Kwinana underperformance weighs on FY25 for IGO; but Greenbushes steady

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 spodumene mine met FY25 production guidance while the embattled Kwinana lithium hydroxide refinery missed and is likely to be fully impaired

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

Investment research firm notes A$173 million loss from the JV with Tianqi Lithium 002466.SZ, reflecting continued pressure on refinery performance and lithium market softness

Morningstar marginally reduces its FY26 production estimates for IGO

Brokerage says Shares remain materially undervalued, with the market extrapolating spot lithium prices into perpetuity

Stock down 2.7% YTD

($1 = 1.5535 Australian dollars)