IGO (ASX:IGO) will transition to an ore trucking operation in the interim as it continues to review the Cosmos Project, which started in mid-2023.
The $5.83 billion market capitalisation company launched the review following IGO’s impairment of the assets acquired from Western Areas (ASX:WSA) and has been facilitated by a global team of consultants.
The scope of the review has been to identify the risks and opportunities to the life of mine plan, capital cost estimates, and schedule given the challenges faced at Cosmos during the development phase.
IGO says while the review has not yet concluded, and while we continue to assess life-of mine scenarios for the project, IGO will transition to an ore trucking operation in the interim, rather than utilise a mechanised materials handling system as previously planned. As a result, construction on this part of the project has been halted.
IGO advises that it is likely to record a further impairment against the Cosmos assets in the company’s first-half FY24 results.
The company says some roles at the company will be affected, however IGO is working on redeployments within the IGO business and is providing all the necessary support to our people through this process.
The outcomes of the review are expected to be released in the December quarterly activities report which is scheduled for release on 31 January 2024.
Write to Adam Orlando at Mining.com.au
Images: IGO
