IGO, an Australia-based exploration and mining company, has reported a net loss after tax amounting to A$955m for the fiscal year ending June 2025 (FY25), compared to a profit of A$3m in FY24.
The company’s revenue declined to A$528m, compared to A$841m in the previous fiscal year.
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Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) loss for FY25 was A$43m, while underlying free cash flow was A$49m, a stark contrast to the A$713m reported in FY24.
The FY25 results indicate the challenges in the market, particularly due to tough pricing conditions in both the nickel and lithium sectors, the company stated.
IGO’s investment in Tianqi Lithium Energy Australia was notably affected, with a reported share of net loss amounting to A$642m due to various factors including the full impairment of Kwinana refinery assets and lower spodumene prices at Greenbushes.
Despite these setbacks, the Greenbushes operation itself maintained strong margins, achieving a full year EBITDA margin of 66%.
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By GlobalDataThe Kwinana refinery, partially owned by IGO, faced a challenging year with an EBITDA loss of A$210m, although lithium hydroxide production increased compared to the prior year.
IGO’s nickel business also saw a decline, with revenue falling to A$512m, compared to A$823m in FY24, and underlying EBITDA dropping to A$59m.
IGO also recognised A$115m in non-cash impairments against its exploration assets following a strategic review and new business model implementation to enhance target prioritisation and value delivery.
As of 30 June 2025, IGO’s cash and cash equivalents stood at A$280m, a decrease from the previous year’s A$468m, influenced by an A$197m dividend payout to shareholders.
IGO managing director and CEO Ivan Vella said: “IGO’s FY25 financial results are disappointing. Both challenging market conditions and asset impairments, as a result of a disciplined portfolio review, impacted our headline results.
“Some of these were difficult decisions; however, our underlying business remains solid and we have a clear strategy for value and growth we are delivering on. The improvement in safety throughout the year has also been a key achievement and sets a positive foundation for FY26.”
Additionally, IGO has revised its revolving credit facilities along with a refreshed capital guideline, reducing the size of the revolving credit facilities to A$300m and extending the maturity date to 31 July 2028.
The company has also set a new liquidity threshold of A$500m for shareholder return targets, maintaining a return range of 20–40% of underlying free cash flow, with potential for higher returns when liquidity exceeds the threshold.
Furthermore, IGO has entered into an asset sale agreement with Medallion Metals for the acquisition of the Forrestania Nickel Operation, with the transaction expected to be completed by late 2025.
Medallion is set to take over complete ownership and control of Forrestania’s holdings, which encompass the Cosmic Boy facility, related infrastructure, stockpiles and liabilities, except for specific mineral entitlements that IGO will retain.
