By Rhiannon Hoyle
Australian miner IGO on Monday reported a 42% fall in underlying quarterly earnings from the prior three months, citing weaker lithium prices and lower nickel output.
The company said underlying earnings before interest, taxes, depreciation and amortization totaled 362.2 million Australian dollars (US$229.5 million) in the three months through September–its fiscal first quarter–down from A$619.7 million in the final quarter of its fiscal 2023.
While IGO reported higher output of lithium-rich spodumene concentrate, and lower production costs, the company said the average realized price for spodumene sales was US$3,740 a metric ton versus US$5,431 a ton in the quarter prior.
“Looking ahead, we note the recent volatility in the lithium market and the impact this is having on participants across the supply chain, a dynamic which is not unexpected for a market which is growing rapidly,” said Acting Chief Executive Officer Matt Dusci.
“Greenbushes shareholders are working on mechanisms to manage surplus volumes to minimize any impact to operations, however IGO notes that December-quarter spodumene sales from Greenbushes are likely to be lower than production due to the deferral of some product shipments during the current quarter.”
Dusci said difficult operating conditions at IGO’s Nova and Forrestania nickel operations weighed on production rates last quarter and led to higher cash costs. The company reported a 25% fall in nickel output quarter-on-quarter and a 48% increase in costs.
Write to Rhiannon Hoyle at [email protected]
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