This morning, renowned ASX 200 mining stock IGO Limited (ASX: IGO) reported its numbers for FY25.
It's fair to say they weren't pretty.
The group endured a tough year, weighed down by weak commodity markets and asset write-downs stemming from a strategic portfolio review.
In turn, IGO shares tumbled in today's trading, dipping by 4% from yesterday's close to change hands at $5.13 per share at the time of writing.
For comparison, the All Ordinaries Index (ASX: XAO) is trading flat at the same time.
Let's take a closer look at how the year played out for this ASX 200 mining stock.
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Diversified miner
IGO is a diversified mining business producing metals critical for the global energy transition.
The company mines nickel, copper, and cobalt at its Nova project in Western Australia.
It produces lithium through its 49% stake in the TLEA joint venture, which holds a controlling interest in the heralded Greenbushes lithium mine.
The ASX 200 mining stock also owns the Forrestania and Cosmos nickel assets after acquiring fellow mining business Western Areas back in 2022.
FY25 by the numbers
Revenue of $528 million dipped by 37% from the previous year.
Underlying operating earnings (EBITDA) swung to a $43 million loss after a $581 million gain in FY24.
Most notably, IGO reported a net loss after tax of $955 million for FY25, marking a seismic swing from a $3 million profit twelve months ago.
These results were impacted by the company's share of a $642 million net loss in TLEA.
Here, a full $605 million impairment of the Kwinana lithium hydroxide refinery contributed to the loss.
Underlying free cash flow of $49 million also collapsed by 93%.
And the board of directors opted not to pay a dividend in FY25.
Challenging year for the ASX 200 mining stock
Management noted that IGO's FY25 results were shaped by challenging market conditions, particularly weak pricing for nickel and lithium.
The company's realised lithium-spodumene price plummeted by 64% during the year, whilst its average nickel price fell by 10%.
The TLEA joint venture also scrapped its planned Kwinana refinery during the year.
Management cited ongoing operational issues and an unsustainable cost structure for this decision.
This followed the closure of the group's Spotted Quoll nickel mine at Forrestania in September.
As a result, nickel production in FY25 fell by 39%.
Copper production also declined by 26%, but spodumene output lifted by 7%.
IGO Limited managing director and chief executive officer, Ivan Vella, said:
IGO's FY25 financial results are disappointing. Both challenging market conditions and asset impairments, as a result of a disciplined portfolio review, impacted our headline results. Some of these were difficult decisions, however our underlying business remains solid and we have a clear strategy for value and growth we are delivering on.
New strategic direction
At the tail end of last year, IGO launched a refreshed growth strategy as it looks to counter the challenges facing its operations.
This includes a new exploration business model, centred on holding a diversified portfolio of projects through strategic partnerships in multiple jurisdictions.
Organisational restructuring initiatives, including a board renewal and succession process, are also underway for this ASX 200 mining stock.
And an optimisation program at the Greenbushes lithium mine is on the cards for the TLEA partnership.
