Independence Group (ASX:IGO) has released its production numbers for the first quarter of financial year 2015, and these look quite good. The Tropicana mine produced 120,000 ounces of gold which means that the production attributable to Independence Group is 36,000 ounces. This is a bit better than our expectations as the production is already higher than the lower side of the official production guidance.
We are particularly impressed with the copper output which is much higher than anticipated, and the zinc and nickel output also isn’t disappointing. All three mines seem to be performing very well, and this bodes well for a strong financial performance from Independence Group. The cornerstone asset obviously still is the Tropicana gold mine in Australia which is expected to produce 141,000-147,000 ounces of gold net to Independence at an AISC of roughly $800/oz.
> Click here to go to the Independence website
Disclosure: The author holds no position in Independence Group. Please see our disclaimer for current positions.
