Morningstar flags Kwinana troubles for Australia's IGO; Jefferies lifts PT

IGO

30/07/2025 22:56

Updates

** Analysts at Morningstar say the path to earnings recovery for Australia's IGO IGO.AX hinges on refinery improvement and support in underlying lithium prices

** Says the Greenbushes mine met FY25 production guidance while embattled Kwinana lithium hydroxide refinery missed and likely to be fully impaired

** Flags FY25 EBITDA rose to A$393 mln ($252.97 mln), supported by output at Greenbushes, though partly offset by JV losses linked to Kwinana’s operational and cost challenges

** Analysts at another research firm, Jefferies, lift their PT to A$4.20 from A$4 as they note that IGO is continuing to right-size its business

** Jefferies, however, maintains its "hold" rating on stock as a lack of cash generation excluding the Nova operations and poor control of capital timing remain key concerns

** Morningstar notes A$173 million loss from the JV with Tianqi Lithium 002466.SZ, reflecting pressure on refinery performance and market softness

** Marginally reduces its FY26 production estimates for IGO

** Stock down 2.7% YTD

($1 = 1.5535 Australian dollars)

 (Reporting by Rishav Chatterjee in Bengaluru)

 ((Rishav.Chatterjee@thomsonreuters.com;))