IGO shares lower on 'mixed' Q4 result
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More news: IGO shares slipped after the critical minerals producer reported a "mixed" Q4 result.
Shares were down 2.6% to $5.53 at 12:05pm AEST.
RBC Capital Markets analyst Kaan Peker said IGO's fourth-quarter was mixed operationally. The miner's Nova and Greenbushes operations beat consensus estimates on production and unit-cost, and group cash flow was also better than expected, he said.
However, Peker noted that underlying EBITDA of $88 million for the quarter fell short of average forecasts of $135 million.
He also flagged that FY25 guidance for Nova and Greenbushes — featuring lower production and higher costs — will "likely drag on the stock today".
IGO hits guidance after improved output in June quarter
The news: Critical minerals producer IGO has achieved its full-year production guidance after posting improved output from the Greenbushes lithium mine in Western Australia.
The numbers: The lithium and nickel miner said underlying earnings for the June quarter rose to $88.2 million, while sales revenue was also higher from the preceding quarter at $234.7 million. June quarter production at Greenbushes lifted 19% on the March quarter to 332,000 tonnes of spodumene concentrate. Average prices were marginally lower at USD1020 a tonne.
The context: The higher production from Greenbushes, Australia’s biggest lithium mine, follows a change in strategy from its owners, which include IGO’s TLEA joint venture with China’s Tianqi Lithium, as well as global miner Albemarle. The group had previously cut production amid a slide in lithium prices. IGO expects export volumes to lift again in the current fiscal year, with the mine expected to produce 1.35 to 1.55 million tonnes of concentrate. The partners are also pressing ahead with a further expansion with construction of the third processing train at the mine.
The report comes just weeks after IGO outlined FY24 impairments between $275 million and $295 million, following a revaluation on its Silver Knight and Mt Goode nickel exploration assets along with the broader exploration portfolio rationalisation.
The source: ASX
