Battery minerals miner IGO has booked a $34.1 million net loss for the second half of 2025 in a move chief executive Ivan Vella said shows “decisive action” over the past 12 months.
The result compared to IGO’s $782m net loss for the same half a year prior when the company made a huge accounting impairment against its dysfunctional Kwinana lithium hydroxide refinery.
Kwinana’s underlying earnings loss was $70.9m for the most recent half. IGO wants to put Kwinana out of its misery but joint venture partner — China’s Tianqi — controls the loss-making operation and wants to keep it running to serve its global supply chain.
The refinery is fed by ore from the highly profitable Greenbushes lithium mine, which IGO has a 25 per cent stake in and Tianqi 26 per cent via the duo’s Tianqi Lithium Energy Australia JV.
Greenbushes generated earnings before interest, tax, depreciation and amortisation of $463.6m for the half but no dividend was received from the mine. A large chunk of the cash it produces is being used to prop up Kwinana.
There was no word from IGO on Thursday as to when TLEA’s dividends from Greenbushes would start to flow into its coffers again given the recent resurgence in lithium prices.
Dividends have been off the table since late 2024 when lithium’s value was in decline.
IGO’s cash balance rose $19m to stand at $299m by December 31, buoyed by $97m of positive cash flow from its fading Nova nickel mine.
The South Perth-headquartered miner is wringing out the final high-grade ounces from Nova before the mine reaches the end of its life later this year.
“IGO’s improved underlying results reflects our decisive actions over the past 12 months to maximise cash generation and increasing cost discipline,” Mr Vella said.
“While we always have further work to do, I see these results showing good progress, particularly at a time when complexity in the Nova mine is at an all time high.
“The Greenbushes optimisation and productivity work programs are continuing and we are starting to see progress in key areas, including across asset utilisation and mine planning. I am confident we are making steady progress on the work to unlock the full value of this extraordinary asset.”
IGO shares were down 2.4 per cent in early trade on a green day for lithium stocks.