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Highlights

  • IGO is a clean energy metals-focused company
  • In 1HFY24, the company repaid its outstanding debt of AUD 360 million
  • FIL Investment Management (Australia) Limited has the maximum stake in IGO with a shareholding of ~8.72%

IGO Limited (ASX: IGO) is a mining company focused on nickel, lithium, copper, and other metals crucial to a green future.

In the first half of the financial year 2024 (1HFY24) ended 31 December 2023, the company recorded a 19.11% YoY decline in total revenue to AUD 438.2 million. The period saw a decline in both the Forrestania and Nova operations, with lower sales volume and realised nickel prices.

Underlying free cash flow increased slightly by 0.18% to AUD 433.5 million in 1HFY24, while cash flow from operating activities jumped 1.03% YoY to AUD 567.7 million.

Notably, the company repaid outstanding debt of AUD 360 million during this period.

Top 10 shareholders of IGO

The top 10 shareholders collectively hold approximately 43.90% in the company. The highest stake is held by FIL Investment Management (Australia) Limited with a shareholding of nearly 8.72%.

Recent business update

Through an ASX filing on 2 April 2024, the company notified that State Street Corporation and its associated entities had reduced their interest in IGO to 6.05% from 7.36%, as of 28 March 2024.

On 27 February 2024, it was reported that Debra Bakker, a director of IGO, bought 7,000 IGO shares for a total consideration of AUD 50,4000 on 23 February 2024. With this development, the total shareholding of Bakker increased to 46,800 shares.

Outlook

In FY24, the company’s nickel business expects to achieve a production of 28,500 to 31,000 tons, with anticipated capital expenditure ranging from AUD 24 million to AUD 31 million.

Furthermore, the lithium business targets a spodumene production of 1,300 – 1,400 kilotons.

Share performance of IGO

IGO shares closed 2.39% higher at AUD 7.29 apiece on 4 April 2024. Over the last 12 months, IGO’s share price has declined by 40.54%, and in the last three months, it recorded a dip of 16.11%.

The 52-week high of IGO is AUD 16.120, recorded on 14 July 2023, while the 52-week low is AUD 6.750, recorded on 6 February 2024.


IGO Daily Technical Chart, Source: REFINITIV

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 04 April 2024. The reference data in this report has been partly sourced from REFINITIV.