IGO’s Nova nickel operation has completed mining and processing after almost a decade, exceeding its revised life-of-mine production guidance while delivering lower-than-expected cash costs. The asset is now moving from final demobilisation towards its planned transfer to Global Lithium Resources.
- 21,340 tonnes of nickel produced, 7% above revised guidance ceiling
- Cash costs of A$3.90 per payable pound, 8% below revised guidance floor
- Copper and cobalt production also finished above revised guidance
- Nova demobilisation is under way ahead of expected divestment to Global Lithium Resources
Nova closes with production above revised guidance
IGO Limited (ASX:IGO) has finished mining and processing at Nova with a stronger final scorecard than its revised life-of-mine plan. The Western Australian nickel operation produced 21,340 tonnes of nickel across FY26 and FY27, 7% above the top of its revised 19,000 to 20,000-tonne range.
The operation also delivered 9,517 tonnes of copper and 765 tonnes of cobalt, narrowly exceeding the upper ends of revised guidance by 17 tonnes and 15 tonnes respectively. Against the original life-of-mine ranges issued in July 2025, the final nickel result was 19% above the ceiling, while copper and cobalt also finished above their initial ranges.
Costs provided the sharper operational beat. Cash costs of A$3.90 per payable pound of nickel, including royalties and after by-product credits, came in 8% below the lower end of the updated A$4.25 to A$5.00 range. That result is notable because IGO said the mine’s final stages were complete, rather than an early-period estimate still exposed to operating changes.
Nova moves from production to divestment
The result closes the operating chapter on an asset that has been central to IGO’s nickel portfolio for almost a decade. Nova had already been flagged as approaching its end in IGO’s recent quarterly update, which reported higher Nova nickel production while the operation moved towards its final days. The company now says the site team is completing demobilisation.
IGO expects to complete the divestment of Nova to Global Lithium Resources in the coming weeks. Global Lithium plans to repurpose Nova’s processing plant and infrastructure for its Manna lithium project, according to IGO. The announcement does not disclose the consideration, completion conditions or a firm completion date, leaving the transaction itself as the next material step.
Strong exit leaves IGO’s portfolio more lithium-focused
IGO Managing Director and CEO Ivan Vella described Nova as a “high-quality, low-cost operation” and credited its team and contractors for delivering through the final production stage. The company’s FY26 results had already identified Nova as exceeding life-of-mine guidance ahead of the planned sale, while Greenbushes was emerging as the more important contributor to the group’s lithium-led portfolio.
For shareholders, the immediate question is less whether Nova met its production targets than what follows the handover. The final numbers remove operating uncertainty at the mine, but the financial effect of the divestment will depend on the transaction terms and how IGO’s remaining assets perform once Nova’s contribution has ended.
Bottom Line?
Nova exits on better-than-planned production and costs, but the next valuation question is the value and timing of the Global Lithium handover.
Questions in the middle?
- What consideration and completion conditions will apply to IGO’s divestment of Nova?
- How quickly can Global Lithium repurpose the processing plant for the Manna lithium project?
- How will IGO’s production, cash flow and cost profile change after Nova leaves the portfolio?