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IGO
(Sydney:IGO)
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Rating:61Neutral
Price Target:
AU$5.00
▼(-39.69% Downside)
Action:Reiterated
Date:10/13/26
The score is primarily supported by financial strength (low leverage, net cash) and improved cash generation, reinforced by an earnings-call narrative of a profitability turnaround and dividend restart. These positives are tempered by weak technicals (below key moving averages with negative MACD), a relatively high P/E for a volatile earnings profile, and ongoing operational/strategic execution risks highlighted on the call (Greenbushes safety/operations and Kwinana uncertainty).
Positive Factors
Strong balance sheet
Minimal leverage and substantial liquidity provide IGO with resilience through commodity and operating cycles. The cash buffer and undrawn facility also preserve flexibility to fund asset needs, maintain dividends, or pursue opportunities without relying heavily on new borrowing.
Negative Factors
Volatile and weak operating profitability
Persistent revenue contraction and negative gross and operating earnings indicate that reported profitability remains exposed to cost pressure, commodity movements, and portfolio changes. This volatility makes recurring earnings and future cash generation less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet
Minimal leverage and substantial liquidity provide IGO with resilience through commodity and operating cycles. The cash buffer and undrawn facility also preserve flexibility to fund asset needs, maintain dividends, or pursue opportunities without relying heavily on new borrowing.
Read all positive factors
IGO (IGO) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$3.61B
Dividend Yield1.05%
Average Volume (3M)3.65M
Price to Earnings (P/E)24.5
Beta (1Y)1.85
Revenue Growth-11.58%
EPS GrowthN/A
CountryAU
Employees358
SectorBasic Materials
Sector Strength58
IndustryOther Precious Metals
Share Statistics
EPS (TTM)0.19
Shares Outstanding757,267,800
10 Day Avg. Volume4,176,745
30 Day Avg. Volume3,649,306
Financial Highlights & Ratios
PEG Ratio-0.34
Price to Book (P/B)2.49
Price to Sales (P/S)12.62
P/FCF Ratio42.51
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$7.87Price Target Upside-5.08% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)0.58
Revenue Forecast (FY)AU$127.97M
IGO Business Overview & Revenue Model
Company Description
IGO Limited is an Australian exploration and mining firm dedicated to discovering, developing, and operating mineral assets essential for clean energy technologies. The company holds outright ownership and management of several key Western Austral...
How the Company Makes Money
IGO makes money primarily through (1) selling mined/processed mineral products from its operating assets and (2) receiving earnings and/or distributions from equity-accounted investments or joint ventures, where it owns a stake but does not necess...
IGO Earnings Call Summary
Earnings Call Date:Aug 26, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 03, 2027
Earnings Call Sentiment Positive
The call presented a clear improvement in financial performance and cash generation driven largely by Nova and a large turnaround at TLEA, a strengthened balance sheet and reinstatement of a dividend. These positives were tempered by a revenue decline, operational and safety issues at Greenbushes that require remediation, and unresolved strategic/capital questions at Kwinana. Overall, management emphasized disciplined cost and capital allocation, portfolio simplification and continued focus on ramping CGP3 and optimizing Greenbushes.Positive Updates
Strong Profitability Turnaround from TLEA
IGO's share of net profit from TLEA was $207 million in FY'26 versus a loss of $642 million in FY'25 — an improvement of ~$849 million year-on-year, materially driving the statutory result.
Negative Updates
Revenue Decline
Total revenue for FY'26 was $463 million, down 12% versus FY'25, reflecting portfolio transition effects (e.g., Forrestania contribution in prior year).
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Profitability Turnaround from TLEA
IGO's share of net profit from TLEA was $207 million in FY'26 versus a loss of $642 million in FY'25 — an improvement of ~$849 million year-on-year, materially driving the statutory result.
Read all positive updates
Company Guidance
Management kept FY‑27 guidance framework unchanged but emphasised the operational priorities and timing assumptions: CGP3 has recovered from the fire and is ramping toward nameplate ~2.4 Mtpa (potentially by year‑end), Greenbushes upside should drive strong cash flow as spodumene prices flow through, and Kwinana remains under strategic review with continued capital discipline. Key FY‑26 metrics cited were: revenue $463m (–12% YoY), underlying EBITDA $286m, statutory NPAT $145m, underlying free cash flow $134m (+176% YoY) with Nova contributing $128m (Nova free cash flow +63% YoY), IGO’s share of TLEA net profit $207m (vs a $642m loss in FY‑25), exploration spend $28m, Cosmos care & maintenance $13m (down from $16m), closing net cash $387m, no drawn debt and a $300m undrawn facility; the Board declared a final fully‑franked dividend of $0.05/share (~$38m), ~30% of underlying free cash flow (midpoint of a 20–40% payout range).IGO Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 442.30M | 499.90M | 796.40M | 1.05B | 845.20M |
| Gross Profit | -79.70M | -176.50M | -134.60M | 203.20M | 327.30M |
| EBITDA | 51.70M | -806.80M | 148.40M | -592.20M | 468.40M |
| Net Income | 145.30M | -954.60M | 2.80M | 549.10M | 330.90M |
Balance Sheet | |||||
| Total Assets | 2.45B | 2.36B | 3.57B | 4.74B | 4.86B |
| Cash, Cash Equivalents and Short-Term Investments | 485.60M | 343.50M | 530.40M | 837.60M | 493.90M |
| Total Debt | 16.80M | 31.40M | 48.70M | 432.10M | 959.20M |
| Total Liabilities | 206.50M | 263.90M | 357.50M | 947.70M | 1.43B |
| Stockholders Equity | 2.24B | 2.09B | 3.21B | 3.79B | 3.44B |
Cash Flow | |||||
| Free Cash Flow | 131.30M | 37.60M | 673.10M | 1.05B | 300.30M |
| Operating Cash Flow | 132.40M | 42.90M | 872.00M | 1.39B | 388.40M |
| Investing Cash Flow | -1.30M | -4.00M | -240.30M | -293.60M | -1.28B |
| Financing Cash Flow | -23.90M | -223.40M | -943.70M | -726.70M | 761.80M |
IGO Technical Analysis
Negative
8.29
Price Trends
7.02
Negative
7.23
Negative
7.77
Negative
Market Momentum
-0.54
Positive
18.68
Positive
2.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:IGO, the sentiment is Negative. The current price of 8.29 is above the 20-day moving average (MA) of 5.89, above the 50-day MA of 7.02, and above the 200-day MA of 7.77, indicating a bearish trend. The MACD of -0.54 indicates Positive momentum. The RSI at 18.68 is Positive, neither overbought nor oversold. The STOCH value of 2.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:IGO.
IGO Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | AU$3.61B | 24.47 | 6.76% | 1.05% | -11.58% | ― | |
55 Neutral | AU$2.82B | -111.57 | -0.86% | 5.44% | -3.18% | 88.11% | |
52 Neutral | AU$2.04B | 30.48 | 8.28% | 0.59% | 114.79% | ― | |
44 Neutral | AU$141.64M | -0.46 | -46.99% | ― | 234.01% | 8.57% | |
44 Neutral | AU$631.18M | -19.90 | -8.08% | 2.98% | ― | 10.09% | |
42 Neutral | AU$495.41M | -2.24 | -7.06% | ― | -33.21% | -21.79% |
* Basic Materials Sector Average
AU:IGO
IGO
4.95
-0.68
-12.16%
AU:SYR
Syrah Resources
0.06
-0.27
-81.21%
AU:CXO
Core Lithium Ltd
0.21
0.09
78.26%
AU:LTR
Liontown Resources Limited
0.68
-0.53
-43.80%
AU:NIC
Nickel Mines Ltd.
0.63
-0.11
-14.86%
AU:VUL
Vulcan Energy Resources Ltd.
1.15
-4.16
-78.41%
IGO Corporate Events
IGO Sets Investor Webcast for September Quarter Results
Oct 4, 2026
IGO Limited will host an investor webcast for its September 2026 quarterly results, led by Managing Director and CEO Ivan Vella, on Thursday 29 October 2026 at 12:00pm AEDT. The company’s quarterly report is scheduled to be released to the A...
IGO Director Ivan Vella Converts Equity Rights into Ordinary Shares
Sep 24, 2026
IGO Limited disclosed an update to the shareholdings of director Ivan Vella, as required under ASX listing rules governing directors’ interests in securities. The notice details his direct holdings in fully paid ordinary shares and various r...
IGO Retracts Non-Compliant Exploration Target Statement in 2026 Annual Report
Sep 22, 2026
IGO Limited has retracted a statement in its 2026 Annual Report after identifying that a tonnage and grade estimate for the South Iron Cap exploration target was not reported in accordance with Clause 17 of the JORC Code (2012). The original discl...
IGO Updates Director Ivan Vella’s Equity and Rights Holdings
Sep 21, 2026
IGO Limited has disclosed changes in the security holdings of director Ivan Vella, in line with ASX listing rule requirements for director interest notices. The update details adjustments across ordinary shares, performance rights, and service rig...
IGO performance rights lapse following unmet conditions
Sep 7, 2026
IGO Limited has advised the ASX that 430,872 performance rights, listed under the code IGOAK, have lapsed as of 1 September 2026. The lapse arises because the conditional rights did not meet, or could no longer meet, the required performance or ve...
IGO Issues New Shares Following Conversion of Unquoted Securities
Sep 2, 2026
IGO Limited has notified the market of the conversion of unquoted securities into 20,384 ordinary fully paid shares, effective 1 September 2026. The issuance follows the exercise of unquoted options or other convertible instruments, modestly incre...
IGO Issues 855,359 New Shares on Conversion of Unquoted Securities
Sep 1, 2026
IGO Limited has issued 855,359 new ordinary fully paid shares following the exercise or conversion of previously unquoted securities. The issuance, effective September 1, 2026, modestly increases the company’s share capital and reflects the ...
IGO appoints new director Anthea McKinnell with no declared security interests
Aug 31, 2026
IGO Limited has notified the ASX of the appointment of Anthea McKinnell as a director, effective 1 September 2026, under the market’s disclosure rules for changes in board composition. The filing confirms that, at the time of appointment, Mc...
IGO Updates FY26 Mineral Resources and Ore Reserves for Key Operations
Aug 26, 2026
IGO Limited has released its Mineral Resources and Ore Reserves report as at 30 June 2026, detailing JORC-compliant estimates for its 24.99% stake in the Greenbushes lithium operation and its wholly owned Nova nickel operation. The update fulfils ...
IGO details FY26 sustainability performance under new reporting standards
Aug 26, 2026
IGO Limited has released its twelfth Sustainability Report, covering the 2026 financial year and detailing how it manages key sustainability topics across exploration, development projects, managed operations and joint ventures. The report is prep...
IGO Files FY26 Corporate Governance Statement and Appendix 4G with ASX
Aug 26, 2026
IGO Limited has confirmed the release of its corporate governance statement for the financial year ended 30 June 2026, incorporated in its FY26 annual report from page 78 and current as at 27 August 2026. The board-approved statement details how t...
IGO Posts Strong FY26 Performance and Accelerates Portfolio Optimisation
Aug 26, 2026
IGO Limited reported a strong FY26 performance, highlighting transformational improvements in safety alongside solid operational and financial results across its portfolio. Nova exceeded production and cost guidance, generating $228 million in fre...
IGO Releases 2026 Annual Report and Expanded ESG Reporting Suite
Aug 26, 2026
IGO has released its 2026 Annual Report, providing a consolidated view of the company’s operations, activities and financial position as at 30 June 2026, expressed in Australian dollars. The reporting suite is accompanied by dedicated Sustai...
IGO Posts $145m Profit Despite Revenue Dip, Lifts Asset Backing
Aug 26, 2026
IGO Limited reported revenue of $462.9 million for the year ended 30 June 2026, a 12% decline from the prior period, but delivered net profit attributable to members of $145.3 million. The company declared a fully franked final dividend of 5 cents...
IGO Sets Investor Webcast for FY26 Full-Year Results Release
Aug 19, 2026
IGO Limited will host an investor webcast of its FY26 full-year financial results on Thursday, 27 August 2026, at 12:00 p.m. AEST, led by Managing Director and CEO Ivan Vella. The event is aimed at providing investors and analysts with direct insi...
IGO ends FY26 with strong lithium and Nova performance, cash builds despite Kwinana disruption
Jul 27, 2026
IGO reported a strong operational and financial finish to FY26, with Nova and Greenbushes outperforming production and cost guidance while safety metrics improved markedly, including 200 days recordable injury free and a 63% reduction in TRIFR to ...
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.