Independence Group Share Price Rises on Quarterly 

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At time of writing, the share price of Independence Group NL [ASX:IGO] is up 2.22%, trading at $6. 

The Independence Group share price has come off a 52week high of $6.64 on 17 September as the nickel price declines: 

ASX IGO

Source: tradingview.com 

We look at what’s been happening with the nickel price and examine IGO’s quarterly. 

Nickel price falls, dragging Independence Group share price down with it

This is what’s happened to the nickel price in the last year: 

nickel price

Source: Business Insider 

You can see a strong run up in the price as news emerged that Indonesia was pushing ahead with a ban on nickel exports. 

The nickel price has since cooled, bringing the IGO share price down with it. 

How to buy into the NEXT battery boom (free report). 

Highlights from Independence Group quarterly

Here are the highlights from their quarterly: 

  • Nova project marginally beating guidance 
  • Revenue up 29% quarter-on-quarter to $263 million 
  • EBIDTA up 64% quarter-on-quarter to $154 million 
  • Net cash of $264 million 

So they have a healthy cash balance, and revenue is up significantly with the rising gold and nickel prices. 

They’ve also been investing in exploration, dropping $20.3 million on the program. 

Will the nickel price continue to slide?

After hitting highs in August and September, the nickel price has fallen. 

It is now in a strange moment as Tim Treadgold explains (via Forbes): 

A glimpse of what’s happening in nickel, which has moved into what metal traders call backwardation (short-term price higher than long-term) can be seen in the LME data which features a sharp fall in stockpiles and a sharp fall in the price–the reverse of what might be expected because a surplus of anything generally drives the price down. 

This could mean that there are short-term risks out there for those interested in nickel stocks. 

If you consider the bigger picture however, ASX-listed nickel producers could be set to benefit from the forecasted EV boom. 

This is because, as Commonwealth Bank commodities strategist Vivek Dhar notes (via the ABC): 

The Australian producers like Western Areas, Independence Group, they do significantly well because their nickel is more easily convertible to battery grade nickel.’ 

Given these factors you could opt to stay on the sidelines to avoid short-term pain, or you could wait out a potential drop in the nickel price. 

Regards, 

Lachlann Tierney,
For Money Morning 

PS: Our editor Ryan Dinse takes a look at nickel’s prospects in this exclusive video briefing. You can view it here. 

About Lachlann Tierney

Lachlann Tierney is an Analyst for Money Morning and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest…

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