Improved Operational Performance at Nova
Nova delivered safer, more stable operations with better production and lower costs; management highlighted strong cash generation from the asset as it approaches end-of-life (end of this year).
February 18th, 2026
Summary
- Earnings Call Date:
- 2026-02-18
- Change Since:
- -0.70%
- Next Earnings Date:
- 2026-08-27
Earnings Call Sentiment
NeutralMixed/Neutral. The call highlighted clear operational and cash-flow improvements (notably at Nova), strong balance sheet liquidity and constructive early signals from CGP3 plus meaningful resource/reserve optimization upside at Greenbushes. However, these positives are offset by a substantial revenue decline (-31.7%), an underlying net loss, the fully impaired and underperforming Kwinana asset, initial CGP3 commissioning delays and ongoing execution/timing risks at Greenbushes. Management tone was constructive and focused on disciplined capital allocation and operational fixes, but material challenges remain.
Company Guidance
Management reiterated no change to Greenbushes guidance while highlighting a range of metrics: H1 FY26 revenue AUD 194m (vs AUD 284m prior), underlying EBITDA AUD 49m (EBITDA AUD 67m, +15%), exploration spend down to AUD 15m (from AUD 30m), IGO share of TLEA loss improved to AUD 1m (from AUD 20m), Greenbushes 100% EBITDA AUD 464m and Kwinana loss AUD 71m (including AUD 33m capitalised), underlying net loss after tax AUD 39m and statutory net loss AUD 34m (prior statutory loss AUD 782m); cash flow was strong with operating cash inflow AUD 28m (vs AUD 7m outflow prior) and underlying free cash flow AUD 29m, cash at AUD 299m and AUD 300m undrawn facility, Winfield saw ~AUD150m paydown of drawn debt (cash down ~AUD200m) and a shipment timing lag on receivables; operationally Nova remains on track for end‑of‑year closure, Forrestania sale expected end of month, Cosmos dewatering stopped, CGP3 ramp‑up moved from an expected January ~7kt to a February plan of ~11kt (mid‑February already passed), with a 24‑hour high of ~1,000t, ~60% average recoveries and concentrate grades >5.5–6%; optimization work shows ~10% more surface metal and ~30% lower strip ratio, a resource add of ~42Mt at ~0.37% Li2O using a 0.3% cutoff (reserves cutoff 0.5%), CGP4 is being considered toward ~10 Mtpa from ~2032, and the company retained capital discipline (no dividend this half).
Cash Flow and Balance Sheet Strength
Net cash from operating activities was AUD 28 million in H1 FY26 versus an AUD 7 million outflow in H1 FY25 (swing of AUD 35 million). Underlying free cash flow was AUD 29 million. Cash balance of AUD 299 million and AUD 300 million undrawn debt facility maintained.
Underlying EBITDA and Expense Discipline
Underlying EBITDA improved (management cited EBITDA up 15% to AUD 67 million in the period context) and exploration spend was reduced from AUD 30 million to AUD 15 million (a 50% reduction), demonstrating cost discipline.
TLEA / Winfield (Greenbushes) EBITDA Contribution
IGO reported Greenbushes EBITDA of AUD 464 million on a 100% basis (TLEA contribution), and IGO's share of underlying net loss from TLEA improved to AUD 1 million from AUD 20 million in FY25.
CGP3 Early Ramp-Up Indicators Positive
CGP3 experienced early commissioning setbacks in January but showed strong early February progress: management noted a 24-hour run of ~1,000 tonnes, ~60% average recoveries in an early period, and concentrate grades above 5.5–6% — characterized as encouraging early ramp-up signals.
Resource / Reserve Optimization Upside at Greenbushes
Optimization work delivered a tighter open-pit with a materially lower strip ratio and ~10% more metal at surface in the updated reserve/resource snapshot; a newly defined underground resource was disclosed, providing potential longer‑term optionality.
Improved Statutory Result Versus Prior Year
Statutory net loss after tax was AUD 34 million for the half versus a prior corresponding period statutory loss of AUD 782 million (prior year included large impairments), representing a materially improved statutory position.
""Operator
Thank you for standing by, and welcome to the IGO Half Year Financial Report. [Operator Instructions] I'd now like to hand the conference over to Mr. Ivan Vella, Managing Director and CEO. Please go ahead.\
Ivan Vella
Thanks, Darcy. Good morning, good afternoon, everyone. Great to have you join us here for our half-year results. Welcome for that. With me on the line is Kathleen Bozanic, our CFO, as for usual. And I was joking with her earlier saying, \\"Well, this is your conference to talk to.\\" But look, we'll probably keep the focus on financials pretty short and sweet. It's reasonably straightforward and then cover any other questions or things on your mind. Before we go into a, I did want to just note that Kath, as you know, she wraps up end of next week after -- over 5 years with IGO and in that time, made a huge contribution both as a director and as CFO; she leaves big boots and is in the process of handover, preparing a team, getting everything ready.
Johan starts with us on the 1st of April. And obviously, he's going to have a lot to pick up and get into as you get settled. But just to call out to Kath to thank her for her significant contribution in that time. In terms of slides, we've got a couple on the financials in the half, but then dive into, as you've seen a few other areas around Greenbushes and the changes there. We'll cover what we can in that sense. But as usual, I wanted to just start on safety and also just talk a little bit to sustainability as well. Firstly, on safety performance and with the quarterly just passed, nothing particularly new other than continu...
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