IGO flags impairments for Kwinana lithium hydroxide refinery
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The news: Lithium and nickel miner IGO has flagged a substantial pre-tax impairment against the carrying value of the Kwinana lithium hydroxide refinery in its forthcoming half-year results.
The numbers: IGO holds a stake in the refinery through its 49% interest in the Tianqi Lithium Energy Australia (TLEA) joint venture (JV) with China’s Tianqi Lithium.
The company said it is still working to determine the quantum of the impairment, and will provide details in its half-year results on 20 February.
The context: The critical minerals producer last month warned investors not to expect a dividend from its TLEA JV as lithium prices remain in the doldrums and inventories climb. TLEA operates Greenbushes — Australia’s biggest lithium mine, which it part-owns along with global producer Albemarle.
IGO was forced to cut its final dividend in half after a slide in FY24 profits, following hefty impairments in its nickel assets in Western Australia.
The source: ASX announcement
