IGO trims first-half loss, revenue sinks 32% on lower nickel sales
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The news: Critical minerals producer IGO narrowed its first-half loss, but lower nickel sales volumes weighed on the result.
The numbers: The lithium and nickel miner reported a statutory loss of $34.1 million, compared to a $782.1 million loss in the prior corresponding period, which included an impairment on its Kwinana assets in Western Australia.
Analysts had expected a $27.5 million loss, according to Visible Alpha data.
Revenue dropped 32% year on year to $194.1 million. The company, which scrapped its mid-year payout last year, said it won’t pay an interim dividend, in line with expectations.
The context: IGO chief executive Ivan Vella said the results show "good progress, particularly at a time when complexity in the Nova mine is at an all time high".
Vella anticipates strengthening nickel and lithium markets to support earnings growth, with improved optimisation and higher volumes at IGO's Greenbushes lithium mine in WA expected to deliver "significant value for shareholders in the period ahead".
What they said: "IGO's Nova operation delivered a stronger margin despite lower sales volumes and prices, an indication that it continues to be a high value asset as it approaches end of mine life," said Vella.
"The Greenbushes optimisation and productivity work programs are continuing and we are starting to see progress in key areas, including across asset utilisation and mine planning. I am confident we are making steady progress on the work to unlock the full value of this extraordinary asset."
The source: ASX
