IGO (IGO) Q1 2025 earnings summary

Executive summary

• Greenbushes delivered strong operational performance with higher production and lower costs, offsetting weaker results in nickel operations, while group EBITDA swung to a $2.9M loss due to lower sales and commodity prices.

• Nova experienced lower-than-expected grades and recoveries, leading to a 42% drop in nickel output and higher costs; Forrestania transitioned safely to care and maintenance after a seismic event.

• The company completed a refreshed strategy focused on lithium, copper, and nickel, and reset its exploration and corporate support functions.

• Group sales revenue fell 39% quarter-over-quarter to $143.1M, mainly due to lower sales volumes at Nova and Forrestania.

• Final FY24 dividend of $197M was paid; net cash position at $259M with $720M undrawn debt.

Financial highlights

• Underlying EBITDA loss of $2.9M in 1Q25, down from a $76.8M gain in 4Q24, with group free cash flow dropping to $3.6M from $200.7M.

• Cash on hand at quarter end was $258.7M, down 45% from $468.0M in 4Q24.

• No dividend declared by TLEA due to weak spodumene and lithium hydroxide markets.

• Share of net profit from TLEA declined 45% to A$37M.

• Group sales revenue for 1Q25 was $143.1M, a 39% decrease quarter-over-quarter.

Outlook and guidance

• Greenbushes production expected to stabilize in line with guidance (1,350–1,550kt spodumene for FY25); CGP3 ramp-up in FY2026 not included in current guidance.

• Nova nickel production guidance for FY25 is 16,000–18,000t; cash cost guidance at A$4.80–5.80/lb Ni.

• Group exploration budget (ex-Lithium) set at A$50–60M; spend expected to remain below AUD 60 million for the year.

• No forecast for future JV dividends; decisions will depend on market conditions.

• Ongoing depressed spodumene prices expected to continue impacting financial results and cash flow if conditions persist.