Perth, April 25, 2026, 05:06 (AWST)
IGO Limited slashed its full-year output target for the Greenbushes lithium mine and bumped up its cost outlook, dialing back expectations for one of Australia’s most prominent battery-metals names—even though revenue and cash flow climbed this quarter.
The South Perth-based miner has cut its Greenbushes output target for FY26 to a range of 1.375 million to 1.425 million tonnes of spodumene, used in battery chemical production. Previously, the forecast sat between 1.5 million and 1.65 million tonnes. The company’s March-quarter report also flagged higher unit cash costs, now expected at A$380–A$420 per tonne, up from the earlier A$310–A$360 range.
The reduction is significant—Greenbushes sits at the heart of IGO’s lithium holdings and ranks among the world’s key hard-rock lithium sites. IGO holds a 49% interest in Tianqi Lithium Energy Australia, which itself owns 51% of Greenbushes, while Albemarle controls the other 49%. According to IGO’s report, that structure gives IGO an indirect 24.99% stake in Greenbushes.
Execution took center stage for investors, pushing aside the firmer price action. IGO shares tumbled more than 10% Friday after the latest update, bucking the trend as peers mostly finished up or flat. Pilbara Minerals gained after posting a solid quarter at Pilgangoora, Stockhead noted, while IGO was dragged lower by the Greenbushes downgrade.
Greenbushes turned out 351,000 tonnes for the quarter—roughly matching the prior period—but IGO pointed to lower feed grade, softer recoveries, and more maintenance-driven downtime. Average realised spodumene pricing almost doubled, hitting US$1,668 a tonne. That sharp lift pushed the mine’s EBITDA margin to 75%. Still, the operational shortfall prompted a cut to forecasts. EBITDA, or earnings before interest, tax, depreciation and amortisation, is a standard metric for operating profit.
Ivan Vella, Managing Director and Chief Executive, put it plainly: “Greenbushes production result this quarter is disappointing.” Performance was hit on multiple fronts—safety, grade, recoveries, maintenance, plant reliability—all under pressure. According to Vella, “many of these issues are systemic,” and turning things around won’t be quick.
Digging beneath the headline, the group posted solid gains. IGO’s sales revenue climbed 45% from the prior quarter to A$119.7 million. Underlying EBITDA shot up, hitting A$118.9 million after coming in at just A$29.9 million before. Net cash also moved higher, reaching A$327 million as of March 31.
Nova pulled its weight this quarter, with the nickel-copper site pushing nickel output up 11%. Free cash flow came in at A$52 million, IGO said in its presentation—even as Nova heads for late-stage production.
Kwinana is still stuck in an uncomfortable spot. Lithium hydroxide production climbed to 3,047 tonnes—51% of nameplate capacity—and conversion costs dropped as output picked up. Yet, the refinery posted an A$8 million EBITDA loss on a 100% basis. IGO also signaled a major shutdown for April and May.
RBC’s Kaan Peker didn’t mince words, labeling the Greenbushes production cuts a “meaningful downgrade to both volume and margin,” according to Stockhead. As for Kwinana, Peker noted it “remains sub-scale and loss-making,” despite improved output during the March quarter. Stockhead
The miss stuck out against tough peers. Pilbara Minerals’ Pilgangoora mine posted a lift in spodumene production, and notched up a better realised price for the period. Meanwhile, IGO’s Greenbushes downgrade showed that the lithium price rebound isn’t translating to smooth operating numbers for everyone.
The worry: Greenbushes might not settle as quickly as hoped. IGO flagged several improvement initiatives spanning safety, mining, maintenance, grade control and plant recovery, but cautioned these are “significant systemic changes” that could take multiple periods to bear out. Also on their radar—fuel. Greenbushes burns through roughly 3 million litres per month. According to IGO, if fuel prices climb, future costs could follow.
Right now, the real issue for the market isn’t buried in IGO’s latest quarterly numbers. The company’s cash pile is up, Nova is hitting its marks, and lithium prices aren’t letting up. Still, its headline project has just been marked down, resetting what investors can expect going forward.
