IGO Limited has reported a dramatic swing to profitability in FY26, returning to the black with a net profit after tax of $145 million compared with a $955 million loss in the prior year. This substantial turnaround reflected improved performance across the portfolio, driven primarily by a $207 million share of profit from the Talison Lithium joint venture (TLEA), stronger earnings at the Greenbushes operation, and cash generation from Nova. The absence of the significant impairments that weighed on FY25 results also contributed to the positive outcome, signaling that the worst of the downcycle has passed.
Beyond the profit recovery, the company demonstrated substantially improved cash generation capabilities that underpin shareholder returns. Operating cash flow reached $132 million compared with just $43 million in the prior year, while underlying free cash flow climbed to $134 million. This strengthened cash position allowed IGO to declare a fully franked final dividend of 5 cents per share, representing approximately 30 percent of underlying free cash flow and signaling management confidence in sustained cash generation. The balance sheet reflects this financial improvement, with cash holdings of $387 million and an undrawn $300 million corporate debt facility, positioning the company with considerable flexibility for growth investments or managing any near-term operational challenges.
Operationally, Greenbushes continued to deliver strong margins and cash generation despite some operational challenges during the year, producing 1.41 million tonnes of spodumene concentrate at cash costs of $415 per tonne. Nova, the nickel operation, generated $228 million in operating cash flow while exceeding life-of-mine production guidance and achieving cash costs of $4.74 per pound, below guidance levels. The company noted that Greenbushes is well advanced with its full life-of-mine optimization program, aimed at enhancing value creation from a core asset during lithium market uncertainty.
Management has been progressing work to reposition IGO for growth in copper and lithium, undertaking significant technical and commercial work to strengthen its ability to identify and evaluate value-accretive opportunities while maintaining a disciplined capital allocation framework. Key priorities going forward include safely completing mining and processing operations at Nova before its divestment to Global Lithium Resources, continued operational support for Greenbushes and Kwinana, and focused growth through exploration, BioHeap technology, and selective acquisitions.
Investors should monitor the completion of the Nova divestment process, implementation of the Greenbushes optimization program, and execution of the company’s repositioning strategy toward copper and lithium opportunities. The company has demonstrated operational discipline and an improved financial position, though tracking whether management can successfully execute its growth ambitions while maintaining cash generation will be critical. 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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