IGO (IGO) Q2 2025 earnings summary

Executive summary

• Greenbushes delivered strong operational and financial performance, exceeding production plans and maintaining high margins and cash flow, despite lower sales due to shipment timing.

• Nova experienced lower nickel output and higher costs due to mine-grade and plant issues, impacting group results.

• Kwinana saw improved production post-shutdown, but financials were impacted by inventory build-up, NRV adjustments, and the cessation of Train 2/LHP2 activities.

• Forrestania completed mining and transitioned to care and maintenance after its final concentrate sale.

• Group underlying EBITDA loss of $79M (excluding Kwinana impairment) due to lower TLEA contribution, reduced sales, lower spodumene prices, FX losses, and inventory adjustments.

Financial highlights

• Sales revenue declined 8% quarter-over-quarter to A$131.8M, with YTD revenue at A$275M.

• Underlying EBITDA loss of $79M in 2Q25, compared to a $2.9M loss in 1Q25.

• Share of net loss from TLEA was $56.7M in 2Q25, down from a $37.1M profit in 1Q25.

• Underlying free cash outflow of $6.1M in 2Q25, reversing a $3.6M inflow in 1Q25.

• Cash on hand at 31 Dec 2024 was $246.6M, with $720M undrawn debt available.

Outlook and guidance

• Greenbushes is expected to continue strong performance, with spodumene production guidance of 1,350–1,550kt and cash cost $320–380/t; CGP3 commissioning remains on track for 2Q FY26.

• Nova nickel production guidance for FY25 is 16,000–18,000t, copper 6,250–7,250t, cobalt 550–650t, with cash cost $4.80–5.80/lb Ni; life-of-mine plan to be updated.

• Kwinana's future and guidance are under review, with more clarity expected in the next quarterly update; Train 1 sustaining and improvement capex $80–100M.

• No TLEA dividends expected in 2H25.