Nova Operation Delivers Exceptional Results (Image Credits: Unsplash)
Perth, Australia – IGO Limited released its March 2026 Quarterly Activities Report on April 23, detailing a quarter of contrasting fortunes across its key assets. The update revealed underlying free cash flow of A$36 million and a strengthened net cash position of A$327 million, providing a buffer in the volatile battery minerals sector. Investors watched closely as strong results from the Nova nickel operation offset challenges at the flagship Greenbushes lithium mine.[1][2]
Nova Operation Delivers Exceptional Results
The Nova nickel-copper mine in Western Australia produced standout figures, underscoring operational discipline at a mature site nearing the end of its mine life. Nickel production rose 11 percent quarter-on-quarter to 4,202 tonnes, while copper output increased 7 percent to 1,907 tonnes. Payable metal sales climbed sharply, with nickel at 3,399 tonnes, up 49 percent.[1]
Cash costs per pound of nickel fell 24 percent to A$3.47, despite rising fuel prices that now account for about 7 percent of costs. The operation generated A$52 million in free cash flow and underlying EBITDA of A$61 million, up 43 percent from the prior quarter. Managing Director and CEO Ivan Vella highlighted the team’s capability, stating, “Nova has delivered a very strong operational result… The capability and discipline… is exceptional.”[1][3]
Greenbushes Encounters Production Hurdles
At Greenbushes, one of the world’s largest hard-rock lithium mines, spodumene production held steady at 351,000 tonnes, including contributions from the ramping CGP3 plant. However, lower feed grades, reduced recoveries, and maintenance outages hampered performance. Sales reached 349,000 tonnes at an average realized price of US$1,668 per tonne, nearly double the previous quarter’s US$850.[4]
Unit cash costs rose 20 percent to A$446 per tonne, though the mine still achieved a 75 percent EBITDA margin. Fuel costs emerged as a pressure point, representing around 6 percent of direct site expenses. Safety issues persisted, with a total recordable injury frequency rate exceeding 11, prompting two safety stops. Vella acknowledged the disappointments but expressed confidence: “Performance has been challenged… Fundamental changes… take time… I am confident the work underway will deliver the required performance.”[1]
Financial Snapshot and Broader Operations
Group sales revenue jumped 45 percent to A$119.7 million, driven by Nova and higher spodumene prices. Underlying EBITDA soared to A$119 million from A$30 million in the December quarter, with year-to-date figures at A$168 million. Cash from operations reached A$35 million, bolstering the net cash pile by 9 percent quarter-on-quarter.[2]
Downstream at Kwinana, lithium hydroxide production climbed 44 percent to 3,047 tonnes, operating at 51 percent capacity. Conversion costs dropped 32 percent to A$14,068 per tonne, though EBITDA showed a loss of A$8 million after adjustments. The group-wide safety record improved, with TRIFR falling to 4.2, a 35 percent gain from six months prior.[1]
| Key Metric | Q3 FY26 | Q2 FY26 | Change |
|---|---|---|---|
| Sales Revenue (A$M) | 119.7 | 82.4 | +45% |
| Underlying EBITDA (A$M) | 119 | 30 | +298% |
| Underlying FCF (A$M) | 36 | 13 | +167% |
| Net Cash (A$M) | 327 | 299 | +9% |
Guidance Revised with Focus on Discipline
IGO adjusted its full-year outlook for Greenbushes, lowering spodumene production guidance to 1,375-1,425 kilotonnes from 1,500-1,650 kilotonnes to reflect year-to-date results and CGP3 ramp-up pace. Unit cash costs rose to A$380-420 per tonne, while capital expenditure guidance tightened to A$400-450 million. Nova and Kwinana guidance remained unchanged.[2]
Five priority areas emerged at Greenbushes: safety basics, truck productivity (fleet reduced to 23 units), maintenance reliability, feed grade optimization, and plant recoveries through mine-to-mill strategies. The company also completed the sale of Forrestania nickel assets, retaining royalties, as part of portfolio streamlining.[1]
Exploration continued across targets like Cosmos and Copper Wolf, where IGO secured full ownership. These efforts aim to sustain long-term value in nickel, lithium, and copper. The balance sheet strength positions IGO to navigate market uncertainties while pursuing operational fixes and growth opportunities in the energy transition landscape.[1]
