Morningstar cuts FY25 dividend estimates for Australia's IGO

IGO

23/12/2024 20:40

** Morningstar analysts cut battery metal producer IGO's
 IGO.AX  fiscal 2025 dividend forecast to A$0.06 per share from
A$0.15 
    ** Analysts say co's JV with Tianqi Lithium  002466.SZ  -
Tianqi Lithium Energy Australia (TLEA) is unlikely to pay
dividend to IGO in 2025 after co suspends dividends amid subdued
lithium market
    ** Morningstar expects lithium prices to recover to roughly
$20,000 per metric ton in fiscal 2026 and remain near this level
for the rest of the decade - well above spot price of roughly
$10,500 per metric ton on Dec. 20
    ** Says the near-depleted Nova nickel mine in Western
Australia is IGO's sole source of operating cash flow without a
dividend from TLEA
    ** Five of 15 analysts rate the stock "buy" or higher, six
"hold" and four "sell" or lower; their median PT is A$5.73 –
LSEG data
    ** Stock had fallen 45.9% YTD as of last close

 (Reporting by Sneha Kumar in Bengaluru)
 ((Sneha.Kumar@thomsonreuters.com;))