IGO (IGO) Q2 2025 earnings summary

Executive summary

• Greenbushes exceeded internal production plans and maintained strong margins and cash flow, offsetting operational and financial challenges at Kwinana and Nova.

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

• Cash on hand at quarter end was $247M, with $720M undrawn debt, reflecting a robust balance sheet.

• Forrestania completed mining and transitioned to care and maintenance, with Cosmos and other exploration projects under review.

Financial highlights

• Sales revenue for the quarter was A$132M (down 8% QoQ), 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 position at 31 Dec 2024 was $246.6M, with $720M undrawn debt available.

Outlook and guidance

• Greenbushes growth projects, including CGP3 commissioning, remain on track for 2Q FY26.

• Nova nickel production guidance for FY25 is 16,000–18,000t, with costs at the upper end; life-of-mine plan to be updated.

• Greenbushes spodumene production guidance is 1,350–1,550kt, with cash cost $320–380/t.

• Kwinana’s future under review, with more guidance expected in the next quarterly; focus remains on achieving nameplate capacity for Train 1.

• No TLEA dividends expected in 2H25.