IGO hosted a very well-attended site visit over the weekend, particularly by Fund Managers which is not surprising considering this miner ticks the ESG mandates of many a manager through its nickel & lithium exposure i.e. prominent battery elements. As a holder and supporter of IGO let’s hope it wasn’t because they’re all long and keen to check on their investment – stocks need new buyers to go up!
- Nickel: the company owns and operates the Nova nickel mine in WA – the nickel price has more than halved from its panic “Russian invasion” March high dragging the stock lower in the process.
- Lithium: IGO effectively owns 25% of the Greenbushes Spodumene mine and 49% of the Kwinana Lithium Hydroxide refinery – the pure lithium stocks have corrected in a very similar fashion to IGO e.g. Allkem (AKE) has corrected 35% from its 2022 high.
We remain a big fan of this $8.2b Australian miner but we must remain cognisant that this is a cyclical resource stock that will be led by the underlying commodity prices hence we regard it as a classic position that MM may tweak in the future I.e. sell strength and buy weakness.
MM remains bullish IGO, especially into any weakness
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