IGO shares fall on asset impairment
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More News: IGO shares fell 1.67% to $5.90 by 1:07pm AEST as the market reacted to news of an asset impairment expected to cost between $275 million and $295 million for FY24.
IGO to record asset impairment for FY24
The news: IGO has announced that it expects to record an impairment on assets in its exploration portfolio following internal review.
The numbers: IGO expects the impairment range to be between $275 million and $295 million for FY24, pending the finalised internal audit.
The context: The asset impairment followed a revaluation on its Silver Knight and Mt Goode nickel exploration assets along with the broader exploration portfolio rationalisation.
IGO noted the non-cash impairment would not impact its FY24 EBITDA.
Global nickel prices have seen a sustained downturn following its peak in 2022 thanks to a global oversupply which recently caused BHP to suspend its nickel operations.
The news comes after a tough spell for the miner, which was recently downgraded to ‘sell’ by Bell Potter analysts due to sustained low global prices for lithium.
The source: ASX announcement
