IGO abandons hopes for Tianqi dividend
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The news: ASX-listed miner IGO Limited has told shareholders not to expect a dividend from its 49% stake in Tianqi Lithium Energy (TLEA) as the price of the commodity remains in the doldrums and inventories climb.
What they said: "On the basis of current market conditions, the continued ramp up of LHP1 and lower product sales, IGO does not expect TLEA to be in a position to pay a dividend to shareholders during FY25," the company said in an ASX announcement.
"IGO cannot provide guidance on when dividends are expected to recommence, however notes that Greenbushes continues to generate solid cash flows despite current market conditions."
The context: Lithium prices have been suppressed in 2024 as the market remains in a lull after crashing the year before. Producers, including Tianqi, have accordingly accumulated higher inventories as they grapple with oversupply issues.
"As a result of prevailing market conditions for lithium hydroxide chemical, TLEA has experienced a build in lithium hydroxide inventory at Kwinana over recent months, which is expected to continue in the short to medium term," the company said on Monday.
IGO posted a first quarter loss of $2.9 million, down significantly from the previous quarter's $76.8 million profit. In August it cut its final dividend in half as profits continued to slide.
The source: ASX
