IGO’s 1QFY25 result was mixed as production and costs were better than expected at Greenbushes, however this was offset by lower-than-expected realised prices. The nickel performance was also mixed, although we note there is cost risks (versus guidance) at Nova. IGO reported a Ebitda loss of A$2.9m in the quarter and saw a ~A$200m cash outflow due to weak spodumene prices and the payment of the final dividend. We note that IGO is one of the few producers globally who could preserve cash at current spot lithium prices (positive operating cash flow of A$3.1m in the quarter), and we reiterate our BUY rating as we forecast a lithium price recovery in the medium term.
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