Independence Group does not envisage any issues funding its 30 per cent share of the Tropicana mine, which is on track to pour its first gold bar late next year.
Analysts predict Independence Group’s share price will rise in the short to medium term with Tropicana – 330km east-north-east of Kalgoorlie-Boulder – to become a “cash cow” generating estimated cashflows of $100 to $150 million per annum.
AngloGold Ashanti holds 70 per cent of the $740 million project.
“Whilst certain aspects of construction productivity have been identified we do not expect this to have a material impact on the delivery of the overall project,” Independence managing director Chris Bonwick said.
“One of Independence Group’s core strengths is how we have generated a strong pipeline of development and exploration opportunities within the Group.“With unique assets such as our share in Tropicana and the De Beers Australia database and sample archive, we believe we are one of a handful of companies who are trying to find the big one in order to reward our shareholders. Even with the capital outlay to fund our share of Tropicana we intend to maintain a disciplined sustainable investment in our exploration and development projects.”
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