IGO Limited (ASX:IGO): How Do Record Greenbushes Output and Nova’s Exit Shape FY27?

Aditi Sarkar

29 October 2026 03:15 PM AEDT

IGO Limited (ASX:IGO): How Do Record Greenbushes Output and Nova’s Exit Shape FY27?

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Highlights

IGO Limited (ASX:IGO) reported Greenbushes spodumene production of 435kt in 1Q27, up 12% QoQ.
Group underlying EBITDA reached AUD 176.1 million in 1Q27, compared with AUD 117.8 million in 4Q26.
Nova produced 4,635 tonnes of nickel and 2,144 tonnes of copper ahead of its scheduled October closure.
IGO ended September with AUD 376.3 million net cash; FY27 Greenbushes guidance remains 1,550–1,750kt.

IGO Limited is an Australian resources company with lithium interests in Western Australia and a portfolio of copper and critical-minerals exploration projects. Its September 2026 quarterly report documented record spodumene production at Greenbushes, continued operating losses at the Kwinana lithium hydroxide refinery and the final full operating quarter at Nova. During trading on 29 October 2026, IGO Limited (ASX:IGO) was quoted at AUD 5.16, down 0.77% for the session. The latest results place attention on Greenbushes production and costs, completion of the Nova divestment, Kwinana’s production ramp-up and the company’s plans to allocate capital across copper and lithium assets.

Company Business

IGO Limited (ASX:IGO) holds a 49% interest in Tianqi Lithium Energy Australia (TLEA), its joint venture with Tianqi Lithium Corporation. TLEA owns 51% of Windfield Holdings, which owns the Greenbushes lithium operation through Talison, and owns the Kwinana lithium hydroxide refinery. Greenbushes produces spodumene concentrate, while Kwinana converts lithium feedstock into a refined battery-material product. These businesses create exposure to different stages of the lithium supply chain, with different operating costs and pricing dynamics.

IGO also owned the Nova nickel-copper operation, whose mining and processing activities were scheduled to conclude in late October 2026. The company is pursuing an agreed sale of Nova to Global Lithium Resources, expected to complete during the December quarter. Elsewhere, IGO is assessing copper and lithium exploration opportunities, including the Copper Wolf project in the United States and projects in Western Australia. Its BioHeap technology forms part of its copper-development work.

Recent Development

In its quarterly report released on 29 October, IGO Limited (ASX:IGO) said Greenbushes produced 435kt of spodumene concentrate in the September quarter, up from 387kt in the June quarter. Chemical Grade Plant 3 reached nameplate capacity during September following an earlier interruption to its ramp-up. Production cash costs fell to AUD 418 per tonne from AUD 448, while the average realised spodumene price declined to USD 2,130 per tonne from USD 2,286.

At Kwinana, production increased to 918 tonnes of lithium hydroxide from 897 tonnes despite a shutdown associated with commissioning a calciner off-gas treatment system. Sales reached 926 tonnes, but revenue fell to AUD 23.1 million as realised pricing declined. At Nova, nickel output rose 19% quarter on quarter to 4,635 tonnes and copper output increased 27% to 2,144 tonnes. Its cash cost fell to AUD 2.00 per payable pound of nickel, compared with AUD 4.49 in the preceding quarter.

Financial Performance and Sector Context

IGO Limited (ASX:IGO) recorded September-quarter sales revenue of AUD 157.9 million, a 12% increase on the June quarter. Group underlying EBITDA was AUD 176.1 million, up 49% from AUD 117.8 million; the September amount included an AUD 31.9 million mark-to-market gain on listed investments. Its share of TLEA net profit was AUD 114.3 million, down 5% quarter on quarter. Operating cash inflow was AUD 39.8 million, compared with AUD 69.2 million, while underlying free cash flow was AUD 39.7 million versus AUD 69.5 million.

At 30 September, net cash stood at AUD 376.3 million after a final FY26 dividend payment of AUD 37.9 million. The AUD 300 million revolving credit facility remained undrawn. For FY26, ended 30 June 2026, IGO reported net profit after tax of AUD 145 million against a loss of AUD 955 million in FY25, and operating cash flow of AUD 132 million against AUD 43 million. Lithium pricing and processing economics remain material: Kwinana recorded a quarterly EBITDA loss of AUD 65.4 million, including an AUD 32.0 million inventory valuation adjustment.

Risks to Consider

IGO Limited (ASX:IGO) remains exposed to lithium and nickel price movements, refinery operating costs and the timing of customer receipts. Greenbushes optimisation is dependent partly on water, tailings and port logistics capacity. Kwinana’s production performance and inventory valuation remain important financial variables. Nova’s closure and proposed sale introduce transition and completion risks. Safety performance also requires attention: the group’s 12-month recordable injury frequency rate rose from 3.7 to 4.0 during the quarter.

What to Watch Next

For FY27, Greenbushes guidance is 1,550–1,750kt of spodumene production at cash costs of AUD 380–440 per tonne. Kwinana guidance is 9,000–11,000 tonnes of lithium hydroxide, with conversion costs of AUD 16,000–18,000 per tonne. IGO Limited (ASX:IGO) will also report on the planned Nova disposal, completion of Greenbushes’ strategic-options valuation work and activity at its copper exploration projects. The company has listed 28 January 2027 as its indicative date for December-quarter reporting and 24 February for FY27 half-year results.

Key Insights

The September quarter combined higher Greenbushes volumes and improved unit costs with lower realised spodumene prices. IGO Limited (ASX:IGO) reported increased quarterly EBITDA, although operating cash flow declined and Kwinana remained loss-making. Following Nova’s planned exit, Greenbushes earnings, the Kwinana ramp-up and capital commitments to copper and lithium projects will be central to assessing subsequent operating reports.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.