Independence Group NL (ASX:IGO) has announced an update on its 30% owned Tropicana gold project in Australia. As the project has been up and running for about two months now, IGO is able to release a first production guidance for this year and the company expects to produce between 90,000 and 110,000 ounces of gold (27,000-33,000 ounces attributable to Independence Group) in calendar year 2013.
The gold production should increase in 2014 as the project is estimated to produce approximately 470-490,000 ounces of gold per year in the first three years of its mine life at a cash cost between $550 and $575 per ounce. This means Independence’s share of the operational cash flow should come in at approximately $100M per year during the first three years of operation.
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Disclosure: The author holds no position in Independence Group. Please see our disclaimer for current positions.
