How are IGO (ASX:IGO) shares performing after Q4 revenue boost?

July 27, 2022 01:47 PM AEST | By Ashish

How are IGO (ASX:IGO) shares performing after Q4 revenue boost? — Image source: Shutterstock.com

Highlights

IGO announced a 13% rise in sales revenue in the fourth quarter of FY22.

The ASX-listed nickel mining company said it has met its production and cost guidance for FY22.

The company also said its nickel production from its Nova mine rose 3%.

Shares of IGO Ltd (ASX:IGO) rose in early trade on Wednesday after the nickel miner announced a 13% rise in sales revenue in the fourth quarter of FY22. The IGO share price rose as high as AU$10.11 after opening at AU$9.90. However, the shares pared gains soon after and the stock was trading down 2.71% at 9.69 by 11:52 AM (AEST).

The ASX-listed nickel mining company ended the financial year 2022 on a strong note, buoyed by robust metal prices and consistent performances across all its business segments. IGO announced that it has met its production and cost guidance for FY22, helped by sales revenue of AU$278 million for the three months ending 30 June 2022.

How did IGO perform in Q4?

Sales revenue grew 13% (Q-o-Q) to AU$278 million.
Underlying EBITDA rose 11% (Q-o-Q) to AU$258 million.
Profit after tax (PAT) fell 19% to AU$107 million.

IGO informed the exchange that its nickel production from its Nova mine rose 3% compared to the previous quarter, within the earlier forecast guidance range.

The company's FY22 nickel production stood at 26,675 tonnes, within guidance. On the other hand, the company’s copper production stood at 11,483 tonnes, at the lower end of guidance. Notably, IGO produced its first battery-grade lithium hydroxide (LiOH) at Kwinana.

As on 30 June 2022, IGO’s net debt position stood at AU$533 million. The company’s net cash position was AU$440 million at the end of the third quarter. The company’s debt rose after its AU$1.26 billion acquisition of nickel mining company Western Areas.

What’s up for FY2023?

IGO said that it expects to spend AU$75 million on activities related to exploration in FY2023. The company would also continue to acquire high-quality assets along with organic growth in both brownfields and greenfields exploration.

What did IGO’s management say?

“In parallel, we have completed the transaction to acquire Western Areas and have made substantial progress with the integration of Western Areas into IGO. The momentum for clean energy continues to grow and IGO is well placed to play an important role during this exciting period in human history,” Bradford added.

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