IGO Limited reports a robust quarter with improved safety, higher spodumene production and prices at Greenbushes, successful commissioning of CGP3, and solid performance at Nova. Despite challenges at Kwinana refinery, the group’s underlying EBITDA and cash flow strengthened.
- Greenbushes spodumene production up 10%, prices rise 16% to US$850/t
- CGP3 lithium processing plant commissioned and first ore processed in December
- Nova nickel-copper operation delivers 70% EBITDA increase and lower cash costs
- Kwinana lithium hydroxide refinery production down due to maintenance outages
- Group underlying EBITDA rises to $30 million with positive free cash flow and strong balance sheet
Safety and Operational Progress
IGO Limited’s December 2025 quarter report highlights a continued commitment to safety, with its total recordable injury frequency rate (TRIFR) improving to 5.8 from 8.0 in the previous quarter. The company recorded zero serious potential incidents, reflecting effective risk controls and a maturing safety culture supported by digital safety programs.
Greenbushes and CGP3 Milestones
The Greenbushes lithium mine saw a 10% increase in spodumene production to 352,000 tonnes, supported by higher ore volumes and improved grade after weather disruptions earlier in the year. This operational strength was complemented by a 16% rise in realised spodumene prices to US$850 per tonne, reflecting buoyant lithium market conditions. Capital expenditure remained disciplined at $118 million, including ongoing work on the CGP3 processing plant.
Significantly, CGP3 processed its first ore on 18 December 2025, marking a key milestone in IGO’s lithium growth strategy. While the project experienced some earlier schedule delays and cost overruns, commissioning is now complete and ramp-up is underway, with management targeting maximised production in the second half of 2026.
Nova Operation Delivers Strong Results
At the Nova nickel-copper operation, production increased with nickel output up 11% to 3,790 tonnes and copper production rising 29%. Cost discipline paid off with a 34% reduction in unit cash costs, driving a 70% jump in underlying EBITDA to $42.4 million. Despite lower nickel sales volumes due to shipping schedules, Nova continues to generate strong free cash flow and is tracking well against its life-of-mine plan.
Challenges at Kwinana Refinery
The Kwinana lithium hydroxide refinery faced setbacks with production dropping to 2,120 tonnes, just 35% of nameplate capacity, due to maintenance outages. Conversion costs rose sharply, and the refinery recorded an EBITDA loss of $51.3 million for the quarter. IGO reiterated that despite higher prices and production, Kwinana remains a high-cost asset with limited prospects for sustainable returns.
Financial and Corporate Updates
Overall, IGO’s group underlying EBITDA improved to $30 million from $19 million in the prior quarter, supported by higher Nova earnings and positive mark-to-market investment movements. Operating cash flow remained positive at $13 million, with a strong net cash position of nearly $299 million. The company also progressed its board renewal, appointing Dr Vanessa Guthrie AO as Chair and announcing Johan van Vuuren as incoming CFO.
Exploration activities continued across multiple Australian jurisdictions, with drilling programs underway and strategic portfolio rationalisation advancing, including the pending sale of Forrestania Nickel Operation assets to Medallion Metals. FY26 guidance was updated, noting spodumene production trending slightly below expectations and costs marginally above, while Nova and Kwinana remain within guidance ranges.
Bottom Line?
IGO’s operational momentum and strategic moves position it well for growth, but execution on CGP3 ramp-up and Kwinana’s cost challenges will be critical watchpoints.
Questions in the middle?
- How quickly will CGP3 ramp up to full production and impact lithium output?
- What strategies will IGO deploy to improve Kwinana refinery’s cost structure or returns?
- How will the Forrestania asset sale affect IGO’s nickel portfolio and future cash flows?