IGO (IGO) Q2 2026 earnings summary

Executive summary

• Strong operational performance at Nova, with higher production, lower costs, and $44M cash flow generated in the quarter as the mine approaches closure in 2027.

• Greenbushes achieved improved production and sales, processed first ore at CGP3, and maintained a focus on productivity and operational discipline.

• Safety performance improved, with TRIFR down to 5.8 and a mature safety culture emphasized across operations.

• Positive underlying free cash flow of $13.4M and net cash position increased to $299M.

• Kwinana's performance was steady but impacted by a maintenance shutdown, resulting in higher costs and lower production.

Financial highlights

• Group underlying EBITDA rose 55% quarter-over-quarter to $29.9M, with Nova's EBITDA up 70% to $42.4M, aided by nickel price increases and inventory adjustments.

• Sales revenue fell 22% quarter-over-quarter to $82.4M, mainly due to lower Nova shipments.

• Greenbushes achieved a 64% EBITDA margin, with average realised spodumene price up 16% to US$850/t.

• Free cash flow was positive at $13.4M; net cash position at $299M as of 31 December 2025.

• Lithium downstream segment reported an EBITDA loss of $51.3M, impacted by higher conversion costs and maintenance outage.

Outlook and guidance

• CGP3 ramp-up at Greenbushes is expected to reach nameplate capacity in about five months, with production and margin improvements anticipated as market prices remain strong.

• Greenbushes FY26 spodumene production is trending marginally below guidance, while cash costs are slightly above guidance.

• Kwinana production and costs are tracking within guidance; capex expected at the lower end of the range.

• Life of mine optimization and productivity initiatives are underway at Greenbushes, with updates expected in upcoming reserve/resource statements.

• Guidance for 2026 budgets at Talison is being finalized, with 2027 guidance to follow.