Why are IGO Ltd (IGO) shares rallying today?
IGO +5.72%: Nickel miner IGO is currently the best performer on the ASX200 today after further updates on their acquisition of a lithium asset. They are working on a deal to secure a 49% stake in Lithium HoldCo, a joint venture with Chinese company Tianqi. The stake will see it hold a 49% interest in the Kwinana Lithium Hydroxide Plant as well as a ~25% stake in a lithium mining operation Greenbushes. The $1.9b deal was initially announced late last year with today’s update showing that a number of key regulatory approvals had been granted with the deal on track for completion by 30 June. Its a trans-formative acquisition for IGO which will soon split its income fairly evenly between nickel and lithium, two key resources needed for batteries with demand set to explode in coming years. The split comes after the recent sale of it’s gold asset Tropicana which funded much of the investment.
