting renewable energy, including tax breaks for lithium-ion investments. This aligns perfectly with IGO's joint venture with Tianqi Lithium Corporation, which specialises in lithium mining and refining, making the recent budget announcement seem tailor-made for IGO.
Looking at the share price, despite IGO's prolonged market underperformance, characterised by a decline of over 60% from its all-time high in November 2022, the recent budget announcement has the potential to signify a turning point for this company.
The price of IGO appears to have stabilised at $7; therefore, I am keenly waiting to see signs of an upward movement in price.
More specifically if the price can rise above $9, then it will be time to start taking this stock seriously. So keep a vigilant eye on IGO, as momentum may soon sway decisively to the buyers.
Dale Gillham is the Chief Analyst at Wealth Within and the international bestselling author of How to Beat the Managed Funds by 20%. He is also the author of Accelerate Your Wealth—It’s Your Money, Your Choice, which is available in bookstores and online at www.wealthwithin.com.au