The IGO Ltd (ASX: IGO) share price has jumped out of the starting blocks from the opening of trade on Monday.
IGO shares are on the move as the mining company released an announcement before the open.
Let's investigate further.
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What did IGO announce?
IGO advised that its Kwinana lithium hydroxide refinery has "produced its fist lithium hydroxide chemical product".
Recall that IGO owns a 49% interest in Kwinana through an "incorporated joint venture (JV)" with Tianqi Lithium Corporation.
The JV also grants IGO exposure to the Greenbushes mine, "the largest, highest-grade lithium mine in the world" as per the announcement. This exposure comes in the form of a 25% "indirect interest" in the mine.
Moreover, with the "first lithium hydroxide production now demonstrated", IGO intends to turn its first production train (Train 1) "on a continuous, rather than batch basis".
IGO expects the "saleable product" will be produced by the back end of 2021. Further, it expects "battery-grade production for accreditation by customers" will be ready by the "March 2022 quarter", as per the company.
Furthermore, the commissioning of Train 1 "has progressed at a pace over recent months". The commissioning program sees each of the "individual unit processes" sequentially commissioned.
Train 1 is expected to "progressively ramp up" to the design production rate of "24kpta lithium hydroxide by the end of 2022".
Investors have pushed the IGO share price higher on the back of this news.
IGO shares are now exchanging hands at $9.23 apiece, a 4.77% jump into the green from the open.
What did management say?
IGO managing director and CEO Peter Bradford said:
We are therefore delighted to have achieved this first important step in the commissioning of Train 1 and to have done so ahead of the internal schedule developed earlier this year. We congratulate the Kwinana team on this milestone and their progress over the last few months.
Bradford also added:
The strong demand being witnessed in the lithium market globally reinforces the strategic nature of Kwinana which, together with the Lithium JV's interest in the Greenbushes mine, is rapidly evolving into a globally significant, integrated lithium operation catering to the specific needs of premium lithium-ion battery manufacturers.
IGO share price snapshot
The IGO share price has climbed 43% into the green since January 1, extending the previous 12 months' gain of 105%.
Despite this, IGO shares are 7.5% in the red over the past week.
Both of these returns have outpaced the S&P/ASX 200 index (ASX: XJO)'s return of around 25% over the past year.
