While IGO posted a weaker net profit after tax (NPAT) in the 2021–22 financial year (FY22), the company is starting to enjoy the fruits of its labour.
IGO’s NPAT fell from $549 million in FY21 to $331 million in FY22, but other metrics indicate the company is strongly positioned to capitalise on appreciating battery metals demand.
Underlying EBITDA (earnings before interest, taxes, depreciation, and amortisation) rose 51 per cent year-on-year from $475 million to a record $717 million, while IGO’s share in its lithium joint venture (JV) with Tianqi Lithium Corporation delivered $177 million to the company’s profit.
The Greenbushes operation in WA, of which IGO and Tianqi own 51 per cent (Albemarle Corporation owns 49 per cent), is living up to its reputation as the biggest lithium mine in the world, producing a mammoth 1.14 million tonnes (Mt) of spodumene concentrate in FY22.
IGO said Greenbushes achieved record operating and financial results in FY22 and will continue to grow with the JV looking to produce between 1.35–1.45Mt of spodumene from the operation in FY23.
In parallel, the first train of the Kwinana lithium hydroxide refinery in WA produced its first battery-grade lithium hydroxide in May 2022 and is expected to ramp up to a nameplate production capacity of 24,000 tonnes per annum.
IGO’s nickel aspirations continue to materialise, with the company’s trusted Nova operation complemented by the addition of Western Areas and its nickel assets in FY22.
IGO managing director and chief executive officer Peter Bradford said it was exciting times for the company’s nickel business.
“Our Nova operation continued to deliver consistent production and, with the benefit of higher commodity prices, delivered record financial outcomes across all key financial metrics,” he said.
“This strong performance from Nova enabled the opportunity to expand our nickel business during FY22 with the successful completion of the Western Areas acquisition in June 2022.
“This transaction was a natural consolidation of the Western Australian nickel sector, delivering synergies and a stronger portfolio of nickel assets to IGO, which enables further work towards the development of a nickel downstream business for IGO.”
Nova produced 26,675 tonnes of nickel in FY22, achieving the upper end of its 25,000–27,000-tonne guidance.