Full Year 2026 Igo Ltd Earnings Call

Speaker #1: Thank you for standing by, and welcome to the IGO Full Year Financial Report. All participants are in listen-only mode. There will be a presentation, followed by a question-and-answer session.

Operator: Thank you for standing by, and welcome to the IGO full-year financial report. All participants are in listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. I would now like to hand the conference over to Mr. Ivan Vella, Managing Director and CEO. Please go ahead.

Speaker #1: If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. I would now like to hand the conference over to Mr. Ivan Vella, Managing Director and CEO. Please go ahead.

Speaker #2: Thanks, Kylie. Good morning, everyone. Thanks for joining. I know it's a super busy day, or busy time of year, for the analysts and our investors.

Ivan Vella: Thanks, Kylie. Good morning, everyone. Thanks for joining. I know it's a super busy day or busy time of year for the analysts and our investors, covering a lot of results. We're here to cover IGO's FY26 full-year results presentation, and Ian Rowe is joining me today, our interim CFO. He'll talk through the key financial results and help work through any questions you might have at the end of our presentation. As you know, we just covered our operational results not long ago, so I'm really going to keep focused on the big picture and the financials, which Ian will take you through. I think the headline for today, what I want you to take away is that we're really proud of what IGO, what the team have delivered through FY26.

Speaker #2: Covering a lot of results, we're here to cover IGO's FY26 Full Year Results presentation. And in a row is joining me today our interim CFO.

Speaker #2: He'll talk through the key financial results and help work through any questions you might have at the end of our presentations. As you know, we just covered our operational results not long ago, so I'm really going to keep focused on the big picture and the financials, which Ian will take you through.

Speaker #2: I think the headline for today, what I want you to take away, is that we're really proud of what IGO and what the team have delivered through FY26. Safety is fantastic, and that's a piece that's been important for me since I joined the company. I'm so pleased to see the results across the whole financial year.

Ivan Vella: Safety is fantastic, and that's a piece that's been important for me since I joined the company, and I'm so pleased to see the results across the whole financial year. That links tightly with the operational performance at Nova. Absolutely fantastic outcome, beating our expectations well and truly, and that translates to great financial returns from that part of our business. The lithium business has been mixed, and I'll talk a bit more to Greenbushes, but ultimately, we're still talking about an absolutely stunning asset, incredible ore body. While we've got lots of upside and improvement and opportunity there, it's still producing incredible margins and incredible cash. The business is set up really well for FY27, and I'll come back to that at the end of our presentation and just share a few thoughts. We just start with a look back and year in review for FY26.

Speaker #2: That links tightly with the operational performance at Nova—an absolutely fantastic outcome. We’ve beaten our expectations well and truly, and that translates to great financial returns from that part of our business.

Speaker #2: The lithium business has been mixed, and I'll talk a bit more to Greenbushes, but ultimately we're still talking about an absolutely stunning asset, an incredible ore body, and while we've got lots of upside and improvement and opportunity there, it's still producing incredible margins and incredible cash.

Speaker #2: The business is set up really well for FY27, and I'll come back to that at the end of our presentation and just share a few thoughts.

Speaker #2: So, we’ll just start with a look back and a year-in-review for FY26. I mentioned safety, and there is another slide I’ll talk a little more to in a minute.

Ivan Vella: I mentioned safety, and there is another slide I'll talk a little more to in a minute, but fantastic outcomes. That's the foundation for running a great mining business, and it speaks to who we are, I think, first and foremost. I would also call out the importance of it not just being about physical safety. It's also about psychosocial safety, something that I think we've still got a lot to learn about in the industry and understand how we create workplaces that are safe in a comprehensive manner. It's something that we're certainly focused on in IGO. That safety translates directly to operating performance. Nova, we saw a stunning year, excellent full year of mining coming towards the end of that ore body, which is disappointing.

Speaker #2: But fantastic outcomes, and that's a foundation for running a great mining business, and it speaks to who we are, I think, first and foremost.

Speaker #2: I would also call out the importance of it not just being about physical safety; it's also about psychosocial safety—something that I think we've still got a lot to learn about in the industry, and understanding how we create workplaces that are safe in a comprehensive manner is something that we're certainly focused on in IGO.

Speaker #2: That safety translates directly to operating performance, and at Nova we saw a stunning year—an excellent full year of mining—coming towards the end of that orebody, which is disappointing.

Speaker #2: It's sad it doesn't go on longer, but the team really have got the very best out of it, and they're set up for a very good finish. Substantial free cash flow we've generated through that part of our business over the last 12 months.

Ivan Vella: It's sad it doesn't go on longer, but the team really have got the very best out of it, and they're set up for a very good finish. Substantial free cash flow we've generated through that part of our business over the last 12 months. The lithium business is mixed, and Greenbushes has benefited from the spodumene prices. We know it's such a leveraged asset. When those prices move, the amount of extra cash it generates is just extraordinary. Incredible margins, which I think it's renowned for, and great cash flow. There have been some operational challenges, and we've spoken to that in the last couple of quarters. I think one of the areas that I'm sure is on your mind is how is CGP3 going. I'm really pleased to say that post the fire, the team did a great job recovering and repairing the damage.

Speaker #2: The lithium business is mixed, and Greenbushes has benefited from the spodumene prices. We know it's such a leveraged asset; when those prices move, the amount of extra cash it generates is just extraordinary.

Speaker #2: Incredible margins, which I think it's renowned for, and great cash flow. There have been some operational challenges, and we've spoken to that in the last couple of quarters.

Speaker #2: I think one of the areas that I'm sure is on your mind is how CGP3 is going, and I'm really pleased to say that post the fire, the team did a great job recovering and repairing the damage.

Ivan Vella: The ramp-up is going extremely well. It's actually past the level of performance it was prior to the fire, and I'm very pleased to say it's approaching that nameplate performance that we're looking for. It's really set that asset up well. I think the investment was incredibly well timed. No one can pick the lithium market, but it's turned up at the right time and really going to generate a lot of benefit for the business. Kwinana, look, the structural challenges there don't change, and we don't think they're likely to. We continue to work really constructively with TLC, our partner, on trying to find the right pathway forward. The next point, I guess, is on our capital management and portfolio optimization. We've maintained very focused cost control, completed the Forestania divestment. We announced the divestment of Nova.

Speaker #2: The ramp-up is going extremely well. It's actually past the level of performance it was at prior to the fire, and I'm very pleased to say it's approaching that nameplate performance that we're looking for.

Speaker #2: So it's really set that asset up well. I think the investment was incredibly well timed. No one can pick the lithium market, but it's turned up at the right time and is really going to generate a lot of benefit for the business.

Speaker #2: Kwanana, look, the structural challenges there don't change, and we don't think they're likely to. We continue to work really constructively with TLC, our partner, on trying to find the right pathway forward.

Speaker #2: And the next point, I guess, is on our capital management and portfolio optimization. We've maintained very, very focused cost control, and completed the Forrestania divestment.

Speaker #2: We announced the divestment of Nova, heavily rationalized their exploration tenure, and really reset the strategy there. We continued to simplify the portfolio and the business, so we're a much cleaner, more focused, simpler business, and our costs continue to ratchet down in line with that.

Ivan Vella: We've heavily rationalized our exploration tenure and really reset the strategy there. Continued to simplify the portfolio and the business. So we're a much cleaner, more focused, simpler business, and our costs continue to ratchet down in line with that. Cash generation and financial discipline, fantastic. We ended the year with AUD 387 million of net cash, no drawn debt, and a balance sheet that gives us serious flexibility going forward. Underlying all of that is the strength of our team. Fantastic capability, fantastic culture. We've got, I think, some very good results that demonstrate that and show that. The benefits of that strong leadership and clear accountability across the business has translated into the scorecard that we're just talking through now. So overall, FY26 was a year in which IGO became safer, simpler, more disciplined, and better positioned for the growth in the future.

Speaker #2: Cash generation and financial discipline is fantastic. We ended the year with $387 million of net cash, no drawn debt, and a balance sheet that gives us serious flexibility going forward.

Speaker #2: Underlying all of that is the strength of our team—fantastic capability, fantastic culture. We've got, I think, some very good results that demonstrate that and show that.

Speaker #2: The benefits of that strong leadership and clear accountability across the business have translated into the scorecard that we're just talking through now. So overall, FY26 was a year in which IGO became safer, simpler, more disciplined, and better positioned for growth in the future.

Speaker #2: Just a couple more words on safety before I turn it over on the financials. As I said, I'm super proud of what the team's achieved here.

Ivan Vella: Just a couple more words on safety before I turn over on the financials. As I said, I'm super proud of what the team's achieved here. The chart, I think, brings it to life very clearly. We came from a place that was not good. I think we're very open about that in the last, well, the first year or so of my time in this role. We focused on it together as a team and delivered really fantastic results. It continued to improve to the point now where we've got, I think, new challenges in front of the team. It never ends. It doesn't matter what the trigger is or what the particular statistics are, there is always more to do to both sustain that level of performance and continue to improve our controls around risks and hazards in the business.

Speaker #2: The chart, I think, brings it to life very clearly. We came from a place that was not good, and I think we're very open about that. In the last—well, the first year and a year or so of my time in this role, we focused on it together as a team and delivered really fantastic results. It continued to improve to the point now where we've got, I think, new challenges in front of the team.

Speaker #2: It never ends. It doesn't matter what the trigger is or what the particular statistics are, there is always more to do to both sustain that level of performance and continue to improve our controls around risks and hazards in the business.

Speaker #2: That continues into our exploration business. They've been drilling several sites across WA; there's more ramping up as we speak. All of that is often very remote, very complex, and needs to be managed carefully, and again, gets the full attention from a safety point of view.

Ivan Vella: That continues into our exploration business. They have been drilling on several sites across WA. There is more ramping up as we speak. All of that often is very remote, very complex, and needs to be managed carefully, and again, gets the full attention from a safety point of view. I also wanted to acknowledge, not just the Nova team, but also our partner, Barminco, part of the Perenti Group, who has done an outstanding job working with us there through the end of life of Nova. They have been a fantastic partner, and I think it shines out in their safety performance as part of the collective team. Just a few weeks back, they went 365 days without a recordable injury. I think we are probably now reflected as one of their best sites in their portfolio where they are providing services.

Speaker #2: I also wanted to acknowledge not just the Nova team, but also our partner, BumInco, part of the Parenti group, who's done an outstanding job working with us there through the end of life of Nova.

Speaker #2: They've been a fantastic partner, and I think that shines out in their safety performance as part of the collective team. Just a few weeks back, they went 365 days without a recordable injury, and I think we're probably now reflected as one of their best sites in their portfolio where they're providing services.

Speaker #2: Such a turnaround, and a real credit to their leadership and the team on site. So thank you for that. It's been a fantastic partnership, and I give them a lot of credit for the changes.

Ivan Vella: Such a turnaround and a real credit to their leadership and the team on site. Thank you for that. It has been a fantastic partnership, and I give them a lot of credit for the changes. At Greenbushes, safety did deteriorate through the year, and I talked to that in more depth in the prior quarterlies. It is something that is getting huge focus from the board, which I am one of the directors, the management team. It is absolutely our highest priority. As I have called out, I think in our Q3 update, I think you will see a correlation between that safety turning and really starting to become sustainably improved and the operating performance on that site, which has still got a long way to go. They are making progress, but there is still a huge amount of upside. With that, let us just turn to the financials.

Speaker #2: At Greenbushes, safety did deteriorate through the year, and I talked to that in more depth in the prior quarterlies. It's something that's getting huge focus.

Speaker #2: From the board, of which I'm one of the directors, and the management team, it's absolutely our highest priority. And as I've called out, I think in our Q3 update, you will see a correlation between safety turning and really starting to become sustainably improved, and the operating performance at that site, which still has a long way to go.

Speaker #2: They're making progress, but there's still a huge amount of upside. With that, let's just turn to the financials. A couple of quick comments before I throw it over to Ian to walk you through in a bit more depth.

Ivan Vella: A couple of quick comments before I throw it over to Ian to walk you through in a bit more depth. I guess we see the benefit now of Greenbushes starting to flow through for part of this year. Obviously, once the lithium price is adjusted, as that spodumene comes through, we have just noticed the beginnings of it. Naturally, the business is spooled up and producing great production. As we see the rest of this year start to play out, I think we are going to see that translate into very strong cash generation. We did get the, I guess, the early stages of that now in the last H2 of FY26. Of course, Nova did a fantastic job generating free cash. The final production cost was a standout for a mine at its end of life. Really impressive.

Speaker #2: I guess we see the benefit now of Greenbushes starting to flow through for part of this year. Obviously, once the lithium price has adjusted, as that spodumene comes through, we've just noticed the beginnings of it.

Speaker #2: Naturally, the business is spooled up and producing great production, and as we see the rest of this year start to play out, I think we're going to see that translate into very strong cash generation.

Speaker #2: But we did get the, I guess, the early stage steps of that now in the last half of FY26. Of course, Nova did a fantastic job generating free cash.

Speaker #2: The final production cost was a standout for a mine at its end of life—really impressive. Speaking both to commodity prices, and therefore the byproduct credits, but also just the underlying operating performance, productivities, the way that we're managing our costs, and the discipline on site.

Ivan Vella: Speaking both to commodity prices, and therefore the byproduct credits, but also just the underlying operating performance productivities. The way that we are managing our costs and the discipline on site. So that set us up for the last few months now to really make the most of it. With that, I might turn it over now to Ian, and he will take you through our financials in a little more depth.

Speaker #2: So that set us up for the last few months now to really make the most of it. With that, I might turn it over now to Ian, and he'll take you through our financials in a little more depth.

Speaker #3: Thanks, Ivan, and good morning, everyone. Look, FY26 delivered a marked improvement in earnings and cash generation across the group. Total revenue for the year was $463 million, down 12% on FY25, which reflected the transition in our portfolio with Forrestania having made a contribution in the prior year.

Ian Rowe: Thanks, Ivan, and good morning everyone. FY26 delivered a marked improvement in earnings and cash generation across the group. Total revenue for the year was AUD 463 million, down 12% on FY25, which reflected the transition in our portfolio, with Forestania having made a contribution in the prior year. Underlying EBITDA was AUD 286 million, and statutory net profit after tax was AUD 145 million, both up significantly year on year. The largest driver of improvement for our statutory result was lithium earnings. IGO's share of net profit from TLEA was AUD 207 million, compared with a loss of AUD 642 million in FY25. This year-on-year improvement reflects stronger spodumene pricing, improved earnings at Greenbushes, and the absence of the major impairment recorded at Kwinana in the prior year.

Speaker #3: Underlying EBITDA was $286 million, and statutory net profit after tax was $145 million, both up significantly year on year. Look, the largest driver of improvement for our statutory result was lithium earnings.

Speaker #3: IGO's share of net profit from TLEA was $207 million, compared with a loss of $642 million in FY25. This year-on-year improvement reflects stronger spodumene pricing, improved earnings at Greenbushes, and the absence of the major impairment recorded at Kwinana in the prior year.

Speaker #3: Underlying free cash flow for the year was $134 million, up 176% on FY25, with Nova contributing $228 million of free cash for the year.

Ian Rowe: Underlying free cash flow for the year was AUD 134 million, up 176% on FY25, with Nova contributing AUD 228 million of free cash for the year. We closed the year with AUD 387 million of cash, no drawn debt, and a AUD 300 million undrawn corporate debt facility. Turning to slide 5. This slide compares the key cash flow movements year on year and really highlights how our cost base is reshaping as we continue to transition our portfolio. Clearly, the standout performance is Nova, which generated a 63% improvement in year-on-year free cash flow. It is an exceptional performance that reflects strong operating discipline, reliability, and cash conversion as this asset approaches its end of life. We also saw this trend across the broader group. Exploration expenditure reduced to AUD 28 million, reflecting a targeted and disciplined approach to the portfolio as flagged previously, not a constraint on funding.

Speaker #3: We closed the year with $387 million of cash, no drawn debt, and a $300 million undrawn corporate debt facility. Turning to slide five, this slide compares the key cash flow movements year on year, and really highlights how our cost base is reshaping as we continue to transition our portfolio.

Speaker #3: Clearly, the standout performance was Nova, which generated a 63% improvement in year-on-year free cash flow. It's an exceptional performance that reflects strong operating discipline, reliability, and cash conversion, as this asset approaches its end of life.

Speaker #3: We also saw this trend across the broader group. Exploration expenditure reduced to $28 million, reflecting a targeted and disciplined approach to the portfolio as flagged previously—not a constraint on funding.

Speaker #3: Corporate and other costs were also lower year-on-year as we continue to right-size our cost base and simplify the business. Of the $58 million of FY26 expenditure displayed in the graph, approximately $50 million related to underlying corporate costs, with the balance being non-recurring transaction and other disposal costs.

Ian Rowe: Corporate and other costs were also lower year on year as we continue to rightsize our cost base and simplify the business. Of the AUD 58 million of FY26 expenditure displayed in the graph, approximately AUD 50 million related to underlying corporate costs, with the balance being non-recurring transaction and other disposal costs. Care and maintenance expenditure at Cosmos reduced from AUD 16 million to AUD 13 million following the decision to cease dewatering during the year. In the context of a portfolio in transition, this trend is deliberate, a genuinely lower cost base, careful allocation of capital, and maximizing cash generation from Nova as it approaches its end of mine life. Turning now to capital management. Our capital management priorities remain unchanged. Maintaining balance sheet strength, providing flexibility for disciplined growth where we see quality, and delivering returns to shareholders.

Speaker #3: And care and maintenance expenditure at Cosmos reduced from $16 million to $13 million, following the decision to cease dewatering during the year. In the context of a portfolio in transition, this trend is deliberate—a genuinely lower cost base, careful allocation of capital, and maximizing cash generation from Nova as it approaches its end of mine life.

Speaker #3: Turning now to capital management. Look, our capital management priorities remain unchanged: maintaining balance sheet strength, providing flexibility for disciplined growth where we see quality, and delivering returns to shareholders.

Speaker #3: With those priorities in mind, I'm pleased to say the Board has declared a final fully franked dividend of 5 cents per share, or $38 million for FY26, expected to be paid in late September.

Ian Rowe: With those priorities in mind, I am pleased to say the board has declared a final fully franked dividend of AUD 0.05 per share or AUD 38 million for FY26, expected to be paid in late September. This distribution equates to approximately 30% of underlying free cash flows, being the midpoint of our target payout range under IGO's capital management guideline. The dividend is predicated on a very strong FY26 result across the portfolio, driven by the strong cash generated by Nova in its final full year of mining. We enter FY27 with a strengthened balance sheet, no drawn debt, and greater flexibility as we continue to transition our portfolio and pursue growth. With that, I will hand back to Ivan to step through our FY27 priorities.

Speaker #3: This distribution equates to approximately 30% of underlying free cash flows, being the midpoint of our target payout range under IGO's capital management guideline. The dividend is predicated on a very strong FY26 result across the portfolio, driven by the strong cash generated by Nova in its final full year of mining.

Speaker #3: We enter FY27 with a strengthened balance sheet, no drawn debt, and greater flexibility as we continue to transition our portfolio and pursue growth. With that, I'll hand back to Ivan to step through our FY27 priorities.

Speaker #2: Brilliant. Thanks, Ian. Good scorecard. So, look, before I move on to FY27 priorities, I also just wanted to comment on the dividend from a board management perspective.

Ivan Vella: Brilliant. Thanks, Ian. Good scorecard. So look, before I move on to FY27 priorities, I also just wanted to comment on the dividend from a board management perspective. When we discussed that and contemplated that in the last couple of days, as you can imagine, in some depth, we look forward on our FY27 budget, board commitments, and sit here that this is really the right choice to recommend returning capital to our shareholders while still maintaining flexibility for opportunities that might lie ahead. Speaking to that, we look into FY27, our priorities are really clear and fall into two areas. Firstly, and importantly, optimization and maximization of value from our existing portfolio. Clearly, Nova's at the heart of that. Finishing well, safe, stable operations right through to the completion of mining is important.

Speaker #2: When we discussed that and contemplated that in the last couple of days, as you can imagine, in some depth, and we look forward on our FY27 budget board commitments, and sit here that this is really the right choice to recommence returning capital to our shareholders.

Speaker #2: While still maintaining flexibility for opportunities that might lie ahead. Speaking to that, when we look into FY27, our priorities are really clear and fall into two areas.

Speaker #2: Firstly, and importantly, optimization and maximization of value from our existing portfolio. Clearly, Nova’s at the heart of that—finishing well, safe, stable operations right through to the completion of mining is important, and then a very seamless divestment and handoff to Global Lithium Resources, while supporting our people well. Making sure that those people who have served and delivered and given so much to Nova, over a decade now, and all of our team, feel they are well recognized for the fantastic contribution they’ve made to IGO, and that when they do leave our business, they become great alumni and speak to the strength of our business and culture.

Ivan Vella: And then a very seamless divestment and handoff to Global Lithium Resources while supporting our people well and making sure that, for those people who have served and delivered and given so much to Nova over a decade now, and all of our team, that they feel well-recognized for the fantastic contribution they've made to IGO and become, where they do leave our business, great alumni and speak to the strength of our business and culture. At Greenbushes, it means delivering on the Strategic Options Review and driving the improvement ultimately across safety and the broader productivity and operating excellence that we'd expect across that site. Finalizing the CGP3 ramp up is something that's in focus, of course, and getting to a place where we can then share a fuller view of what we're seeing as the potential in that business.

Speaker #2: At Greenbushes, it means delivering on the strategic options review and driving the improvement, ultimately across safety and the broader productivity and operating excellence that we'd expect across that site.

Speaker #2: Finalizing the CGP3 ramp-up is something that's in focus, of course, and getting to a place where we can then share a full view of what we're seeing as the potential in that business.

Speaker #2: At Quinana, it means continuing to maintain a very strong focus on cash, very disciplined capital allocation there, and working through those issues with TLC, our partner, to determine the optimal pathway for our shareholders.

Ivan Vella: At Kwinana, it means continuing to maintain a very strong focus on cash, very disciplined capital allocation there, and working through those issues with TLEA, our partner, to determine the optimal pathway for our shareholders. And then more broadly, it means also looking and, I guess, continuing to look for ways that we can maximize value from our portfolio, whether that's through cost discipline, which we continue to do every day, capital discipline, but also further optimization of our non-core assets. The second area of focus for FY27 is growth and driving more returns and value for our shareholders. We have a global view of opportunities. We are willing, and as I've talked to this, to look offshore where the risk-return is compelling, where we see options that fit with our strengths, our technical capability, things that we can make a difference in, but also sit inside our risk appetite.

Speaker #2: And then, more broadly, it means also looking and, I guess, continuing to look for ways that we can maximize value from our portfolio—whether that's through cost discipline, which we continue to do every day, capital discipline, but also further optimization of our non-core assets.

Speaker #2: The second area of focus for FY27 is growth and driving more returns and value for our shareholders. We have a global view of opportunities.

Speaker #2: We are willing, and as I've talked to this, to look offshore where the risk-return is compelling, where we see options that fit with our strengths, our technical capability—things that we can make a difference in, but also sit inside our risk appetite.

Speaker #2: We're also open to strategic partnerships where they can add value, but that's, again, where we bring something serious and material to the actual relationship based on our internal capabilities.

Ivan Vella: We're also open to strategic partnerships where they can add value. But that's, again, where we bring something serious and material to the actual relationship based on our internal capabilities. In exploration, which I'm really excited seeing the transformation and the moves there. The work that John Kilroy is doing with the team is fantastic, creating new opportunities and working through the existing portfolio that we have. It's very targeted. We're focused on opportunities with known mineralization, real upside, and clear focus on copper and lithium. BioHeap, which I mentioned in our last quarterly briefly. We're doing a mountain of work technically there to prove that out. A bunch of commercial work as well to understand the economics, the approach, CapEx and OpEx modeling, and working through towards opportunities to trial this at a production scale with relevant copper opportunities.

Speaker #2: In Exploration, which I'm really excited about, seeing the transformation and the moves there—the work that John Kilroe is doing with the team is fantastic, creating new opportunities and working through the existing portfolio that we have.

Speaker #2: It's very targeted. We're focused on opportunities with non-mineralization, real upside, and a clear focus on copper and lithium. BioHeap, which I mentioned briefly in our last quarterly, we're doing a mountain of work technically there to prove that out.

Speaker #2: A bunch of commercial work as well, to understand the economics, the approach, capex and opex modeling, and working through towards opportunities to trial this at a production scale, with relevant copper opportunities.

Speaker #2: In the M&A space, more broadly—look, nothing is particularly new or different there from when I started. We'll continue to be highly disciplined and selective.

Ivan Vella: In the M&A space, more broadly, look, nothing is particularly new or different there from when I started. We will continue to be highly disciplined and selective in both lithium and copper. They are in scope. They are areas that we look at, not necessarily exclusively, but they are absolutely our primary focus given our strategy. We will assess any opportunity that comes up and see if it is accretive, see if it is aligned, see if it is something we believe we can genuinely add value for or to, and deliver great outcomes for our shareholders. So nothing new or different in that space. There is a significant amount of work underway across our business in our growth portfolio. I am really excited seeing what the team is doing.

Speaker #2: In both lithium and copper, they're in scope, they're areas that we look at—not necessarily exclusively—but they're absolutely our primary focus, given our strategy.

Speaker #2: And we'll assess any opportunity that comes up and see if it's creative, see if it's aligned, and see if it's something we believe we can genuinely add value to.

Speaker #2: Or two, and deliver great outcomes for our shareholders. So, nothing new or different in that space. There's a significant amount of work underway across our business and our growth portfolio.

Speaker #2: I'm really excited seeing what the team's doing. The board went through the latest update in the last couple of days, and I think all left feeling quite energized and excited about the options that are being worked through and generated. But as you know, these things take time, they take energy, and they don't all work out.

Ivan Vella: The board went through the latest update in the last couple of days, and I think all left feeling quite energized and excited about the options that have been worked through and generated. As you know, these things, they take time, they take energy, and they do not all work out. So we have just got to continue to maintain that discipline and keep stepping through it. We are very excited about how our strategy is taking shape, and we can start to see that progress now. It has been obviously a tough couple of years to work through a number of challenges. I am very proud of the team at Nova and how they finished, and I think shown full life cycle, what IGO can do as a mining company.

Speaker #2: So we've just got to continue to maintain that discipline and keep stepping through it. We're very excited about how our strategy is taking shape, and we can start to see that progress now.

Speaker #2: It's been, obviously, a tough couple of years to work through a number of challenges. I'm very proud of the team at Nova and how they finished, and I think it's showing full life cycle what IGO can do as a mining company—bringing that out of the ground, getting it operating, operating it well, safely, responsibly, and then bringing it to this point where we get the very best out of the ore body, and then ultimately hand off those assets to another owner who can get some more value from them.

Ivan Vella: Bringing that out of the ground, getting it operating it well, safely, responsibly, and then bringing it to this point where we get the very best out of the ore body, and then ultimately hand off those assets to another owner who can get some more value from them. In summary, I am really proud of what the whole IGO team has delivered in FY26. We are a safer business with stronger operational and financial results, much cleaner and simplified portfolio. There is still plenty of work underway and things ahead of us as we enter FY27. We have got a very clear set of priorities and a disciplined plan to deliver on our strategy. With that, I might turn it back to you, Carly, for some Q&A.

Speaker #2: In summary, I'm really proud of what the whole IGO team has delivered in FY26. We are a safer business. We have stronger operational and financial results, and a much cleaner and simplified portfolio.

Speaker #2: There is still plenty of work underway, and things ahead of us as we enter FY27. We've got a very clear set of priorities, and a disciplined plan to deliver on our strategy.

Speaker #2: So with that, I might turn it over back to you, Kayleigh, for some Q&A.

Speaker #1: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Your first question comes from Austin Yun with Macquarie.

Operator: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Your first question comes from Austin Yun with Macquarie.

Speaker #3: Tony, Ivan, team, just one question on the CGP3, please. Good to see it has come back online. Can you let us know if there have been any other planned maintenance or any tying activities required with the restart of CGP3 for this financial year?

Austin Yun: Morning, Ivan team. Just one question on the CGP3, please. Good to see it has come back online. Keen to understand if there have been any other planned maintenance or any tying activities required with the restart of CGP3 for this financial year. Thank you.

Speaker #3: Thank you.

Speaker #2: Okay, yeah, thanks, Austin. It is good news. I mean, I got a very recent update on things, and it's having a great month. No, nothing out of the ordinary.

Ivan Vella: Okay. Yeah. Thanks, Austin. It is good news. I got a very recent update on things, and it's having a great month. Nothing out of the ordinary. Of course, there's normal maintenance and shut routines, but no surprises. In fact, all of the changes that we made are working as expected, so I'm really pleased with what the team's done there.

Speaker #2: I mean, of course, as normal maintenance and shutdown routines, but no surprises. In fact, all of the changes that we made are working as expected.

Speaker #2: So, I'm really pleased with what the team's done there.

Speaker #3: Okay, cool. Thank you. Setting one, just on the capital allocation framework, if I may just sneak in one really quickly. Looking at the TLEA level, cash balance was $423 million.

Austin Yun: Okay, cool. Thank you.

Ivan Vella: Thanks.

Austin Yun: Second one, just on the capital allocation framework, if I may just sneak in one really quickly. Looking at the TLEA level cash balance was AUD 423 million, and roughly every year costs like AUD 250 million cash. Keen to understand the minimum liquidity requirement at the TLEA level and any color you could provide on the discussion with your JV partner to find a path to distribute cash will be appreciated. Thank you.

Speaker #3: And roughly every year, it costs, like, $250 million cash. Can you help us understand the minimum liquidity requirement at the TLEA level? And any color you could provide on the discussion with your JV partner to find a path to distribute cash would be appreciated.

Speaker #3: Thank you.

Speaker #2: Okay, Austin. I mean, as you, I'm sure, can appreciate, I can't give you any forward advice on dividends, but all your other observations are right.

Ivan Vella: Okay, Austin. As you, I'm sure, can appreciate, I can't give you any forward advice on dividends, but all your other observations are right and when we get through the next TLEA board meeting, we'll no doubt be discussing that in more depth. Equally, I expect that Windfield will be looking at its cash balance as well. So, I think everyone can work out what that pipeline of cash looks like and draw some conclusions from that. But can't be more specific at this point on the details of dividends and so on. What I can say, though, in terms of the general engagement with Tianqi Lithium Corporation, really constructive, very active, a lot of positive conversations there. We're just working through trying to understand each other's needs and work out what's the best pathway with respect to Kwinana and getting that sorted out.

Speaker #2: And when we get through the next TLEA board meeting, I will no doubt be discussing that in more depth. Equally, I expect that Winfield will be looking at its cash balances as well.

Speaker #2: So I think everyone can work out what that pipeline of cash looks like and draw some conclusions from that, but I can't be more specific at this point on the details of dividends and so on.

Speaker #2: What I can say, though, in terms of the general engagement with TLC: really constructive, very active—a lot of positive conversations there. We're just working through trying to understand each other's needs and work out what's the best pathway with respect to Quinana and getting that sorted out.

Speaker #3: Thank you, Evan.

[Analyst]: Thank you, Ivan.

Speaker #2: Thanks, Austin.

Ivan Vella: Thanks, Austin.

Speaker #1: Your next question comes from Daniel Morgan with Baron Joey.

Operator: Your next question comes from Daniel Morgan with Barrenjoey.

Speaker #3: Hi, Ivan. I just wanted to unpack CGP3 a little bit more. You said it's ramping up very well, approaching nameplate. Do you think it can exit this quarter at nameplate, i.e., run at 2.4 million tonnes throughput sustainably, or is there still any rectification issues or anything from the fire that needs to be fixed?

Daniel Morgan: Hi, Ivan. I just wanted to unpack CGP3 a little bit more. You said it is ramping up very well, approaching nameplate. Do you think it can exit this quarter at nameplate, i.e., run at 2.4 million tons throughput sustainably, or is there still any rectification issues or anything from the fire to note that needs to be fixed? Thank you.

Speaker #3: Thank you.

Speaker #2: Thanks, Dan. Look, I don't have a crystal ball, but yeah, certainly performing well. If you say with another month of activity, it's quite possible. Yes, I hate giving those kinds of forecasts because you just don't know what happens.

Ivan Vella: Thanks, Dan. Look, don't have a crystal ball, but yeah, it is certainly performing well. If you say, with another month of activity, quite possible, yes. I hate giving those kind of forecasts because you just don't know what happens. It is a big operation, it is a big asset and something can move. But yeah, the trajectory is very impressive. It was pre-fire. That is why I think was so disappointing with the fire. The team had worked incredibly hard to get it up and running. They were well ahead of schedule. Things were going well, and then, of course, you have a major setback. The good news is the repairs have been done. They have all worked. It is running well.

Speaker #2: It's a big operation. It's a big asset. And something can move, but yeah, I mean, the trajectory is very, very impressive. It was pre-fire.

Speaker #2: That's why I think it was so disappointing with the fire. The team had worked incredibly hard to get it up and running. They were well ahead of schedule.

Speaker #2: Things were going well. And then, of course, you have a major setback. The good news is the repairs have been done, and they've all worked.

Speaker #2: It's running well. There are no gremlins or surprises that we haven't been able to work through very quickly. I think that sets them up for a very good run-rate finish to the end of the quarter.

Ivan Vella: There is no gremlins or surprises that we haven't been able to work through very quickly, and I think that sets them up for a very good run rate finish to the end of the quarter. Then, I think obviously there is throughput. We also need to make sure we are getting the recoveries stable and optimized, and that has been a challenge across the whole site through the last financial year. They have done a lot of good work in the last couple of months. The other plants have stepped up. They have really started to get better control there and more performance in line with our expectations, and CGP3 is playing its part there as well. So, we are very conscious of the whole picture.

Speaker #2: And then I think, obviously, there’s throughput. We also need to make sure we get in the recoveries—stable and optimized. And that’s been a challenge across the whole site through the last financial year.

Speaker #2: They've done a lot of good work in the last couple of months. The other plants have stepped up. They've really started to get better control there.

Speaker #2: And more performance in line with our expectations. And CGP3 is playing its part there as well. So we are very conscious of the whole picture.

Speaker #3: Just on that recovery piece, is there anything on the agenda for the JV—the Winfield JV—to contemplate changing the product quality, which could lead to recovery benefits?

Daniel Morgan: Just on that recovery piece, is on the agenda for the JV, the Windfield JV, to contemplate changing the product quality which could lead to recovery benefits? Is that on the agenda or is that still an IGO wishlist thing? Thank you.

Speaker #3: Is that on the agenda, or is that still an IGO wishlist thing? Thank you.

Speaker #2: No, no, I mean, that's something I think I have talked about in prior quarters around the broader SOR. So that's a comprehensive life-of-mine optimization.

Ivan Vella: No. That's something I think I have talked about in prior quarters around the broader SOR. That's a comprehensive life of mine optimization, and as part of that, you will always consider everything from the ore body all the way through to your product grade. The first part of the answer is yes, that is contemplated as part of the broader optimization and the decisions that we're considering for Greenbushes. To deal with the second part of your question, where you've made an observation, which I suspect many people know, but let me just unpack it a little bit around the nature of recoveries from spodumene, recoveries from pegmatites. In this kind of context, yes, pushing a 6% product is very difficult, and you need a very good ore body to do that.

Speaker #2: And as part of that, you will always consider everything from the ore body all the way through to your product grade. So the first part of the answer is yes, that is contemplated as part of the broader optimization and the decisions that we're considering for Greenbushes.

Speaker #2: To deal with the second part of your question, where you've made an observation—which I suspect many people know—but let me just unpack it a little bit, around the nature of recoveries from spodumene, recoveries from pegmatites.

Speaker #2: In this kind of context, yes, pushing a 6% product is very, very difficult, and you need a very good ore body to do that.

Speaker #2: If you go and look and benchmark across the industry, you'll find there's only one that's doing it, and that's Greenbushes. It has a very, very high-grade ore body, and therefore can achieve it.

Ivan Vella: If you go and look and benchmark across the industry, you'll find there's only one that's doing it, and that's Greenbushes. It has a very high-grade ore body and therefore can achieve it, but there is a cost as well. As you move down to sort of where the market or the industry is, and you sort of see some at 5.5%, some at 5.2%, and some at 5%, there's some lower, but I think the majority of the industry now sits between 5% and 5.5%. The recoveries are not linear in that reduction. As you get into it further, what you'll see is a substantial step-up in concentrate volume disproportionate to the grade change. Most importantly, it's not just about con, it's actually about metal content. You see quite a big lift in metal content, again, disproportionately increased above the reduction in concentrate grade.

Speaker #2: But there is a cost as well. And as you move down to sort of where the market or the industry is, you sort of see some at 5.5, some at 5.2, and some at 5. There are some lower, but I think the majority of the industry now sits between 5% and 5.5%.

Speaker #2: The recoveries are not linear in that reduction. So as you get into it further, what you'll see is a substantial step up in concentrate volume, disproportionate to the grade change.

Speaker #2: And most importantly, it's not just about con; it's actually about metal content. You see quite a big lift in metal content—again, disproportionately increased above the reduction in concentrate grade.

Speaker #2: So, as you can imagine, the price comes down because you're paying for the metal—the contained metal, effectively—and the price benchmarks all handle that.

Ivan Vella: As you can imagine, the price comes down because you're paying for the metal, the contained metal, effectively, and the price benchmarks all handle that, but you can actually get a lot more metal out onto the ship and to our customers rather than going in the tailings dam. I think well demonstrated across the industry and something that we'll just work through in a really thoughtful manner. I'm sure the team will come up with recommendations on what they think is best for Greenbushes' specific requirements.

Speaker #2: But you can actually get a lot more metal out onto the ship and to our customers, rather than going in the tailings dam. So, I think it’s well demonstrated across the industry, and something that we’ll just work through in a really thoughtful manner. I’m sure the team will come up with recommendations on what they think is best for Greenbushes’ specific requirements.

Speaker #3: Okay. Thank you, Ivan, for your perspectives.

Daniel Morgan: Okay. Thank you, Ivan, for your perspectives.

Speaker #2: Thanks, Dan.

Ivan Vella: Thanks, Dan.

Speaker #1: Your next question comes from Hugo Nicolasi with Goldman Sachs.

Operator: Your next question comes from Hugo Nicolaci with Goldman Sachs.

Speaker #4: Morning, guys. Maybe just another one following up on some of the TLA accounts. It just looks like a big step up in your current assets there.

Hugo Nicolaci: Morning, guys. Maybe just another one following up on some of the TLEA accounts. It just looks like a big step-up in your current assets there. Can we just confirm that is all related to the receivables build at Greenbushes, just given the timing of payments from the JV partners there?

Speaker #4: Can we just confirm that's all related to the receivables billed at Greenbushes, just given the timing of payments from the JV partners there?

Speaker #2: That's a reasonable conclusion, Hugo, and yeah, there are a few other things in there as well.

Ivan Vella: That is a reasonable conclusion, Hugo, but yeah, there is a few other things in there as well.

Speaker #4: Great. And then similarly, just on the current liabilities— I mean, is that CGP3 capex yet to be fully paid off, or are there moving pieces like deferred tax, given the growing profitability coming through?

Hugo Nicolaci: Right. Then similarly, just on the current liabilities. Is that CGP3 CapEx yet to be fully paid off, or are there moving pieces like deferred tax given the growing profitability coming through?

Ivan Vella: Hugo, yeah, I would have to unpack it, Hugo, but there would be some tax in there. It is not about CapEx, though. There is nothing with CGP3 to unwind there.

Speaker #2: As you go. I mean, yeah, I'd have to unpack it, Hugo, but there would be some tax in there. It's not about capex, though.

Speaker #2: There's nothing with CGP3 to unwind there.

Speaker #4: Yep, great. And then just last one, appreciate that you've probably already tried to answer this one, but just in terms of the monthly sort of cash sweeps to TLA, and then sort of the flows out to IGO—just given the decision to pay a dividend, can you just confirm whether TLA's had another cash sweep out of Winfield subsequent to the quarterly, and whether you've had or are imminently expecting a TLA sweep to IGO this quarter?

Hugo Nicolaci: Yep. Great. Then just last one. Appreciate that you have probably already tried to answer this one, but just in terms of the monthly sort of cash sweeps to TLEA and then sort of the flows out to IGO, just given the decision to pay a dividend, can you just confirm whether TLEA has had another cash sweep out of Windfield subsequent to the quarterly and whether you have had or are imminently expecting a TLEA sweep to IGO this quarter?

Speaker #2: Hugo, we do that quarterly, not monthly. And no, we would have obviously reported that if there was some material movement of cash.

Ivan Vella: Hugo, that we do it quarterly, not monthly. No, so we would have obviously reported that if there was some material movement of cash. But it is once a quarter and has not happened yet.

Speaker #2: But it's once a quarter and hasn't happened yet.

Speaker #4: Got it. Thank you. I'll pass it on.

Hugo Nicolaci: Got it. Thank you. I will pass it on.

Speaker #2: Great. Thanks, Hugo.

Ivan Vella: Great. Thanks, Hugo.

Speaker #1: Your next question comes from Tiago Oheya with Citi.

Operator: Your next question comes from Thiago Ojea with Citigroup.

Speaker #5: All right. Thanks, Ivan. Good morning, everyone. Ivan, I think you have some good news here on the dividends and on the ramp-up of CGP3, but Quirinana continues to be kind of a nice strategic review, right?

Thiago Ojea: Hi. Thanks, and good morning, everyone. Ivan, I think, you have some good news here around the dividends and around the ramp-up of CGP3. Kwinana continues to be in our strategic review, right? With operating losses requiring additional capital. Can you provide us, what are the milestones or decision points that are still being discussed and that investors should expect over the next 12 months on the asset? Thank you.

Speaker #5: Operating losses are requiring additional capital. Can you provide us with what the milestones or decision points are that are still being discussed, and that investors should expect over the next 12 months on the asset?

Speaker #5: Thank you.

Speaker #2: A bit hard to hear, Tiago, but I think we're sort of talking to Green Bushes and just how that strategic review plays out. There's a mountain of work that has been done by the team technically, and it's a ground-up piece of work looking at the entire ore body, going through the block model, looking at the design.

Ivan Vella: A bit hard to hear, Thiago, but I think you are sort of talking to Greenbushes and just how that strategic review plays out. There is a mountain of work that has been done by the team technically, and it is a ground-up piece of work, looking at the entire ore body, going through the block model, and looking at the design. We have, I think, shared earlier this year, a change in the pit wall slopes angles, for example, and that changes your strip ratios and the metal that you can access. They are looking at the underground, when and how that would play out, looking at the plants, the recoveries, the throughput, product grade, which I just talked to, et cetera. There is a huge amount of work. That technical work has been going now for probably 15 to 20 months. It has been a pretty significant program.

Speaker #2: We've, I think, shared earlier this year the change in the pit wall slopes—angles, for example—and that changes your strip ratios and the metal that you can access.

Speaker #2: They're looking at the underground—when and how that would play out; looking at the plants, the recoveries, the throughput, product grade, which I just talked to, etc.

Speaker #2: There's a huge amount of work. That technical work has been going now for probably 15 to 20 months. It's been a pretty significant program.

Speaker #2: A lot of expert consultants are helping the team at Tallis and working through that. And I know that everyone’s clamoring, as I am, to see that translated into some simple results that you can model and look forward to—on what the production growth and changes will be.

Ivan Vella: A lot of expert consultants helping the team at Talison working through that, and I know that everyone is clamoring, as I am, to see that translated into some simple results that you can model and look forward on what the production growth and changes will be. I do not have that yet. We are pushing. I spoke with the management team just last week about getting that final schedule worked through. I know they have just finished some of their economic modeling. There is a lot going on, and then as they can start to share that, I will bring it forward to you.

Speaker #2: I don't have that yet. We are pushing. I spoke with the management team just last week about getting that final schedule worked through. I know they've just finished some of their economic modeling—there's a lot going on.

Speaker #2: And then, as they can start to share that, I'll bring it forward to you.

Speaker #5: Yeah. Just a follow-up, actually. Yeah, I mixed up—not only on Greenbushes, the strategic review, but also the investments in Quirinana and the decisions regarding the assets.

Thiago Ojea: Yeah. Just a follow-up. Actually, yeah, I mixed up not only on Greenbushes, the strategic review, but also the investments on Kwinana and the decisions regarding the assets.

Speaker #2: Well, yeah. I mean, I can't say much more other than we continue to work really constructively with TLC on that. We're having a lot of discussions.

Ivan Vella: Well, yeah, I cannot say much more other than we continue to work really constructively with TLC on that. We are having a lot of discussion. We have been down a few pathways that did not work out and did not give us a solution, and we are on one now that seems good, but I cannot give you clarity until it is done. Clearly, the two assets are bound in the same JV, and we need to contemplate how we manage through that. I think there is a really good understanding of each other's needs, which is healthy and allows us to sort of try and appreciate what kind of options and solutions could work for both of us.

Speaker #2: We've been down a few pathways that didn't work out, didn't give us a solution, and we're on one now that seems good. But I can't give you clarity until it's done.

Speaker #2: Clearly, the two assets are bound in the same JV, and we need to contemplate how we manage through that. I think there's really good understanding of each other's needs, which is healthy and allows us to sort of try and appreciate what kind of options and solutions could work for both of us.

Speaker #5: Got it. Thank you. I appreciate it.

Thiago Ojea: Got it. Thank you. Appreciate it.

Speaker #2: Thanks, Tiago.

Ivan Vella: Thanks, Thiago.

Speaker #1: Your next question comes from Tim Hoff with Canaccord.

Operator: Our next question comes from Tim Hoff with Canaccord.

Speaker #6: Hi, Tim. I was just looking at the grade—it's obviously declined over the past couple of quarters. How should we be thinking of that going over the next few quarters?

Tim Hoff: Hey, Tim. I was just looking at the grade. It's obviously declined over the past couple of quarters. How should we be thinking of that going over the next few quarters, and is that something structural within the current deposit, or is that just a factor of Kabanga sort of coming into the mine site?

Speaker #6: And is that something structural within the current deposit, or is that just a factor of Capanga sort of coming into the mine plan?

Speaker #2: You're talking about green bushes, Tim? Yeah. No, I mean, I think very clearly we're back in the core of the mine. It's got heaps of high grade.

Ivan Vella: You are talking about Greenbushes, Tim?

Tim Hoff: Yeah.

Ivan Vella: Yeah. No. I think very clearly we are back in the core of the mine. It has got heaps of high grade. We are feeding those plants in a very disciplined manner. We are managing that mine better than we ever have, and that is the grade that those plants are designed to perform on. So there is no issue. It is actually, I am really pleased with the blending and the performance and the management of that. Those plants should be making really good tons and recoveries with the feed and a nice stable feed so that we can actually then just optimize the way they perform. But yeah, there is nothing untoward or concerning there. That mine has got astonishingly high grades, but you do not want to just tip it all in at one or two quarters.

Speaker #2: We are feeding those plants in a very disciplined manner. We're managing that mine better than we ever have. And that's the grade that those plants are designed to perform on.

Speaker #2: So, it's not that there's no issue. It's actually—I mean, I'm really pleased with the blending and the performance and the management of that. Those plants should be making really good tons and recoveries with the feed, and a nice stable feed, so that we can actually then just optimize the way they perform.

Speaker #2: But yeah, there's nothing untoward or concerning there. That mine has got astonishingly high grades, but you don't want to just tip it all in at one or two quarters.

Speaker #2: What you want to do is try and smooth that out, and actually manage it in a much more disciplined manner.

Ivan Vella: What you want to do is try and smooth that out and actually manage it in a much more disciplined manner.

Speaker #6: Yeah. So reserve grade should be sort of where we're targeting?

Tim Hoff: Yeah. So reserve grade should be sort of where we are targeting?

Speaker #2: Yeah. I mean, the plants each take slightly different grades, so it is about being very intentional. CGP1 does take a higher grade—above 2%—and 2 and 3 are under 2%, closer to reserve grade.

Ivan Vella: Yeah. The plants each take slightly different grades, so it is about being very intentional. CGP1 does take a higher grade above 2%. Two and three are under 2%, closer to reserve grade. One a little bit below, one a bit above. It is about that discipline, which I think maybe if you do reflect back on the past, that was not the case. They kind of just got run a mine and whatever. It is just not the way to run them. What we are seeing is with that disciplined feed and then a real focus on throughput, asset health, production stability and recoveries, we are actually going to get a much better outcome overall.

Speaker #2: One a little bit below, one a bit above. And so it's about that discipline, which I think maybe, if you do reflect back on the past, was not the case.

Speaker #2: They kind of just got run-of-mine and whatever. It's just not the way to run them. And what we're seeing is, with that disciplined feed and then a real focus on throughput, asset health, production stability, and recoveries, we're actually going to get a much better outcome overall.

Speaker #6: Thanks very much.

Tim Hoff: Thanks very much.

Speaker #2: Thanks, Tim.

Ivan Vella: Thanks, Tim.

Speaker #1: Your next question comes from Leigh Vespra with UBS.

Operator: Your next question comes from Levi Spry with UBS.

Speaker #7: Yeah, I've been seeing a couple of quick ones. I guess maybe back to just the capital management piece—now that we're post-NOVA, can you talk through the suitability of the 20 to 40 percent payout?

Levi Spry: G'day, Ivan and team. A couple of quick ones. I guess maybe back to just the capital management piece. Now that we are post Nova, can you talk through the suitability of the 20% to 40% payout?

Ivan Vella: I am not sure I understand the question, Levi. Just help me.

Speaker #2: I'm not sure I understand the question, Leigh. Just help me.

Levi Spry: Could it be higher? Could it be 80%?

Speaker #7: Could it be higher? Could it be 80?

Speaker #2: Well, okay. I mean, do you want to comment, Ian? And I can—yeah. Look, I think the payout is the midpoint of the range.

Ivan Vella: Well, okay. Do you want to comment, Ian?

Ian Rowe: Yeah. Look, I think the payout

Ivan Vella: is the midpoint of the range. It reflects the strong FY26 result, which we know is substantially supported by Nova. I think the board has taken a balanced approach to applying the guideline, recognizing that our portfolio is in transition. So, we have selected the midpoint. Anything you want to add?

Speaker #2: It reflects a strong FY26 result, which we know was substantially supported by NOVA. I think the Board's taken a balanced approach to applying the guideline, recognizing that our portfolio is in transition.

Speaker #2: So we've selected the midpoint. Is there anything you'd like to add?

Speaker #7: I want to go forward. I want to go forward, as opposed to FY26. Yeah.

Levi Spry: On the go-forward, on the go-forward as opposed to FY26. Yeah.

Speaker #2: Well, yeah, we're not here to sort of update the capital management framework on the run. We'll obviously be aware of that. But, Leigh, we're considering the outlook for the business, and that's the dividend decision for today.

Ivan Vella: Well, yeah. We are not here to sort of update the capital management framework on the run. We will obviously be aware of that, but Levi, we are considering the outlook for the business, and that is the dividend decision for today. Then, the board will take, I guess, the future into account as we look forward on capital management. The key is, I think, the discipline in terms of the money we are allocating internally within the business or on other opportunities. That is where I think we want our investor shareholders to be confident that we are doing that with very careful focus.

Speaker #2: And then the Board will take, I guess, the future into account as we look forward on capital management. The key is, I think, the discipline in terms of the money we're allocating internally within the business or on other opportunities.

Speaker #2: That's where I think we want our investors and shareholders to be confident that we're doing that with very careful focus.

Speaker #7: Okay, thanks. And then, back on CV33—in terms of your guidance, is that consistent with our mile, talking about being at full run rate by year-end? Or are we talking about potential upside if we get there earlier?

Levi Spry: Okay, thanks. Then back on CGP3. In terms of your guidance, is that consistent with Albemarle talking about being at full run rate by the year-end? Or are we talking about potentially the upside if we get there earlier? Or what is included in your guidance?

Speaker #7: Or what's included in your guidance?

Speaker #2: Well, our guidance is the plan that we put forward, which is the ramp up to the end of to nameplate by the end of the year.

Ivan Vella: Well, our guidance is the plan that we put forward, which is the ramp up to nameplate by the end of the year. What I have indicated on the call is that teams make good progress, and they might be ahead of schedule, but we do not want to call these things until we are there. So I am just giving you a bit of flavor that effectively, we have worked through the fire, that the repairs have been delivered well, the plant is stable and it is performing. I think that is very important for the market to understand. We are certainly not trying to restate or provide any updates on guidance in the discussion.

Speaker #2: What I've indicated on the call is that teams are making good progress, and they might be ahead of schedule, but we don't want to call these things until we're there.

Speaker #2: So I'm just giving you a bit of flavor that, effectively, we've worked through the fire. The repairs have been delivered well, the plant's stable, and it's performing.

Speaker #2: And I think that's very important for the market to understand. We're certainly not trying to restate or provide any updates on guidance in the discussion.

Speaker #7: Got it. Okay, thanks. And then just lastly on the SLR, is there any guidance on timing now? I think previously...

Levi Spry: Okay, thanks. Then just lastly on the SOR, is there any guidance on timing now? I think previously-

Speaker #2: No, just as I said, I mean, the team's made a huge amount of progress, but I have asked them for a structured plan for the finish.

Ivan Vella: No, just as I said, the team's-

Levi Spry: In September.

Ivan Vella: huge amount of progress, but I have asked them for a structured plan for the finish. There's a few things that have certainly, that had created impact for them. I will provide that when I can.

Speaker #2: And the fire, and there are a few things that have certainly created impact for them. So I will provide that when I can.

Speaker #7: Okay. Thank you.

Levi Spry: Okay. Thank you.

Speaker #2: Thanks, Leigh, bye.

Ivan Vella: Thanks, Levi Spry.

Speaker #1: Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Your next question is from Austin Yun with Macquarie.

Operator: Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Your next question is from Austin Yun with Macquarie.

Austin Yun: Thank you for the opportunity to ask questions again. Just on your focus on growth in copper and lithium. You mentioned that you have improved the relationship with the TLEA. I am keen to understand for your lithium opportunity, will you be looking to do that through the joint venture structure, or would that be more through your independent standalone approach? Thank you.

Speaker #6: Thank you for the opportunity to ask questions again. Just on your focus on growth in copper and lithium—you mentioned that you have improved the relationship with the TLC.

Speaker #6: Keen to understand your lithium opportunity. Will you be looking to do that through the joint venture structure, or would that be more through your independent standalone approach?

Speaker #6: Thank you.

Speaker #2: Yeah, Austin, I think it really depends on the specifics of what it is. I mean, our default position, I think, as everyone knows, is to work through things with TNT via TLEA.

Ivan Vella: Well, Austin, I think it really depends on the specifics of what it is. Our default position, I think as everyone knows, is to work through things with Tianqi Lithium via TLEA. That is our default position. If there is some reason that that does not make sense, then each party can act alone, and we have seen examples of that in the last five years. So, it depends. We will wait and see.

Speaker #2: That's our default position. If there's some reason that that doesn't make sense, then each party can act alone. We've seen examples of that in the last five years.

Speaker #2: So, yeah, it really just depends. We'll wait and see.

Speaker #6: Thank you.

Austin Yun: Thank you.

Speaker #2: Thanks, Austin.

Ivan Vella: Thanks, Austin.

Speaker #1: Your next question comes from Ben Lyons with Jordan.

Operator: Your next question comes from Ben Lyons with Jarden.

Speaker #5: Oh, thanks. Good day. I'll have a crack at the BD question as well. Obviously, the copper sphere is very competitive on a global basis, and maybe lithium is a bit less so.

Ben Lyons: Oh, thanks. Good day. I will have a crack at the BD question as well. Obviously, the copper sphere is very competitive on a global basis and maybe lithium is a bit less so. Just making the observation that the market valuations for lithium producers have clearly benefited from the current cycle, but developers or advanced explorers, less so. So you are seeing a bit of a gap widen between the market valuations for current producers versus potential participants in the next cycle. Yeah, excusing my impatience, just wondering whether you have got any closer to pulling the trigger or have you had any advanced stage discussions with any potential assets or equities out there? Thanks.

Speaker #5: But just making the observation that the market valuations for lithium producers have clearly benefited from the current cycle, but developers or advanced explorers less so.

Speaker #5: So you're seeing a bit of a gap widen between the market valuations for current producers versus potential participants in the next cycle.

Speaker #5: So, yeah, excusing my impatience, but just wondering whether you've got any closer to pulling the trigger, or have you had any advanced-stage discussions with any potential assets or equities out there?

Speaker #5: Thanks.

Speaker #2: Yeah, Ben. Look, I'd love to be able to report and announce something more tangible, but no. I mean, look, you just speak to your observations.

Ivan Vella: Yeah. Ben, look, I would love to be able to report and announce something more tangible, but no. Look, to speak to your observations, on the broader lithium market, it is fascinating seeing that gap, and I think some of my peers in the industry are observing. It is a very strong picture of demand for lithium. The industry is maturing, that demand is maturing. There is a bunch of debate about how fast EVs are growing or not growing and whatever. But if you stand back and just count terawatt-hours of battery production, it is significant and growing fast for a variety of reasons. Then you look at the suite of projects that need to keep up with that, and they are not there. They are certainly not financed and capitalized.

Speaker #2: On the broader lithium market, it is fascinating seeing that gap. And I think some of my peers in the industry are observing it's a very strong picture of demand for lithium.

Speaker #2: The industry is maturing. That demand is maturing. There's a lot of debate about how fast EVs are growing or not growing, and whatever. But if you stand back and just count terawatt-hours of battery production, it's significant and growing fast.

Speaker #2: For a variety of reasons. And then you look at the suite of projects that need to keep up with that, and they're not there.

Speaker #2: They're certainly not financed and capitalized. My sense is that the last cycle probably sits in the memory of investors and people making decisions around that capital to allocate, because this is a volatile industry.

Ivan Vella: My sense is that the last cycle probably sits in the memory of investors and people making decisions around that capital to allocate because this is a volatile industry. It is difficult. I think you have to be absolutely surgical where you put your capital, otherwise it can end badly. These assets do not go away. Once they are built, if it is a high-cost asset, it is there forever. It is just miserable through large parts of the cycle. Clearly, I think I have said this to many investors now. We sit here with the best hard rock asset in the world in our portfolio or part of it. We think there is enormous upside to optimize that and to bring a lot more value, and that needs the utmost attention, which is where we are focused on working with the joint venture partners to achieve that.

Speaker #2: It's difficult. I think you've got to be absolutely surgical where you put your capital; otherwise, it can end badly. And these assets don't go away.

Speaker #2: Once they're built, if it's a high-cost asset, it's there forever. It's just miserable through large parts of the cycle, clearly. And I think I've said this to many investors now: we sit here with the best hard rock asset in the world in our portfolio, or part of it.

Speaker #2: We think there's enormous upside to optimize that and to bring a lot more value. And that needs the utmost attention, which is where we're focused—working with the joint venture partners to achieve that.

Ivan Vella: I look in and I see the potential and the progress, and I am very excited about that. To add to that, it is really difficult. As IGO, we have that sort of problem in the sense that to complement something as good as Greenbushes is extremely difficult. That probably puts us in a different spot to many other participants in the industry. To go back to it, I think you brought observation on the developers out there and early-stage resources. Yeah, they are not well supported and that is probably pretty hard and it speaks to what is making this industry so volatile because it does not have that stable following of capital yet.

Speaker #2: I look in and I see the potential and the progress, and I'm very excited about that. To add to that, it's really difficult. And so, as IGO, we have that sort of problem in the sense that to complement something as good as Greenbushes is extremely difficult.

Speaker #2: So that probably puts us in a different spot to many other participants in the industry. But to go back to it, I think you brought up observations on the developers out there and early stage resources.

Speaker #2: Yeah, they're not well supported, and that is probably pretty hard. And it speaks to what is making this industry so volatile, because it doesn't have that stable following of capital yet.

Speaker #5: Yeah, cool. No, no, that's really helpful. Thanks, Oliver. Yeah, I share the perspective that it's hard to see where the supply response is really coming from to meet those demand projections at this point.

Ben Lyons: Yeah. Cool. No, that is really helpful. Thanks, Ivan. Yeah, share the perspectives that it is hard to see where the supply response is really coming from to meet those demand projections at this point. So yeah, highly constructive for the outlook, but understand the challenges of broadening the portfolio with an asset of the same quality as the one that you are already exposed to. So thank you for your perspectives.

Speaker #5: So, yeah, highly constructive for the outlook, but understand the challenges of broadening the portfolio with an asset of the same quality as the one that you're already exposed to.

Speaker #5: So, thank you for your perspectives.

Speaker #2: Thanks, Ben.

Ivan Vella: Thanks, Ben.

Speaker #1: There are no further questions at this time. I'll now hand the conference back to Mr. Vella for closing remarks.

Operator: There are no further questions at this time. I will now hand the conference back to Mr. Vella for closing remarks.

Speaker #2: Thanks, Carly. Look, thanks for joining, everyone. We're finishing a bit early, which was the end of our goal. Hopefully, that gets you off to a break before your next call.

Ivan Vella: Thanks, Carly. Look, thanks for joining, everyone. We are finishing a bit early, which that was in our goal to sort of get you off to hopefully a break and then your next call. It has been a great year for the team here at IGO. We have definitely through some of the real challenges in the prior financial year, and I am pleased that we can deliver the kind of results that we have just talked through. Sets us up for a good FY27. We are going to continue to operate with exactly the same discipline and focus that you have come to expect, and I look forward to providing more on our next quarterly at the end of October. Thanks for joining.

Speaker #2: It's been a great year for the team here at IGO. It was definitely tough getting through some of the real challenges in the prior financial year, and I'm pleased that we can deliver the kind of results that we've just talked through.

Speaker #2: Sets us up for a good FY27. We're going to continue to operate with exactly the same discipline and focus that you've come to expect.

Speaker #2: And I look forward to providing more in our next quarterly at the end of October. Thanks for joining.

Operator: That does conclude our conference for today. Thank you for participating. You may now disconnect.

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