IGO saw a record $1 billion in revenue for the financial year, generating net profit after tax of $549 million, which acting chief executive officer Matt Dusci called “the strongest set of financial results in IGO’s 21-year history.
This was underpinned by an enormous $1.987 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA).
The company’s shareholders reaped some of the rewards.
“This has enabled the declaration of a final dividend of $0.44 plus a $0.16 special dividend for FY23 (financial year 2023), bringing total dividends for FY23 to a record $0.74 per share, equivalent to $560 million in dividend payments,” Dusci said.
Lithium production at the company’s Greenbushes mine, which it co-owns with joint venture partner Tianqui Lithium, significantly contributed to the earnings. Greenbushes has the highest ore reserve grade of any hard rock lithium mine globally.
The mine produced roughly 1.49 million tonnes of spodumene at a cost of $244 per tonne in FY23.
“Within our lithium business, excellent production and cost performance at the Greenbushes lithium mine, combined with exceptional realised pricing, drove record earnings and cash dividends of over $1 billion to IGO, via our lithium joint venture,” Dusci said.
“Meanwhile, performance at the Kwinana lithium hydroxide refinery is expected to improve over FY24 as progressive rectifications are made to improve operational performance.”
Lithium hydroxide production at Kwinana was lower than expected in FY23 owing to operational changes.
Nickel also contributed to the company’s success.
“Our nickel business also delivered with our operating assets, Nova and Forrestania, generating aggregate free cash flow of $587 million for the year at an EBITDA margin of 56 per cent.”