IGO (IGO) H1 2025 earnings summary

Executive summary

• Reported a net loss of AUD 782 million for 1H25, mainly due to significant impairments at Kwinana (AUD 525 million) and exploration assets (AUD 115 million), and a $602 million share of net loss from TLEA.

• Underlying net loss, excluding impairments, was AUD 85 million, reflecting weak lithium and nickel prices and lower operating results from Nova and Forrestania.

• Greenbushes delivered strong production, hitting the top end of guidance, with robust margins despite weak lithium markets.

• Nova and Forrestania faced operational challenges, with Nova approaching end-of-life and Forrestania entering care and maintenance after a seismic event.

• Maintained a strong cash position with AUD 247 million and AUD 720 million in undrawn debt facilities.

Financial highlights

• Revenue fell to AUD 284 million, down 35% year-over-year (1H24: AUD 438 million).

• Net loss after tax: AUD 782 million (1H24: AUD 288 million profit); underlying net loss: AUD 85 million.

• Underlying EBITDA dropped to negative AUD 82 million from AUD 515 million year-over-year.

• Net cash from operating activities was negative AUD 7 million, down from AUD 568 million in 1H24.

• No interim dividend declared for 1H25 due to underlying cash outflow.

Outlook and guidance

• Greenbushes production expected at the top end of 1,350–1,550kt guidance, with costs and CapEx at the lower end.

• Nova production tracking to the lower end of guidance, with costs at the upper end.

• Kwinana lithium hydroxide FY25 production guided at 7,000–8,000t, with conversion costs of AUD 22,000–25,000/t; capex expected at the lower end of AUD 80–100 million.

• No dividends expected from TLA in FY25 due to weak lithium market and capital needs.

• FY25 exploration spend unchanged at AUD 50–60 million, with further reduction expected in FY26.