IGO slashes losses as underlying earnings swing positive

IGO (ASX:IGO) announced its financial results for the first half of fiscal year 2026, signaling a resilient recovery driven by operational improvements at its Nova mine and a rigorous commitment to cost discipline.

Despite a challenging pricing environment for battery metals, the company reported a significant narrowing of its statutory losses and a return to positive underlying earnings.

For H1 FY26, IGO recorded a net loss after tax of $34 million, a drastic improvement compared to the $782 million loss in the previous corresponding period, which was heavily impacted by asset impairments.

Revenue stood at $194 million, down from $284 million in H1 FY25, primarily due to lower nickel sales volumes as the Forrestania operation transitioned to care and maintenance.

However, the company’s underlying EBITDA surged to $49 million, recovering from an $82 million loss last year, while free cash flow swung to a positive $29 million.

The Greenbushes operation remains a cornerstone of the portfolio, producing 672kt of spodumene at a unit cost of $380/t, maintaining a robust 61% EBITDA margin.

Meanwhile, the Nova operation delivered a solid $67 million in EBITDA, proving its value even as it nears the end of its mine life.

CEO Ivan Vella emphasised that the results reflect "decisive actions" to maximize cash generation.