Australian-based IGO Ltd. reported a A$955 million ($650 million) net loss (after taxes) for FY2025, a staggering difference from FY24’s near A$3 million profit. Underlying EBITDA loss was reported at negative A$43 million, down from $581 million earnings in FY24.
The company cited an impairment with several exploration assets and an increased rehabilitation provision, along with an overall weaker performance and lower sales in its nickel and lithium businesses.
“IGO’s FY25 financial results are disappointing. Both challenging market conditions and asset impairments, as a result of a disciplined portfolio review, impacted our headline results. Some of these were difficult decisions, however our underlying business remains solid, and we have a clear strategy for value and growth we are delivering on,” said Ivan Vella, IGO managing director and CEO.
Perhaps the most substantial portion of IGO’s financial losses in FY25 can be attributed to the company’s investment in Tianqi Lithium Energy Australia Pty Ltd (TLEA) and the Kwinana lithium hydroxide refinery in Western Australia, of which IGO holds a 49% stake. The Kwinana refinery was subject to a full impairment, accompanied by the derecognition of deferred tax assets and lower spodumene prices, which ultimately led to A$642 million in losses.
Further losses can be attributed to an additional A$115 million in unsuccessful exploration asset write-offs and a A$58 million increase in rehabilitation provisions for the Nova, Cosmos and Forrestania nickel mines.
IGO’s nickel revenue also fell from A$823 million in FY24 to A$512 million for FY25 while underlying EBITDA dropped to A$59 million, reflecting the current state of the battery minerals sector. The company’s Nova Operation generated revenue 19% lower than the prior year, as a result of lower nickel prices and sales volumes, while a significant seismic event at the Forrestania Operation caused operation to temporarily halt operations, thus affecting sales revenue.