IGO posts improved earnings on higher lithium price, Nova strength

IGO delivered a solid December quarter, with stronger Nova output, higher spodumene prices, and progress on safety and board renewal.

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The IGO Ltd (ASX: IGO) share price is in focus after the company posted a solid December quarter, highlighting stronger operational performance at Nova and a 16% lift in the realised spodumene price at Greenbushes.

What did IGO report?

  • Group sales revenue of $82.4 million, down 22% on the previous quarter
  • Group underlying EBITDA up 55% to $29.9 million
  • Positive operating cash flow of $12.8 million and underlying free cash flow of $13.4 million
  • Greenbushes spodumene production increased to 352kt (up 10%), with sales of 328kt
  • Nova nickel production rose to 3,790 tonnes, up 11%; copper to 1,776 tonnes (+29%)
  • Net cash increased to $298.9 million at quarter end

What else do investors need to know?

IGO continued to deliver on safety, with its Total Recordable Injury Frequency Rate (TRIFR) improving from 8.0 to 5.8. The company recorded no serious potential incidents for the quarter, reflecting a stronger safety culture and refreshed risk controls.

At Greenbushes, first ore from CGP3 was processed in December, marking a major milestone. Spodumene production and EBITDA margin (64%) both improved, supported by higher ore grades and a stronger lithium price. However, Kwinana lithium hydroxide production declined to 2,120 tonnes due to planned maintenance, limiting output to 35% of nameplate capacity for the quarter.

Board renewal is underway, with Dr Vanessa Guthrie AO appointed Chair from 1 January 2026, and a new CFO, Johan van Vuuren, to join in April. IGO is also progressing a transaction to transfer certain Forrestania nickel assets to Medallion Metals, while retaining rights over nickel and lithium.

What's next for IGO?

IGO's outlook for the rest of FY26 remains steady. Greenbushes spodumene output is expected to come in just below the lower end of guidance, but capex is running below forecast thanks to disciplined capital management. Attention will stay on ramping up the new CGP3 plant.

At Kwinana, production should remain within prior guidance. The Nova operation continues to perform ahead of plan, with stable nickel volumes and costs. Investors can expect more portfolio optimisation, ongoing exploration, and board renewal activity through the year.

IGO share price snapshot

Over the past 12 months, IGO hares have risen 73%, strongly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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