IGO Reports Increased Nickel Sales Amid Greenbushes Output Cuts for FY26
IGO's third-quarter sales revenue reached 119.7 million AUD, up 45% from the previous quarter, driven by increased nickel volumes. However, production targets for Greenbushes lithium mine have been reduced due to operational challenges, impacting future output and costs.
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IGO's third-quarter EBITDA was reported at $151.1 million, with group sales revenue rising to 119.7 million AUD. The company has lowered its fiscal year 2026 production target for the Greenbushes lithium mine to 1,375-1,425 kilotons from 1,500-1,650 kilotons due to flat spodumene output and operational disruptions.
Increased costs from energy price hikes in the Middle East are expected to affect cash costs per unit. Nickel revenue growth is countered by reduced lithium production, which may squeeze margins as input costs rise. The operational issues at Greenbushes highlight the complexities of the mining sector, particularly regarding supply chains crucial for battery production.
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