IGO posts revenue jump but slashes outlook for major lithium mine

Australia’s IGO on Friday posted a 45% sequential rise in third-quarter revenue, driven by higher nickel sales volumes and realized prices, but forecast lower annual output and higher costs at the Greenbushes lithium mine.

The miner posted sales revenue of A$119.7 million ($85.37 million) for the quarter, compared with A$82.4 million reported in the second quarter.

It now sees the Greenbushes lithium project to produce 1,375-1,425 kilotons of spodumene for fiscal 2026, lower than its earlier expectations of 1,500-1,650kt spodumene.

The project, which is 51% owned by its joint venture with Tianqi Lithium Corp, has the highest-grade ore reserve of any hard-rock lithium mine globally.

IGO also sees higher unit cash costs for Greenbushes in the same period due to lower production, and cut capital expenditure expectations to preserve cash.

For the third quarter, Greenbushes’ Spodumene production was flat, hurt by lower feed grade and recoveries, and maintenance-related disruptions.

The miner also flagged a sharp rise in fuel costs, which it said will flow through in future periods as the Middle East conflict shocked global energy markets.

($1 = 1.4021 Australian dollars)

(By Nichiket Sunil; Editing by Maju Samuel)