IGO Share Price Steady on Panoramic Takeover and Nickel Price Chart
At time of writing the share price of Independence Group NL [ASX:IGO] is down 1.09%, trading at $6.33.
The IGO share price has traded sideways even as the nickel price has fallen away over the last two months:
We take a look at Independence Group’s hostile takeover bid for Panoramic Resources Limited [ASX:PAN] and the 60-day nickel price chart.
Independence Group share price barely budges, Panoramic share price goes flying up
At time of writing, the Panoramic share price is up 29.85%, which is a little shy of the 42% premium that IGO is offering PAN shareholders.
This implies that investors believe there could still be some hiccups in the deal.
IGO has made an all-scrip takeover offer for 96.2% of PAN shares which is valued at $312 million.
This means that for every 13 PAN shares, investors would get one IGO share.
The offer period ends mid-November.
In an investor presentation released today, IGO says Panoramic’s Savannah operation could produce around 11ktpa of nickel sulphide at an operating cash cost of $3.10/lb over an eight-year mine life.
Nickel price chart steady
In recent coverage of nickel news we remarked that nickel was in a ‘strange moment’.
London Metal Exchange (LME) nickel stock was falling, as was the price.
If you take a look at the six-month nickel spot price chart below you can see it has been trading sideways recently:
Maybe it has found support just above its low in late August?
Our editor Ryan Dinse also takes a look at the nickel question, in particular its potential in Australia, in this video.
For Money Morning