Perth, April 25, 2026, 05:06 (AWST)
IGO Limited cut full-year production guidance for the Greenbushes lithium mine and raised its cost forecast, a sharp reset for one of Australia’s best-known battery-metals stocks despite stronger quarterly revenue and cash flow.
The South Perth-based miner now expects Greenbushes to produce 1.375 million to 1.425 million tonnes of spodumene, the lithium-bearing concentrate used to make battery chemicals, in FY26. That is down from 1.5 million to 1.65 million tonnes. Unit cash costs were lifted to A$380-A$420 a tonne from A$310-A$360, the company said in its March-quarter report.
The cut matters because Greenbushes is the core of IGO’s lithium exposure and one of the most closely watched hard-rock lithium assets globally. IGO owns 49% of Tianqi Lithium Energy Australia, which owns 51% of Greenbushes with Albemarle holding the remaining 49%; IGO’s indirect stake in Greenbushes is 24.99%, the company’s report showed.
Investors focused on execution, not just the stronger price tape. IGO shares fell by double digits in Friday trading after the update, while peers had a mixed-to-stronger day: Stockhead reported Pilbara Minerals rose after a stronger Pilgangoora quarter, while IGO was hit by the Greenbushes downgrade.
Greenbushes produced 351,000 tonnes in the quarter, broadly flat on the prior quarter, but IGO cited lower feed grade, weaker recoveries and more downtime tied to maintenance outages. The average realised spodumene price nearly doubled to US$1,668 a tonne, helping the mine deliver a 75% EBITDA margin, but the operating miss still forced the lower outlook. EBITDA is earnings before interest, tax, depreciation and amortisation, a common measure of operating profit.
Managing Director and Chief Executive Ivan Vella did not dress it up. “Greenbushes production result this quarter is disappointing,” he said, adding that performance had been challenged across safety, grade, recoveries, maintenance and plant reliability. He said “many of these issues are systemic,” and improvement would take time.
The group numbers were stronger away from that headline. IGO’s sales revenue rose 45% quarter-on-quarter to A$119.7 million, underlying EBITDA rose to A$118.9 million from A$29.9 million, and net cash increased to A$327 million at March 31.
Nova helped carry the quarter. The nickel-copper operation lifted nickel production 11% and generated A$52 million of free cash flow, even as the asset moves toward the end of its mine life, according to IGO’s presentation.
Kwinana remains the awkward middle ground. Lithium hydroxide output rose to 3,047 tonnes, or 51% of nameplate capacity, and conversion costs fell as production improved. But the refinery still reported an A$8 million EBITDA loss on a 100% basis, and IGO flagged a large shutdown in April and May.
RBC analyst Kaan Peker called the Greenbushes cuts a “meaningful downgrade to both volume and margin,” Stockhead reported. He also said Kwinana “remains sub-scale and loss-making,” even after the better March-quarter production. Stockhead
The competitive backdrop made the miss more visible. Pilbara Minerals’ Pilgangoora mine reported higher spodumene production and a stronger realised price in the same reporting window, while IGO’s Greenbushes downgrade suggested not all lithium producers are converting the price recovery into cleaner operating results.
The risk is that Greenbushes takes longer than expected to stabilise. IGO said improvement programs are targeting safety, mining, maintenance, grade control and plant recovery, but also said the work represents “significant systemic changes” that need several periods before sustained results are clear. Fuel is another watch point: Greenbushes uses about 3 million litres a month and IGO said higher fuel costs could flow through in future periods.
For now, the market has a cleaner question than the quarterly numbers first suggest. IGO has more cash, better Nova performance and stronger lithium prices; it also has a flagship asset that has just reset expectations lower.
