Previously we have stated that MM is unlikely to add to our current relatively small 3% exposure to nickel/lithium play IGO but if the stock continues to fall to fresh 6 month lows it would make the stock very tempting from a valuation perspective. Conversely while we like IGO, MM is conscious of the rapidly evolving EV market which might work against this lithium-nickel battery metals company as the likes of Tesla invest heavily in the development of lithium iron phosphate batteries which negates the use of expensive nickel and cobalt, hence we will also consider taking profit on the balance of this position into strength.
- We hold 3% of our Flagship Growth Portfolio in IGO, we may consider increasing this slightly another 8-10% lower.
MM will consider adding to our IGO position in the $11-$11.50 region.
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