Greenbushes’ ‘world-class’ cost position

While many lithium mines are not achieving the margins of recent past, one operation is seemingly insulated from the downturn.

The Greenbushes lithium mine in WA, which is shared by IGO, Tianqi Lithium and Albemarle, achieved a 188 per cent increase in quarter-on-quarter (q-o-q) sales revenue in the three months to June 30.

This came off the back of a 19 per cent q-o-q increase in spodumene production, with 332,000 tonnes (t) produced in the June quarter.

With cash costs scaled back from $386/t to $338/t between successive quarters, Greenbushes delivered a 164 per cent q-o-q increase in its earnings before interest, taxes, depreciation, and amortisation (EBITDA) in the June quarter.

The more Greenbushes produces the lower the costs are, highlighting the advantages of operating a mine of this scale.

IGO had $468 million in cash at the end of the June quarter, a 70 per cent increase from the June quarter.

IGO’s Nova and Forrestania nickel operations delivered strong FY24 performances despite the nickel downturn.

Nova achieved its cash guidance despite its full-year nickel production falling just below the guided range and Forrestania’s full-year nickel production met guidance with its cash costs sitting just above guidance.

“Despite prevailing commodity prices, it has been encouraging to see IGO’s asset quality reflected in a strong free cash build over the quarter of $201 million, leaving our balance sheet at the end of June in an outstanding position with $468 million at bank,” IGO managing director and chief executive officer Ivan Vella said.

“Greenbushes’ world-class cost position continues to drive outstanding EBITDA margins which were 67 per cent for the (June) quarter and 85 per cent over FY24. This enabled the payment of over $761 million in dividends from TLEA (Tianqi Lithium Energy Australia) during FY24, demonstrating the value of our world-class lithium business can generate through the cycles.”