Highlights

  • IGO shares dropped 15.93% to AUD 7.18 on 24 April 2026 following its quarterly update.
  • Group underlying EBITDA rose significantly to A$118.9 million from A$29.9 million.
  • Nova delivered higher production and A$52 million in free cash flow.
  • Greenbushes production remained flat at 351kt but operational challenges impacted performance.
  • Realised spodumene prices nearly doubled to US$1,668/t.
  • Net cash increased to A$327 million, up from A$298.9 million in the prior quarter.

IGO Limited (ASX:IGO) shares declined 15.93% to AUD 7.18 during the afternoon session on 24 April 2026, although remains up 97.25% over the past year. The decline follows the release of the company’s quarterly report for the period ended 31 March 2026, which reflected a combination of improved financial performance and operational challenges across key assets.

The update highlights favourable earnings growth and cash generation at the group level, supported by strong performance at the Nova operation and improved lithium pricing. However, operational underperformance at Greenbushes and revised guidance appear to have weighed on investor sentiment.

Company Overview

IGO Limited is focused on producing and supplying battery materials critical to the global energy transition, including lithium, nickel, and copper. The company operates key assets such as the Nova nickel-copper-cobalt operation and holds interests in lithium assets through its joint venture exposure to Greenbushes and Kwinana.

Its strategy centres on discovering, developing, and delivering materials used in electric vehicles and energy storage systems, while also pursuing growth through exploration, partnerships, and project development.

Group Financial Performance Shows Significant Improvement

IGO reported a notable improvement in financial performance during the March 2026 quarter. Group sales revenue increased 45% to A$119.7 million, primarily driven by higher nickel sales volumes and improved realised prices.

Underlying EBITDA rose to A$118.9 million, compared to A$29.9 million in the previous quarter, reflecting higher contributions from Nova, improved earnings from the Tianqi Lithium Energy Australia (TLEA) joint venture, and gains associated with asset sales.

On a statutory basis, EBITDA reached A$151.1 million, supported in part by a A$31.9 million gain from the sale of Forrestania assets and the release of rehabilitation liabilities.

Cash flow from operating activities also increased to A$34.6 million, up from A$12.8 million in the previous quarter, while underlying free cash flow rose to A$35.8 million.

The company’s net cash position strengthened to A$327 million as at 31 March 2026, compared to A$298.9 million at the end of the prior quarter.

Nova Operation Delivers Higher Production and Cash Flow

The Nova operation continued to perform at a high level during the quarter, contributing significantly to the group’s overall results.

Nickel production increased 11% to 4,202 tonnes, while copper production rose 7% to 1,907 tonnes. Sales volumes also improved, with nickel sales increasing 49% quarter-on-quarter.

This operational performance translated into higher financial outcomes. Nova generated A$60.5 million in underlying EBITDA, representing a 43% increase from the previous quarter, and delivered A$52 million in free cash flow.

Unit cash costs declined by 24% to A$3.47 per pound of nickel, reflecting improved production levels, cost discipline, and the benefit of by-product credits.

Greenbushes Performance Mixed Despite Higher Lithium Prices

Performance at the Greenbushes lithium operation was more mixed during the quarter.

Spodumene production remained broadly flat at 351kt compared to 352kt in the previous quarter. While sales volumes increased slightly to 349kt, operational performance was affected by lower feed grades, reduced plant recoveries, and increased downtime linked to maintenance activities.

Despite these challenges, realised spodumene prices nearly doubled to US$1,668 per tonne, reflecting favourable lithium market conditions. The operation maintained an EBITDA margin of 75% during the quarter.

However, unit cash costs increased to A$446 per tonne from A$373 per tonne in the prior quarter, driven by higher maintenance costs and the inclusion of CGP3 operating costs.

Guidance Revision Reflects Operational Challenges

IGO revised its FY26 guidance for the Greenbushes operation, reflecting performance to date and expectations for the remainder of the year.

Spodumene production guidance was reduced to a range of 1,375–1,425kt, down from the previous guidance of 1,500–1,650kt. Unit cash cost guidance was increased to A$380–420 per tonne, compared to the earlier range of A$310–360 per tonne.

Capital expenditure guidance was revised lower to A$400–450 million, reflecting a focus on capital discipline and the rescheduling of certain projects.

These revisions appear to have contributed to the market’s reaction, despite strong pricing conditions.

Kwinana Refinery Shows Production Growth but Ongoing Losses

At the Kwinana lithium hydroxide refinery, production increased to 3,047 tonnes during the quarter, representing 51% of nameplate capacity and an improvement from 35% in the previous quarter.

Sales volumes declined by 20% due to shipment timing and inventory effects, although revenue increased 26% due to higher realised prices.

The refinery reported an EBITDA loss of A$7.7 million for the quarter, although this was an improvement compared to the A$51.3 million loss in the previous quarter.

Conversion costs declined to A$14,068 per tonne, reflecting improved production efficiency. However, upcoming maintenance shutdowns are expected to impact production in the following quarter.

Safety Performance and Operational Improvements

IGO reported continued improvement in safety performance during the quarter, with the Total Recordable Injury Frequency Rate (TRIFR) decreasing from 6.5 to 4.2 on a rolling 12-month basis.

The company also recorded 90 days without a reportable injury, supported by increased focus on frontline leadership and critical control execution.

At Greenbushes, operational improvement programs are underway, targeting areas such as plant reliability, maintenance execution, grade control, and recovery performance. These initiatives form part of a broader strategic review and are expected to take time to deliver consistent results.

Portfolio Optimisation and Growth Strategy

During the quarter, IGO continued to optimise its asset portfolio and pursue growth opportunities.

The company completed the sale of its Forrestania Nickel Operation assets, retaining certain mineral rights and securing potential future royalties. It is also exploring options to rationalise its Cosmos assets.

IGO entered into an agreement to acquire the remaining 49% interest in the Copper Wolf project in Arizona for approximately A$6.15 million, which would result in full ownership of the project upon completion.

Exploration activities progressed across multiple regions, including Western Australia, Northern Territory, and South Australia, with ongoing geological mapping, sampling, and drilling preparations.

What This Means for Investors?

IGO’s March 2026 quarterly update reflects a mixed operational and financial picture. Strong performance at Nova, higher commodity prices, and improved group earnings highlight positive momentum in parts of the business.

However, operational challenges at Greenbushes, increased costs, and revised production guidance appear to have influenced investor sentiment, contributing to the sharp share price decline.

While the company maintains a solid balance sheet and continues to generate cash, the market is likely to focus on the execution of improvement initiatives and the delivery of revised guidance in the coming quarters.

Frequently Asked Questions (FAQs)

Why did IGO shares fall on 24 April 2026?
IGO shares declined after the company reported mixed quarterly results, with operational challenges at Greenbushes and revised production guidance offsetting strong financial performance.

How did IGO perform financially during the quarter?
Group sales revenue increased 45% to A$119.7 million, while underlying EBITDA rose to A$118.9 million from A$29.9 million in the previous quarter.

What was the performance of the Nova operation?
Nova delivered higher production, with nickel output rising 11%, and generated A$52 million in free cash flow.

What issues impacted Greenbushes during the quarter?
Greenbushes experienced lower feed grades, reduced recoveries, and increased maintenance downtime, leading to higher costs and revised guidance.

What is IGO’s current cash position?
IGO reported a net cash position of A$327 million at the end of the March 2026 quarter.

Meta Information

Meta Title: Why IGO (ASX: IGO) Shares Fell 15.93% on 24 April 2026 — Quarterly Update

Meta Description: IGO (ASX: IGO) shares dropped 15.93% to AUD 7.18 after reporting mixed March 2026 quarterly results, with strong Nova performance offset by Greenbushes challenges and revised guidance.

Focus Keywords: IGO ASX share price, IGO quarterly report 2026, Greenbushes performance, Nova nickel production, IGO lithium business update