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Highlights

  • IGO is focused on exploration, production, and development of nickel, lithium, copper, gold, and other products critical to clean energy
  • In FY23, the company achieved 177.1% YoY growth in underlying EBITDA
  • Investment Management (Australia) Limited has nearly 8.72% shareholding in IGO, making it the top shareholder of the company

IGO Limited (ASX: IGO) is an ASX-listed materials company engaged in discovering, developing and delivering clean energy materials such as nickel, copper, lithium and cobalt.

The company delivered significant growth in its earnings in the financial year 2023 (FY23), I Its trading revenue increased by 13.4% YoY to AUD 1.024 million, underlying EBITDA grew by 177.1% YoY to AUD 1,987 million, and NPAT surged by 66% YoY to AUD 549 million.

The yearly performance was backed by the investment in Tianqi Lithium Energy Australian Limited (TLEA), a lithium joint venture.

During the reported period, the company declared an interim dividend of AUD 0.74, which is 640% higher than FY22.

Top 10 shareholders of IGO

The top 10 shareholders of IGO have around 38.29% shareholding in the company. Investment Management (Australia) Limited and Yandal Investments Pty. Ltd. have the highest stake in the firm, with a shareholding of ~8.72% and ~8.60%, respectively.

Recent business update

Through an ASX update dated 4 October 2022, the company shared that massive sulphide mineralisation has been intersected at the Dogleg Prospect, which is near the historically discovered Merlin Ni-Cu Prospect.

At the prospect, the company has concluded diamond drilling and plans to complete downhole electromagnetics in the coming days. Moreover, the assay results are anticipated in 4-8 weeks.

Outlook

In FY24, the company expects to report nickel production of 29,000 – 32,500t, copper production of 8,500-10,000t and cobalt production of 700 – 800t. The expected spodumene production is 1,400 – 1,500kt with a production cash cost of AUD280-330/t.

Furthermore, the company expects an improvement in the performance of the Kwinana Lithium Hydroxide Refinery, as IGO has undertaken certain steps to improve operational performance.

Share performance of IGO

IGO shares closed 0.26% up at AUD 11.46 apiece on 11 October 2023. With this, in the past one year, IGO’s share price has dropped by 25.56% and has fallen by 24.74% in the last three months.

The 52-week high of IGO is AUD 17.126 apiece, recorded on 11 November 2022, and the 52-week low is AUD 10.97 apiece, recorded on 9 October 2023.

 

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 11 October 2023. The reference data in this report has been partly sourced from REFINITIV.