How Does IGO(ASX:IGO) Navigate the Closure of Nova and Record Greenbushes Production?

Sonal Goyal

05 November 2026 08:13 PM AEDT

How Does IGO(ASX:IGO) Navigate the Closure of Nova and Record Greenbushes Production?

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Key Highlights

• Greenbushes delivered record quarterly production of 435,000 tonnes of spodumene concentrate with CGP3 reaching nameplate capacity

• Nova nickel operations concluded after nearly a decade, with production expected to exceed the top end of LOM guidance

• Underlying EBITDA of A$176.1 million for Q1 FY27, up from A$117.8 million in Q4 FY26

• Net cash of A$376.3 million with A$300 million revolving Credit Facility fully undrawn

IGO Ltd(ASX:IGO) closed at A$5.27 on 05 November 2026, a gain of 8.88% for the trading session. The S&P/ASX 200 (XJO) advanced 2.61% (+230.60 points) to 9,065.10, while the S&P/ASX 300 Metal & Mining index (XMM) surged 7.90% (+580.50 points) to 7,930.90. Overnight Wall Street gains following the Democrats' decisive victory in the U.S. midterm elections provided a tailwind for global markets. Gold gained 1.77% to USD 4,145.70, silver advanced 1.00% to USD 53.22, and copper edged up 0.06% to USD 14,086.00. IGO is an ASX-listed mining company focused on lithium and base metals, with interests in the Greenbushes lithium mine in Western Australia through its Tianqi Lithium Energy Australia (TLEA) joint venture.

Record Greenbushes Performance and Nova Closure

IGO released its Quarterly Report for the period ended 30 September 2026 on 29 October 2026. The Greenbushes operation delivered a record quarter, producing 435,000 tonnes of spodumene concentrate. The result was supported by the CGP3 processing plant reaching nameplate capacity during September, together with improved recoveries across the operation. Cash costs improved 7% to A$418 per tonne from A$448 per tonne in the prior quarter. The realised spodumene price declined 7% to US$2,130 per tonne, while the Greenbushes EBITDA Margin expanded to 83% from 80% in Q4 FY26. A Dividend of A$680.1 million was paid by Windfield to shareholders (100% basis) during the quarter.

Meanwhile, the Nova nickel-copper mine in Western Australia completed its final full quarter of operations after nearly a decade of production. Management noted that nickel production is expected to exceed the top end of life-of-mine guidance, with cash costs below the bottom end. Mining and processing operations at Nova were set to conclude by the end of October 2026, with the divestment to Global Lithium Resources expected to complete during the December quarter.

Financial Performance

Group underlying EBITDA reached A$176.1 million for the quarter, an increase from A$117.8 million in Q4 FY26. IGO's share of profit from TLEA was 5% lower at A$114.3 million, impacted by lower sales and prices at Greenbushes. Group sales Revenue increased 12% during the quarter, primarily due to higher nickel sales volumes, partially offset by lower realised nickel prices. Underlying free Cash Flow was A$39.7 million, down from A$69.5 million in the prior quarter, largely due to the timing of debtor receipts. Net cash declined A$10.2 million to A$376.3 million following the payment of IGO's final FY26 dividend of A$37.9 million (5 cents per share). The Kwinana lithium hydroxide refinery produced 918 tonnes during the quarter, impacted by a major planned shutdown.

About the Company

IGO Ltd is a Perth-based mining company with interests in lithium and base metals. Its principal asset is a 49% interest in TLEA, which owns the Greenbushes lithium mine — one of the world's largest and lowest-cost hard-rock lithium operations — and the Kwinana lithium hydroxide refinery. IGO also operated the Nova nickel-copper-cobalt mine until its closure in October 2026.

Sector Context

The lithium sector continued to navigate shifting supply-demand dynamics during the quarter, with spodumene prices declining from recent peaks but remaining at levels supporting positive margins at Greenbushes. The broader mining sector rallied on 05 November, with the XMM index gaining 7.90%. The strategic Options review at Greenbushes is identifying opportunities across resource and reserve optimisation, mine design, recovery uplift, and product grade improvements.

Risks

Key risks include lithium price volatility, execution risk on the Greenbushes strategic options review, the transition from Nova closure to a single-asset company (pending new acquisitions), and currency movements affecting Australian dollar-denominated costs against US dollar-denominated lithium prices. The Kwinana refinery's production ramp-up and the Global Lithium Resources divestment timeline also carry execution risk.

Catalysts on Watch

Investors are watching the completion of the Nova divestment to Global Lithium Resources, outcomes of the Greenbushes strategic options review, Kwinana refinery production ramp-up, and any new Acquisition or growth opportunities as IGO repositions towards copper and lithium assets.

What It All Means

IGO enters a transitional period as it closes the Nova chapter and pivots towards a lithium-focused future anchored by its interest in Greenbushes. The record quarterly production and expanding margins at Greenbushes provide a platform of cash generation, while the A$376.3 million net cash position and undrawn credit facility offer financial flexibility to pursue future growth in copper and lithium.

FAQs

Q: What was Greenbushes' production in Q1 FY27?

A: Greenbushes delivered a record quarter of 435,000 tonnes of spodumene concentrate, supported by CGP3 reaching nameplate capacity.

Q: Is the Nova mine closing?

A: Yes, mining and processing operations at Nova concluded by the end of October 2026 after nearly a decade of production. The divestment to Global Lithium Resources is expected to complete in the December quarter.

Q: What was IGO's underlying EBITDA in Q1 FY27?

A: Group underlying EBITDA was A$176.1 million, up from A$117.8 million in the prior quarter.

Q: How much cash does IGO hold?

A: IGO held net cash of A$376.3 million as at 30 September 2026, with a A$300 million revolving credit facility fully undrawn.

Q: What is IGO's strategy going forward?

A: IGO is focused on building a copper and lithium business, pursuing opportunities where it can apply its capabilities and create long-term value, while maintaining discipline on capital allocation.

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