Battery metals producer IGO on Thursday posted a sharp full-year loss after being hit by weaker lithium markets, impairments and a writedown of its Kwinana refinery.

The Perth-based company reported a net loss of A$955-million for the 12 months to June 30, compared with a profit of A$3-million a year earlier. Revenue slid to A$528-million, down from A$841-million in 2024, as sales at the Nova nickel/copper mine fell and the Forrestania operation wound down.

Underlying earnings also turned negative, with the miner posting an earnings before interest, taxes, depreciation and amortisation (Ebitda) loss of A$43-million, compared with a profit of A$581-million last year. Free cash flow shrank to A$49-million, from A$713-million.

IGO’s results included its share of a A$642-million loss at Tianqi Lithium Energy Australia (TLEA), driven largely by the full impairment of the A$605-million Kwinana lithium hydroxide refinery and the derecognition of A$58-million in deferred tax assets. The miner also booked an impairment of A$115-million on exploration assets and lifted its rehabilitation provision by A$58-million.

“IGO’s FY25 financial results are disappointing,” CEO Ivan Vella said.

“Both challenging market conditions and asset impairments, as a result of a disciplined portfolio review, impacted our headline results. Some of these were difficult decisions, however, our underlying business remains solid and we have a clear strategy for value and growth we are delivering on.”

IGO is betting on its Greenbushes lithium joint venture to underpin future growth, despite pressure from falling prices. The mine delivered an Ebitda margin of 66%, down from 85% last year, but still generated A$1.5-billion in operating cash flow.

“The global lithium market was weak throughout FY25. Nevertheless, Greenbushes demonstrated it is a world-class asset with an Ebitda margin of 66% and strong cash conversion,” Vella said. “We believe market fundamentals for lithium are positive and Greenbushes is well placed to capitalise.”

IGO ended the year with A$280-million in cash and A$300-million in undrawn debt, and said it made significant progress on a refreshed strategy announced last September, which included a new exploration model, optimisation at Greenbushes, and an organisational restructuring.

Looking ahead, Vella said the company would focus on safety improvements, cash flow generation at Nova and further optimisation at Greenbushes, while pursuing growth through exploration, technology and partnerships.

“We will also progress our growth pathway, via exploration, technology and strategic partnerships, as we write the next chapter in our story and celebrate the 25 years of IGO,” he said.