Independence Group Raises Value of Nova Nickel Project

Independence Group NL (ASX:IGO) announced that the value of its Nova nickel project has increased following the completion of an optimization study.
Highlights are as follows:

• The Nova Optimisation Study (Optimisation Study or OS) has delivered a 36% improvement to the Project NPV1 compared to the Definitive Feasibility Study (DFS), on a like for like basis2 .
• The opportunity for an additional increase to the Optimisation Study Project NPV1 of over 10% has been recognised and will be assessed further during the operational phase.
• There has been a 27% reduction in the expected Life of Mine (LOM) C1 cash costs (after by-product credits) in concentrate from $1.66/lb to $1.21/lb nickel2 .
• LOM all-in sustaining cash costs have decreased by approximately 21% from $2.32/lb nickel (after by-product credit) in concentrate to an expected $1.83/lb nickel (after by-product credits) in concentrate2 .
• Even at current commodity prices3 , the projects physicals and financials are extremely robust, with LOM C1 cash costs (after by-product credits) in concentrate of $1.57/lb nickel.
• The Nova Project is now expected to deliver an additional 41%, 108% and 83% of free cash flow in CY17, CY18 and CY19 when compared to the DFS2 .
• Project initial capital remains at $443M, which includes a number of scope changes to unlock Project value including accelerated underground development.

Click here to read the full Independence Group NL (ASX:IGO) press release.