Australian lithium miner IGO said on Monday its fourth-quarter profit rose 19% from the previous three months, helped by higher production and sales of spodumene at its Greenbushes operation.
Spodumene concentrate production at Greenbushes rose to 395 kilo tonnes (kt) from 356 kt in the previous quarter, while the unit cost of goods sold excluding royalties (COGS) increased 4% to AUSD 304 per tonne, reflecting high costs in Western Australia and particularly in the resources industry.
Full-year spodumene production and unit COGS for Greenbushes both ended the year marginally above guidance, the company said in a statement.
IGO holds its lithium interests via its 49% stake in Tianqi Lithium Energy Australia (TLEA), an incorporated joint venture with China’s Tianqi Lithium Corp. TLEA owns an integrated lithium business, including a 51% interest in the Greenbushes Operation.
IGO reported underlying earnings before interest, taxes, depreciation, and amortization of AUSD 636.2 million (USD 423.52 million) for the three months ended June 30, compared with AUSD 533.2 million in the prior quarter.
Earlier this month, IGO flagged a non-cash impairment expense of between AUSD 880 million and AUSD 980 million (USD 600.42 million-USD 668.65 million) for fiscal 2023 due to ballooning capital costs at its nickel operations.
“The impairment charge… is very disappointing and reflects changes to capital costs, operating costs and mine production schedule challenges at the Cosmos project and underperformance at Forrestania,” said acting Chief Executive Matt Dusci.
Prior to the impairment, net profit after tax (NPAT) for the quarter was approximately AUSD 525 million, the battery minerals producer said.
Shares of IGO fell as much as 5.3% by 0035 GMT, while the broader market was up 0.3%. (USD 1 = 1.5022 Australian dollars)
