The pre-feasibility study on the nickel sulphate option has been extended to the December quarter in order to “optimise the study”. Credit Suisse suspects the company is likely buying time for nickel sulphide concentrate offtake agreements to be negotiated and replace expiring contracts.
The risk in the technology is a material factor that the broker believes should be considered, particularly when new technology is scaled up from the lab test work. Neutral rating and $4.10 target maintained.
Sector: Materials.
Target price is $4.10.Current Price is $4.98. Difference: ($0.88) – (brackets indicate current price is over target). If IGO meets the Credit Suisse target it will return approximately -21% (excluding dividends, fees and charges – negative figures indicate an expected loss).
