IGO Limited Reports Robust FY26 Results with Major Safety Gains and Record Cash Flow

Significant Safety Improvements Drive FY26 TRIFR Down to 3.7

During FY26, IGO Limited achieved a remarkable 63% reduction in its Total Recordable Injury Frequency Rate (TRIFR), lowering it to 3.7 from 10.2 in June 2025. This decline underscores a substantial decrease in safety incidents across the company’s operations, driven by sustained efforts and enhanced safety leadership throughout the year. Additionally, IGO recorded 200 days without any recordable injuries and nearly 11 months without a significant potential injury (SPI), highlighting its strong commitment to occupational health and safety across its mining portfolio.

Quarterly safety data reveal a steady TRIFR decline: 16.9 in June 2025, 12.5 in September 2025, 9.9 in December 2025, 6.1 in March 2026, and 4.2 in June 2026. Specifically, the Nova site’s TRIFR dropped to 4.2 by June 2026, reflecting focused safety interventions. Looking ahead to FY27, IGO plans to prioritize safe ramp-down activities and psychosocial risk management at Nova, as well as support exploration drilling programs, recognizing the unique occupational health challenges during mine closure and transition phases.

Greenbushes Lithium Mine Ends FY26 Strong Despite CGP3 Fire Incident

IGO’s 24.99% stake in the Greenbushes lithium mine contributed to a strong FY26 finish, with 4Q26 spodumene production reaching 387 kilotonnes, a 10% increase from the previous quarter. The mine achieved an 80% EBITDA margin in the quarter, while the realised spodumene price rose 37% quarter-on-quarter to US$2,286 per tonne. Spodumene sales increased 12% to 391 kilotonnes in 4Q26, aided by delayed shipments from the prior quarter, supporting revenue growth and reflecting robust market demand.

The CGP3 processing plant ramp-up significantly boosted production, contributing 71 kilotonnes in 4Q26 and progressing ahead of schedule. However, a fire in early June temporarily halted CGP3 operations, with production expected to resume shortly after the announcement. The mined grade improved to 1.68% Li2O from 1.64%, with ongoing operational enhancements and life of mine optimization efforts. For FY27, IGO projects Greenbushes spodumene output between 1,550 and 1,750 kilotonnes, cash costs of A$380–440 per tonne, and capital expenditure of A$250–300 million, indicating expectations for sustained high-volume production while monitoring CGP3’s recovery.

Strong Earnings Boost from Windfield Dividend and TLEA Joint Venture

IGO’s 49% stake in the Tianqi Lithium Energy Australia (TLEA) joint venture significantly bolstered earnings in FY26, with the company’s share of net profit rising 38% in 4Q26 to A$121 million. This growth was driven by elevated spodumene prices at Greenbushes and favorable downstream processing economics within the joint venture. The Windfield joint venture, which operates Greenbushes, paid a dividend of A$390 million during 4Q26 on a 100% basis, representing a full cash return and underscoring the lithium mine’s strong profitability.

For FY26, IGO’s share of TLEA net profit totaled A$207 million, a substantial increase from the previous year, reflecting higher lithium prices and operational improvements at Greenbushes and Kwinana. These joint venture earnings materially strengthened IGO’s financial position, contributing to an 18% rise in net cash to A$387 million as of 30 June 2026.

Nova Exceeds Expectations in Final FY26 Quarter Ahead of Sale to Global Lithium

IGO’s wholly owned Nova nickel and copper mine in Western Australia delivered an outstanding FY26 conclusion, surpassing life of mine production guidance with 15,304 tonnes of nickel produced at cash costs of A$4.74 per pound, well below cost targets. In 4Q26, Nova produced 3,882 tonnes of nickel and 1,694 tonnes of copper, with realised prices of A$24,702 per tonne for nickel and A$18,889 per tonne for copper. Underlying EBITDA from Nova was A$31 million in 4Q26, despite A$31 million in year-end adjustments related to rehabilitation and workforce provisions.

FY27 will focus on safe, profitable production at Nova before mining concludes in December 2026. Following quarter-end, IGO announced Nova’s divestment to Global Lithium, effective after mining ends. Cash costs rose 29% quarter-on-quarter to A$4.49 per pound due to a planned shutdown and lower output. Copper sales surged 79% to 2,645 tonnes, supported by strong market conditions. Life of mine guidance was upgraded to 19,000–20,000 tonnes of nickel production and cash costs of A$4.25–5.00 per pound, indicating stable to slightly improved unit costs during ramp-down.

Kwinana Lithium Hydroxide Plant Impacted by Planned Shutdown and Upgrade Works

IGO’s 49% interest in the Kwinana lithium hydroxide facility experienced significant operational challenges in 4Q26 due to a major planned shutdown for installing a calciner off-gas treatment system. Production dropped sharply to 897 tonnes, just 15% of capacity and down 71% from 3,047 tonnes in 3Q26. This led to a 4Q26 EBITDA loss of A$88 million on a 100% basis, including a A$35 million negative inventory net realisable value adjustment. Sales revenue fell 58% to A$24 million due to lower volumes.

Conversion costs soared 189% to A$40,670 per tonne from A$14,068 in the prior quarter, reflecting fixed costs spread over reduced output and production scheduling disruptions. Another shutdown was planned for July and August 2026 to complete commissioning of the calciner off-gas treatment system, further reducing production in 1Q27. For FY27, IGO forecasts Kwinana production of 9,000–11,000 tonnes, conversion costs of A$16,000–18,000 per tonne, and sustaining/improvement capital expenditure of A$75–90 million. The realised lithium hydroxide price in 4Q26 rose substantially to US$19,543 per tonne from US$13,720 in 3Q26, providing margin support despite volume declines. Investors will monitor the successful commissioning and return to stable operations in upcoming quarters.

Revenue Growth Fueled by Higher Copper Sales and Commodity Prices

IGO’s consolidated sales revenue increased 18% in 4Q26 to A$141 million from A$120 million in 3Q26, driven mainly by higher copper sales volumes and prices at Nova. Copper sales revenue benefited from a 79% volume increase to 2,645 tonnes and a 9% rise in realised price to A$18,889 per tonne, reflecting Nova’s strong copper production in its final mining year and a robust copper market.

This growth was partially offset by a 58% decline in lithium hydroxide sales revenue at Kwinana to A$24 million due to the production shutdown and lower sales volumes of 864 tonnes. However, the average realised price for lithium hydroxide rose significantly to US$19,543 per tonne from US$13,720 previously, indicating improved market conditions. Total underlying free cash flow for 4Q26 reached A$70 million, up 94% from A$36 million in 3Q26, driven by improved revenue and operational cash flow despite Kwinana disruptions.

Net Cash Strengthens to A$387 Million Backed by Solid Operations

IGO’s net cash position rose 18% during FY26 to A$387 million as of 30 June 2026, up from A$327 million at 31 March 2026. This reflects strong operating performance across Nova and Greenbushes, supported by elevated lithium and nickel prices. Group underlying free cash flow for 4Q26 was A$70 million, nearly doubling from A$36 million in the previous quarter, demonstrating robust cash generation despite planned shutdowns and facility upgrades.

Underlying EBITDA was A$118 million for 4Q26 and A$286 million for the full FY26 year, providing a solid financial base for capital allocation and strategic transitions. Underlying adjustments in 4Q26 included a A$5.3 million payment for acquiring a 49% interest in Copper Wolf, A$0.2 million in costs related to Forrestania asset sales, and a A$9.6 million mark-to-market loss on listed investments. These adjustments indicate ongoing portfolio and investment management, while the strong net cash position offers strategic flexibility amid the Nova divestment and Kwinana optimization.

FY27 Production and Capital Plans Reflect Transition Phase

IGO’s FY27 guidance highlights sustained production opportunities at Greenbushes alongside Nova’s final operational quarter. Greenbushes spodumene production is forecast at 1,550–1,750 kilotonnes with cash costs of A$380–440 per tonne and capital expenditure of A$250–300 million. This assumes full capacity restoration following the CGP3 fire and continued investment in operational improvements.

Kwinana’s FY27 production is guided at 9,000–11,000 tonnes of lithium hydroxide with conversion costs of A$16,000–18,000 per tonne and sustaining/improvement capital of A$75–90 million. This reflects expectations for a return to steadier operations post-shutdown, though the production range indicates some uncertainty during ramp-up. Nova will focus on safe, profitable production until mining ends in December 2026, ahead of its sale to Global Lithium. The A$250–300 million planned capital expenditure at Greenbushes signals commitment to sustaining and enhancing the lithium asset ahead of the transition.

Investor Outlook: Strategic Shift and Commodity Price Exposure

IGO’s strategic shift from a diversified miner with nickel and lithium assets to a lithium-focused company is significant. The planned sale of Nova to Global Lithium ends the company’s nickel mining operations, removing exposure to a volatile commodity. Concurrently, IGO is positioning to capitalize on growing lithium demand through its stakes in Greenbushes and Kwinana, two of Australia’s largest lithium producers. Post-December 2026, the company’s earnings will be more lithium-centric, altering revenue and margin profiles.

With a strong net cash position of A$387 million and underlying free cash flow of A$70 million in 4Q26, IGO has strategic flexibility for capital deployment, shareholder returns, or investments aligned with its lithium strategy. The FY27 capital plan at Greenbushes reflects investment to maintain competitiveness in the evolving lithium market. However, operational disruptions at Kwinana and upcoming shutdowns highlight execution risks in downstream lithium processing. Lithium prices remain volatile, and investors should consider that future earnings will be significantly influenced by global spodumene and lithium hydroxide market dynamics beyond IGO’s control.