Nova revenue helps IGO deliver on targets

IGO has delivered on FY22 production and cost guidance, with group sales revenue of $278 million and underlying EBITDA of $258m for the quarter, driven by record sales revenue at Nova and increased net profit from the TLEA lithium venture, both in Western Australia.

Nova nickel production was 3 per cent higher quarter-on-quarter and within guidance at 6509 tonnes, while cash costs were also within guidance at $2.24 per payable pound.

FY22 nickel production was also within guidance at 26,675t, while copper production was at the lower end of guidance at 11,483t.

Greenbushes spodumene concentrate production was 25 per cent higher at 338,000t for the quarter and within  guidance of $254/t.

At Kwinana, the first production of battery grade lithium hydroxide during the quarter was an important milestone, allowing qualification processes to commence with respective offtake customers.

The company had a net debt of $533m, with cash on the balance sheet of $367m, and $900m in new debt facilities following the acquisition of Western Areas for cash consideration of $1262m.

IGO managing director Peter Bradford the strong finish was accomplished with safe and consistent operational performance across the business, combined with stronger metal prices, resulting in another highly profitable quarter.

“Nova and Greenbushes delivered production and cash costs within or better than guidance, first battery grade lithium hydroxide was produced at Kwinana, we received a first dividend distribution from the lithium joint venture and we progressed many organic growth opportunities across the business,” he said.

“In parallel, we have made substantial progress with the integration of Western Areas into IGO.

“The momentum for clean energy continues to grow and IGO is well placed to play an important role during this exciting period in human history.”

Editor of industrial titles and mastheads with Prime Creative Media. Publications include Rail Express and Australian Mining (web content).
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