IGO Limited has announced the divestment of its Nova nickel operation to Global Lithium Resources Limited, marking a significant portfolio shift for the company as it enters a new phase focused on its lithium assets. The transaction, announced post-quarter end, will take effect following the conclusion of mining at Nova, which is anticipated in the December quarter. This strategic move represents a major turning point for a company that has spent the past decade developing Nova into a productive asset.
The June quarter results themselves paint a picture of strong operational momentum heading into this transition. Nova delivered another robust operational performance, finishing FY26 ahead of life-of-mine production guidance and below cost guidance set twelve months prior. This achievement is particularly noteworthy given the operation is in its final stages, with production and cost performance at the upper end of revised guidance for the full year. The company’s safety performance also continued its year-long improvement trajectory, with a total recordable injury rate of 3.7 and over 200 days recordable injury free across the five-month period to June.
Greenbushes, IGO’s cornerstone lithium asset, showed meaningful improvement in the final quarter. Spodumene production reached 387 kilotonnes, up from 351 kilotonnes in the prior quarter, with the newly commissioned CGP3 facility contributing 71 kilotonnes. More significantly, the realised spodumene price improved substantially to US$2,286 per tonne compared to US$1,668 per tonne in the previous quarter, driving an EBITDA margin of 80 percent for the quarter. This stronger pricing reflects tightening lithium market conditions and provides a more constructive backdrop for the company’s long-term cash generation. The June fire at CGP3 that halted production from that facility for approximately seven weeks represents a temporary disruption, with production expected to recommence within days.
The broader financial picture remains solid. Group underlying EBITDA stood at $118 million, with underlying free cash flow of $69.5 million in the quarter. Net cash increased to $386.5 million as at 30 June 2026, providing a strong balance sheet foundation. The recommencement of cash dividends through the Windfield joint venture, with a payment of A$390 million to shareholders in the quarter, underscores confidence in the quality of the Greenbushes asset and the value optimisation work underway.
For investors, the Nova divestment clarifies IGO’s strategic direction as a pure-play lithium company, removing a non-core asset that is approaching end-of-life. The combination of improved lithium pricing, strong Greenbushes production, and an increasingly robust cash position provides multiple tailwinds. The key focus going forward will be operational execution at Greenbushes, the impact of the CGP3 fire recovery, and how the company deploys its strengthened cash position. This announcement is classified as price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
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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