IGO posts first quarter loss as sales fall
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The news: Critical minerals producer IGO has reported a first quarter underlying loss after lower sales and reduction in its share of profit from the TLEA joint venture with China’s Tianqui.
The numbers: The lithium and nickel miner posted an underlying earnings loss of $2.9 million for the three months to September 2024, down from a $76.8 million profit in the June quarter.
Sales revenue was down 39% to $143.1 million, while IGO’s share of profit from TLEA was down 45% to $37.1 million.
IGO shares were down 0.4% to $5.29 in early trading on the ASX.
The context: The company said sales revenue was down due to lower sales volume at the Nova and Forrestania following a redirection of concentrate from Kembalda to Esperance Port.
Lower profit share from TLEA reflected lower sales from the nickel business and lower spodumene sales and realised prices from Greenbushes — Australia’s biggest lithium mine.
IGO chief executive Ivan Vella said operational performance at Greenbushes was strong with an uplift in quarter on quarter production. The final preparations for the shutdown at the Kwinana refinery were also completed through the quarter, with the shutdown to be completed by the end of October.
What they said: “Despite the challenging commodity market conditions, IGO remains in a strong position with net cash of $259m, along with “a refreshed strategy and a reshaped corporate and exploration team who remain aligned to our purpose,” Vella said in a statement.
The source: ASX announcement
