IGO shares slump after missing analysts’ target in Q3
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More news: Shares in IGO tanked in afternoon trade after the company missed analysts’ expectations in the third quarter earnings.
Shares had slumped 11.07% to $7.59 at 12:06pm AEST.
RBC Capital Markets analyst Kaan Peker said IGO missed the quarter, with production coming in at 351kt, below RBC’s 423kt forecast, and sales were 27% below expectations.
FY26 production guidance has also been cut to 1,375-1,425kt, down from 1,500–1,650kt.
UBS holds a “sector perform” view on the stock, with a price target of $9.
IGO’s third quarter EBITDA hits $151m
The news: Critical minerals miner IGO has reported EBITDA of $151.1 million in the third quarter of FY26 as group sales revenue lifts 45% quarter on quarter.
The numbers: Group sales revenue came in at $119.7 million. Meanwhile, EBITDA from the Nova nickel mine was $60.5 million, 43% higher quarter on quarter, and IGO’s share of profit from the Tianqi Lithium Energy Australia (TLEA) joint venture was $87.4 million, up from a $1 million loss in the previous quarter.
The context: Output from the TLEA co-owned Greenbushes lithium mine was flat quarter on quarter, which IGO managing director and CEO Ivan Vella said has been challenged by a “number of metrics including safety, feed grade, recoveries, maintenance execution and plant reliability”.
Production at the TLEA Kwinana lithium hydroxide plant, which has been fully written down by IGO, saw production lift to 51% of nameplate capacity.
Vella also noted that fuel costs have risen sharply and will flow through to costs in future periods, with limited immediate risk. He has “no immediate concerns” about supply security, although Nova and Greenbushes are “looking at strategies to mitigate this risk”.
The sources: ASX, RBC analyst note
