Independence Group (IGO) released FY18 full year results with record sales revenue of $778m, record underlying EBITDA of $339m and NPAT of $53, up 85%, 125% and 210% respectively. Revenue was in line with Argonaut’s forecast, however EBITDA and NPAT were higher primarily driven by a lower than predicted D&A charges and the sale of a gold royalty. The YoY increase in was primarily driven by the Nova hitting commercial production. Nova contributed $349m to revenue and $46m to NPAT. Higher ounces (up 8%) and a 5% increase in the gold price raised Tropicana’s NPAT contribution by $28m YoY. Long and Jaguar contributed $31m lower EBITDA in FY18, with the former now placed on care and maintenance and the latter divested to Copperhem in May 2018. Net debt decreased from $168m at the start of FY18 to $4m at financial year end ($139m cash and $143m debt). IGO declared a fully franked 2¢/sh dividend.
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