IGO share price lifts on 13% fourth quarter revenue boost

asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

The IGO Ltd (ASX: IGO) share price is edging higher in early trade, up 0.6%.

IGO shares closed yesterday trading for $9.96 and are currently trading for $10.02.

This comes following this morning’s release of the S&P/ASX 200 Index (ASX: XJO) miner’s quarterly results for the three months ending 30 June (4Q FY22).

IGO share price lifts on revenue boost

What else happened during the quarter?

IGO’s net debt position as at 30 June was $533 million, compared to a net cash position of $440 million at the end of Q3.

That debt was fuelled by the ASX 200 miner’s $1.26 billion acquisition of nickel miner Western Areas. The company ended the quarter with $367 million of cash on its balance sheet and $900 million in new debt facilities. The acquisition was completed on 20 June.

IGO reported that its full FY22 nickel production came in at 26,675 tonnes, within guidance. Copper production of 11,483 tonnes came in at the lower end of guidance, while cash costs were better than guidance at $1.95 per payable pound.

On the lithium front, the company produced its first battery grade lithium hydroxide (LiOH) at Kwinana. IGO said this milestone opened the door for qualification processes to commence with respective offtake customers.

What did management say?

Commenting on the results, IGO’s CEO, Peter Bradford said;

Nova and Greenbushes delivered production and cash costs within or better than guidance, first battery grade lithium hydroxide was produced at Kwinana, we received a first dividend distribution from the lithium joint venture and we progressed many organic growth opportunities across the business.

In parallel, we have completed the transaction to acquire Western Areas and have made substantial progress with the integration of Western Areas into IGO. The momentum for clean energy continues to grow and IGO is well placed to play an important role during this exciting period in human history.

What’s next?

In the 2023 financial year ahead, IGO expects to spend $75 million on exploration activities.

The miner said it is committed to continuing growth via the acquisition of high-quality assets along with organic growth in both brownfields and greenfields exploration.

IGO share price snapshot

Though it has struggled in 2022, the IGO share price remains up 10% over the past 12 months. That compares to a full year loss of 8% posted by the ASX 200.

The post IGO share price lifts on 13% fourth quarter revenue boost appeared first on The Motley Fool Australia.

Should you invest $1,000 in Igo Ltd right now?

Before you consider Igo Ltd, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Igo Ltd wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/WuJ1cQj

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s