EL7.AI
StocksMedium•29 October 2026•
4 min read

IGO lifts underlying EBITDA 49% to A$176.1 million in first quarter

Key Facts

1Underlying EBITDA rose 49% to A$176.1 million in the first quarter of fiscal 2027, including a A$31.9 million revaluation gain.
2Greenbushes posted record production of 435,000 tonnes of spodumene concentrate, up 12% from the previous quarter.
3IGO’s share of TLEA net profit fell 5% to A$114.3 million.
4IGO had net cash of A$376.3 million on September 30, 2026.

IGO reported first-quarter results for fiscal 2027 on October 29, for the period ended September 30, 2026, with underlying EBITDA up 49% to A$176.1 million from A$117.8 million in the previous quarter. The figure included a A$31.9 million gain from the revaluation of listed investments, after those investments recorded a A$9.6 million valuation loss in the previous quarter. Excluding revaluation movements, underlying EBITDA rose about 13% quarter on quarter. These figures show growth in the core operating metric and do not mean net profit increased. The announcement coincided with record production at Greenbushes, but lower concentrate sales and prices reduced IGO’s share of the joint venture’s profit.

Greenbushes produced 435,000 tonnes of spodumene concentrate, up 12% from the previous quarter, and the CGP3 facility reached nameplate capacity during September. Despite higher production, spodumene sales fell 4% to 376,000 tonnes. IGO said port constraints and smaller shipment sizes limited shipped volumes, leading to a buildup in concentrate inventories. The average realized spodumene price fell 7% to US$2,130 a tonne, compared with US$2,286 in the previous quarter. By contrast, cash production costs improved 7% to A$418 a tonne from A$448, and the EBITDA margin rose to 83% from 80%.

Lower sales and prices flowed through to IGO’s share of net profit from the TLEA joint venture, which fell 5% to A$114.3 million from A$120.6 million in the previous quarter. The company attributed the decline to lower Greenbushes sales volumes and prices, despite record production. Windfield, the entity associated with the Greenbushes project, distributed A$680.1 million to its shareholders during the quarter, on a 100% ownership basis. However, profits IGO records from the joint venture do not become cash in its hands as soon as they are recognized in its accounts; cash flow depends on distributions paid by TLEA to its shareholders. The company said the TLEA board will assess distributions during the December 2026 quarter.

In nickel, Nova delivered strong production and cost performance in its final full quarter, Chief Executive Ivan Vella said. The company expected nickel production to exceed the upper end of its life-of-mine guidance and cash costs to come in below the lower end of guidance. Mining and processing at Nova are due to end by the end of October 2026, while IGO expects to complete the sale of the asset to Global Lithium Resources during the December quarter. Group sales revenue rose 12% to A$157.9 million, all of it from Nova. The company attributed the increase to higher nickel sales volumes, partly offset by lower nickel prices and copper sales.

At the Kwinana facility, 918 tonnes of lithium hydroxide were produced following a major maintenance shutdown, and it recorded an EBITDA loss of A$65.4 million. The loss included a negative inventory adjustment of A$32 million. Underlying free cash flow was A$39.7 million, compared with A$69.5 million in the previous quarter. IGO ended the period with net cash of A$376.3 million, down A$10.2 million during the quarter. The company said the decline followed payment of a final dividend for fiscal 2026 of A$37.9 million, or 5 cents a share.

Vella said lithium demand remained strong in the near and long term, with demand linked to energy storage growing, but said the market balance in 2027 was difficult to predict because supply could increase. The report quoted him as saying: "Into 2027, the risk is supply, not demand." At Greenbushes, the technical elements of the strategic options review were largely complete, identifying opportunities to improve resources and reserves, mine design, mining schedules, recovery rates and product grade. These opportunities remain under evaluation, and the report gave no final results. This comes as IGO prepares for the period after Nova while monitoring potential TLEA distributions during the December quarter.

IGO set January 28, 2027 as an indicative date for publishing its December-quarter activities report, and February 24, 2027 for announcing first-half fiscal 2027 results. The company said the dates could change. The completion of the Nova sale is expected to come first, during the December quarter, after mining and processing end in late October. The TLEA board will also assess distributions during the December quarter, determining whether cash payments to shareholders will follow the joint venture’s reported profits. These dates place next quarter’s results in the context of an operational and financial transition for the company, with part of its performance continuing to depend on Greenbushes production and sales.