Lithium miner IGO claims $1.1b Greenbushes dividend
Cashed-up West Australian lithium miner IGO has rewarded investors with a hefty dividend after its share of earnings from the world’s largest hard rock lithium mine surged. It signalled plans to double down on its onshore battery metal processing.
IGO, which is a joint venture partner with China’s Tianqi in their 51 per cent-stake in the Greenbushes mine, banked $1.1 billion from its cut of the JV, up from $71 million in 2021-22, thanks to higher output and rich spodumene prices.
Located 250 kilometres south of Perth, Greenbushes boasts the highest grade and largest spodumene deposit in the world; the other 49 per cent is owned by US battery chemical giant Albemarle. A 10-year expansion of the mine is slated to end in 2027.
An IGO lithium hydroxide plant outside Perth.
Although lithium prices have fallen in the spot market this year, IGO’s bottom line was boosted by the 32 per cent increase in annual spodumene production out of Greenbushes. This translated to a 66 per cent boost to net profit of $549 million in the 12 months to June 30. Group revenue climbed 13 per cent to $1 billion.
The results were largely in line with market expectations said Daniel Morgan, an analyst at Barrenjoey. IGO advanced 5.5 per cent to $13.92 on Thursday.
“For us at the moment, it’s about the significant investment that we’re putting into the lithium business, the expansion of Greenbushes and bringing the Kwinana [processing plant] trains into production,” said Matt Dusci, the miner’s acting chief executive.
“When you look at those returns by themselves, they dwarf anything else that we could do in terms of return to shareholders.”
Mr Dusci also doubled down on IGO and Tianqi’s move to build a second battery-grade processing facility amid a
Read more on afr.com
