IGO -9.01%: A mixed bag in the 1Q update for the nickel and lithium company IGO today, though the market seemed to focus on the negatives and shares hit 12-month lows. EBITDA fell 42%, mostly on the back of lower profits from their Tianqi Joint Venture which was impacted by weaker lithium prices. Profit was up though as the TLEA JV passed on a record $578m dividend. Spodumene production at their Greenbushes asset was up which helped lower costs as well. Nickel production was an issue with both Forrestania & Nova seeing production fall more than 20% vs 4Q23, though the market was expecting Forrestania to be weak to start the year, Nova was worse than expected. The company left guidance unchanged, however, it was noted that TLEA won’t be taking their full lithium spodumene allocation from Greenbushes which will have a double-whammy impact on IGO earnings.
MM is now neutral IGO
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