Regis counting on a boost from gold deal
$903m acquisition of
IGO’s share of the Tropicana gold mine will deliver the cash flow needed to fund further growth out of its own pocket, according to managing director Jim Beyer.
IGO put its 30 per cent stake in the 460,000-ounce-ayear mine on the block in 2020.
The price tag on its Tropicana stake beat some analyst expectations, but Mr Beyer (inset) said on Tuesday that the big, low-cost mine would deliver immediate cash flow to the company’s books when the deal closes — assuming Tropicana operator AngloGold Ashanti does not exercise its right to match the bid.
Mr Regis said future cash flow from the mine could be used to fund construction of its McPhillamys Gold Project in NSW, tipped to cost about $525m and produce about 200,000 ounces of gold a year.
Regis announced a $650m capital raising on the back of the deal.