Despite facing operational challenges amid the global nickel and lithium downturn earlier this year, IGO has ended the 2023–24 financial year (FY24) on a high with a strong balance sheet.
The major recorded a strong cash position at the end of the June 2024 quarter by hitting $468 million, a 70 per cent increase from the previous quarter.
IGO’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) also saw a bump to $88 million. The increase was credited to the Greenbushes lithium operation achieving its FY24 production and cash guidance.
IGO’s Nova and Forrestania nickel operations also had a strong FY24 performance. Nova achieved its cash guidance despite its full-year nickel production falling just below the guided range and Forrestania’s full-year nickel production met guidance and its cash costs sitting just above guidance.
“Despite prevailing commodity prices, it has been encouraging to see IGO’s asset quality reflected in a strong free cash build over the quarter of $201 million, leaving our balance sheet at the end of June in an outstanding position with $468 million at bank,” IGO managing director and chief executive officer Ivan Vella said.
“Greenbushes’ world-class cost position continues to drive outstanding EBITDA margins which were 67 per cent for the (June) quarter and 85 per cent over FY24. This enabled the payment of over $761 million in dividends from TLEA (Tianqi Lithium Energy Australia) during FY24, demonstrating the value of our world-class lithium business can generate through the cycles.”
During the June quarter, IGO underwent several leadership changes, notably the appointments of Marie Bourgoin as chief development officer and Brett Salt as chief growth and commercial officer.
The major also announced the appointment of Marcelo Bastos as a non-executive director, who joined the IGO board on July 1, and Rebecca Gordon’s appointment as company secretary.
“Having strengthened our leadership team and progressed the refresh of our strategy toward completion, IGO is focused on several key workstreams to drive performance and returns in FY25,” Vella said.
The company will use FY25 to continue construction of Chemical Grade Plant 3 (CGP3) at Greenbushes, improving performance of the first production train (Train 1) at the Kwinana lithium hydroxide refinery, and maximise cash generation from Nova over its remaining life.
“And, to underpin our future organic growth, our exploration activity will progress, informed by a renewed strategy, focus and structure,” Vella said.
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