IGO Limited reports improved safety metrics and steady production despite operational headwinds, maintaining a strong balance sheet and positive cash flow.
- Safety performance improves with TRIFR down to 8.0 and over 90 days injury free
- Greenbushes spodumene production declines due to lower ore grade and heavy rain
- Kwinana refinery production rises to 46% capacity with ongoing improvement efforts
- Nova operation production aligns with life of mine plan despite a stope misfire
- Group underlying EBITDA rises to $19 million with positive free cash flow of $15 million
Safety Gains Lead the Quarter
IGO Limited’s latest quarterly report for the period ending 30 September 2025 highlights a notable improvement in workplace safety, with the total recordable injury frequency rate (TRIFR) dropping to 8.0 and the company achieving over 90 days without injury. This progress reflects a sustained focus on safety fundamentals, leadership training, and cultural initiatives such as the "Taking Control of My Safety" program. While encouraging, management acknowledges that further efforts are needed to reach industry-leading safety standards.
Production and Operational Highlights
The Greenbushes lithium mine experienced a modest production decline, with spodumene output falling 6% quarter-on-quarter to 320,000 tonnes. This was primarily due to a short-term dip in ore grade compounded by heavy rainfall, which disrupted mining operations. Despite these challenges, Greenbushes maintained a strong EBITDA margin of 57%, underscoring operational resilience. The company is advancing mine planning optimizations and remains on track to commission the CGP3 expansion by the end of 2025.
At the Kwinana lithium hydroxide refinery, production increased significantly to 2,775 tonnes, reaching 46% of nameplate capacity. This improvement was accompanied by a reduction in conversion costs and higher sales volumes, though the refinery continues to operate under a full impairment recorded earlier in the year. Discussions with the joint venture partner are ongoing to determine the optimal future pathway for the asset.
The Nova operation’s metal production aligned with the life of mine plan despite a stope misfire in September, which is expected to cause only a short-term production impact. Nickel and copper outputs declined compared to the previous quarter, reflecting the operation’s progression toward the end of its ore body life. Unit cash costs rose in line with expectations, and sustaining capital expenditure remained minimal.
Financial Performance and Balance Sheet Strength
IGO reported an underlying EBITDA of $19 million for the quarter, a substantial improvement from $5 million in the prior period. This was driven by operational improvements and positive mark-to-market movements on listed investments. Free cash flow was robust at $15 million, supported by higher operating cash flows and disciplined capital expenditure. The company’s net cash position strengthened slightly to $287 million, providing a solid foundation for ongoing growth initiatives.
Exploration and Strategic Moves
Exploration activities continued across multiple projects, including drilling programs at Cosmos and Forrestania, and advancing joint ventures such as the newly formed partnership with Venus Metals Corporation for the Bridgetown and South-West Terrane projects. Portfolio rationalisation progressed with strategic exits from non-core assets in Paterson, Fraser Range, and South Australia. Corporate developments included planned board renewals with two director resignations effective in November 2025.
Looking ahead, IGO reaffirmed its FY26 guidance across production and cost metrics, emphasizing its commitment to growth through exploration, operational excellence, and partnerships that leverage its technical expertise.
Bottom Line?
IGO’s steady operational progress and financial discipline position it well, but market volatility and asset optimisation decisions will be key to watch.
Questions in the middle?
- How will ongoing JV discussions impact the future of the Kwinana refinery?
- What are the implications of lower ore grades at Greenbushes for medium-term production forecasts?
- How will board changes influence IGO’s strategic direction and growth initiatives?