MINING costs and receiving 30 percent of that month ’ s gold production . With gold prices on the upturn that means Tropicana contributed around 45 percent of IGO ’ s A $ 499 million revenues in the 2015 financial year , its first year of full production .
Spread betting Australia is enjoying good gold prices , and like other Australian gold producers , IGO is enjoying good margins from its share of gold production at Tropicana . At the same time base metals prices have been weaker . IGO is diversified and has irons in both fires : “ Nickel and gold are somewhat counter-cyclical ,” says Bradford . “ Over the last twelve months nickel prices have come down by around 30 percent and as a result of that , worldwide it is estimated that 50 percent of the nickel industry is losing money on a cash basis . It is a miserable time for the metal . However our Nova project combines high grade with low cost structures , therefore even at current low nickel prices we will achieve an average 40 percent cash margin on the project , which is outstanding . But this is at the bottom of the nickel market and with the commodity expected to be in a supply deficit this year we expect prices to start rebounding ”
When the company acquired the Long deposit from BHP Billiton 14 years ago it was perceived to be at the end of its life , with only a few months of reserves in front of it . It has been a remarkable achievement , through a combination of investment and exploration , to keep it producing . Long has yielded more than 100 tonnes of
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