IGO 1H26 Results Investor Webcast

Lithium prices have tripled since mid-2025, turning a glut into a potential shortage. This surge puts IGO's half-year performance under the spotlight, as the company ramps up output at a key asset just as market conditions improve.

IGO's Greenbushes operation, a joint venture with Tianqi Lithium, processed first ore through its CGP3 plant on December 18, 2025. This expansion aims to boost annual spodumene production capacity by 50%, from 1.4 million tonnes to 2.1 million tonnes. The timing coincides with spodumene concentrate prices climbing from US$730 per tonne in the September quarter to an average of US$2,060 per tonne in January 2026.

Nickel markets are also firming. Indonesia, which supplies two-thirds of global nickel, imposed stricter mining quotas and export controls in early 2026. This has pushed nickel sulphate prices up 40% since the start of the year, benefiting IGO's Nova mine despite its planned closure in 2027.

These shifts follow a brutal FY25 for IGO, marked by a A$955 million net loss due to asset impairments and low commodity prices. Dividends were suspended. Now, with underlying EBITDA rising from A$19 million in the July-September quarter to A$30 million in October-December, and net cash steady at A$299 million, the company shows signs of recovery.

Electric vehicle sales grew 25% globally in 2025, while utility-scale battery storage deployments jumped 60%. This demand strains supply chains already hit by production cuts at high-cost mines. IGO's output feeds battery giants like Contemporary Amperex Technology, supporting the push for renewables.

Miners, battery producers, and automakers feel the pinch. Higher input costs could raise EV prices by 5-10%, slowing adoption in price-sensitive markets. For Australia, stronger exports bolster the economy, with battery metals contributing A$20 billion in revenue last year. Workers at IGO's Western Australian sites benefit from sustained operations, but face risks from market swings.

Safety improvements add context. IGO's total recordable injury frequency rate fell to 5.8 per million hours worked by December 2025, down from 8.0 three months earlier. This reflects broader industry efforts to enhance operational resilience amid volatility.