IGO Reports 45% Revenue Rise with Nova Boost and Greenbushes Production Flat

Nova Delivers Exceptional End-of-Life Performance

IGO Limited (ASX:IGO) showcased a standout quarter with its Nova nickel-copper operation defying typical end-of-mine life challenges. Nickel production climbed 11% to 4,202 tonnes, accompanied by a 7% rise in copper output. This surge translated into a 43% jump in underlying EBITDA to $61 million and a robust $52 million in free cash flow, a remarkable feat considering the operational constraints at this late stage. Unit cash costs fell 24%, reflecting both operational efficiencies and higher by-product credits, while nickel prices edged 10% higher to A$24,715 per tonne. Closure planning is underway, signalling a disciplined approach to winding down operations.

Greenbushes Lithium Production Flat Amid Operational and Safety Challenges

In contrast, the Greenbushes lithium mine reported a flat spodumene production of 351 kilotonnes, with operational performance hampered by lower feed grades, plant recoveries, and increased maintenance downtime. Safety setbacks also weighed on the operation, which recorded a deterioration in safety metrics despite joint venture partners’ efforts to reverse the trend. Two safety stops were conducted during the quarter to reset priorities. The ramp-up of the CGP3 processing plant progressed broadly in line with commissioning plans, contributing approximately 33kt to production in the quarter.

Unit cash costs rose 20% to A$446 per tonne, reflecting the inclusion of CGP3 operating costs, higher maintenance expenses, and reduced capitalisation of deferred stripping. Despite these headwinds, Greenbushes maintained a strong 75% EBITDA margin, underpinned by a near doubling of realised spodumene prices to US$1,668 per tonne.

Guidance Revision Reflects Operational Realities at Greenbushes

IGO revised its FY26 spodumene production guidance for Greenbushes downward to 1.375–1.425 million tonnes from the previous 1.5–1.65 million tonnes range, citing year-to-date performance and the CGP3 ramp-up trajectory. Correspondingly, unit cash cost guidance was lifted to A$380–420/t from A$310–360/t, while capital expenditure guidance was trimmed to A$400–450 million from A$575–675 million, reflecting capital discipline and project rescheduling. The company emphasised that these adjustments are part of a broader Strategic Options Review targeting systemic operational improvements, including safety, maintenance execution, grade control, and plant recoveries.

Kwinana Refinery Production Rises but EBITDA Remains Negative

The Kwinana lithium hydroxide refinery increased production by 44% to 3,047 tonnes, operating at 51% of nameplate capacity. Conversion costs fell 32% per tonne due to higher volumes, yet the refinery posted an EBITDA loss of $7.7 million (100% basis), impacted by $25 million of expensed capitalised items partially offset by a $45 million positive inventory adjustment. A major shutdown scheduled for April/May is expected to reduce production in the June quarter.

Group Financials Bolstered by Asset Sales and Operational Gains

Group underlying EBITDA soared to $119 million from $30 million in the prior quarter, boosted by Nova’s operational gains, improved results from the Tianqi Lithium Energy Australia (TLEA) joint venture, and a $32 million gain on the sale of Forrestania assets. Operating cash flow increased to $35 million, supporting underlying free cash flow of $36 million. Net cash rose 9% to $327 million, providing a solid liquidity buffer.

Portfolio optimisation continued with the sale of Forrestania assets to Medallion Metals and moves to rationalise the Cosmos site and other non-core positions. Exploration activities advanced across multiple Australian jurisdictions and internationally, including the pending acquisition of full ownership of Copper Wolf in Arizona, with drilling planned in the first half of 2027.

IGO’s ongoing safety improvements were underscored by a 35% reduction in the group’s Total Recordable Injury Frequency Rate (TRIFR) to 4.2 and 90 days without a reportable injury. Nova’s TRIFR improved by 38%, supported by increased leadership engagement and safety programmes. However, Greenbushes safety performance remains a concern, with management implementing systemic changes to address the issues.

This quarter’s results build on the company’s recent momentum, including the half-year turnaround that narrowed losses and boosted cash flow, as detailed in the company’s earlier half-year turnaround signals. The contrast between Nova’s operational excellence and Greenbushes’ challenges highlights the complexity of managing a diverse battery minerals portfolio amid evolving market and operational conditions.