IGO (IGO) Q4 2024 earnings summary

Executive summary

• Safety performance improved with TRIR/TRIFR reduced to 10.4, reflecting ongoing focus on safety and psychosocial well-being amid organizational change.

• Greenbushes returned to full production, delivering strong cash generation, dividends, and operational excellence under a new CEO.

• Kwinana showed operational improvement, with reliability gains and a major shutdown planned to enhance performance.

• Nova delivered strong free cash flow, finished just below guidance, and is approaching end-of-life.

• Forrestania met full-year production guidance but faced operational challenges and will enter care and maintenance soon.

• Exploration spending is being rationalized, with a significant impairment recognized against the portfolio and a FY25 budget of $50M–$60M.

• A comprehensive business and strategy review is underway, including organizational restructuring and asset portfolio optimization.

Financial highlights

• 4Q24 sales revenue rose 46% QoQ to $235M; FY24 sales revenue reached $823M.

• Underlying EBITDA for 4Q24 was $205M, up 106% QoQ; FY24 underlying EBITDA totaled $872M.

• Greenbushes achieved EBITDA margins just under 68% for the June quarter and 85% for the full year.

• Dividends from Greenbushes/TLEA totaled AUD 760–761 million for the year and AUD 159 million for the quarter.

• Non-cash impairment of AUD 275–295 million was recorded against exploration assets.

Outlook and guidance

• Greenbushes is expected to run unconstrained in FY25, with production guidance of 1,350–1,550kt and costs at AUD 320–380 per tonne.

• Kwinana will undergo a significant shutdown in 2Q25, with further improvements and capital spend of AUD 80–100 million planned.

• Nova production is expected to remain flat until FY27, with FY25 nickel production guidance of 16,000–18,000t and cash cost $4.80–$5.80/lb Ni.

• Forrestania will enter care and maintenance by year-end, with costs lower than Cosmos due to mine flooding.

• FY25 exploration budget is set at AUD 50–60 million, trending below AUD 50 million the following year.