IGO Ltd. Lowers Greenbushes Lithium Production Forecast Amid Systemic Issues
IGO Ltd. has reduced its production guidance for the Greenbushes lithium mine by 13%, citing systemic challenges. This downgrade impacts a significant portion of global lithium supply, as Greenbushes accounts for about 20% of output.
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IGO Ltd. has revised its full-year lithium production expectations for the Greenbushes mine to between 1.38 million and 1.43 million tons, down from a prior estimate of 1.50 million to 1.65 million tons. The company identified systemic issues affecting safety, feed grade, recoveries, maintenance, and plant reliability.
Greenbushes contributes approximately 20% to the global lithium supply and has historically maintained competitive costs. Despite the downgrade, IGO reported an increase in underlying earnings before tax to A$119 million ($85 million) from A$30 million the previous year. Analysts view this as a reset in expectations rather than a temporary setback, indicating potential ongoing operational challenges.
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