IGO Reports Reduced Net Loss of $34.1 Million in Second Half of 2025
Battery minerals miner IGO has announced a net loss of $34.1 million for the second half of 2025, a significant improvement from the $782 million loss recorded in the same period the previous year. Chief executive Ivan Vella described the result as reflecting decisive action taken over the past twelve months to enhance financial performance.
Kwinana Refinery Continues to Drag on Earnings
The Kwinana lithium hydroxide refinery, a joint venture with China's Tianqi, reported an underlying earnings loss of $70.9 million for the most recent half. IGO has expressed a desire to shut down the loss-making operation, but Tianqi, which controls the refinery, intends to keep it operational to support its global supply chain. The refinery is supplied with ore from the highly profitable Greenbushes lithium mine.
Greenbushes Mine Performance and Dividend Uncertainty
Greenbushes generated earnings before interest, tax, depreciation, and amortisation (EBITDA) of $463.6 million during the half. However, IGO did not receive any dividend from the mine, as a substantial portion of its cash flow is being used to sustain the Kwinana refinery. There was no update from IGO on when dividends from the Tianqi Lithium Energy Australia joint venture, which holds stakes in Greenbushes, might resume, despite a recent resurgence in lithium prices. Dividends have been suspended since late 2024 during a period of declining lithium values.
Financial Position and Nova Mine Update
IGO's cash balance increased by $19 million to $299 million as of December 31, supported by $97 million in positive cash flow from its Nova nickel mine. The South Perth-based company is extracting the final high-grade ore from Nova, which is expected to reach the end of its operational life later this year. CEO Ivan Vella emphasised that the improved results demonstrate progress in maximising cash generation and implementing cost discipline, even as mining complexity at Nova peaks.
Future Outlook and Market Reaction
Vella expressed confidence in ongoing optimisation efforts at Greenbushes, noting progress in asset utilisation and mine planning to unlock the mine's full value. Despite the positive steps, IGO shares fell by 2.4 percent in early trading, contrasting with a generally positive day for other lithium stocks in the market.
