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Highlights

  • IGO is an ASX listed mining entity, focused on exploration, development and production of gold, copper, nickel, lithium and other commodities critical to clean energy
  • FIL Investment Management (Australia) Limited has the maximum stake in the firm with a shareholding of approximately 8.72%
  • IGO shares closed 4.01% up at AUD7.82 apiece on Wednesday

IGO Limited (ASX: IGO) is a mining company which is engaged in exploration, development and production of gold, copper, nickel, lithium and other commodities critical to clean energy. The company is also focused on renewable energy generation, electrification of transport and storing energy via its upstream mining and downstream processing assets. In the financial year 2023 (FY23), the company registered record results with increase in underlying EBITDA, NPAT and free cash flow, backed by the firm’s investment in the lithium joint venture, Tianqi Lithium Energy Australian Limited (TLEA).

In FY23, revenue increased by 13.4% YoY to AUD 1,024 million and underlying EBITDA grew by 177.1% YoY to AUD 1,987 million.

During the reported period, the company announced an interim dividend of AUD 0.76 per share, which is 640% higher than previous year.

Top 10 shareholders of IGO

The top 10 shareholders of IGO have nearly 35.68% of the shareholding in the company. FIL Investment Management (Australia) Limited and Yandal Investments Pty. Ltd. have the highest stake in the company, with a shareholding of ~8.72% and ~8.60%, respectively.

Recent business update

Through ASX filing dated 27 November 2023, the company shared that Ivan Vella will join IGO’s board as managing director and CEO from 11 December 2023.

On 6 November 2023, the technical teams of Buxton and IGO confirmed nickel and cobalt mineralization in sulphide from the first drill hole at Dogleg prospect within the West Kimberley Project JV. These results and previous exploration work at the Merlin prospect project the potential of the West Kimberley Project to host Nova-Bollinger style nickel sulphide deposits.

Outlook

Progress of the Cosmos project and the anticipated improvement at the Kwinana Lithium Hydroxide Refinery extends significant prospects for short-term growth.

Supported by the lithium business, the company continued to deliver positive financial returns.

Moreover, new nickel supply is expected to be driven by the increasing battery demand as around 1.5 million tonnes of nickel is required from new resources by 2040.

Share performance of IGO

IGO shares closed 4.405% up at AUD 7.820 apiece on 6 December 2023 with a market cap of AUD 6.58 billion. Including today’s gain, IGO’s share price has decreased by 48.71% in the past 12 months and has declined by 46.45% in the last three months. The 52-week range of IGO is AUD 7.430 – 16.460.

 

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

 

Note 2: The reference date for all price data, currency, is 06 December 2023. The reference data in this report has been partly sourced from REFINITIV.