IGO Limited

IGO reported revenue of AUD 194 million versus AUD 284 million in the corresponding period, with the decline attributed to lower nickel and copper prices and volumes from Nova plus no Forrestania revenue. Underlying EBITDA was AUD 49 million, while EBITDA improved 15% to AUD 67 million; IGO’s share of underlying net loss from TLEA improved to AUD 1 million from AUD 20 million in FY25. The underlying net loss after tax was AUD 39 million and statutory net loss after tax was AUD 34 million, versus statutory losses of AUD 782 million in the prior corresponding period. Net cash from operating activities was AUD 28 million versus an AUD 7 million outflow, underlying free cash flow was AUD 29 million, and the period ended with AUD 299 million in cash plus AUD 300 million of undrawn debt facility. Management did not declare a dividend for the half. Looking ahead, management said Greenbushes is still running at the low end of guidance for the year, but they are not changing guidance; they also flagged continued step-downs in costs as Forrestania unwinds, Cosmos dewatering has stopped, and Nova closes at year-end.

Ivan Vella’s tone was constructive on Nova and more cautious on Greenbushes and Kwinana. He emphasized Nova’s improved safety, stable operations, lower costs and cash generation in the final stage of mine life, saying the team had produced a set of results “to be proud of.” On Greenbushes, he said the asset is still not performing to potential, but he expects improvements to build quarter by quarter as optimization work, productivity initiatives and CGP3 ramp-up progress. He also stressed disciplined capital allocation, saying growth spending will be judged against high return hurdles and that the business should not dilute itself with low-return projects.

Kathleen Bozanic highlighted stronger underlying results driven by cost control and safe production at Nova. She cited revenue of AUD 194 million, underlying EBITDA of AUD 49 million, the 15% rise in EBITDA to AUD 67 million, and the reduction in exploration spend from AUD 30 million to AUD 15 million. She also pointed to AUD 28 million of operating cash flow, AUD 29 million of underlying free cash flow, AUD 299 million of cash, and AUD 300 million of undrawn debt facility, saying the balance sheet remains “extremely strong.” She noted that no dividend was declared for the half under prudent capital management.

Analysts focused heavily on Greenbushes’ reserve/resource update, the timing of future growth projects such as CGP4, and whether the company could support dividends from TLEA. Management said the next priority is to improve output from existing plants, then pursue supplemental work like ore sorting and tailings retreatment, and only after that consider a new plant; Ivan Vella said he sees no reason to withhold cash from shareholders to fund growth if the business continues generating cash. Questions also probed Kwinana’s future, with Vella saying discussions with Tianqi are ongoing and that IGO’s priority is to stop putting net cash into an asset they do not believe has an economic future. On Greenbushes performance, management said the year is at the low end of guidance but guidance is unchanged, and that CGP3’s early ramp-up signs are encouraging.