IGO has commenced a strategic review of the options surrounding its 30% interest in the Tropicana gold mine, following several unsolicited approaches for the asset. The review will take 3-6 months.
Morgan Stanley considers a sale unlikely at this juncture, given the company owns only one other mine and has limited project options. This is at least until further underground potential at Tropicana is proven.
Rather, the broker considers this a move to promote appreciation of the asset and its underground potential. Equal-weight. Target price is $4.80. Industry view: Attractive.
Target price is $4.80.Current Price is $4.49. Difference: $0.31 – (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).