IGO Limited has delivered a strong operational and financial performance in FY26, with the Nova operation generating $228 million in free cash flow and driving the company’s net cash position up 38% to $387 million. The transformation at Nova, which reduced its total recordable injury frequency rate by 69% to 5.3, underpins both the safety and cash generation credentials investors will be scrutinising as the company navigates a portfolio transition.
Revenue of $463 million reflects Nova’s production beat against guidance, while the group EBITDA of $323 million was driven by an $186 million year-on-year improvement in IGO’s share of TLEA net profit as spodumene pricing recovered through the second half of FY26. This recovery in lithium pricing is a critical variable for investors to monitor, as the company’s exposure to TLEA and Greenbushes lithium operations means commodity price sensitivity remains a material driver of earnings. The group’s underlying free cash flow of $134 million, up 176% year-on-year, demonstrates the cash generative power of its portfolio when the lithium market cooperates.
Safety performance across the group improved materially, with the 12-month TRIFR declining from 10.2 to 3.7, reflecting 330 days without a significant potential incident. While Greenbushes safety deteriorated mid-year, the company notes that all joint venture partners are aligned on critical safety improvement programs. For investors, this trend matters because safety incidents carry material operational and reputational costs, and the magnitude of the improvement at Nova signals effective execution of safety protocols during a period of significant operational activity.
Capital management remained disciplined with a fully franked final dividend of 5.0 cents per share, representing approximately 30% of underlying free cash flow and aligning with the company’s 20-40% payout guideline. The company maintained a nil drawn debt position and continues to carry a strong balance sheet, which provides flexibility for opportunistic investments in its stated growth pipeline.
Investors should monitor the safe ramp-down of Nova in FY27 alongside the company’s execution on its focused growth pipeline. The announced sale of Nova and the exit from Forrestania represent a portfolio transition that will reshape cash flow composition, while spodumene pricing remains a critical variable for the lithium joint ventures that underpin group profitability. This announcement is price sensitive and has been 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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