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Australia's IGO to review stake in Tropicana gold mine after unsolicited bids

Published 11/09/2020, 09:57 am
Updated 11/09/2020, 10:00 am
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Sept 11 (Reuters) - Australian nickel-gold miner IGO Ltd IGO.AX on Friday kicked off a review of its 30% stake in the Tropicana gold mine in Western Australia, after receiving unsolicited approaches from a number of interested parties.

The strategic review will consider options, including underground development and exploration as well as a full or partial sale, IGO said in a statement, adding that the asset had "significant upside potential".

For the quarter ended June 30, adjusted core earnings from Tropicana stood at A$36.6 million ($26.59 million), representing about 32% of the Australian company's total.

"In the current gold price environment, we do not believe that IGO's share price fully reflects the value of Tropicana," said Chief Executive Officer Peter Bradford.

So far this year, IGO shares have fallen 29.5%, compared with a 24.6% rise in the ASX All ordinaries gold index .AXGD .

Global gold miner AngloGold Ashanti's ANGJ.J local unit holds the remaining 70% stake in the Tropicana mine.

The review is expected to be conducted over the coming three to six months, it said. ($1 = 1.3767 Australian dollars)

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