The company has made an all-scrip offer for Panoramic Resources ((PAN)). This would provide Independence Group with a third mine. An all-scrip offer, despite the strong cash position, makes sense in the broker’s view, given the recent support from the gold price.
In full production the Savannah project would add 22% to Independence Group production. The asset is also within the company’s current tenements in the Kimberley.
Equal-weight. Industry view is Attractive. Target is $6.10.
Target price is $6.10.Current Price is $6.47. Difference: ($0.37) – (brackets indicate current price is over target). If IGO meets the Morgan Stanley target it will return approximately -6% (excluding dividends, fees and charges – negative figures indicate an expected loss).