IGO Limited (ASX: IGO) has reported a mixed but operationally resilient performance for the December 2025 quarter, supported by strong margins at Greenbushes, improved cash costs at Nova and the successful processing of first ore through the Kwinana CGP3 circuit, despite ongoing losses at the Kwinana lithium hydroxide refinery and challenging nickel market conditions.
The Greenbushes lithium operation in Western Australia, where IGO reported strong margins and higher realised spodumene prices during the December quarter. (Source: The West Australian)
The diversified mining and processing Company posted underlying EBITDA of A$30 million for the quarter and generated positive underlying free cash flow of A$13 million, while maintaining a solid net cash position of A$299 million. Management highlighted operational execution and cost control as key priorities as commodity price volatility persists.
The quarter marks a significant milestone for IGO’s lithium growth strategy, with the first ore processed through the new CGP3 concentrator at the Greenbushes lithium operation in Western Australia, reinforcing the long-term expansion pathway for one of the world’s highest-quality hard rock lithium assets.
Key Operational and Financial Highlights
IGO’s December quarter performance reflected stronger contributions from lithium and copper operations, partially offset by lower nickel sales volumes and continued ramp-up challenges at downstream processing assets.
IGO processed its first ore through the new CGP3 concentrator at Greenbushes in December, marking a key milestone in the asset’s expansion program. (Source: Lycopodium)
Key highlights for the quarter included:
- Greenbushes lithium
- Production of 352 kilotonnes of spodumene, in line with the mine plan
- Average realised spodumene price increased 16% quarter-on-quarter to US$850 per tonne
- EBITDA margin of 64%, well above global hard rock lithium averages
- First ore successfully processed through the CGP3 concentrator in December
- Kwinana lithium hydroxide
- Production of 2.1 kilotonnes, equivalent to 35% of nameplate capacity
- Output impacted by a planned maintenance outage
- Unit conversion costs rose 46% quarter-on-quarter
- EBITDA loss of A$51 million (100% basis), including A$25 million of capitalised items
- Nova nickel-copper-cobalt
- Nickel production increased 11% to 3,790 tonnes
- Copper production rose 29% to 1,776 tonnes
- Payable nickel cash costs reduced 34% to A$4.54 per pound
- Continued positive cash flow generation in line with the life-of-mine plan
Economic and Strategic Significance
The strong pricing environment for spodumene during the quarter provided a meaningful buffer against softer nickel prices and underperformance at downstream lithium processing facilities. Realised lithium pricing at Greenbushes remains competitive relative to global peers, reinforcing the asset’s position as a cornerstone of IGO’s portfolio.
Improved cash costs at Nova reflect productivity initiatives and disciplined cost management, positioning the operation favourably within the global nickel cost curve despite weaker demand conditions linked to battery sector destocking and stainless steel market softness.
Management emphasised that the commissioning of CGP3 is strategically important, as it increases concentrate flexibility and long-term capacity at Greenbushes, supporting IGO’s exposure to electric vehicle and energy storage demand over the medium to long term.
Resource and Exploration Updates
At Nova, production and sales performance remained aligned with the remaining life-of-mine plan, with lower sales volumes reflecting shipping schedules rather than operational constraints. Nickel production year-to-date reached 7,219 tonnes, tracking within FY26 guidance of 15,000–18,000 tonnes, while copper output also remains on course.
IGO’s Nova operation delivered higher nickel and copper production and improved cash costs, supporting positive cash flow during the December quarter. (Source: GR Engineering)
IGO continued to prioritise safety and ESG performance across its operations, reporting a 12-month Total Recordable Injury Frequency Rate (TRIFR) improvement to 5.8, reflecting sustained progress in safety culture and risk management.
Exploration and resource development activities during the quarter remained focused on value preservation and optimisation rather than aggressive expansion, consistent with prevailing market conditions.
Market and Industry Context
The December quarter unfolded against a backdrop of volatility across battery metals markets. Lithium prices showed signs of stabilisation after a prolonged correction, while nickel prices remained under pressure due to global oversupply and slower-than-expected EV demand growth.
IGO’s diversified exposure across lithium, nickel and copper provides some insulation from single-commodity cycles, though downstream processing margins remain sensitive to operational reliability and conversion cost pressures.
Investors will be closely watching progress at Kwinana as the asset transitions toward more consistent operations, alongside further ramp-up milestones at CGP3 and continued cost discipline at Nova.
Also Read: Perpetual Ltd Q2 FY26 Update Shows Mixed Performance Across Business Divisions
Outlook
IGO enters the second half of FY26 with a strong balance sheet, improving operational execution and exposure to long-term electrification trends. While near-term challenges persist at Kwinana and in nickel markets, performance at Greenbushes and Nova underscores the resilience of the Company’s core asset base and strategic positioning.
FAQs
- What does IGO Limited do?
IGO Limited is an ASX-listed resources Company focused on the discovery, development and production of critical minerals used in the global energy transition. Its portfolio is primarily centred on lithium, nickel and copper assets located in Western Australia.
- What are IGOs’ key operations?
IGO’s major assets include:
- A 49% interest in the Greenbushes lithium operation, one of the world’s highest-quality hard-rock lithium mines
- The Kwinana lithium hydroxide refinery, producing battery-grade lithium products
- The Nova nickel-copper-cobalt operation in Western Australia
- Why has IGO faced recent operational challenges?
IGO has experienced operational and cost pressures at its downstream lithium processing assets, particularly at the Kwinana refinery. In addition, softer lithium and nickel prices have weighed on financial performance and near-term earnings.
- What is the current status of the Kwinana lithium refinery?
The Kwinana refinery continues to operate below nameplate capacity, with production impacted by maintenance outages and higher conversion costs. Management is focused on improving operational stability and cost efficiency as part of a broader optimisation strategy.
- Does IGO currently pay dividends?
Dividend payments have been reduced or suspended in recent periods, reflecting lower cash flow from lithium joint ventures and a cautious capital management approach amid market volatility.
- How has the IGO’s share price performed recently?
IGO’s share price has been volatile, responding to quarterly production updates, cost movements and changes in commodity price outlooks, particularly for lithium and nickel.
- What is the outlook for the IGO according to market analysts?
Market views remain mixed. While near-term challenges persist, some analysts highlight the long-term value of IGO’s high-quality lithium assets and its leverage to future electrification and battery demand.
- What is the IGO’s long-term strategy?
IGO’s strategy is focused on building a globally relevant portfolio of battery materials, improving operational reliability, maintaining cost discipline and positioning the business to benefit from long-term demand for electric vehicles and energy storage.
