Executive Summary
IGO Limited operates as a mining and exploration company in Australia.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with solid track record and pays a dividend.
Similar Companies
Share Price & News
How has IGO's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: IGO's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
12.2%
IGO
11.0%
AU Metals and Mining
13.4%
AU Market
1 Year Return
-14.0%
IGO
-19.1%
AU Metals and Mining
-18.8%
AU Market
Return vs Industry: IGO exceeded the Australian Metals and Mining industry which returned -19.1% over the past year.
Return vs Market: IGO exceeded the Australian Market which returned -18.8% over the past year.
Shareholder returns
| IGO | Industry | Market | |
|---|---|---|---|
| 7 Day | 12.2% | 11.0% | 13.4% |
| 30 Day | -19.7% | -11.6% | -20.7% |
| 90 Day | -32.2% | -21.4% | -24.4% |
| 1 Year | -12.1%-14.0% | -14.6%-19.1% | -15.2%-18.8% |
| 3 Year | 23.9%19.5% | 28.6%12.3% | -2.8%-15.9% |
| 5 Year | -13.5%-18.0% | 61.1%22.9% | 9.3%-15.3% |
Price Volatility Vs. Market
How volatile is IGO's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
Here's What IGO Limited's (ASX:IGO) P/E Is Telling Us2 weeks ago | Simply Wall St
IGO (ASX:IGO) Seems To Use Debt Rather Sparingly4 weeks ago | Simply Wall St
What Kind Of Shareholder Appears On The IGO Limited's (ASX:IGO) Shareholder Register?Valuation
Is IGO undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: IGO (A$4.23) is trading below our estimate of fair value (A$15.57)
Significantly Below Fair Value: IGO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: IGO is poor value based on its PE Ratio (14.4x) compared to the Metals and Mining industry average (7.4x).
PE vs Market: IGO is poor value based on its PE Ratio (14.4x) compared to the Australian market (12.9x).
Price to Earnings Growth Ratio
PEG Ratio: IGO is poor value based on its PEG Ratio (2.9x)
Price to Book Ratio
PB vs Industry: IGO is overvalued based on its PB Ratio (1.3x) compared to the AU Metals and Mining industry average (1x).
Next Steps
Future Growth
How is IGO forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
4.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IGO's forecast earnings growth (4.9% per year) is above the savings rate (1.1%).
Earnings vs Market: IGO's earnings (4.9% per year) are forecast to grow slower than the Australian market (9.7% per year).
High Growth Earnings: IGO's earnings are forecast to grow, but not significantly.
Revenue vs Market: IGO's revenue (0.3% per year) is forecast to grow slower than the Australian market (4% per year).
High Growth Revenue: IGO's revenue (0.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: IGO's Return on Equity is forecast to be low in 3 years time (8.9%).
Next Steps
Past Performance
How has IGO performed over the past 5 years?
31.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IGO has high quality earnings.
Growing Profit Margin: IGO's current net profit margins (19.3%) are higher than last year (6.5%).
Past Earnings Growth Analysis
Earnings Trend: IGO's earnings have grown significantly by 31% per year over the past 5 years.
Accelerating Growth: IGO's earnings growth over the past year (247.9%) exceeds its 5-year average (31% per year).
Earnings vs Industry: IGO earnings growth over the past year (247.9%) exceeded the Metals and Mining industry -7%.
Return on Equity
High ROE: IGO's Return on Equity (9.2%) is considered low.
Next Steps
Financial Health
How is IGO's financial position?
Financial Position Analysis
Short Term Liabilities: IGO's short term assets (A$632.2M) exceed its short term liabilities (A$119.9M).
Long Term Liabilities: IGO's short term assets (A$632.2M) exceed its long term liabilities (A$224.1M).
Debt to Equity History and Analysis
Debt Level: IGO's debt to equity ratio (3%) is considered satisfactory.
Reducing Debt: IGO had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Debt Coverage: IGO's debt is well covered by operating cash flow (805%).
Interest Coverage: IGO's interest payments on its debt are well covered by EBIT (54.1x coverage).
Balance Sheet
Inventory Level: IGO has a high level of physical assets or inventory.
Debt Coverage by Assets: IGO's debt is covered by short term assets (assets are 11.2x debt).
Next Steps
Dividend
What is IGO's current dividend yield, its reliability and sustainability?
3.31%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: IGO's dividend (3.31%) is higher than the bottom 25% of dividend payers in the Australian market (3.22%).
High Dividend: IGO's dividend (3.31%) is low compared to the top 25% of dividend payers in the Australian market (8.38%).
Stability and Growth of Payments
Stable Dividend: IGO's dividend payments have been volatile in the past 10 years.
Growing Dividend: IGO's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (47.8%), IGO's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: IGO's dividends in 3 years are forecast to be well covered by earnings (39.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
Peter J. Bradford (60yo)
6s
Tenure
AU$1,784,602
Compensation
Mr. Peter J. L. Bradford, B.App.Sc., Extractive Metallurgy, FAusIMM, MSMME, MAIC, has been the Chief Executive Officer and Managing Director of IGO Limited (formerly known as Independence Group NL) since M ...
CEO Compensation Analysis
Compensation vs Market: Peter J.'s total compensation ($USD1.10M) is below average for companies of similar size in the Australian market ($USD1.79M).
Compensation vs Earnings: Peter J.'s compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Executive Director | 6yrs | AU$1.78m | 0.11% A$2.8m | |
| Joint Company Secretary & CFO | 9yrs | AU$814.27k | 0.020% A$515.8k | |
| Chief Operating Officer | 2.17yrs | AU$963.13k | 0.0070% A$178.7k | |
| General Counsel | 3.17yrs | AU$498.49k | 0.00070% A$17.9k | |
| Head of Corporate Development | 2yrs | AU$533.39k | 0.019% A$479.8k | |
| Head of People & Culture | 7yrs | AU$560.90k | 0.0050% A$128.1k | |
| Head of Governance & Risk | no data | AU$561.42k | 0.0026% A$65.1k | |
| General Manager of Exploration | 3.17yrs | AU$507.88k | 0.00042% A$10.7k | |
| Company Secretary & Head of Corporate Affairs | 4.42yrs | AU$493.90k | 0.0017% A$43.6k |
3.8yrs
Average Tenure
Experienced Management: IGO's management team is considered experienced (3.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Executive Director | 6yrs | AU$1.78m | 0.11% A$2.8m | |
| Independent Non-Executive Director | 5.42yrs | AU$135.00k | 0.0038% A$96.0k | |
| Non-Executive Director | 5.25yrs | AU$135.00k | 0.0037% A$95.5k | |
| Non-Executive Director | 4.42yrs | AU$120.00k | 0.018% A$458.1k | |
| Independent Chairman of the Board | 8.67yrs | AU$230.00k | 0.0068% A$172.8k | |
| Independent Non-Executive Director | 0.42yr | no data | no data | |
| Independent Non-Executive Director | 3.25yrs | AU$135.00k | 0.0037% A$93.7k |
5.3yrs
Average Tenure
64yo
Average Age
Experienced Board: IGO's board of directors are considered experienced (5.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: IGO insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.1%.
Top Shareholders
Company Information
IGO Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: IGO Limited
- Ticker: IGO
- Exchange: ASX
- Founded: 2000
- Industry: Diversified Metals and Mining
- Sector: Materials
- Market Cap: AU$2.552b
- Shares outstanding: 590.80m
- Website: https://www.igo.com.au
Number of Employees
Location
- IGO Limited
- South Shore Centre
- Suite 4, Level 5
- Perth
- Western Australia
- 6151
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| IPGD.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 2002 |
| IGO | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jan 2002 |
| IDZ | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 2002 |
| IGO | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jan 2002 |
Biography
IGO Limited operates as a mining and exploration company in Australia. It operates through Nova Operation and Tropicana Operation segments. The company owns a 100% interest in the Nova project, which produces nickel, copper, and cobalt concentrates located to the east-northeast of Norseman; and 30% interest in the Tropicana gold mine covering 3,600 square kilometers of tenements located to the east northeast of Kalgoorlie. It also engages in the exploration of nickel and copper projects located in Western Australia, Northern Territory, and South Australia, as well as Greenland. The company was formerly known as Independence Group NL and changed its name to IGO Limited in January 2020. IGO Limited was founded in 2000 and is headquartered in Perth, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 10:36 |
| End of Day Share Price | 2020/03/31 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.