IGO Limited delivered a substantially stronger quarterly result in March 2026, with group underlying EBITDA surging to $119 million from just $30 million in the previous quarter, underpinned by exceptionally strong performance from its Nova nickel operation. The company generated underlying free cash flow of $36 million while net cash climbed to $327 million, positioning the business to fund growth initiatives and navigate commodity price volatility from a position of financial strength.
Nova’s performance was the standout result for the quarter. Nickel production increased 11 percent with the operation generating $52 million in free cash flow despite operating at the late stages of its ore body. Management notes the achievement is particularly impressive given the challenging nature of mining an aging ore body, where flexibility to maintain grade control, plant reliability and spatial compliance becomes increasingly constrained. The capability demonstrated by Nova’s teams in sustaining high performance under these conditions underscores the operation’s quality and execution discipline.
Greenbushes presented a more mixed picture. While spodumene production remained broadly flat at 351 kilotons, the operation’s margin remained robust at 75 percent EBITDA, with spodumene sales reaching 349 kilotons. The operation benefited from a sharp increase in lithium prices, with realised spodumene prices nearly doubling to US$1,668 per tonne during the quarter. However, operational performance deteriorated across multiple metrics including grade, plant recoveries and maintenance execution. Management acknowledged these issues are systemic and that programs are already underway as part of the Strategic Options Review to address them. The early ramp-up of CGP3, which contributed approximately 33 kilotons of production, is tracking broadly in line with commissioning plan.
Safety performance improved materially during the quarter, with the company’s TRIFR declining to 4.2 from 6.5 in December 2025 and recording 90 days reportable injury free. Kwinana lithium hydroxide production expanded to 3,047 tonnes, representing 51 percent of nameplate capacity. One notable risk highlighted by management is the sharp rise in fuel costs, which will flow through to operating expenses in future periods, though the company noted no immediate supply security concerns.
Investors will be watching whether Greenbushes management initiatives can deliver the promised operational improvements in coming quarters, whether Nova can sustain its strong cash generation, and how fuel cost inflation impacts underlying margins. The company faces an interesting backdrop where commodity strength in lithium is offsetting operational challenges at one of its key assets. This announcement has been classified as price sensitive and flagged as material by the ASX.
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About IGO Limited (ASX: IGO)
IGO Limited is an Australian mining company focused on producing critical minerals and battery materials for the clean energy transition. The company operates the Nova nickel-copper-cobalt mine in Western Australia and holds a significant stake in the Greenbushes Lithium Mine, along with a lithium hydroxide processing facility at Kwinana. IGO supplies essential materials including nickel, copper, cobalt, and lithium to the global battery and renewable energy sectors.
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