IGO Limited experienced a mixed first quarter for FY26, with operationally soft results but free cash flow exceeding expectations due to a joint venture dividend, according to RBC Capital Markets analyst Kaan Peker. IGO is an Australian mining and exploration company focused on metals critical to clean energy. The company explores, develops, and operates assets in Australia.
Key assets Nova and Greenbushes both underperformed during the period. Nova saw lower grades and production, while the lithium head-grade at Greenbushes declined. Kwinana, however, showed improved production, although it remained loss-making. Group sales totalled $105 million, a 17 per cent decrease compared to the previous quarter. Underlying EBITDA reached $19.3 million, falling short of both RBC and consensus estimates.
Despite the weaker operational performance, IGO has maintained its FY26 guidance. Cost pressures at Nova and Greenbushes are expected to be offset by resilient pricing. Improvements and capital expenditure at Kwinana are ongoing. Peker noted that a shortfall in copper shipments and lower by-product output contributed to the revenue miss, with one copper shipment now expected in the December quarter.
Shares in IGO saw a positive reaction, rising 2 per cent to $X by mid-morning AEDT. The company will continue to focus on operational improvements and cost management to achieve its full-year objectives.
