The Independence Group NL (ASX: IGO) share price sunk as much as 5% lower today following the release of its half-year financial results.
In the six-month period ended 31 December 2015, Independence Group reported a 19.7% fall in revenue to $220 million and a loss of $78 million, down from a profit of $49 million in the prior corresponding period.
A total of $35.5 million in impairment charges on exploration assets and acquisition costs associated with the Sirius transaction (totalling $66.9 million) were the primary catalysts for the profit fall.
The company's Tropicana operation was the best performer, delivering an operating profit of $41 million, while the Long and Jaguar operations contributed a loss of $1.7 million and profit of $1.4 million, respectively.
With its cash balance falling from $121.3 million to $59.9 million, the company's board chose not to pay an interim dividend. That compares to a 6 cents per share payment last year.
Looking ahead the company is tipping a slightly tougher end of the year at the Tropicana operation, with forecast gold production (at 30% ownership share) to be between 129,000 ounces and 141,000 ounces. That compares to the 75,584 ounces produced in the first half. Unit costs at the Long and Jaguar operations are expected to improve in the second half.
