IGO 0.60% $11.81 igo limited

Motley Fools support of IGO

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    Yesterday’s update from [The Motley Fool crew see here] says it’s not just HC’s  ‘rank and file’ who think IGO is the best thing since sliced bread.
    The PROFESSIONALS are onto it too, and more than just the notoriously villainous* Goldman Sachs
    (*[*ouch*] NB  its history of manipulation and a recent [ record fine  of over $2 billion]).

    The Motley  Fool said  yesterday wrote six  and a half out of every ten analysts think IGO is a BUY this December  
    NB IGO says there are thirteen analysts covering it at present not ten
    Anyway Fool contributor Zach Bristow wrote Credit Suisse says “go for it”, JP Morgan agrees and so does Jefferies and Tribeca Partners.
    I am not sure who the others are but if you want to DYOR look here https://www.igo.com.au/site/investor-center/broker-coverage

    Here’s the excerpt from Zach ;

    Zach Bristow: IGO Ltd (ASX: IGO)

    Mining company IGO recently invested in two of the world’s top lithium assets.
    It has a 25% indirect interest in the Greenbushes mine, touted as the world’s largest, highest-grade lithium mine. IGO has over $600 million in cash on its balance sheet with no debt.

    The company is rated as a buy by 65% of analysts covering it, averaging a valuation of around $11 per share.
    The teams at Credit Suisse, JP Morgan and Jefferies each have it as a buy. Each firm reckons IGO shares are cheap right now on free cash flow yield and earnings multiples.
    Tribeca Investment Partners also reckons IGO is poised for upside – based on valuation, financial health and inclusion into several mining/lithium-based exchange-traded funds (ETFs) – and can use its balance sheet to drive more acquisitions.

    At the time of writing, the IGO share price is trading at $10.54 after climbing by more than 65% so far this year.

    NB Back on November 17 Tribeca’s Simon Brown  had this to say on IGO [see link here];
    IGO Ltd (ASX: IGO), the old Independence Group, is a name where we see excellent value.
    Given how hard the [mining] sector has run, the management team purchased a substantial stake in probably one of the top 2 lithium assets in the world, fully integrated.
    They paid a fair price at the time, but that was kind of when lithium was below the marginal cost of production.

    Now lithium prices are, you’d almost say, at least 4 times higher.
    But they’re not necessarily getting the benefit on their pricing yet — it lagged.
    It’s also in the jurisdiction of Western Australia, which is incredibly attractive as well, given where some of these lithium tenements are, being pegged by some of these juniors that are worth billions of dollars today with no real production or cash flow.

    Good, strong, experienced management.

    And they look extremely cheap versus the peer group.

    We think there’s probably a catalyst coming up for this trade in 2 areas.
    One is ETFs. You’ve seen a lot of these lithium companies get added to ETFs, and you’ve seen significant buying off the back of that as they get up to the appropriate weighting.

    The second one is the company’s got over half a billion dollars of cash on the balance sheet with no debt.
    They’ve intimated that they’re looking to capitalise on growth opportunities. So there could be another acquisition there that would be immediately accretive, depending on what size it [is].
    If you’re paying cash, there’s a balance sheet that can be deployed into additional earnings…”

    Thanks Simon, and for the record, what Simon says is much the same as what my real life friend,  a mining banker thinks as well.

    But I think I am waiting for news on WSA before I add to my bundle here … unless Christmas silly season presents some irresistible bargains

    Good Luck and Season’s Greetings to all holders

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