Why Is IGO Limited (ASX:IGO) Reporting Record Greenbushes Output Alongside a Kwinana Loss?

Sonal Goyal

10 November 2026 05:04 PM AEDT

Why Is IGO Limited (ASX:IGO) Reporting Record Greenbushes Output Alongside a Kwinana Loss?

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Key Highlights

• Greenbushes produced 435,000 tonnes of SC6.0 spodumene concentrate on a 100 per cent basis, up 12 per cent from 387,000 tonnes in the June quarter and a quarterly record.

• IGO said the third processing plant, CGP3, reached nameplate capacity in September, about nine months after first ore, despite a fire in June.

• Production cash cost fell 7 per cent to A$418 a tonne and the mine's EBITDA Margin was 83 per cent.

• Sales of 376,000 tonnes were 4 per cent lower than the prior quarter because port constraints forced smaller cargo sizes, leaving concentrate inventory higher.

Why did IGO Limited (ASX:IGO) lead its latest Quarterly Report with record lithium output while still reporting a sizeable loss at its Kwinana refinery? Because the company's Earnings now hinge on one dominant asset, the Greenbushes spodumene mine in Western Australia, while the Downstream and legacy businesses are being reshaped around it. The quarter to 30 September 2026 (1Q27), published on 29 October 2026, shows both the resilience of that core and the drag from the parts of the portfolio that have not yet delivered.

The central development: a record quarter at Greenbushes

Greenbushes produced 435,000 tonnes of SC6.0 spodumene concentrate on a 100 per cent basis, up 12 per cent from 387,000 tonnes in the June quarter and a quarterly record. IGO said the third processing plant, CGP3, reached nameplate capacity in September, about nine months after first ore, despite a fire in June.

Production cash cost fell 7 per cent to A$418 a tonne and the mine's EBITDA margin was 83 per cent.

The picture was not uniformly positive. Sales of 376,000 tonnes were 4 per cent lower than the prior quarter because port constraints forced smaller cargo sizes, leaving concentrate inventory higher. The average realised price slipped 7 per cent to US$2,130 a tonne.

What IGO does and how it earns

IGO is an ASX-listed miner focused on metals used in electrification. Its principal exposure is lithium, held through a 49 per cent interest in the Tianqi Lithium Energy Australia group (TLEA). That structure gives IGO an indirect 24.99 per cent interest in Greenbushes and a share of the Kwinana lithium hydroxide refinery.

The group also owns the Nova nickel-copper-cobalt operation in Western Australia, which is being sold, and holds exploration projects including Cosmos and Copper Wolf in the United States.

Earnings therefore come from IGO's share of Greenbushes profits, Nova metal sales and Investment gains. Lithium prices are the main swing factor.

Reported results and the latest quarter

For the 2026 financial year, IGO reported Revenue of A$462.9 million, down 12 per cent, and a net profit after tax of A$145.3 million, compared with a A$954.6 million loss a year earlier. Underlying EBITDA was A$285.9 million. A final Dividend of 5 cents a share, fully franked, was declared, and group cash at 30 June 2026 was A$386.5 million.

In the September quarter, IGO's attributable underlying EBITDA was A$176.1 million, up 49 per cent, although that included a A$31.9 million mark-to-market gain on listed investments. Its share of TLEA net profit was A$114.3 million, down 5 per cent. Operating Cash Flow was A$39.8 million, down from A$69.2 million, partly because of the timing of debtor receipts.

IGO ended the quarter with net cash of A$376.3 million and a fully undrawn A$300 million revolving Credit Facility expiring in July 2028. Windfield, the joint venture holding company, carried A$2.12 billion of drawn Debt outside IGO's own net cash figure.

Kwinana remains the weak link

The Kwinana refinery produced 918 tonnes of lithium hydroxide, up 2 per cent, during a major shutdown to commission a calciner off-gas treatment system. Conversion cost fell 17 per cent to A$33,677 a tonne, but that is still far above the FY27 guidance of A$16,000 to A$18,000 a tonne, which depends on throughput rising sharply.

The refinery recorded an EBITDA loss of A$65.4 million, including a A$32.0 million negative inventory write-down to net realisable value, reflecting lower hydroxide prices and higher spodumene feedstock costs. The average realised price was US$17,676 a tonne, down from US$19,543.

IGO expensed its A$6.9 million share of Kwinana Capital spending for the quarter.

Nova winds down and the portfolio narrows

Nova produced 4,635 tonnes of nickel and 2,144 tonnes of copper in the quarter, with payable nickel cash cost of A$2.00 a pound. Mining and processing were due to say in late October 2026. IGO has agreed to sell the operation to Global Lithium Resources, with completion expected in the December 2026 quarter.

The sale, together with the earlier Forrestania nickel sale to Medallion Metals, reflects a stated strategic shift towards lithium and copper.

Sector conditions and competitive position

Spodumene prices remain well below the peaks of recent years, and the 7 per cent quarterly fall in IGO's realised price shows the market is still uneven. Greenbushes' low cost position helps it stay profitable when prices are subdued. Refiners outside China, such as Kwinana, face a tougher case because they buy feedstock at market prices and compete with large, established Chinese conversion capacity.

Strategic review and guidance

Technical work in the Greenbushes Strategic Options Review is substantially complete, with IGO identifying potential in resource and reserve optimisation, mine design, scheduling, recovery and product grade. IGO noted that realising value depends on water, tailings and port capacity.

FY27 guidance for Greenbushes is 1.55 to 1.75 million tonnes of spodumene at a cash cost of A$380 to A$440 a tonne. Kwinana is guided to 9,000 to 11,000 tonnes of lithium hydroxide. Nova's remaining life-of-mine nickel production is guided to 19,000 to 20,000 tonnes, with the company saying it is on track to exceed the top end.

Risks and what to watch

Key uncertainties include lithium price volatility, port and logistics constraints, tailings storage capacity, and Kwinana's ability to ramp up and cut costs.

TLEA did not declare a dividend in the quarter, and the board will assess distributions in the December quarter.

Upcoming dates are the December 2026 quarterly report on 28 January 2027 and the FY27 half-year results on 24 February 2027.

Balanced view

IGO offers concentrated exposure to a low-cost lithium asset alongside a loss-making refinery, though earnings still depend on a volatile commodity.

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