IGO Reports Record Financial Performance for FY23

In a remarkable display of growth, IGO Limited (ASX: IGO), a leading clean energy metals company, has unveiled its outstanding financial results for the 2023 financial year. The company achieved a record-breaking revenue of $1.024 billion, an impressive 13% increase compared to the previous year. This robust performance translated into a net profit after tax of $549 million, marking a substantial 66% increase year-over-year.

Source: Kapitales Research

Lithium Joint Venture Shines

IGO's exceptional financial performance can be attributed to its remarkable success in the Lithium Joint Venture. The venture contributed significantly, enabling IGO to gain a share of net profit amounting to $1.604 billion and dividends totaling $1.184 billion. This achievement highlights IGO's strategic prowess in the clean energy metals sector.

Greenbushes Operations

The Greenbushes annual spodumene production exceeded expectations, reaching an impressive 1,491kt. While unit costs of goods sold were slightly above the upper end of the guidance at $279/t, the overall production performance showcased the company's operational excellence.

Challenges and Progress

The company's Kwinana Lithium Hydroxide Refinery faced challenges in ramping up production at Train 1. However, the management expects a performance improvement in the coming fiscal year (FY24). On a positive note, IGO's nickel production reached 34,846t, and cash costs of $5.63 per payable pound of nickel remained within revised guidance, demonstrating the solid operational performance of the Nova and Forrestania assets.

Cosmos Project Development

The development of the Cosmos Project remains a priority for IGO. While the project saw substantial progress with key work packages completed or nearing completion, an impairment charge of $968 million was recorded against the Forrestania and Cosmos assets. This development prompted an independent review of the Cosmos Project, with outcomes expected by the end of the December 2023 quarter.

Strong Financial Position

IGO's financial strength is evident with $775 million in cash on its balance sheet as of June 30, 2023. The net debt stood at $415 million, showcasing the company's prudent financial management strategies.

Future Outlook The passing of IGO's Managing Director and CEO, Peter Bradford, in October 2022 was a significant loss for the company. However, under the leadership of Ivan Vella, who assumes the role of

Managing Director and CEO in December 2023, IGO is poised for continued growth.

In conclusion, IGO's record-breaking financial performance in FY23, fueled by its strong presence in the clean energy metals sector and commitment to operational excellence, sets the stage for a promising future. The company's ability to overcome challenges and capitalize on opportunities positions it for sustained success.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com