Key Highlights

• Greenbushes, the Western Australian hard-rock lithium mine held through the Tianqi Lithium Energy Australia (TLEA) joint venture, produced 435kt of spodumene concentrate on a 100 per cent basis in the September 2026 quarter.

• First, its share of TLEA's net profit, which reflects Greenbushes and the Kwinana lithium hydroxide refinery; this was A$114.3 million for the quarter, slightly lower than the previous quarter.

• Kwinana, the lithium hydroxide refinery, produced 918 tonnes in the quarter and sold 926 tonnes at a realised price of US$17,676 per tonne.

• Nova produced 4,635 tonnes of nickel and 2,144 tonnes of copper in the quarter, at a cash cost of A$2.00 per pound of nickel, against A$4.49 in the previous quarter.

What does IGO Limited's (ASX:IGO) September 2026 Quarterly Report tell investors about a company in transition? In short, it shows a lithium asset running at record volumes, a refinery still losing money and a nickel mine reaching the end of its life. IGO's own figures, released to the ASX on 29 October 2026, put Greenbushes spodumene production at a record 435 kilotonnes (kt) for the quarter, while the Nova nickel operation was due to finish Mining and processing in late October 2026.

The central development: record output, softer pricing

Greenbushes, the Western Australian hard-rock lithium mine held through the Tianqi Lithium Energy Australia (TLEA) joint venture, produced 435kt of spodumene concentrate on a 100 per cent basis in the September 2026 quarter. That was up from 387kt in the June quarter, and the company said its third chemical-grade plant (CGP3) reached nameplate capacity in September 2026. Sales were lower than production at 376kt, against 391kt in the prior quarter, and IGO pointed to port constraints that forced smaller cargo sizes and lifted concentrate inventory.

Pricing moved the other way. The realised price fell to US$2,130 per tonne from US$2,286 per tonne in the June quarter, although unit cash costs improved to A$418 per tonne from A$448. Greenbushes reported an EBITDA Margin of 83 per cent.

How IGO makes money

IGO is best understood as a holder of interests rather than an operator of a single mine. Its Earnings come from two main places. First, its share of TLEA's net profit, which reflects Greenbushes and the Kwinana lithium hydroxide refinery; this was A$114.3 million for the quarter, slightly lower than the previous quarter. Second, the Nova nickel-copper-cobalt operation, which IGO owns outright and which generated sales Revenue of A$157.9 million, up from the June quarter.

Group underlying EBITDA was A$176.1 million, compared with A$117.8 million in the June quarter, but that included a A$31.9 million mark-to-market gain on listed investments. Underlying free Cash Flow was A$39.7 million, down from A$69.5 million.

Kwinana remains the weak link

Kwinana, the lithium hydroxide refinery, produced 918 tonnes in the quarter and sold 926 tonnes at a realised price of US$17,676 per tonne. Conversion cost fell to A$33,677 per tonne, which is still far above the A$16,000 to A$18,000 per tonne range IGO has set as FY27 guidance. The refinery recorded an EBITDA loss of A$65.4 million, including a A$32.0 million negative inventory net realisable value adjustment linked to higher feedstock cost and lower hydroxide prices. A shutdown to commission a calciner off-gas system has been completed, and optimisation is continuing.

The gap between current performance and the FY27 targets, 9,000 to 11,000 tonnes of hydroxide at the stated cost range, is the clearest operating test in the coming quarters. A quarter at 918 tonnes annualises to roughly 3,700 tonnes, so the guidance implies a steep ramp-up.

Nova closes and the balance sheet

Nova produced 4,635 tonnes of nickel and 2,144 tonnes of copper in the quarter, at a cash cost of A$2.00 per pound of nickel, against A$4.49 in the previous quarter. IGO said nickel output was on track to beat the top of its life-of-mine guidance, with costs below the bottom of the range. Mining and processing conclude in late October 2026, and the sale of Nova to Global Lithium Resources is expected to complete in the December 2026 quarter, subject to conditions.

IGO reported net cash of A$376.3 million at 30 September 2026, down from A$386.5 million at 30 June. During the quarter it paid a final FY26 Dividend of A$37.9 million, or 5 cents per share. Its A$300 million revolving Credit Facility was undrawn and expires in July 2028. Nova's closure removes a source of cash flow, so future earnings will lean even more heavily on Greenbushes.

Sector and competitive position

Greenbushes is widely regarded as one of the world's largest and highest-grade spodumene deposits, and its cost position is reflected in the 83 per cent EBITDA margin. Lithium pricing remains the dominant variable. Realised prices have eased this quarter, so the margin depends on the cost advantage holding.

The holding structure matters. Windfield, the Greenbushes holding company, paid A$680.1 million (US$483.0 million) in dividends during the quarter, held A$368.8 million of cash and carried drawn Debt of A$2,121.3 million (US$1,480.0 million). TLEA received A$347 million of dividends from Windfield but declared none to its shareholders, with the board to assess distributions in the December quarter. IGO therefore does not automatically receive cash in proportion to its share of profit.

Strategic Options and growth

IGO said the technical elements of the Greenbushes Strategic Options Review are substantially complete, with a valuation due in the coming months. It cautioned that realising opportunities at the mine depends on water, tailings and port logistics. Beyond lithium, the company says it is pursuing copper and lithium growth through exploration, BioHeap partnerships and selective acquisitions.

Risks and what to watch

Key risks include lithium price volatility, port and logistics constraints, and the Kwinana ramp-up. The Nova sale remains subject to completion, and exploration spending, guided at A$35 million to A$40 million excluding lithium, will reduce free cash.

Dates to monitor include completion of the Nova sale in the December 2026 quarter, any TLEA distribution decision, the Greenbushes review outcome, the December quarterly report on 28 January 2027 and half-year results on 24 February 2027. FY27 guidance for Greenbushes is 1,550 to 1,750kt of spodumene at A$380 to A$440 per tonne, with development, sustaining and improvement Capital of A$250 million to A$300 million. Together, these dates give readers several checkpoints for judging how reported output and costs translate into cash generation.