IGO considers backing out of Tropicana JV

The company has started a strategic review into its options for the gold mine and is working collaboratively with Tropicana joint venture partner AngloGold Ashanti to facilitate the review.

Through the review, IGO will consider fully or partially selling its stake in Tropicana and analyse its opportunities to enhance value through underground development and exploration.

Managing director and chief executive officer Peter Bradford said while Tropicana is a noteworthy asset within IGO’s portfolio, it may not align with the company’s key focus on clean energy commodities.

“Tropicana is clearly a high-quality and significant asset within IGO’s portfolio,” Bradford said. “However, IGO’s strategic focus is on commodities that are critical to clean energy.

“In the current gold price environment, we do not believe that IGO’s share price fully reflects the value of Tropicana.

“As such, in parallel to an assessment of future underground opportunities at Tropicana, IGO has commenced a review of its investment in Tropicana and how best to realise the asset’s full value to the benefit of IGO shareholders.”

The review is expected to take place over the next three to six months and IGO will update the market on outcomes as they occur.