Nickel and lithium miner IGO delivered a strong result in August, including a large 60c fully franked dividend, which was paid last month and, by definition, is responsible for some of the weakness over the last four weeks. Although the company made a mess of its takeover of Western Areas (WSA), having to write down $1bn in an amazingly short space of time, we believe this is an excellent decarbonisation story. With both of IGO’s core commodities enduring an extremely tough six months, from a contrarian perspective the time to start accumulating could be approaching fast.
- We like IGO ideally into weakness around $11, i.e. a washout of weak longs if/when the stock posts fresh 12-month lows.
MM is neutral IGO around $12
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