Miner and explorer IGO has posted full-year profit of A$3-million, a significant drop from the A$549-million posted in the 2023 financial year.

The results were impacted by a A$172-million impairment charge against the Forrestania and Cosmos nickel assets acquired during the Western Areas acquisition in June 2022, and an additional A$286-million writedown on its nickel exploration portfolio. Excluding these charges, IGO recorded a net profit after tax of A$319-million.

Group revenue for the year decreased by 18% to A$841-million, driven by a 27% decline in revenue from the Nova Operation, attributed to lower nickel prices and reduced sales volumes. Revenue from the Forrestania Operation also fell owing to lower sales volumes, though this was partially offset by nickel hedging in the first half of the year. The results included an initial revenue contribution of A$49-million from the Cosmos Operation.

Despite the challenges, IGO’s investment in Tianqi Lithium Energy Australia continued to deliver strong earnings. IGO’s share of net profit from TLEA was A$553-million for the year, down from A$1.6-billion in the 2023 financial year, reflecting the impact of softer spodumene and lithium hydroxide prices.

The Greenbushes Operation, where IGO holds a 24.99% indirect interest, generated full-year sales revenue of A$4.64-billion on a 100% basis, compared with A$10.5-billion a year earlier.

Spodumene production at Greenbushes reached 1.38-million tonnes, with unit production cash costs of A$330/t, compared with 1.49-million tonnes and A$244/t in the previous year.

Greenbushes’ strong performance resulted in dividends of A$761-million to IGO from TLEA in 2024.

CEO Ivan Vella commented that while IGO faced numerous challenges in 2024, it also set the stage for the company's next chapter.

“Operationally, we have worked to adapt to the changing market conditions and the increased volatility in our markets. The quality of Greenbushes continues to shine through, with a solid production and cost result underpinning strong margins and cash flow, via our joint venture.

“Within our nickel business, our low-cost Nova Operation continued to generate strong free cash flow despite the commodity price headwinds that contributed to our decision to put Cosmos into care and maintenance,” said Vella.

He stated that IGO's refreshed strategy would be ready for release in the coming weeks, with the company focusing on aligning its corporate and exploration teams to execute its new strategic direction.