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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:62Neutral
Price Target:
AU$5.50
▲(2.61%Upside)
The overall stock score reflects a combination of strong cash flow and a stable balance sheet tempered by declining revenues and margins. Technical indicators suggest overbought conditions, adding caution. Earnings call challenges further highlight operational risks.

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:Feb 19, 2025
(Q2-2025)
|
% Change Since: 15.52%|
Next Earnings Date:Aug 28, 2025
Earnings Call Sentiment Negative
The earnings call highlighted strong performance and improvements in Greenbushes and safety indicators. However, these positives are overshadowed by significant challenges at Nova and Kwinana, including production issues, financial losses, and strategic setbacks such as the suspension of Train 2. The lack of expected dividends from TLEA also presents a cash flow concern.
Q2-2025 Updates
Positive Updates
Strong Greenbushes Performance
Greenbushes had another strong quarter of production, finishing the calendar year well and beating internal plans. The operation is continuing to improve with good recoveries and strong margins despite being at a low point in the cycle.
Safety Improvements
Progress in safety maturity is noted, with leading indicators starting to show improvement, marking a positive trend for future operational safety.
Negative Updates
Nova Production Challenges
Nova experienced a tough quarter with lower nickel output due to mine grade issues and plant availability problems, compounded by a subdued nickel price impacting financials.
Kwinana Financial Struggles
Kwinana's EBITDA loss resulted from NRV adjustments on spodumene and lithium hydroxide inventories due to weaker market conditions and built-up inventories, which were slower to sell than expected.
Kwinana Train 2 Decision
The decision to cease activities around Train 2 was made after evaluating CapEx and OpEx, impacting future expansion plans and leading to ongoing impairment testing for Train 1.
No Expected Dividends from TLEA
The company does not expect to receive any dividends from TLEA in the second half of the financial year, impacting cash flow expectations.
Company Guidance
During the IGO Limited December Quarter Results Call, Ivan Vella, Managing Director and CEO, provided detailed guidance across several business areas. The company reported a strong quarter for its lithium business, particularly at Greenbushes, with production exceeding plans despite a slow start to the calendar year. Vella highlighted ongoing optimization and improvement work, including the CGP3 project, which is on track. At Kwinana, production improved following a shutdown, but the company has ceased activities around Train 2, impacting financials with an expected impairment. Nova faced challenges with lower nickel output due to mine grade issues and plant availability, which affected financials alongside subdued nickel prices. Sales at Greenbushes were down due to shipment timing, not demand, and the company remains optimistic about productivity improvements and sustaining recoveries. The cash position ended at $247 million, with exploration spending trending down, and IGO does not expect dividend payments from TLEA in the second half of the financial year.

IGO Financial Statement Overview

Summary
IGO's financial performance presents a mixed picture. The income statement shows declining revenue and profit margins, raising concerns about cost control and market conditions. The balance sheet is strong with low leverage and a high equity ratio, providing stability. Cash flow remains robust, highlighting solid cash generation capabilities. The company needs to address revenue and margin challenges to enhance its overall financial health.
Income Statement
55
Neutral
The income statement shows a significant decline in revenue from 2023 to 2024, with total revenue dropping from 1049.9M to 796.4M AUD. Gross profit turned negative in 2024, indicating cost management issues or pricing pressures. Despite positive net income in 2024, the EBIT margin has become negative, reflecting operational inefficiencies. Revenue and profit margins have been unstable, posing a risk to financial health.
Balance Sheet
75
Positive
The balance sheet is relatively strong with a high equity ratio and low debt, indicating financial stability. The debt-to-equity ratio is favorable at 0.015, suggesting low leverage. However, stockholders' equity has decreased slightly from 2023 to 2024, which may indicate some erosion of value. Overall, the company's balance sheet provides a stable financial foundation despite recent performance challenges.
Cash Flow
80
Positive
Cash flow statements indicate solid operating cash flow with 872M AUD in 2024, supporting strong free cash flow generation. Free cash flow, however, has decreased from the previous year, highlighting potential challenges in sustaining free cash generation levels. The operating cash flow to net income ratio is robust, indicating good cash conversion efficiency. Overall, cash flow remains a strong aspect of the company's financials.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue796.40M1.05B845.20M619.86M580.14M
Gross Profit-134.60M203.20M327.30M151.74M105.19M
EBITDA144.80M-592.20M468.40M358.66M296.66M
Net Income2.80M549.10M330.90M163.84M155.09M
Balance Sheet
Total Assets3.57B4.74B4.86B3.61B2.29B
Cash, Cash Equivalents and Short-Term Investments530.40M837.60M493.90M639.46M618.07M
Total Debt48.70M432.10M959.20M25.05M96.72M
Total Liabilities357.50M947.70M1.43B408.86M367.22M
Stockholders Equity3.21B3.79B3.44B3.20B1.93B
Cash Flow
Free Cash Flow673.10M1.05B300.30M351.34M309.85M
Operating Cash Flow872.00M1.39B388.40M446.05M397.52M
Investing Cash Flow-240.30M-293.60M-1.28B-1.06B-115.34M
Financing Cash Flow-943.70M-726.70M761.80M633.00M-116.96M

IGO Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.36
Price Trends
50DMA
4.31
Positive
100DMA
4.10
Positive
200DMA
4.56
Positive
Market Momentum
MACD
0.28
Negative
RSI
80.91
Negative
STOCH
86.61
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:IGO, the sentiment is Positive. The current price of 5.36 is above the 20-day moving average (MA) of 4.60, above the 50-day MA of 4.31, and above the 200-day MA of 4.56, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 80.91 is Negative, neither overbought nor oversold. The STOCH value of 86.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:IGO.

IGO Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$3.94B1,418.92-36.53%6.90%-28.50%-532.61%
57
Neutral
£2.67B5.02-9.48%6882.78%5.31%-6.23%
$3.89B22.94-1.04%
$1.35B-54.57%
$4.12B43.31-33.95%4.54%
79
Outperform
AU$2.24B16.00152.73%5.49%-10.00%-16.51%
57
Neutral
AU$3.41B17.84-7.32%6.93%-6.64%-209.78%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:IGO
IGO
5.36
0.10
1.82%
PILBF
Pilbara Minerals
1.24
-0.66
-34.74%
ADMLF
Adriatic Metals Shs Chess Deposit Interests Repr 1 Sh
3.74
1.63
77.25%
MALRF
Mineral Resources Limited
19.89
-14.33
-41.88%
AU:NIC
Nickel Mines Ltd.
0.80
0.06
8.11%
AU:DRR
Deterra Royalties Ltd
4.26
0.61
16.71%

IGO Corporate Events

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.

IGO Limited Reports Strong Q3 2025 Results with Solid Operational Performance
Apr 30, 2025

IGO Limited reported solid operational results for the third quarter of 2025, with significant production and strong margins at Greenbushes, and improved production and lower costs at Nova. The company also announced a US$110 million dividend from Windfield Holdings and a strong financial position with underlying EBITDA of $34 million and cash reserves of $284 million, signaling robust financial health and strategic operational improvements.

IGO Limited Reports Strong Quarterly Performance Amid Operational Adjustments
Apr 30, 2025

IGO Limited reported a solid operating quarter with significant financial and operational achievements. The Greenbushes mine delivered strong margins and cash flows, while Nova recorded improved production. Despite challenges at the Kwinana Lithium Hydroxide Refinery, the company maintained a robust balance sheet with a net cash position of $284 million. The implementation of a new exploration business model led to a rationalization of the tenement portfolio, reflecting IGO’s commitment to growth through exploration.

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: Jul 23, 2025