ASX:IGO

Stock Analysis Report

Executive Summary

IGO Limited operates as a mining and exploration company in Australia.


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

IGOIndustryMarket
7 Day12.2%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 Year23.9%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

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

NamePositionTenureCompensationOwnership
Peter J. Bradford
MD, CEO & Executive Director6yrsAU$1.78m0.11% A$2.8m
Scott Steinkrug
Joint Company Secretary & CFO9yrsAU$814.27k0.020% A$515.8k
Matt Dusci
Chief Operating Officer2.17yrsAU$963.13k0.0070% A$178.7k
Kate Barker
General Counsel3.17yrsAU$498.49k0.00070% A$17.9k
Andrew Eddowes
Head of Corporate Development2yrsAU$533.39k0.019% A$479.8k
Sam Retallack
Head of People & Culture7yrsAU$560.90k0.0050% A$128.1k
Keith Ashby
Head of Governance & Riskno dataAU$561.42k0.0026% A$65.1k
Ian Sandl
General Manager of Exploration3.17yrsAU$507.88k0.00042% A$10.7k
Joanne McDonald
Company Secretary & Head of Corporate Affairs4.42yrsAU$493.90k0.0017% A$43.6k

3.8yrs

Average Tenure

Experienced Management: IGO's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter J. Bradford
MD, CEO & Executive Director6yrsAU$1.78m0.11% A$2.8m
Peter Buck
Independent Non-Executive Director5.42yrsAU$135.00k0.0038% A$96.0k
Keith Spence
Non-Executive Director5.25yrsAU$135.00k0.0037% A$95.5k
Neil Warburton
Non-Executive Director4.42yrsAU$120.00k0.018% A$458.1k
Peter Bilbe
Independent Chairman of the Board8.67yrsAU$230.00k0.0068% A$172.8k
Kathleen Bozanic
Independent Non-Executive Director0.42yrno datano data
Debra Bakker
Independent Non-Executive Director3.25yrsAU$135.00k0.0037% 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IPGD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 2002
IGOASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 2002
IDZDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2002
IGOCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 10:36
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.