IGO Share Price Steady on Panoramic Takeover and Nickel Price Chart

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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:

ASX igo

Source: tradingview.com

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:

nickel price

Source: kitco.com

Maybe it has found support just above its low in late August?

For a more in-depth look at nickel stocks, we have a special report which is available here.

Our editor Ryan Dinse also takes a look at the nickel question, in particular its potential in Australia, in this video.


Lachlann Tierney

For Money Morning

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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