IGO selling out of New Century Resources
By Industry Queensland
Perth-based mining company IGO Limited is offloading its 18.4 per cent stake in Queensland zinc producer New Century Resources.
It comes just months after IGO Limited invested in New Century and entered a strategic relationship for the companies to assess opportunities within the Century zinc operation tenements and other mining assets.
Those opportunities have included New Century’s foray into battery metals with its proposal to purchase the Goro nickel and cobalt mine in New Caledonia.
New Century said today it anticipated providing a material update on the Goro acquisition process next week.
In a written statement, New Century said it would like to acknowledge the support provided by IGO and welcome new shareholders to the company’s register.
New Century said the recent improvement in zinc prices and lowering of treatment charges had provided a significant benefit.
It anticipates generating strongly positive EBITDA from Century in the September quarter.
“New Century sees potential for continued tail winds within the zinc sector, with improving demand fundamentals as a result of strong ‘post-COVID’ consumption within China (about 50 per cent of global zinc consumption) and the potential for increased future demand ex-China as a result of infrastructure-led stimulus being undertaken by governments around the world,” the company stated.
“Zinc supply continues to remain challenged as a result of ongoing difficulties in the movement of human resources to-and-from
mining operations in COVID-19 affected countries.”
With regards to the potential acquisition of the Goro operation, the company said it was finalising negotiations with Vale, the French State and various other stakeholders in order to potentially enter a binding agreement for the acquisition, inclusive of a substantial funding package to cover a simplification plan.
New Century said it continued to receive strong interest and offers for potential offtake from Goro and noted that IGO also still maintained an interest and active dialogue with the company on offtake.
