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Highlights

  • ASX-listed mining firm, IGO announced a total dividend of AUD 0.74 apiece in FY23
  • IGO had a positive start to FY24, as in first quarter, net cash from operating activities increased by 33% YoY
  • FIL Investment Management (Australia) Limited has the maximum stake in the firm, with a shareholding of nearly 8.72%

IGO Limited (ASX: IGO) is an Australia-based mining firm which is engaged in the development of, exploration and production of gold, copper, nickel, lithium and other products which are essential for the clean energy. The company is also committed towards the generation of renewable energy, electrification of transport and energy storage via downstream processing and upstream mining assets.

In the financial year 2023 (FY23), the company delivered financial and operational improvement, underpinned by the joint venture, Tianqi Lithium Energy Australian Limited (TLEA). The highlight of the year was  dividend of AUD 0.74 per share, which is a whooping 640% higher than the previous corresponding year. The company informed that the record dividend was driven by the positive results at Greenbushes.

Moreover, during the reported period, the revenue increased by 13.4% to AUD 1,024 million and underlying EBITDA increased by 177.1% to AUD 1,987 million.

Top 10 shareholders of IGO

The top 10 shareholders of IGO have nearly 35.34% stake in the firm, while the top four having around 24.76% shareholding. FIL Investment Management (Australia) Limited and Yandal Investments Pty. Ltd. have the maximum stake in the firm, with a shareholding of ~8.72% and ~8.60%, respectively.

Recent business update

Through an ASX-update dated 6 November 2023, the company informed that its technical team and the Buxton has confirmed cobalt and nickel mineralization in sulphides from the first hole at the Dogleg Prospect of the West Kimberley Project JV. With this result, along with the results from the merlin Prospect, reinforces the potential of the West Kimberley Project to host Nova-Bolinger style nickel sulphide deposits.

Through an ASX filing dated 30 October 2023, the company shared its first quarter results for FY24. During the reported period, the company registered a 33% YoY increase in net cash from operating activities and 39% YoY rise in underlying free cash flow. Despite the dividend payment of AUD 454 million, the net cash position of IGO improved quarter on quarter, informed IGO.

Outlook

The company delivered positive financial returns in the first three months of FY24 on the back of its lithium business. Despite near term volatility, the lithium market fundamentals are strong, shared IGO.

Moreover, nickel supply is expected to rise with the expected surge in demand for battery. By 2040, around 1.5 million tonnes of nickel would be demanded from new resources.

The company has a diverse portfolio of clean energy metals with a pipeline of growth within upstream, downstream and exploration space.

Share performance of IGO

IGO shares closed 2.4% down at AUD 9.36 apiece on 8 November 2023. With this, IGO’s share price has witnessed a fall of nearly 40% in the past one year and a decline of 28.88% in the past three months.

The 52-week high of IGO is AUD 17.13, recorded on 11 November 2022, and the 52-week low is AUD 9.185, recorded on 2 November 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 8 November 2023. The reference data in this report has been partly sourced from REFINITIV.