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IGO (AU:IGO)
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IGO (IGO) AI Stock Analysis

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AU:IGO

IGO

(Sydney:IGO)

Rating:47Neutral
Price Target:
AU$4.50
▼(-7.22% Downside)
IGO's overall stock score reflects significant financial challenges, including declining revenues and negative profitability. While the earnings call provided some positive operational updates, ongoing issues in the lithium market and at the Kwinana refinery weigh heavily on the outlook. The technical analysis suggests mixed momentum, and the high dividend yield may appeal to some investors despite the negative P/E ratio.

IGO (IGO) vs. iShares MSCI Australia ETF (EWA)

IGO Business Overview & Revenue Model

Company DescriptionIGO Limited operates as an exploration and mining company that engages in discovering, developing, and operating assets focused on metals to enable clean energy in Australia. It owns and operates a 100% interest in the Nova nickel-copper-cobalt operation located to the east northeast of Norseman in the Great Western Woodlands of Western Australia; a 100% interest in the Cosmos nickel operation located to the north of Leinster in Western Australia; and a 100% interest in the Forrestania nickel operation located to the east of Perth in Western Australia. The company also focuses on investing in lithium mines, as well as holds 100% interest in the downstream processing refinery at Kwinana in Western Australia to produce battery grade lithium hydroxide. In addition, it owns and operates various projects, including Fraser Range, Kimberley, Paterson, Copper Coast, Frontier, Raptor, and Western Gawler projects. The company was formerly known as Independence Group NL and changed its name to IGO Limited in January 2020. IGO Limited was incorporated in 2000 and is headquartered in Perth, Australia.
How the Company Makes MoneyIGO makes money through the extraction and sale of mineral resources such as nickel, copper, cobalt, and lithium. The company's revenue streams are primarily derived from the sale of these minerals to global markets, particularly for use in electric vehicle batteries and renewable energy storage solutions. Strategic partnerships and joint ventures, such as those with lithium producers, enhance their production capabilities and market reach. IGO's financial performance is also influenced by commodity prices, operational efficiencies, and its ability to maintain sustainable mining practices.

IGO Earnings Call Summary

Earnings Call Date:Aug 27, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Feb 04, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong operational performance and improvements in safety and financial positions, but these positives were offset by challenges in the lithium market and ongoing issues at the Kwinana refinery. Overall, the sentiment is balanced with noteworthy achievements and significant challenges.
Q4-2025 Updates
Positive Updates
Safety Improvement
Significant improvement in safety performance across IGO operations, with a reduction in the severity and number of injuries, as indicated by the decline in the 3-month and 12-month TRIFR.
Strong Operational Performance at Nova and Greenbushes
Both sites delivered strong operational quarters. Greenbushes achieved 60% EBITDA for the quarter, and Nova met guidance after operational improvements.
Positive Financial Position
The balance sheet remains strong with $280 million in cash and $300 million available from debt facilities, which were resized and extended during the quarter.
ESG Framework Update
An updated ESG framework was introduced, focusing on safety, health, well-being, socioeconomic contributions, transitioning to a low-carbon future, and environmental stewardship.
Negative Updates
Volatility in the Lithium Market
The lithium market remains volatile and challenging, affecting IGO's operations and financial outcomes.
Kwinana Refinery Challenges
The refinery is underperforming with ongoing equipment issues and production challenges, leading to a further impairment of Train 1.
Debt and Cash Flow Concerns
Concerns about dividend flows from TLEA due to cash outflow at Kwinana and the winding down of the nickel business.
Company Guidance
During the IGO Limited Q4 FY '25 Results Call, Managing Director and CEO Ivan Vella highlighted several key metrics and updates. The company reported a 60% EBITDA margin for the quarter from Greenbushes, despite challenges such as unseasonably wet weather and lower-grade ore. Sales experienced a substantial increase due to logistical improvements at the Bunbury port. At Nova, operational enhancements led to meeting guidance, with nickel production expected to remain between 15,000 to 18,000 tonnes until the mine's closure at the end of 2026. The company also emphasized ongoing safety improvements, reflected in a reduction in the Total Recordable Injury Frequency Rate (TRIFR). Financially, the quarter saw an EBITDA of $59 million, a strong cash position of $280 million, and an available debt facility of $300 million. However, challenges at the Kwinana refinery led to a full impairment of Train 1, affecting the overall asset valuation. The company also updated its ESG framework, focusing on safety, environmental stewardship, and transitioning to a low-carbon future.

IGO Financial Statement Overview

Summary
IGO faces considerable financial challenges, with declining revenues and negative profitability metrics. While the balance sheet shows low leverage, the lack of profitability and cash flow issues are significant concerns. The company needs to address these issues to stabilize its financial position and return to growth.
Income Statement
30
Negative
The income statement reveals significant challenges for IGO, with declining revenue and negative margins. The gross profit margin and net profit margin are both negative, indicating that the company is struggling to cover its costs. The revenue growth rate has been negative in recent years, showing a downward trend. These factors suggest financial instability and a need for strategic changes to improve profitability.
Balance Sheet
45
Neutral
IGO's balance sheet shows a relatively low debt-to-equity ratio, indicating conservative leverage. However, the return on equity is negative, reflecting poor profitability. The equity ratio is stable, suggesting that the company maintains a solid equity base relative to its assets. Overall, while leverage is managed well, the lack of profitability is a concern.
Cash Flow
40
Negative
The cash flow statement highlights a significant decline in free cash flow growth, which is a red flag for liquidity. The operating cash flow to net income ratio is below 1, indicating that the company is not generating sufficient cash from operations relative to its net income. The free cash flow to net income ratio is positive, but the overall cash flow situation requires improvement to ensure financial health.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue517.30M499.90M796.40M1.05B845.20M619.86M
Gross Profit36.30M-176.50M-134.60M203.20M327.30M151.74M
EBITDA-36.10M-811.10M144.80M-592.20M468.40M358.66M
Net Income-954.60M-954.60M2.80M549.10M330.90M163.84M
Balance Sheet
Total Assets2.36B2.36B3.57B4.74B4.86B3.61B
Cash, Cash Equivalents and Short-Term Investments343.50M343.50M530.40M837.60M493.90M639.46M
Total Debt31.40M31.40M48.70M432.10M959.20M25.05M
Total Liabilities263.90M263.90M357.50M947.70M1.43B408.86M
Stockholders Equity2.09B2.09B3.21B3.79B3.44B3.20B
Cash Flow
Free Cash Flow32.70M37.60M673.10M1.05B300.30M351.34M
Operating Cash Flow37.90M42.90M872.00M1.39B388.40M446.05M
Investing Cash Flow-4.00M-4.00M-240.30M-293.60M-1.28B-1.06B
Financing Cash Flow-223.40M-223.40M-943.70M-726.70M761.80M633.00M

IGO Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price4.85
Price Trends
50DMA
4.89
Negative
100DMA
4.46
Positive
200DMA
4.52
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
44.75
Neutral
STOCH
10.87
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:IGO, the sentiment is Neutral. The current price of 4.85 is below the 20-day moving average (MA) of 5.20, below the 50-day MA of 4.89, and above the 200-day MA of 4.52, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.75 is Neutral, neither overbought nor oversold. The STOCH value of 10.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:IGO.

IGO Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$10.28B6.210.76%2.84%3.10%-36.03%
47
Neutral
$3.61B1,418.92-35.65%7.76%-37.23%-32433.33%
$4.85B22.94-5.63%
$1.41B-54.57%
$4.68B7.94-26.55%4.54%
77
Outperform
AU$2.20B14.10151.89%5.30%6.54%0.48%
46
Neutral
AU$3.04B17.84-7.26%5.71%-2.30%-234.27%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:IGO
IGO
4.85
0.04
0.85%
PILBF
Pilbara Minerals
1.50
-0.08
-5.06%
ADMLF
Adriatic Metals Shs Chess Deposit Interests Repr 1 Sh
4.12
2.24
119.15%
MALRF
Mineral Resources Limited
22.31
1.83
8.94%
AU:NIC
Nickel Mines Ltd.
0.72
-0.02
-2.70%
AU:DRR
Deterra Royalties Ltd
4.18
1.00
31.45%

IGO Corporate Events

IGO Limited Reports Strong Operational Quarter Amid Challenges
Jul 29, 2025

IGO Limited reported a strong operational quarter with significant cash generation at its Greenbushes and Nova sites, despite challenges at Kwinana due to equipment failures and unplanned shutdowns. The company achieved improvements in safety metrics and operational efficiencies, leading to higher production and lower unit costs, although it faces potential impairments and increased rehabilitation provisions, impacting its financial outlook.

The most recent analyst rating on (AU:IGO) stock is a Hold with a A$3.50 price target. To see the full list of analyst forecasts on IGO stock, see the AU:IGO Stock Forecast page.

IGO Limited Reports Strong Quarter Amid Operational Challenges
Jul 29, 2025

IGO Limited reported a strong operational quarter ending June 2025, with significant improvements in safety performance and increased spodumene sales at Greenbushes, achieving a 60% EBITDA margin. The Nova site also saw higher production and reduced cash costs, contributing to an underlying EBITDA of $62M for the quarter. However, the Kwinana lithium hydroxide refinery faced operational challenges, leading to a full impairment of Train 1. The company is embedding a new exploration business model and refining its ESG framework to align with stakeholder expectations and its commitment to a clean energy future.

The most recent analyst rating on (AU:IGO) stock is a Hold with a A$3.50 price target. To see the full list of analyst forecasts on IGO stock, see the AU:IGO Stock Forecast page.

IGO Withdraws from Fraser Range Joint Venture; Carawine Awaits Court Decision on QGold Acquisition
Jul 10, 2025

IGO Limited has announced its intention to withdraw from the Fraser Range Joint Venture, effectively terminating the partnership with Carawine Resources Limited. Carawine now has the option to purchase IGO’s 76% interest in the remaining tenement for a nominal fee or allow its surrender. This decision follows several exploration programs that concluded further work was not warranted. Additionally, Carawine is awaiting a court decision regarding a compulsory acquisition attempt by its major shareholder, QGold Pty Ltd, which has faced objections from other shareholders.

The most recent analyst rating on (AU:IGO) stock is a Sell with a A$4.90 price target. To see the full list of analyst forecasts on IGO stock, see the AU:IGO Stock Forecast page.

IGO Limited Announces Issuance of New Securities
Jul 10, 2025

IGO Limited has announced the issuance of 27,726 ordinary fully paid securities, effective June 30, 2025. This move signifies the company’s strategic efforts to enhance its capital structure, potentially impacting its market positioning and providing additional resources for its operations and growth initiatives.

The most recent analyst rating on (AU:IGO) stock is a Hold with a A$3.50 price target. To see the full list of analyst forecasts on IGO stock, see the AU:IGO Stock Forecast page.

IGO Limited Announces Cessation of Securities
Jul 9, 2025

IGO Limited announced the cessation of certain securities, specifically 217,575 performance rights and 31,144 service rights, due to the conditions for these securities not being met or becoming incapable of being satisfied. This announcement may impact the company’s capital structure and could have implications for stakeholders, reflecting challenges in meeting performance or service conditions.

The most recent analyst rating on (AU:IGO) stock is a Hold with a A$3.50 price target. To see the full list of analyst forecasts on IGO stock, see the AU:IGO Stock Forecast page.

IGO Limited Announces Strategic Board Restructuring
Jun 27, 2025

IGO Limited has announced a strategic update to its Board structure as part of its ongoing transformation under the leadership of Managing Director and CEO Ivan Vella. The company plans to implement a renewal and succession process, which includes reducing the Board’s size, transitioning the Chair role, and recruiting new independent Non-Executive Directors. This restructuring aims to enhance oversight and governance, aligning with IGO’s refreshed strategic direction and supporting long-term value creation.

The most recent analyst rating on (AU:IGO) stock is a Hold with a A$3.50 price target. To see the full list of analyst forecasts on IGO stock, see the AU:IGO Stock Forecast page.

Vanguard Group Acquires Substantial Stake in IGO Limited
Jun 25, 2025

Vanguard Group has become a substantial holder in IGO Limited, acquiring a 5.171% voting power through its management of various mutual funds and accounts. This acquisition, effective from June 20, 2025, signifies Vanguard’s strategic interest in IGO Limited, potentially impacting the company’s market position and stakeholder dynamics.

The most recent analyst rating on (AU:IGO) stock is a Hold with a A$3.50 price target. To see the full list of analyst forecasts on IGO stock, see the AU:IGO Stock Forecast page.

IGO Limited Appoints New Chief People and Sustainability Officer
Jun 23, 2025

IGO Limited has appointed Suzanne Retallack as Chief People and Sustainability Officer, effective September 15, 2025, following Sam Retallack’s resignation. Suzanne brings extensive global mining experience from her previous role at Newmont Corporation, aligning with IGO’s strategic focus on sustainability and battery materials. Her appointment is seen as pivotal for IGO’s ongoing transformation and commitment to sustainability.

The most recent analyst rating on (AU:IGO) stock is a Hold with a A$3.50 price target. To see the full list of analyst forecasts on IGO stock, see the AU:IGO Stock Forecast page.

IGO Limited’s Voting Power in Buxton Resources Diminished
Jun 20, 2025

IGO Limited has experienced a reduction in its voting power in Buxton Resources Limited due to the dilution effect following Buxton’s issuance of additional ordinary shares. This change, announced on June 6, 2025, reflects a decrease in IGO’s voting power from 15.52% to 12.10%, impacting its influence over Buxton’s corporate decisions.

The most recent analyst rating on (AU:IGO) stock is a Hold with a A$3.50 price target. To see the full list of analyst forecasts on IGO stock, see the AU:IGO Stock Forecast page.

Encounter Resources Regains Full Control of Yeneena Copper Project
May 27, 2025

Encounter Resources has regained full ownership of the Yeneena Copper Project following IGO Limited’s withdrawal from their joint venture. This development allows Encounter to leverage the extensive technical data gathered during the partnership to advance exploration efforts, particularly at the high-grade BM1 copper zone and the BM5 anomaly. The move comes amid strong demand for copper, positioning Encounter to capitalize on its strategic project portfolio, which also includes the West Arunta Niobium Project.

The most recent analyst rating on (AU:IGO) stock is a Hold with a A$3.50 price target. To see the full list of analyst forecasts on IGO stock, see the AU:IGO Stock Forecast page.

Ubique Asset Management Increases Stake in IGO Limited
May 16, 2025

Ubique Asset Management Pty Ltd has increased its stake in IGO Limited, an Australian company, from 6.33% to 7.43% by acquiring additional shares. This change in substantial holding reflects a strategic move by Ubique Asset Management, potentially indicating confidence in IGO’s market position and future prospects.

The most recent analyst rating on (AU:IGO) stock is a Hold with a A$3.50 price target. To see the full list of analyst forecasts on IGO stock, see the AU:IGO Stock Forecast page.

IGO Limited Director Acquires Shares, Signaling Strategic Governance Move
May 8, 2025

IGO Limited announced a change in the director’s interest, with Director Samantha Hogg acquiring 20,000 ordinary shares through an on-market trade valued at $77,969.66. This acquisition reflects a strategic move in the company’s governance, potentially impacting its market perception and stakeholder confidence.

IGO Limited Announces Director’s Interest Change
May 8, 2025

IGO Limited has announced a change in the director’s interest, specifically involving Mr. Michael Peter Nossal. The change includes the acquisition of 10,000 shares through an on-market trade and the transfer of 75,000 shares from direct ownership to MPJN Nominees Pty Ltd ATF Michael Nossal Superannuation Fund. This adjustment results in Mr. Nossal holding a total of 110,000 ordinary shares. The transaction reflects strategic financial management within the company, potentially impacting its governance and shareholder dynamics.

IGO Limited Director Increases Shareholding, Signaling Confidence in Future
May 8, 2025

IGO Limited has announced a change in the director’s interest, with Ivan Vella acquiring additional shares in the company. This acquisition reflects a significant personal investment by the director, potentially indicating confidence in the company’s future performance and stability, which may positively impact stakeholders’ perceptions and the company’s market positioning.

IGO Limited Announces Director’s Interest Change
May 8, 2025

IGO Limited announced a change in the director’s interest, with Ivan Vella acquiring additional performance and service rights. This change reflects the company’s ongoing commitment to aligning executive interests with shareholder value, potentially impacting IGO’s operational strategies and market positioning.

Medallion Metals Revises Forrestania Acquisition Terms with IGO
May 5, 2025

Medallion Metals Limited, in collaboration with IGO Limited, has revised the terms of their agreement regarding the acquisition of the Forrestania Nickel Operation. Under the new terms, Medallion will acquire full ownership of the operation, including tenements, infrastructure, and other assets, while IGO retains rights to explore and mine nickel and lithium. This strategic move aims to enhance Medallion’s gold production capabilities, leveraging existing infrastructure to unlock value and potentially reestablish the region as a significant gold production district. The transaction is set to be completed by late 2025, contingent on various conditions, including a positive investment decision on the Ravensthorpe Gold Project.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 04, 2025