Q1 2027 Igo Ltd Earnings Call

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

Speaker #1: Thank you for standing by, and welcome to the IGO September quarterly activities report. All participants are on listen-only mode. There will be a presentation followed by a question-and-answer session.

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

Ivan Vella: Thanks, Darcy. Good morning, and thanks for joining IGO's September quarter results call. I am also joined by our CFO, Ian Rowe, who will take you through some of the financial results and join me for the questions. It was a strong operational quarter, and it delivered several things that we told you to expect. CGP3 at Greenbushes reached nameplate in December, which was very pleasing to see after the fire. That was ahead of our end-of-year target that was reset back in July. Obviously, despite the recovery the team went through following that fire. Greenbushes moved back into the high-grade core of the mine since the March quarter, and that has been delivering as we signposted. We achieved record or saw record production of 435,000 tons through the quarter.

Speaker #2: Thanks, Darcy. Good morning, and thanks for joining IGO's September quarter results call. I'm also joined by our CFO, Ian Roe, who will take you through some of the financial results and join me for the questions.

Speaker #2: It was a strong operational quarter, and it delivered several things that we told you to expect. CGB3 at Greenbushes reached nameplate in December, which was very pleasing to see after the fire.

Speaker #2: That was ahead of our end-of-year target that was reset back in July, and, obviously, despite the recovery, the team went through following that fire.

Speaker #2: Greenbushes moved back into the high-grade core of the mine since the March quarter, and that's been delivering as we signposted. We achieved record, or saw record, production of 435,000 tons through the quarter.

Ivan Vella: Nova is on track to finish above the life of mine guidance that we upgraded in July, and our group underlying EBITDA was AUD 176 million. We ended the quarter with net cash of AUD 376 million. There are also some areas that we have not yet delivered what you were waiting for, and I will address each of those ones directly. The timing for the Greenbushes SOR, the Strategic Options Review outcomes. The distributions from TLEA to its shareholders, and obviously the pathway and future for Kwinana. Safety at our joint venture operations also remains a key focus, and I want to take some time on this call to recognize Nova. This week, many of the leadership team were on-site to mark the end of mining, and it ultimately closes a very important chapter for IGO. First, let me spend a moment on the safety performance.

Speaker #2: Nova is on track to finish above the life-of-mine guidance that we upgraded in July. Our group underlying EBITDA was $176 million, and we ended the quarter with net cash of $376 million.

Speaker #2: There are also some areas that we haven't yet delivered what you were waiting for, and I'll address each of those ones directly: the timing for the Greenbushes SOR, the strategic options review outcomes, the distributions from TLEA to its shareholders, and obviously the pathway and future for Quinana.

Speaker #2: Safety at our joint venture operations also remains a key focus. I want to take some time on this call to recognize Nova. This week, many of the leadership team were on site to mark the end of mining.

Speaker #2: And it ultimately closes a very important chapter for IGO. First, let me spend a moment on the safety performance. Our 12-month group TRIFR for IGO increased marginally from 3.7 at the end of June to 4.0 at the end of September.

Ivan Vella: Our 12-month group TRIFR for IGO increased marginally from 3.7 at the end of June to 4 at the end of September. That reflects 2 recordable injuries at Nova in the September quarter and some lower exposure hours as the business ramps down. The group TRIFR is 50% lower than a year ago, and I have talked previously about the tremendous improvement and focus the team has had on safety and the results that we have seen from that. But this quarter is a reminder that progress is not linear and transitions like what we are doing at Nova do carry additional risk and we must stay vigilant right until the demobilization is complete. As I also said earlier this year, safety at Greenbushes had deteriorated through FY26, and it has been a significant focus of the Windfield board, Rob, and the management team at Greenbushes.

Speaker #2: That reflects two recordable injuries at Nova in the September quarter, and some lower exposure hours as the business ramps down. The group TRIFR is 50% lower than a year ago.

Speaker #2: And I've talked previously about the tremendous improvement and focus the teams had on safety, and the results that we've seen from that. But this quarter is a reminder that progress is not linear.

Speaker #2: And transitions like what we're doing at Nova do carry additional risk, and we must stay vigilant right until the demobilization is complete. As I also said earlier this year, safety at Greenbushes had deteriorated through FY26.

Speaker #2: And it's been a significant focus of the Windfield Board, Rob, and the management team at Greenbushes. It was pleasing to see that, through the last quarter, safety at Greenbushes stabilized to some degree.

Ivan Vella: It was pleasing to see that through the last quarter, safety at Greenbushes stabilized to some degree. There are still many challenges and areas to work through, and the team's very focused on that. The 12-month TRIFR at Greenbushes is 9.7 at the end of the September quarter. TRIFR at Kwinana is 12.7, has trended upwards over the past 18 months. Again, it's a strong area of focus for the team and the management at the refinery. It is too high, and it's something I know that they are focused on addressing and bringing down. The business has stayed cash generative. I'll just turn to Nova first and then come back to the lithium business. It's our final full quarter, and Nova's produced in that quarter 4,635 tons of nickel, up 19%, 2,144 tons of copper, up 27%. Both increases came from better mining performance and higher mill runtime.

Speaker #2: There are still many challenges and areas to work through, and the team's very focused on that. The 12-month TRIFR at Greenbushes is 9.7 at the end of the September quarter.

Speaker #2: Triffa at Quinana's 12.7 has trended upwards. Over the past 18 months, again, it's a strong area of focus for the team and the management at the refinery.

Speaker #2: It is too high, and it's something I know they are focused on addressing and bringing down. The business has stayed cash-generative; I'll just turn to Nova.

Speaker #2: First, and then we'll come back to the lithium business. The final full quarter at Nova produced 4,635 tons of nickel, up 19%.

Speaker #2: 2,144 tons of copper, up 27%. Both increases came from better mining performance and higher mill run time. Unit cash cost fell $2 a pound.

Ivan Vella: Unit cash costs fell AUD 2 a pound. Obviously, that's representing both the by-product credits but also the trend down of costs. I think you've seen the teams had great focus on their production stability, very strong focus on productivity, and then careful focus on cost, and that reflects that ramp down while still hitting fantastic production outcomes. Nova generated sales revenue of AUD 158 million, underlying EBITDA of AUD 56 million, and free cash flow of AUD 67 million. In July, we upgraded Nova's life-of-mine guidance, 19,000 to 20,000 tons of nickel. When we take uptake of production into account, it's still being finalized. We're on track to exceed the top end of that upgraded range with cash costs below the bottom of the cost range. So a really fantastic outcome through those final periods.

Speaker #2: Obviously, that's representing both the by-product credits, but also the trend down of costs. I think you've seen the teams have great focus on their production stability.

Speaker #2: Very, very strong focus on productivity, and then careful focus on cost. That reflects that ramp down while still hitting fantastic production outcomes. Nova generated sales revenue of $158 million, underlying EBITDA of $56 million, and free cash flow of $67 million.

Speaker #2: And in July, we upgraded Nova's life-of-mine guidance to 19,000 to 20,000 tons of nickel. When we take Il tell you production into account, it's still being finalized.

Speaker #2: We're on track to exceed the top end of that upgraded range, with cash costs below the bottom of the cost range. So a really fantastic outcome through those final periods.

Ivan Vella: Difficult for the team knowing it's coming to a close, but they should be very proud of how they've approached that and the results they've delivered. I also want to call out and recognize Barminco, our mining partner, who's been a big part of that fantastic performance. Nova's been a remarkable asset for IGO. Sirius Resources discovered it in the Fraser Range in 2012. Came to IGO with Sirius acquisition in 2015, and while still under construction, moved into commercial production in 2017. We've included a few photos of the team celebrating final ore coming out of the mine on Monday this week. It's a milestone that belongs to many employees, contractors, and partners who've contributed to Nova over the years, including the Ngadju traditional owners in partnership with whom Nova was developed and operated. As you can expect, it's a bittersweet moment.

Speaker #2: It's difficult for the team, knowing it's coming to a close, but they should be very proud of how they've approached that and the results they've delivered.

Speaker #2: I also want to call out and recognize Barminco, our mining partner, who has been a big part of that fantastic performance. Nova has been a remarkable asset for IGO.

Speaker #2: Serious resources discovered in the Fraser Range in 2012 came to IGO with the Sirius acquisition in 2015. And while still under construction and moved into commercial production in 2017, we've included a few photos that seem to celebrate the final or coming out of the mine.

Speaker #2: On Monday this week, it's a milestone that belongs to many employees, contractors, and partners who've contributed to Nova over the years, including the Naju traditional owners, in partnership with whom Nova was developed and operated.

Speaker #2: As you can expect, it's a bittersweet moment. There's a lot of sadness at the end of this era, and pride in what Nova achieved and the relationships that were built along the way.

Ivan Vella: There's a lot of sadness at the end of this era and pride in what Nova achieved and the relationships that were built along the way. It's one of the standouts talking to the team at site. They've got deep connections and friendships that will carry well beyond their time at Nova. Some people have been there through its entire life and started their careers there even. Yesterday, I was on site meeting some of the team completing processing of the available ore. I met with one of the operators, Troy, who was there to commence processing for the very first ton of ore, and he will also be there later this week, most likely being the one who presses the button to stop the mills when the last ore is processed. So amazing accomplishment and to see the connection the team's had, the pride to see it through.

Speaker #2: It's one of the standouts, talking to the team at site. They've got deep connections and friendships that will carry well beyond their time at Nova.

Speaker #2: Some people have been there through its entire life and even started their careers there. Yesterday, I was on site meeting some of the team completing processing of the available ore. I met with one of the operators, Troy, who was there to commence processing for the very first ton of ore.

Speaker #2: And he will also be there later this week, most likely being the one who presses the button to stop the mills when the last ore is processed.

Speaker #2: Such an amazing accomplishment, and to see the connection the teams had, the pride to see it through. Many examples of team members saying that they've had various other job offers, they're hotly sought after in the market.

Ivan Vella: Many examples of team members saying that they have had various other job offers. They are hotly sought after in the market, but wanted to stay on and finish the work and all credit to them. I went down to the Barminco workshop. They are busy packing up their equipment and tools and shipping it off to their next sites. Our mining team are finalizing their reporting and wrapping up their work. Across the board, there is a huge amount of pride on the site as the team reflect on how well they finished this operation. Personally, I have seen this kind of thing in different commodities in different parts of the world in my career, and this is really a standout performance across the board. Ultimately, I think the team will carry a very unique experience into their next sites and next roles.

Speaker #2: But wanted to stay on and finish the work, and all credit to them. I went down to the Barminco workshop; they're busy packing up their equipment and tools and shipping it off to their next sites.

Speaker #2: Our mining team are finalizing their reporting and wrapping up their work. Across the board, there's a huge amount of pride on the site. As a team, they reflect on how well they've finished this operation.

Speaker #2: Personally, I've seen this kind of thing in different commodities and different parts of the world in my career. And this is really a standout performance across the board.

Speaker #2: Ultimately, I think the team will carry a very unique experience into their next sites and next roles. I want to thank everyone who has contributed to Nova over the past decade.

Ivan Vella: I want to thank everyone who has contributed to Nova over the past decade. It is a great example for the mining industry of how to discover, build, operate, deliver, and responsibly produce the commodities the world needs from a mine, including the handoff now to Global Lithium Resources. Over its life, Nova mined about 14 million tons of ore and produced 221,000 tons of nickel, 99,000 tons of copper. It generated AUD 5.4 billion in revenue and AUD 2.9 billion in cumulative free cash flow, paying out nearly AUD 250 million in royalties and creating nearly 500 direct jobs. It stayed generative through the cash, through the nickel downturn of 2023 and 2024, when much of the West Australian nickel industry did not. As we outlined in July, Nova goes straight from mining to new ownership. No care and maintenance period, no delay, no extra costs.

Speaker #2: It is a great example for the mining industry of how to discover, build, operate, deliver, and responsibly produce the commodities the world needs from a mine, including the handoff now to Global Lithium Resources.

Speaker #2: Over its life, Nova mined about 14 million tons of ore and produced 221,000 tons of nickel and 99,000 tons of copper. It generated $5.4 billion in revenue and $2.9 billion in cumulative free cash flow.

Speaker #2: Paying out nearly $250 million in royalties, and creating nearly 500 direct jobs. I know it's state-generative through the cash, through the nickel downturn of 2023 and 2024, when much of the Western Australia nickel industry did not.

Speaker #2: And, as we outlined in July, Nova goes straight from mining to new ownership—no care and maintenance period, no delay, no extra costs. We expect to complete the divestment to Global Lithium Resources during the December quarter.

Ivan Vella: We expect to complete the divestment to Global Lithium Resources during the December quarter. With that, let me turn on to the lithium business. First, just a brief word on the lithium market, given the recent volatility. As I have said on all of the previous calls, I do not ever try and call the lithium price and I will not try and start today. Just maybe share some observations, both near term and longer term on this very volatile market. Firstly, on demand. Look, battery production measured in gigawatt hours, which is the big picture, continues to grow strongly. Particularly, it has for energy storage and both in the near term and long-term outlook for lithium demand remain strong. Supply is the much bigger uncertainty and it is unclear how quickly it is going to respond as that growth in demand flows through.

Speaker #2: With that, let me turn to the lithium business. First, just a brief word on the lithium market. Given the recent volatility, and as I've said on all of the previous calls, I don't ever try to call the lithium price, and I won't try to start today.

Speaker #2: But just maybe share some observations, both near term and longer term, on this very volatile market. Firstly, on demand—look, battery production measured in gigawatt hours, which is the big picture.

Speaker #2: Continues to grow strongly, particularly it has for energy storage. And both in the near term and long term outlook for lithium demand remain strong.

Speaker #2: Supply is the much bigger uncertainty, and it's unclear how quickly it's going to respond. As that growth in demand flows through, delays in projects, changes in projects, and cost pressures make it hard to predict.

Ivan Vella: Delays in projects, changes in projects, cost pressures make it hard to predict. There are many moving parts in the supply side, which is what creates obviously, a lot of volatility, and I suspect that will continue in both directions. Some other more near-term observations I would like to make. Prices seem to have fallen further than near-term fundamentals justify. Chinese inventories are still drawing and energy storage demand still remains strong. It is quite possible there will be some partial recovery in the coming months, but volatility will continue and I am sure that with new supply pulling through, we are not going to see any sustained run-up in prices. Through 2027, the risk is supply, not demand.

Speaker #2: There are many moving parts in the supply side, which is what creates, obviously, a lot of volatility. And I suspect that will continue in both directions.

Speaker #2: Some other, more near-term observations I would like to make: I mean, price seems to have fallen further than near-term fundamentals justify. Chinese inventories are still drawing, and energy storage demand still remains strong.

Speaker #2: It's quite possible there'll be some partial recovery in the coming months. But volatility will continue, and I'm sure that with new supply coming through, we're not going to see any sustained run-up in prices.

Speaker #2: Through 2027, the risk is supply, not demand. New supply and growth from brownfield and curtailed assets could loosen the market. But equally, delays and cost pressures, etc., will mean it remains volatile.

Ivan Vella: New supply and growth from brownfield and curtailed assets could loosen the market, but equally, delays, cost pressures, will mean it remains volatile and the market balance in 2027 is really very difficult to predict. Our response is unchanged. Capital discipline, conservative price assumptions, and a focus on a lower cost long life asset like Greenbushes. Even at the bottom of the last cycle, Greenbushes delivered EBITDA margins of around 60% and kept paying out dividends. Our focus stays on what we control, safety, productivity, and cost. At Greenbushes, our record quarterly production of 435,000 tonnes was up 12%. As we signposted, the mine has been back in the high-grade core since the March quarter and is performing well overall. The improvements in the mine are very noticeable and the productivity and conformance to plan through winter has been a standout.

Speaker #2: And the market balance in 2027 is really very difficult to predict. Our response is unchanged: capital discipline, conservative price assumptions, and a focus on a lower-cost, long-life asset like Greenbushes—even at the bottom of the last cycle.

Speaker #2: Greenbushes delivered EBITDA margins of around 60% and kept paying out dividends. Our focus stays on what we control: safety, productivity, and cost. At Greenbushes, our record quarterly production of 435,000 tons was up 12%.

Speaker #2: As we signposted, the mine has been back in the high-grade core since the March quarter and is performing well overall. The improvements in the mine are very noticeable, and the productivity and conformance to plan through winter has been a standout.

Ivan Vella: Mine grade rose slightly to 1.77% and recovery's improved, supported by CGP3 reaching nameplate. Cash costs fell 7% to AUD 418 a tonne with the FY27 guidance of AUD 380 to AUD 440. The EBITDA margin increased to 83%. It is a strong quarter and a good start to the financial year. As I have said before, we set guidance carefully and we want to see this performance sustained. I know that concentrate inventory and shipping rates have been a recurring question. Sales were 376,000 tonnes, down 4%. The team worked through a number of port constraints, and it meant that the smaller average cargo sizes and some restrictions ultimately with inventory increasing. Port capacity is one of the key enablers of the work on the Strategic Options Review, and Talison is working hard on that.

Speaker #2: Mine grade rose slightly to 1.77%, and recovery has improved, supported by CGP 3 reaching nameplate. Cash costs fell 7% to $418 a ton, with FY27 guidance of $380 to $440.

Speaker #2: The EBITDA margin increased to 83%. So it's a strong quarter and a good start to the financial year. As I've said before, we set guidance carefully, and we want to see this performance sustained.

Speaker #2: I know that concentrate inventory and shipping rates have been a recurring question. Sales were 376,000 tons, down 4%. The team worked through a number of port constraints.

Speaker #2: And it meant that the smaller average cargo sizes, and some restrictions, ultimately led to inventory increasing. Port capacity is one of the key enablers of the work on the strategic options review.

Speaker #2: And Taliesin is working hard on that. The average realized price for spodumene fell 7% to $2,130 per ton, in line with the price reporting agencies.

Ivan Vella: The average realized price for spodumene fell 7% to US $2,130 per tonne, in line with the price reporting agencies. Windfield paid out a dividend of $680 million to its shareholders during the quarter on a 100% basis. TLEA's share was $347 million. On the Strategic Options Review, I want to be direct. In April, I said that we had hoped to be able to share the outcomes in the September quarter. We have not met that timing. Talison has substantially completed the technical work following extensive technical and peer review. It has identified significant value opportunities in four areas. The resource and reserve optimization. Some of that we called out in the reports in January, February. Mine design, including steeper pit walls, mine scheduling, recoveries, and product grades. Realizing these opportunities also depends on critical enablers such as water, tailings, port logistics, and capacity.

Speaker #2: Windfield paid out a dividend of $680 million to its shareholders during the quarter on a 100% basis. TLAA share was $347 million. And on the strategic options review, I want to be direct.

Speaker #2: In April, I said that we had hoped to be able to share the outcomes in the September quarter. We haven't met that timing. Taliesin has substantially completed the technical work.

Speaker #2: Following extensive technical and peer review, it has identified significant value opportunities in four areas. The resource and reserve optimization—some of that we called out in the reports in January and February.

Speaker #2: Mine design, including steeper pit walls, mine scheduling, recoveries, and product grades. Realizing these opportunities also depends on critical enablers such as water, tailings, port logistics, and capacity.

Ivan Vella: Pulling all of that together, the remaining step is valuations, and that will be finalized through the coming months and built into Talison's calendar year 2027 budget and their future plans. The Windfield partners are aligned on the work required to unlock this value and naturally, all pursuing that with real focus. Because this is a joint venture asset, how and when those outcomes are released needs to be worked through with our partners and how we will communicate that. Turning to Kwinana. As we foreshadowed in July, the shutdown to commission the calciner off-gas treatment system is extended into the September quarter. That work is now complete. The lithium hydroxide production was naturally impacted. 918 tonnes produced through the available days in that quarter.

Speaker #2: Pulling all of that together, the remaining step is valuations. That will be finalized over the coming months and built into Taliesin's calendar year 2027 budget and their future plans.

Speaker #2: The Windfield partners are aligned on the work required to unlock this value and, naturally, all are pursuing that with real focus. Because this is a joint venture asset, how and when those outcomes are released needs to be worked through with our partners, and how we'll communicate that.

Speaker #2: Turning to Quinona, as we foreshadowed in July, the shutdown to commission the Countsigner off-gas treatment system has extended into the September quarter. That work is now complete.

Speaker #2: The lithium hydroxide production was naturally impacted. 918 tons were produced during the available days in that quarter. Conversion costs were just over $33,000 per ton.

Ivan Vella: Conversion costs were just over AUD 33,000 per tonne, and that was naturally elevated due to the limited operating window. EBITDA lost AUD 65 million on a 100% basis, including a AUD 32 million inventory write-down. Our view of Kwinana's economics hasn't changed. The high volumes don't change that. In August, I said that we're working through this with Tianqi. That work's been ongoing for some time. We continue those constructive discussions, but it is a complicated issue and of course, remains an important priority. I'll now turn it over to Ian for some comments on the financials.

Speaker #2: And that was naturally elevated due to the limited operating window. EBITDA loss of $65 million on a 100% basis, including a $32 million inventory write down.

Speaker #2: Our view of Quinona's economics hasn't changed. The high volumes don't change that. In August, I said that we're working through this with TNG. That work has been ongoing for some time.

Speaker #2: We continue those constructive discussions, but it is a complicated issue and, of course, remains an important priority. I'll now turn it over to Ian for some comments on the financials.

Ian Rowe: Yeah, thanks, Ivan. Group sales revenue, all from Nova, rose 12% to AUD 158 million for the quarter. Higher nickel sales volumes and a higher copper price more than offset a lower nickel price and lower copper sales volumes. Our share of net profit from TLEA was AUD 114 million, down 5%. Record production and a higher margin at Greenbushes were offset by lower sales volumes and a lower realized price. This is equity accounted profit. It becomes cash to IGO only when TLEA pays a dividend. Group underlying EBITDA was AUD 176 million, up 49% for the quarter. This includes a AUD 32 million mark to market gain on listed investments compared with a AUD 10 million mark to market loss in the June quarter. Excluding those movements, underlying EBITDA rose about 13%.

Speaker #1: Yeah, thanks, Ivan. Group 7 sales revenue, all from NOVA, rose 12% to $158 million for the quarter. Higher nickel sales volumes and a higher copper price more than offset a lower nickel price and lower copper sales volumes.

Speaker #1: Our share of net profit from TLEA was $114 million, down 5%. Record production and a higher margin at Greenbushes were offset by lower sales volumes and a lower realized price.

Speaker #1: This is equity-accounted profit. It becomes cash to IGO only when TLEA pays a dividend. Group underlying EBITDA was $176 million, up 49% for the quarter.

Speaker #1: This includes a 32 million dollar mark to market gain on listed investments. Compared with a 10 million dollar mark to market loss in the June quarter.

Speaker #1: Excluding those movements, underlying EBITDA rose about 13%. NOVA EBITDA was $56 million, up 83% for the quarter. And as I noted in July, the June quarter included about $31 million of end-of-life provisions.

Ian Rowe: Nova EBITDA was AUD 56 million, up 83% for the quarter, and as I noted in July, the June quarter included about AUD 31 million of end-of-life provisions. Underlying free cash flow was AUD 40 million, down 43%, mainly because of the timing of debtor receipts, which we would expect to unwind this quarter. Windfield paid TLEA a AUD 347 million dividend at quarter's end, following AUD 199 million in the June quarter. TLEA did not declare a dividend during the quarter, and we expect the board to assess distributions during the upcoming quarter. After paying a FY26 final dividend of AUD 38 million during the quarter, IGO's net cash fell AUD 10 million to AUD 376 million, and our AUD 300 million revolving credit facilities remain undrawn. Our capital management framework remains unchanged, with Nova's final cash flows coming in the December quarter. IGO's future capacity for shareholder returns will depend increasingly on distributions from TLEA.

Speaker #1: Underlying free cash flow was $40 million, down 43%, mainly because of the timing of debtor receipts, which we would expect to unwind this quarter.

Speaker #1: Windfield paid at TLEA a $347 million dividend at quarter’s end, following $199 million in the June quarter. TLEA did not declare a dividend during the quarter, and we expect the board to assess distributions during the upcoming quarter.

Speaker #1: After paying an FY26 final dividend of $38 million during the quarter, IGO's net cash fell by $10 million to $376 million. Our $300 million revolving credit facilities remain undrawn.

Speaker #1: Our capital management framework remains unchanged, with NOVA's final cash flows coming in the December quarter. IGO's future capacity for shareholder returns will depend increasingly on distributions from TLEA.

Ian Rowe: With that, I'll hand back to Ivan.

Speaker #1: With that, I'll hand back to Ivan.

Ivan Vella: Thanks, Ian. With Nova closing, IGO's earnings and cash flow will come predominantly from our lithium interests, and that makes that link between Greenbushes performance and returns to IGO shareholders our central priority. I know many of you are looking for the timing of a distribution from TLEA. Seeing cash flowing from TLEA as Greenbushes continues to generate considerable cash is a key priority. Our other priorities are as follows. Obviously, Greenbushes completing the work and SOR valuation and agreeing how those outcomes will be released. Continuing to support the Talison team through the JV to lift performance productivity across the business, starting first, of course, in safety, and then broader productivity and cost performance. Turning to our non-core assets, completing the Nova divestment, assessing value realization for Cosmos, and continuing to rationalize our exploration tenure.

Speaker #2: Thanks, Ian. So, with NOVA closing, IGO's earnings and cash flow will come predominantly from our lithium interests. That makes the link between Greenbushes' performance and returns to IGO shareholders our central priority.

Speaker #2: I know many of you are looking for the timing of a distribution from TLEA. Seeing cash flowing from TLEA, as Green Bushes continues to generate considerable cash, is a key priority.

Speaker #2: Our other priorities are as follows. Obviously, Green Bushes—completing the work and SOR valuation, and agreeing how those outcomes will be released. Continuing to support the Taliesin team through the JV to lift performance and productivity across the business, starting first, of course, in safety, and then broader productivity and cost performance.

Speaker #2: Turning to our non-core assets: completing the NOVA divestment, assessing value realization for COSMOS, and continuing to rationalize our exploration tenure. For exploration, there's about 8,000 meters of lithium drilling at Forrestania during the first quarter next year.

Ivan Vella: For exploration, there is about 8,000 meters of lithium drilling at Forrestania during the Q1 next year, and geophysics and other work ahead of drilling at the Copper Wolf sites and tenement in Arizona. BioHeap, we are continuing to progress commercial arrangements and work with partners towards a production trial. On M&A, we continue to be highly selective and disciplined in our review of opportunities in copper and lithium. To summarize, Nova is finishing on a high above our upgraded guidance, and we will report that final production outcome and completion of the divestment in the near future. Greenbushes delivered record production. CGP3 is at nameplate ahead of target, and the mine is back in that high-grade core and performing particularly well. Our balance sheet is strong, with net cash AUD 376 million.

Speaker #2: And geophysics and other work ahead of drilling at the Copper Wolf sites and tenements in Arizona. BioHeap, we're continuing to progress commercial arrangements and work with partners towards a production trial.

Speaker #2: And on M&A, we continue to be highly selective and disciplined in our review of opportunities in copper and lithium. To summarize, NOVA is finishing on a high, above our upgraded guidance.

Speaker #2: And we'll report that final production outcome and completion of the divestment in the near future. Greenbushes delivered record production, CGP3 is at nameplate ahead of target, and the mine is back in that high-grade core.

Speaker #2: And performing particularly well. Our balance sheet is strong, with net cash of $376 million. What remains clear is releasing the SOR outcomes, getting cash flowing from TLEA to shareholders, and resolving a path for Quinona.

Ivan Vella: What remains clear is releasing the SOR outcomes, getting cash flowing from TLEA to shareholders, resolving a path for Kwinana with Tianqi, and lifting safety and productivity across the joint venture operations are critical work ahead. With that, now let us turn over to your questions.

Speaker #2: With TNG, and lifting safety and productivity across the joint venture operations—a critical work ahead. With that, let's now turn over to your questions.

Operator: Thank you. If you would like to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. If you would like to cancel your request, please press star 2. If you are on a speakerphone, please pick up the handset to ask your question. Your first question today comes from Hugo Nicolaci from Goldman Sachs. Please go ahead.

Speaker #3: Thank you. If you would like to ask a question, you'll need to press the star key followed by the number one on your telephone keypad.

Speaker #3: If you would like to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question.

Speaker #3: Your first question today comes from Hugo Nicolaki from Goldman Sachs. Please go ahead.

Hugo Nicolaci: Morning, Ivan and team. Thanks for the update this morning and great to hear Greenbushes optimization technical works are largely complete. Clearly some significant value to be unlocked there. On that piece, historically, you have talked to converting the Tailings Retreatment Plant and the JV partners largely considering that a path of virtually no regret. Is that something we should still expect in the next couple of years? Is that then the right timing when that is being reworked to think about the potential for the product grade and recovery uplift across the broader site?

Speaker #1: Morning, Ivan and team. Thanks for the update this morning, and it's great to hear that the Greenbushes optimization technical works are largely complete. Clearly, there is some significant value to be unlocked there.

Speaker #1: On that piece, historically, you've talked about converting the tailings retreatment plant, and the JV partners largely considering that a path of virtually no regret.

Speaker #1: Is that something we should still expect in the next couple of years? And is that then the right timing, when that's being reworked, to think about the potential for the product grade and recovery uplift across the broader site?

Ivan Vella: Hugo, look, definitely that is on the agenda. It has been a fantastic asset to draw more value from the old tantalum tailings and in fact even some of the old lithium tailings, that continues and that resource will continue for a while, but the asset in converting that does represent a real opportunity, and that is certainly one of the things that has been assessed closely through the SOR work. I would separate that from your point on recoveries and product grade. They are three distinct pieces. Naturally, improving recoveries through the existing three plants, CGP1, CGP2, and CGP3, is an ongoing priority, and I am really pleased to see the work the team has done over the last quarter, stabilizing and improving that in some of those plants. The work at CGP3 has been fantastic and it has been a real standout in that space.

Speaker #2: Hugo, it definitely looks like that is on the agenda. It's been a fantastic asset to draw more value from the old Tantrum tailings, and in fact, even some of the old lithium tailings that continue.

Speaker #2: And that resource will continue for a while. But the asset, and converting that, does represent a real opportunity, and that's certainly one of the things that's been assessed closely through the SOR work.

Speaker #2: I would separate that from your point on recoveries and product grade. They're three distinct pieces. Naturally, improving recoveries through the existing three plants—Chem 1, Chem 2, and Chem 3—is an ongoing priority, and I'm really pleased to see the work that the team's done over the last quarter stabilizing and improving that in some of those plants.

Speaker #2: The work at Chem 3 has been fantastic, and it's been a real standout in that space. And then product grade is a discrete choice again.

Ivan Vella: Product grade is a discrete choice again, which is being weighed as part of the overall decisions for the SOR.

Speaker #2: Which is being weighed as part of the overall decisions for the SOR.

Hugo Nicolaci: Fantastic. That is helpful. Appreciate there is still some work to do there. Then maybe nearer term, Greenbushes production obviously very strong with that CGP3 ramp-up ahead of your expectations. I think your guidance was based on it being nameplate at the end of this calendar year. I think some of the JV partners had budgeted it even beyond that. Are there any major plant shuts now to consider at CGP3 or across the broader site that we should be aware of for FY27? If not, is an upgrade to guidance something we would need to wait until February for post the JV calendars 2027 budget in January to get?

Speaker #1: Fantastic. That's helpful. Appreciate there's still some work to do there. And then, maybe nearer term, Greenbushes production is obviously very strong with that CGP3 ramp-up ahead of your expectations.

Speaker #1: I think your guidance was based on it being nameplate at the end of this calendar year. I think some of the JV partners had budgeted it even beyond that.

Speaker #1: Are there any major plant shuts now to consider at CGP3 or across the broader site that we should be aware of for FY27? And if not, is an upgrade to guidance something we would need to wait until February for, post the JV calendar '27 budget and January, to get?

Ivan Vella: Well, first of all, on shuts, nothing out of the ordinary. The normal shut sequence for the three chem plants, and they will continue on that cycle. For CGP3, the recovery from the fire and the remediation has been very successful, so that is pleasing and I think well-proven now. In terms of guidance, look, we set that with some real care and focus with the team at Talison. We will see their calendar year budget soon, and obviously another quarter's performance and then can determine whether there is cause for any change. But at this stage, we are standing with our guidance as it is.

Speaker #2: Well, yeah. First of all, on shuts, nothing out of the ordinary. There's a normal shut sequence for the three chem plants, and they'll continue on that cycle.

Speaker #2: The Chem 3, the recovery from the fire and the remediation, has been very successful. So that's pleasing, and I think well-proven now. In terms of guidance, look, we set that with some real care and focus with the team at Taliesin.

Speaker #2: We will see their calendar year budget soon, and obviously another quarter's performance, and then can determine whether there's cause for any change. But at this stage, we're standing with our guidance.

Speaker #2: As it is.

Hugo Nicolaci: Okay, great. Thanks for that. I will pass it on.

Speaker #1: Okay, great. Thanks for that. I'll pass it on.

Ivan Vella: Thanks, Hugo.

Operator: Thank you. Thank you. Your next question comes from Levi Spry from UBS. Please go ahead.

Speaker #2: Thanks, Hugo.

Speaker #3: Thank you. Thank you. Your next question comes from Levi Spry from UBS. Please go ahead.

Levi Spry: Yeah. Good day, Ivan and team. Thanks for your time. Just in terms of these port constraints that you have called out, and I guess the build in the inventory, it looks like it is back to constraint inventory levels are probably back to as high as they have been for a number of years. Can you just tell us a little bit more about the constraint? What is it? How does it impact the CGP3 ramp-up, and how should we think about it in terms of how you can draw down on that inventory that you have built up?

Speaker #4: Yeah. Could I, Ivan and team? Thanks for your time. Just in terms of these port constraints that you've called out, and I guess the build in inventory, so it looks like inventory levels are probably back to as high as they've been for a number of years.

Speaker #4: Can you just tell us a little bit more about the constraint? What is it? How does it impact the CGP3 ramp up, and how should we think about it in terms of how you can draw down on that inventory that you've built up?

Ivan Vella: Yeah, Levi. The port is obviously a shared facility. It is not something that is exclusive for Talison, and so we need to manage through the change of different products through the berth. What I observe is the Talison team working with support actually drive very, very good productivity out of the access they get and achieve a lot in terms of the exports. But obviously as production grows, we need to make sure that we are getting either more access or/and more efficiencies and more productivity from the space that we have got. They are working through that. The actual specific issues vary, of course. Sometimes that is berthing and shipping-related cargo sizes, sometimes it is port-specific, port productivity, suite of issues. I think the team is focused on a holistic approach or solution.

Speaker #2: Yeah, Levi, the port is obviously a shared facility. It's not something that's exclusive for Taliesin. And so we need to manage through the change of different products through the berth.

Speaker #2: What I observe is that the Taliesin team, working with support, actually drives very, very good productivity from the access they get, and achieves a lot in terms of the exports.

Speaker #2: But obviously, as production grows, we need to make sure that we're getting either more access and more efficiencies, and more productivity from the space that we've got.

Speaker #2: They're working through that. The actual specific issues vary, of course. Sometimes that's berthing and shipping-related cargo sizes. Sometimes it's specific port productivity.

Speaker #2: Suite of issues. I think the team's focused on a holistic approach or solution. It's something that's been part of the SOR work, looking at that to recognize that as the production of green bushes ramps up, we don't want to have this as a constraint.

Ivan Vella: It is something that has been part of the SOR work, looking at that, to recognize as the production of Greenbushes ramps up, we do not want to have this as a constraint. So, in focus, they are doing the work. I guess we continue to focus on Bunbury because it is very proximate to the Greenbushes mine. That keeps costs down. It keeps us very focused. We can consider other port facilities, but, I think the goal is to really get the very best out of the pathway that we have got now. The team has got a big focus and energy on that.

Speaker #2: So, in Focus, they are doing the work. And I guess we continue to focus on Bunbury, because it’s very proximate to the Greenbushes mine.

Speaker #2: That keeps costs down. It keeps us very focused. We can consider other port facilities, but I think the goal is to really get the very best out of the pathway that we've got now.

Speaker #2: And the team's got a big focus and energy on that.

Levi Spry: Just to be clear, though, is it a constraint on the installed capacity at the mine?

Speaker #4: So, just to be clear though, these are the constraints on the installed capacity at the mine?

Ivan Vella: Well, we have built inventory and we can manage that inventory, so we are not going to slow the mine because of it. If that is the question, no. We will manage that accordingly.

Speaker #2: Well, I mean, we've built inventory and we can manage that inventory, so we're not going to slow the mine because of it. If that's the question, no.

Speaker #2: We will manage that accordingly.

Levi Spry: Okay. All right. Just back to the dividend question, I guess. Can you just help us understand what the balance sheet looks like at TLEA now and help us understand maybe some disappointment around why there was not a dividend to IGO that quarter?

Speaker #4: Okay, all right. And then, just back to the dividend question, I guess—can you just help us understand what the balance sheet looks like at TLEA now, and help us understand maybe some disappointment around why there wasn't a dividend to IGO that quarter?

Ivan Vella: Yeah, Levi. Look, I know that is a hot area of interest and plenty of focus. There was a dividend paid very late in the quarter through to TLEA. As I have said in the quarterly report and in my comments, I think Ian Rowe mentioned it as well. We will assess that now through this quarter. The board will meet and consider the distribution of it, of that cash. There is obviously quite a cash build at TLEA, and I guess nothing too much more to see than that. We are pleased with the cash generation from Greenbushes. That is continuing flow through to TLEA, and we will go and work through that next step now through this quarter.

Speaker #2: Yeah, Levi. Look, I know that's a hot area of interest and there is plenty of focus. There was a dividend paid very late in the quarter.

Speaker #2: Through to TLEA. And as I've said in the quarterly report and in my comments—I think Ian mentioned it as well—we'll assess that now through this quarter.

Speaker #2: The board will meet and consider the distribution of it, of that cash. Obviously, it's quite a cash build at TLEA, and I guess there's nothing too much more to see than that.

Speaker #2: We're pleased with the cash generation from Greenbushes. That's continuing to flow through to TLEA, and we'll go and work through that next step now through this quarter.

Levi Spry: Do we have a number? What sits at TLEA?

Speaker #4: Do we have a number? What sits at TLEA?

Ivan Vella: Are you talking about cash at TLEA? That's not something we disclose explicitly.

Speaker #2: Are you talking about cash at TLEA? That's not something we disclose explicitly, but I'm sure you can work it back through pretty quickly, based on the other results.

Levi Spry: Yeah

Ivan Vella: I'm sure you can work it back through pretty quickly based on the other results.

Levi Spry: Okay, thanks.

Speaker #4: Okay. Thanks.

Ivan Vella: Thanks, Levi.

Speaker #2: Thanks, Levi.

Operator: Thank you. Thank you. Your next question comes from Kate McCutcheon from Bank of America. Please go ahead.

Speaker #3: Thank you. Thank you. Your next question comes from Kate McCutchen from Bank of America. Please go ahead.

Kate McCutcheon: Hi, good morning, Ivan. Can I just dig into the physicals at Greenbushes? From the disclosures on mine and also the processed ore that you put out with the annual report, there has been material stockpiles above 1.1 million tons of ore just from that H2 FY26 and grade streaming, that 1.8% ore through the mill. Is this new? Has that now stopped? What will happen with that stockpile material that is sitting at a lower grade than the target feed grade?

Speaker #5: Hi. Good morning, Ivan. Can I just dig into the physicals at Greenbushes? So, from the disclosures on mines and then also the processed ore that you put out with the annual report, there's been material stockpiles above 1.1 million tons of ore just from that 2H FY26, and grade streaming that 1.8% ore through the mill.

Speaker #5: Is this new? Has that now stopped? And then what will happen with that stockpiled material that's sitting at a lower grade than the target feed grade?

Ivan Vella: Well, eagle eyes. I think there are a few different pieces going on. Clearly, the mine productivity and stability has been in focus now for some time, and it is performing very well. Productivity has lifted. That did not slow, we did not dial it back or change that during the period that CGP3 was offline and with the fire, and obviously in ramp up as well. There is some material that grew through that period. That is one part. Secondly, there is some weathered material or spec material that the team will separate. It is not to say it is not valuable, but it is preferential in terms of driving stability through the plants to have clean grade ore and try and drive through our ROM stockpiles, very consistent feed grade to each of the plants. That is something the team, again, has had in focus and done a great job.

Speaker #2: Kate, well, eagle eyes. So, I think there are a few different pieces going on. Clearly, the mine productivity and stability have been in focus now for some time.

Speaker #2: And it's performing very well. Productivity has lifted. That didn't slow. We didn't dial it back or change that during the period that CGP3 was offline.

Speaker #2: And with the fire, and obviously in ramp-up as well, so there is some material that grew through that period. That's one part. Secondly, there is some material, or spec material, that the team will separate.

Speaker #2: It's not to say it's not valuable, but it's preferential, in terms of making driving stability through the plants, to have clean, graded ore and try and drive through our ROM stockpiles a very consistent feed grade to each of the plants.

Speaker #2: It's something the team, again, has had in focus and done a great job, so that's probably the two contributors. Nothing more to see than that.

Ivan Vella: That is probably the two contributors. Nothing more to see than that. I do not think it is something that you would expect to keep growing or changing there. It has really just been a function of where we have been at in the mine over the last 18 months.

Speaker #2: I don't think it's something that you'd expect to keep growing or changing there. It's really just been a function of where we've been in the mine over the last 18 months.

Kate McCutcheon: Okay, that makes sense. You mentioned that the optimization options are largely done. Is that going to be disclosed to the market and when may that be, or will we just get snippets with the new guide or is it something that you need to talk about with the JV partners?

Speaker #5: Okay, that makes sense. And then you mentioned that the optimization options are largely done. Is that going to be disclosed to the market? And when might that be?

Speaker #5: Or will we just get snippets with the new guide, or is it something that you need to talk about with the JV partners?

Ivan Vella: Yeah. Again, we've talked about this obviously for a number of quarters. The team's done a great job on the technical work, the studies and the assessment, and the optimization and potential value that can be unlocked from Greenbushes. That's going through valuations and assessment now, and equally then working through with the JV partners as to how we might communicate that. We work through that, and then we'll share more on that in the coming months. We certainly intend to share some of the very good news that the team's worked through. I just can't give you specific yet as to how we're going to do that at this point.

Speaker #2: Yeah, again, we've talked about this. Obviously, for a number of quarters, the team's done a great job on the technical work, the studies, and the assessment, the optimization, and the potential value that can be unlocked from Greenbushes.

Speaker #2: That's going through valuations and assessment now. And equally, then working through with the JV partners as to how we might communicate that. We work through that, and then we'll share more on that in the coming months.

Speaker #2: So, we certainly intend to share some of the very good news that the teams work through. I just can't give you specifics yet as to how we're going to do that at this point.

Kate McCutcheon: Okay, got it. Thanks, Ivan.

Speaker #5: Okay. Got it. Thanks, Ivan.

Ivan Vella: Thanks, Kate.

Speaker #2: Thanks, Kate.

Operator: Thank you. Your next question comes from James Redfern from RBC Capital Markets. Please go ahead.

Speaker #3: Thank you. Your next question comes from James Redfern from RBC Capital Markets. Please go ahead.

James Redfern: Good morning, Ivan and Ian. Hope you are well. Just want to ask two questions on Kwinana, please. The first one is just in regards to the comments about agreeing a pathway with Tianqi. Just wondering if you could please expand on that in terms of what options are on the table, what is the timeline, and is care and maintenance actively being modeled at all? I have a second question. Thank you.

Speaker #6: Good morning, Ivan and Ian. Hope you are well. I just want to ask two questions on Quinana, please. The first one is in regards to the comments about agreeing a pathway with Tianchi. I was just wondering if you could please expand on that.

Speaker #6: In terms of what options are on the table, what's the timeline, and is care maintenance actively being modeled at all? And I've got a second question.

Speaker #6: Thank you.

Ivan Vella: James. Look, again, I have covered this in many quarters. I will not get into specifics on those discussions until they are complete. We have worked through a range of options with Tianqi. We have been clear on our position. It is a very complicated situation to work through. As you appreciate, Kwinana sits inside one JV with the interest in Greenbushes, and so there is quite a bit to step through in how we address that. To my comments earlier, the conversations and work is very constructive, very active, remain positive, but it is incomplete and so I know that does not give you much clarity or joy at this point.

Speaker #2: James, yeah, look, again, I've covered this in many quarters. I won't get into specifics on those discussions until they're complete. We're working through—I have worked through—a range of options with Tianchi.

Speaker #2: We've been clear on our position. It is a very complicated situation to work through, as you appreciate. Quinana sits inside one JV with the interest in Greenbushes.

Speaker #2: And so there's quite a bit to step through in how we address that. To my comments earlier, the conversations and work are very constructive, very active.

Speaker #2: Remain positive, but it's incomplete. So I know that doesn't give you much clarity or joy at this point.

James Redfern: That is fine. Thank you. I appreciate that. The second question was just in relation to the FY27 production and conversion cost guidance for Kwinana. Given obviously the Q1 is impacted by the shutdown, but Kwinana needs to perform very strongly for the rest of the year to meet the guidance and just wondering if you are happy with the guidance that you have got out there at the moment for Kwinana. Thank you.

Speaker #6: That's fine. Thank you; I appreciate that. And then the second question was just in relation to the FY27 production and conversion cost guidance for Quinana.

Speaker #6: Obviously, the first quarter was impacted by the shutdown, but Quinana needs to perform very strongly for the rest of the year to meet the guidance.

Speaker #6: And I just want to know if you're happy with the guidance that you've got out there at the moment for Quinana. Thank you.

Ivan Vella: Yes. I mean, good call out and fair recognition given the impact for the start of the year due to the shutdown. At this point, the team's still got that guidance in line of sight. So we will give you an update at the next quarter as we see how things go post that shut, the ramp up, and performance of the asset.

Speaker #2: Yes, I mean, good call-out, and fair recognition given the impact at the start of the year due to the shutdown. At this point, the team's still got that guidance in line of sight.

Speaker #2: So we'll give you an update in the next quarter as we see how things go post that shutdown, the ramp-up, and performance of the asset.

James Redfern: Okay. Thanks, Ivan.

Speaker #6: Okay. Thanks. Thanks, Ivan.

Operator: Thank you. Your next question comes from Austin Yun from Macquarie. Please go ahead.

Speaker #3: Thank you. Your next question comes from Austin Young from Macquarie. Please go ahead.

Austin Yun: Morning, Ivan team. Just two follow up actually, please. The first one is on the cash distribution. As you mentioned, you are going to be going through a discussion at the board level, in the current quarter. I am just curious about, given that Talison is also doing the budgeting process and then the SOR study is still underway, will the cash assessment be dependent on the outcome of the other two events? Thank you. I will come back with the second one.

Speaker #4: Bonnie, Ivan, Tim, just two follow-up questions, actually. Please. The first one is on the cash distribution. As you mentioned, you're going to be going through a discussion at the board level in the current quarter.

Speaker #4: I'm just curious, given that Tata is also doing the budgeting process and the SOR study is still underway, will the cash assessment be dependent on the outcome of the other two events?

Speaker #4: Thank you. Come back with the second one.

Ivan Vella: Thanks, Austin. Yeah, great question. No linkage to the budgeting at Greenbushes of cash generation from that business is obviously so strong. It will cater for whatever direction decisions and capital allocation we might want to make. TLEA is a separate matter. It is really a case of us just looking at what we need for that business standalone with Kwinana and look at distributions going forward. They really are quite separate.

Speaker #2: Thanks, Austin. Yeah, great question. No linkage to the budgeting, and the green bush of cash generation from that business is obviously so strong. It'll cater for whatever directional decisions and capital allocation we might want to make.

Speaker #2: TLEA is a separate matter. It's really a case of us just looking at what we need for that business as a standalone with Quinana, and looking at distributions going forward.

Speaker #2: So, they really are quite separate.

Austin Yun: Understood. Second one, just given the recent experience at the port, the congestion stuff, does that change your thinking around the opportunity to lower the product grade to improve the recovery and bump up the volume further?

Speaker #4: Understood. Second one, just given the recent experience at the port—the congestion stuff—does that change your thinking around the opportunity to lower the product volume?

Speaker #4: Product grade to improve the recovery and bump up the volume further?

Ivan Vella: There are clearly links and that I guess draws down on the point I made that there is a number of significant value opportunities that we see through the SOR technical work. They do require a number of enablers to be in place for that value to be unlocked, and in this case, port capacity and logistics is one of them. They are all linked and that is what the team have been working through. So it is not a case of them just finding that out. They have been doing that work for some time and beyond just product grade, if that does change, equally just uplifts in productivity and performance of the three chem plants, the tech grade plant, and the Tailings Retreatment Plant. You have five plants there at Greenbushes, all with potential upside and both productivity and creep capacity inside those assets, all resulting in potential for more tonnes.

Speaker #2: They're clearly linked to that, I guess, as it draws down on the point I made that there's a number of significant value opportunities that we see through the SR technical work.

Speaker #2: They do require a number of enablers to be in place for that value to be unlocked. And in this case, port capacity and logistics are one of them.

Speaker #2: They're all linked, and that's what the team has been working through. So it's not a case of them just finding that out; they have been doing that work for some time.

Speaker #2: And beyond just product grade, if that does change, equally, just uplifts in productivity and performance of the three chem plants, the tech grade plant, and the tailings treatment facility.

Speaker #2: You have five plants there at Green Bushes, all with potential upside—and both productivity and creep capacity inside those assets, all resulting in potential for more tons.

Ivan Vella: That is only any good if we can get it out to our customers through the ports. So, yeah, very much in focus by the team.

Speaker #2: And that's only any good if we can get it out to our customers through the ports. So, yeah, very much in focus by the team.

Austin Yun: Thank you, Ivan. I will pass it on.

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

Ivan Vella: Thanks, Austin.

Speaker #2: Thanks, Austin.

Operator: Thank you. Your next question comes from Daniel Morgan from Barrenjoey. Please go ahead.

Speaker #3: Thank you. Your next question comes from Daniel Morgan from Barron Joey. Please go ahead.

Daniel Morgan: Hi, Ivan. I wanted to follow up on Hugo’s earlier question. Obviously a very strong Q1 at Greenbushes and questions about the rest of the year. In years past, when you had a strong Q1, you did not change your guidance and then, with perfect hindsight, you saw, and we got to see, grades which came off a bit and production came off a bit. I guess my main question is there anything that you see where production in future quarters might step back from the run rates you have achieved today, be it grade, be it throughput, anything at all in the business plan where you might see production step back? Thank you.

Speaker #7: Hi Ivan, I wanted to follow up on Hugo’s earlier question. Obviously, it was a very strong Q1 at Greenbushes, and there are questions about the rest of the year.

Speaker #7: I mean, in years past, when you had a strong Q1, you didn't change your guidance, and with perfect hindsight, we saw grades, which came off a bit, and production came off a bit.

Speaker #7: So, I guess my main question is: Is there anything you see where production in future quarters might step back from the run rates you've achieved today—be it grade, be it throughput, anything at all in the business plan where you might see production step back?

Speaker #7: Thank you.

Ivan Vella: No. Great question, Dan. No, there isn't. We were clear about the area of lower grade we knew was coming in 2026. Obviously, it was lower than we expected, hence the impact on production and guidance ultimately. We do not see that in this financial year. The fact that CGP3 has achieved nameplate earlier is obviously positive and that does give us potential for upside. At this point, we are not in a place to do anything with production. There is still plenty of work ahead.

Speaker #2: No, great question. Dan, no, there isn't. And we were clear about the area of lower grade we knew was coming in 2026. Obviously, it was lower than we expected.

Speaker #2: Hence, the impact on production and guidance, ultimately. But we don't see that in this financial year. The fact that CGB3 has achieved nameplate earlier is obviously positive, and that does give us potential for upside.

Speaker #2: But at this point, we're not in a place to do anything with production. There's still plenty of work ahead.

Daniel Morgan: Great. Very pleasing answer. Then just the second question just on lithium price discovery. Is there an issue here on how the commodity pricing works in this industry? The price for the commodity was perhaps ahead of fundamentals early in the year, and now we are seeing or witnessing a collapse while the fundamentals actually seem okay. Just wondering if you could opine on price discovery in the industry. Thank you.

Speaker #3: Great, very pleasing answer. And then just the second question, just on lithium. Price discovery— is there an issue here on how the commodity pricing works in this industry?

Speaker #3: I mean, the price for the commodity was perhaps ahead of fundamentals earlier in the year, and now we're seeing—or witnessing—a collapse, while the fundamentals actually seem okay.

Speaker #3: I'm just wondering if you could opine on price discovery in the industry. Thank you.

Ivan Vella: Again, another very good question, Dan. I think that is a longer conversation. Certainly, it is a small market. The number of transactions and the number of, I guess, spot or liquid market deals does limit that price discovery process. I know that that has been an area of focus for a number of participants in the industry. I definitely think it can improve, and it will with scale, volume, and obviously, more structure in the way that this market works. So there is definitely upside. From where we stand right now, though, I think we get a very good outcome and we see that in realized pricing for Greenbushes. Just using those four PRAs and effectively, an average of spot through a period and then trailing that one month gives us very, very good outcomes when we compare that with other participants across the industry producing lithium hard rock spodumene.

Speaker #2: Again, another very good question, Dan. I think that's a longer conversation. Certainly, it's a small market. The number of transactions and the number of, I guess, spot or liquid market deals does limit that price discovery process.

Speaker #2: And I know that that's been an area of focus for a number of participants in the industry. I definitely think it can improve, and it will with scale, volume, and obviously more structure in the way that this market works.

Speaker #2: So there's definitely upside. I mean, from where we stand right now, though, I think we get a very good outcome, and we see that in realized pricing for Greenbushes.

Speaker #2: Just using those four PRAs and effectively an average of spot through a period, and then trailing that one month gives us very, very good outcomes when we compare that with other participants across the industry producing lithium hard rock spodumene.

Ivan Vella: So plenty of upside opportunity, but I think we are coming from a pretty good place, at least in a relative sense at Greenbushes.

Speaker #2: So, plenty of upside opportunity, but I think we're coming from a pretty good place, at least in a relative sense, at Greenbushes.

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

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

Ivan Vella: Thanks, Dan.

Speaker #2: Thanks, Dan.

Operator: Thank you. Your next question comes from Matthew Frydman from MST Financial. Please go ahead.

Speaker #3: Thank you. Your next question comes from Matthew Frydman from MST Financial. Please go ahead.

Matthew Frydman: Sure. Thanks. Morning, Ivan and team. Can I follow up again on the production outlook over FY27? I guess you can see we are all driving at the same thing here, but I am just wondering about the planned end date for production from TRP. I think originally, the expectation was that the material being reclaimed from TSF1 was due to run out around the end of 2026, but it sounds like this

Speaker #4: Sure, thanks. Morning, Ivan and team. Can I follow up again on the production outlook over FY27? I guess you can see we're all sort of driving at the same thing here.

Speaker #4: But I'm just wondering about the planned end date for production from TRP. I think originally the expectation was that the material being reclaimed from TSF1 was due to run out around the end of 2026, but it sounds like there's still more material to process there.

Matthew Frydman: Still more material to process there, I guess. Yeah, no plans to wind back on TRP production over FY27 at this stage? Thanks.

Speaker #4: I guess, yeah, no plans to wind back on TRP production over FY27 at this stage. Thanks.

Ivan Vella: Thanks, Matt. In the resource reserve update we provided in February, we did talk about more resource that was available, hadn't been converted to reserve at that point. But it's fair to say there is a line of sight to more material beyond this financial year, in fact, beyond calendar year 2027. So we have got some good runway there. It's valuable, of course, even though some of that grade is lower than what we started with. I think when I first joined IGO, we were running at nearly 1.4% grade for tailings, which is phenomenal. It's back to probably around 1, but it's harder. It's still obviously highly value accretive to reprocess that, given the opportunity. Then look at how that dovetails neatly with some changes to that plant, increased grinding capacity, so that we can then turn it into effectively another long-term plant.

Speaker #2: Thanks, Matt. In the resource reserve update we provided in February, we did talk about more resource that was available, which hadn't been converted to reserve at that point. But it's fair to say there is a line of sight to more material beyond this financial year.

Speaker #2: In fact, beyond calendar year 2027, we have got some good runway there. It’s valuable, of course, even though some of that grade is lower than what we started with.

Speaker #2: I think when I first joined IGO, we were running at nearly 1.4% grade for tailings, which is phenomenal. It's back to probably around 1%.

Speaker #2: But it's harder. It's still obviously highly value-accretive to reprocess that, given the opportunity. And then look at how that dovetails neatly with some changes to that plant.

Speaker #2: Increased grinding capacity, so that we can then turn it into, effectively, another long-term plant. And that's the work—one area of work—that's been done through the SOR.

Ivan Vella: That's one area of work that's been done through the SOR. So fair to say, in summary, it will go beyond 2027, and that will need to fit neatly with the work then to convert that into a long-term plant.

Speaker #2: So, fair to say, in summary, it will go beyond 2027. And that will need to fit neatly with the work, then, to convert that into a long-term plan.

Matthew Frydman: Yeah. Got it. Thanks, Ivan. That's helpful. Then secondly, I guess, just the cost result from the quarter, then looking forward, anything to consider there with, obviously CGP3 sort of ramping up through the quarter, recovering from the fire, et cetera? Any, I guess, costs or kind of impacts from that maybe kind of unwind over the remainder of FY27 or sort of any other sort of cost pressures that you'd want to highlight or call out? Thanks.

Speaker #4: Yeah, got it. Thanks, Ivan. That's helpful. And then secondly, I guess just the cost result from the quarter, and then looking forward, anything to consider there with obviously CGB3 sort of ramping up through the quarter, recovering from the fire, etc.

Speaker #4: Any, I guess, costs or kind of impacts from that that maybe kind of unwind over the remainder of FY27 or sort of any other sort of cost pressures that you'd want to highlight or call out?

Speaker #4: Thanks.

Ivan Vella: Yeah, you break up a little bit, but if I get the sense of the question you are talking, is there any sort of upswing or surprises that we want to cater for in cost? There isn't. I think our cost guidance sits with production. Nothing new or different. There is nothing, no big chunk sitting out there, that we are going to have to deal with following the fire or otherwise. Overall, I think the team at Talison are focused first and foremost on safety, secondly on productivity and performance and compliance to plan for the existing business as it stands, thirdly on growth and the potential for further upside, and fourth on cost. I mean, that is not to say cost is ignored, but you can't have everything as equal priorities. I think that is the right equation for value.

Speaker #3: Yeah, you'll break up a little bit, but if I get the sense of the question you're talking about, is there any sort of upswing or surprises that we want to cater for in cost?

Speaker #3: There isn't. I think our cost guidance sits with production—nothing new or different. There's nothing, sort of, no big chunk sitting out there that we're going to have to deal with following the fire or otherwise.

Speaker #3: Overall, I think the team at Taliesin are focused, first and foremost, on safety. Secondly, on productivity, performance, and compliance to plan for the existing business as it stands.

Speaker #3: Thirdly, on growth and the potential for further upside. And fourth, on cost. I mean, that's not to say cost is ignored, but you can't have everything as equal priorities.

Speaker #3: And I think that's the right equation for value. What that does mean, though, is as the new CFO, Mark, started a couple of months back now—he comes from a very deep operational cost management background, with a lot of experience—and he will bring a lot of discipline and rigor, I'm sure, in the systems and tools to manage that going forward.

Ivan Vella: What that does mean, though, is as the new CFO, Mark, started a couple of months back now, he comes from a very deep operational cost management background, a lot of experience, and he will bring a lot of discipline and rigor, I am sure, in the systems and tools to manage that going forward. I think that will unlock plenty of opportunity, but it definitely comes after those other points in that order.

Speaker #3: And I think that will unlock plenty of opportunity, but it definitely comes after those other points in that order.

Matthew Frydman: Got it. That is helpful. Thanks, Ivan.

Speaker #4: Got it. That's helpful. Thanks, Ivan.

Ivan Vella: Thanks, Matt.

Speaker #3: Thanks, Matt. Thank you. Your next question comes from Tim Hof from Canaccord. Please go ahead.

Operator: Thank you. Your next question comes from Tim Hoff from Canaccord. Please go ahead.

Tim Hoff: Thanks, Ivan and team. Just focusing back on the port situation. What kind of visibility do you have at the moment on what the December quarter looks like? Have you got the ships booked, things moving, you will move some of that stockpile, or is there just not enough visibility to even talk to?

Speaker #4: Thanks, Ivan, and team. Just focusing back on the port situation—what kind of visibility do you have at the moment on what the December quarter looks like?

Speaker #4: I know if you've got the ships booked, things moving, you'll move some of that stockpile, or is there just not enough visibility to even talk to?

Ivan Vella: I cannot comment sitting here today, Tim. I mean, the team are naturally working on it. We do not want to carry excess inventory. We want to get it out to our customers, and they are screaming for it. It is not like Tianqi and Albemarle are not hungry for those volumes. It is an important problem for the team to solve, work with shipping partners, the port, and so on. I cannot give you specifics to your question. Maybe what we can try and do is just bring a bit more of the work that is going on there or the look ahead on how they are going to increase capacity, as they work through those challenges and try and give you an update at the next quarterly.

Speaker #2: I can't comment sitting here today, Tim. I'm in the team where I'm actually working on it. We don't—we clearly don't want to carry excess inventory.

Speaker #2: We want to get it out to our customers, and they're screaming for it. It's not like Tianshi, Naramala, Hungary—for those volumes. So it's an important problem for the team to solve: work with a shipping partner, the port, and so on.

Speaker #2: I can't give you specifics to your question. And maybe what we can try and do is just bring a bit more of the work that's going on there or the look ahead on how they're going to increase capacity as they work through those challenges and try and give you an update on the next at the next quarterly.

Tim Hoff: Yep, fantastic.

Speaker #4: Yep. Fantastic.

Ivan Vella: Thanks.

Tim Hoff: And then perhaps to Kwinana, again, in terms of that cash that is now in the TLEA level, is there going to be essentially a buffer or a provision for how much cash Kwinana burns that you need to think about before making distributions to the shareholders?

Speaker #2: Thanks.

Speaker #4: And then back to Quinana again. In terms of that cash that's now at the TLEA level, is there going to be essentially a buffer or a provision for how much cash Quinana burns that you need to think about before making distributions to the shareholders?

Ivan Vella: Yeah, it is a conversation we have got to have. But I mean, as a director of TLEA, certainly that is what I will be looking for, is we need some liquidity there to cater for the demands of Kwinana, and we can see what that is. We have got a budget coming together for 2027 calendar year as well. And then that gives us a good basis to roll the cash out from the business.

Speaker #2: Yeah, it's a conversation we've got to have, but, I mean, as a director of TLEA, certainly that's what I will be looking for. We need some liquidity there to cater for the demands of Quinana, and we can see what that is.

Speaker #2: We've got a budget coming together for the 2027 calendar year as well, and that gives us a good basis to roll the cash out from the business.

Tim Hoff: Yep, fantastic. And perhaps one, just a quick one on the net debt level at Greenbushes. Obviously, a little reduction there, clearly impacted by the distribution. But, is there a number there that I guess is being targeted, or is the JV happy with the amount of debt that it is currently carrying given the pricing bump?

Speaker #4: Yep. Fantastic. And perhaps one just quick one on the net debt level at Greenbush's obviously a little reduction there. Clearly impacted by the distribution, but is there a number there that I guess is being targeted or is the JB happy with the amount of debt that it's currently carrying?

Speaker #4: Given the pricing?

Ivan Vella: Yeah. I mean, call it largely flat, and we are sort of comfortable with it in that space. Again, it is something that the board will continue to discuss and review, but at this point, there are no intentions to change that.

Speaker #2: Yeah, I mean, call it largely flat, and we're sort of comfortable with it in that space. Again, it's something that the board will continue to discuss and review, but at this point, there's no intention to change that.

Tim Hoff: Thank you very much.

Speaker #4: Thank you very much.

Operator: Thank you. Once again, if you would like to ask a question, please press star 1 on your telephone and wait for your name to be announced. Your next question comes from Thiago Ojea from Citi. Please go ahead.

Speaker #3: Thank you. Once again, if you would like to ask a question, please press star one on your telephone and wait for your name to be announced.

Speaker #3: Your next question comes from Tiago Ahia from Citi. Please go ahead.

Thiago Ojea: Hi. Thanks for the question. My first question is regarding capital allocation. Now that Nova is finalizing, 1, within Nova, if you can provide if all the conditions for the deal are already set and if there is any residual rehabilitation or anything that we should be aware. And 2, this post-Nova, you have disclosed before interest on investment copper, still lithium. Lithium price have fallen a lot in the past few weeks. If you can provide any update on capital allocation post-Nova would be good.

Speaker #4: Hi, thanks for the questions. I think my first question is regarding capital location. Now that NOVA is kind of finalizing, one, within NOVA, if you can provide if all the conditions for the deal are already set and if there is any residual rehabilitation or anything that we should be aware of.

Speaker #4: And two, this post-NOVA, you have disclosed before interest on investment—copper still, lithium. Lithium prices have fallen a lot in the past few weeks.

Speaker #4: If you can provide any update on capital location post-NOVA, that would be good.

Ian Rowe: Hi, Thiago. I can jump in and provide some comments on that. In terms of the question on anything material coming through from Nova, we have mentioned that there is some debt receipts to unwind in the December quarter, and we will complete that transaction with Global during the December quarter. So there is no sort of material outgoings expected there. More broadly, obviously, we have commented that we will be reliant on our distributions from TLEA moving forward. And we are comfortable with that. We see that dividend stream resuming and being a healthy cash flow stream through the cycle now that CGP3 is paid off and we will be benefiting from the increased output from that site moving forward. So, altogether, the cash flow stream coming through from TLEA, whilst it is not flowing at the moment, we do see that resuming in due course.

Speaker #3: I see. I can jump in and provide some comments on that. So, in terms of the question on anything material coming through from NOVA, we've mentioned that there are some debtor receipts to unwind in the December quarter, and we'll complete that transaction with Global during the December quarter.

Speaker #3: So there's no sort of material outgoings expected there. More, we will be reliant on our distributions from TLEA moving forward, and we're sort of comfortable with that.

Speaker #3: We see that the dividend stream is resuming and being a healthy cash flow stream through the cycle, now that CGP3 is paid off, and we will be benefiting from the increased output from that site moving forward.

Speaker #3: So, altogether, the cash flow stream coming through from TLEA, whilst it's not flowing at the moment, we do see that resuming in due course.

Ian Rowe: Then it is a matter of how we allocate that across the business. We have talked about our growth priorities across exploration and BioHeap, which we have not talked to a lot today. But we have got some exciting things in the pipeline there, and when we have sensible things to allocate the capital to, we will do that. Otherwise, we have got our capital management framework, which talks to the distributions that will come through to shareholders. So there are no sort of changes in what we discussed at the end of the financial year in terms of our overall thinking about that.

Speaker #3: And then it's a matter of how we allocate that across the business. So we've talked about our growth priorities across exploration and buyer heap, which we haven't talked a lot about today, but we've got some exciting things in the pipeline there.

Speaker #3: And when we have sensible things to allocate the capital to, we'll do that. Otherwise, we've got our capital management framework, which outlines the distributions that will come through to shareholders.

Speaker #3: So, there's no sort of changes in what we discussed at the end of the financial year in terms of our overall thinking about that.

Thiago Ojea: Just a quick follow-up before I jump to the second question. Any preference on the exploration or assets that are more mature or anything like that, or even jurisdictions, any preference that you can share with us?

Speaker #4: Just a quick follow-up before I jump to the second question. Any preference on the exploration, or assets that are more mature, or anything like that?

Speaker #4: Or even jurisdictions? Any preference that you can share with us?

Ivan Vella: Thiago, the primary focus for exploration is on copper-related interests. We are seeking projects or assets where there is known mineralization that we can use our technical capability to drive some upside and partner with an existing player out there. So moving away from that very broad greenfield-type exploration that IGO was doing in the years gone. We will do some minor focus on lithium. It is very targeted, and it is in tenement packages that we have got in Australia. But that is definitely a small part of the plan looking forward. In terms of jurisdictions, I think it is simple to say the Americas, Canada, US, Chile, Peru, and so on. So jurisdictions which are known for large opportunities in copper and potentially some of the very benign countries in Africa, like Namibia.

Speaker #2: Tiago, the primary focus for exploration is on copper-related interests. We're seeking projects or assets where there's non-mineralization that we can use our technical capability to drive some upside.

Speaker #2: And partner with an existing player out there. So, moving away from that very broad greenfield-type exploration that IGO was doing in years gone by.

Speaker #2: We'll do some minor focus on lithium. It's very targeted, and it's in tenement packages that we've got in Australia, but that's definitely a small part of the plan looking forward.

Speaker #2: In terms of jurisdictions, I think it's simple to say the Americas: Canada, US, Chile, Peru, and so on. So, jurisdictions which are known for large opportunities in copper.

Speaker #2: And potentially some of the very benign countries in Africa, like Namibia.

Thiago Ojea: Okay, great. On my second question, regarding the Strategic Options Review, this will be released jointly with Albemarle and Tianqi. What kind of form will be this? This will be like a formal life of mine plan. How are you expecting to provide this information to the market? Thank you.

Speaker #4: Okay, great. And on my second question, regarding the strategic options review: will these be released jointly with Obermann and Chianti? What kind of form will this take?

Speaker #4: Will these be like a formal life-of-mine plan? How are you expecting to provide this information to the market? Thank you.

Ivan Vella: Yeah. We just haven't got through that discussion yet, Thiago. We will let you know as we do. As I said, I am very pleased with the progress and the technical work. We can see the deep analysis and thinking, a lot of work that has gone in over the last 18 months on this. So there is lots of exciting news to share, and we need to then work out how best to communicate that. I want to call out recognizing that you have got three listed companies involved, Albemarle, Tianqi Lithium Corporation, and IGO. Each have got different reporting expectations, regimes, time frames, et cetera. So it is far from straightforward in how we think about that. We need to be very respectful of everyone's interests there.

Speaker #2: Yeah, we just haven't got through that discussion yet, Tiago. We'll let you know as we do. As I said, I'm very pleased with the progress and the technical work.

Speaker #2: We can see the deep analysis and a lot of work that's gone in over the last 18 months on this. There's lots of exciting news to share, and we need to then work out how best to communicate that.

Speaker #2: I want to call out and recognize that you've got three listed companies involved—Albemarle, Chianti Lithium Corporation, and IGO. Each has different reporting expectations, regimes, timeframes, etc.

Speaker #2: So it's far from straightforward in how we think about that. We need to be very respectful of everyone's interest there.

Thiago Ojea: That is clear. Thank you.

Speaker #4: That's clear. Thank you.

Ivan Vella: Thanks, Thiago.

Speaker #2: Thanks, Tiago.

Operator: Thank you. Your next question comes from Lyndon Fagan from J.P. Morgan. Please go ahead.

Speaker #3: Thank you. Your next question comes from Lyndon Fagan from JP Morgan. Please go ahead.

Lyndon Fagan: Thanks. Good morning, Ivan. Just back on the strategic options. I am just wondering whether they stay options or whether you are actually going to FID something over the foreseeable future. I guess what I am getting at, a lot of the options put more lithium units into the market. I am wondering whether you can share the attitudes of the JV partners and whether there is alignment from all three partners on actually putting more lithium into the market.

Speaker #4: Thanks. Good morning, Ivan. Just back on the strategic options, I'm just wondering whether they remain as options, or whether you're actually going to FID something over the foreseeable future.

Speaker #4: And I guess what I'm getting at is that a lot of the options put more lithium units into the market. I'm wondering whether you can share the attitudes of the JV partners, and whether there's alignment from all three partners on actually putting more lithium into the market.

Ivan Vella: Well, I think I cannot speak for the other partners. I will speak from my point of view. The lithium market continues to grow, and we have seen that without any hesitation over the last few years, despite the volatility in price. The demand pull-through is significant. The Greenbushes asset and mine is one of the lowest cost sources of lithium in the world, hands down, of any source. It is by far the lowest cost hard rock mine in the world.

Speaker #2: Well, I think I can't speak for the other partners. I mean, I'll speak from my point of view—the lithium market continues to grow.

Speaker #2: And we've seen that without any hesitation over the last few years, despite the volatility in price. The demand pull-through is significant. The Greenbushes asset and mine is one of the lowest-cost sources of lithium in the world, hands down, of any source.

Speaker #2: It's by far the lowest-cost hard rock mine in the world. And so, low capex or productivity brownfield expansion options from that are extremely value-accretive and move into obviously growing markets.

Ivan Vella: Low CapEx or productivity, brownfield expansion options from that are extremely value accretive and move into obviously a growing market. That is fantastic news, and I am clearly highly motivated to see that done. Even if they are small projects, it does not matter. Lining those up and giving the market a view of the potential is exactly what we are here to do. Of course, for that, SOR has also considered some much bigger choices and growth options, and we can see where, for example, CGP4 would fit. Obviously significant CapEx and highly value accretive. I think you could work that out very quickly. Anyone can do the back of envelope numbers on it. We need to then contemplate where that might fit.

Speaker #2: That's fantastic news, and I'm clearly highly motivated to see that done—even if they're small projects, it doesn't matter. Aligning those up and giving the market a view of the potential is exactly what we're here to do.

Speaker #2: Of course, for that, SOR has also considered some much bigger choices and growth options. And we can see where, for example, CGP4 would fit—obviously significant capex and highly value-accretive.

Speaker #2: I think you could work that out very quickly. Anyone can do the back-of-the-envelope numbers on it. And we need to then contemplate where that might fit.

Ivan Vella: My bias, and I think I have said this in several calls, is we do need to demonstrate that we are getting the best from the existing assets and that we can run those in a stable and high productivity fashion and a safe fashion before we then chase much bigger projects and much bigger changes. The good news is, I think there is tremendous upside in the existing assets. There are five plants there, and having all of those run to full potential gives us considerable upside without any major CapEx to boot. So we have got the best of all worlds at Greenbushes. A low-cost starting point, an amazing resource reserve, fantastic asset base that we can draw on, and a lot of upside in productivity and creep capacity. So that is really where the priority is, getting that out on the page so that you can see what that growth looks like.

Speaker #2: And my bias—and I think I’ve said this in several calls—is that we do need to demonstrate that we’re getting the best from the existing assets and that we can run those in a stable, high productivity fashion, and a safe fashion before we then chase much bigger projects and much bigger changes.

Speaker #2: The good news is, I think there's tremendous upside in the existing assets. There are five plants there, and having all of them run to full potential gives us considerable upside without any major capex to boot.

Speaker #2: So we've got the best of all worlds at Greenbushes: a low-cost starting point, an amazing resource reserve, a fantastic asset base that we can draw on, and a lot of upside in productivity and creep capacity.

Speaker #2: So that's really where the priority is—getting that out on the page so that you can see what that growth looks like.

Lyndon Fagan: Thanks for that color, Ivan. Is the first step giving us the options and then the next step potentially FID-ing them? Are you looking to come out with an announcement where you are actually going ahead with some of this stuff and giving us the information all in one go?

Speaker #4: Thanks for that color, Ivan. So I guess, is the first step giving us the options and then the next step potentially FID-ing them? Or are you looking to come out with an announcement where you're actually going ahead with some of this stuff and giving us the information all in one go?

Ivan Vella: Yeah, I just can't answer the question yet, Lyndon. Something we have got to work through. Obviously, we are doing the valuations and the modeling of how all that would fit together. The board needs to work through those decisions and then also agree on how we communicate. But certainly all the kind of things that you are contemplating are pieces that are on our page to consider and get back to you. I do completely appreciate how important this is and how much interest there is in the outcome. So we are working very hard on it. It is a key priority.

Speaker #2: Yeah, I just can't answer the question yet, Lyndon. It's something we've got to work through. I mean, obviously we're doing the valuations and the modeling of how all that would fit together.

Speaker #2: The board needs to work through those decisions and then also agree on how we communicate. But certainly, all the kinds of things that you're contemplating are pieces that are on our page to consider and get back to you.

Speaker #2: I do completely appreciate how important this is and how much interest there is in the outcome. So we're working very hard on it. It's a key priority.

Lyndon Fagan: I guess the final follow-up, is the current price weakness likely to constrain any sort of project approval? I guess what I am getting at is, would Albemarle and Tianqi need to see a better price in the marketplace to be pressing ahead with projects that put more lithium into the market? Is that something that I guess you can't really talk to?

Speaker #4: And I guess the final follow-up: Is the current price weakness likely to, I guess, constrain any sort of project approval? I guess what I'm getting at is, would Albemarle and Tianqi need to see a better price in the marketplace to be pressing ahead with projects that put more lithium into the market?

Speaker #4: Or is that something that, I guess, you can't really speak to?

Ivan Vella: Again, can't comment for our partners. But from my point of view, when I see the kind of potential low CapEx growth, in fact, some of it is no CapEx growth. It is productivity improvement in the plants that we have got. There is huge upside, and I would pursue that every day of the week. The price today, it is AUD 1,200, AUD 1,300 a ton. We are still making probably, I am doing it in back of an envelope, maybe 70% EBITDA margin. We are going to push every ton we can.

Speaker #2: Again, I can't comment for our partners, but from my point of view, when I see the kind of potential low capex growth—in fact, some of it is no capex growth.

Speaker #2: It's productivity improvement in the plants. That we've got, there's huge upside, and I would pursue that every day of the week. I mean, the price at today, it's $12,130 a ton.

Speaker #2: We're still making—probably, I'm doing it on the back of an envelope—maybe a 70% EBITDA margin. We're going to push every ton we can.

Lyndon Fagan: Great. Thanks for that.

Speaker #4: Great. Thanks for that.

Ivan Vella: Thanks, Lyndon.

Speaker #2: Thanks, Lyndon.

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

Speaker #3: Thank you. There are no further questions at this time. I'll now hand the conference back to Mr. Vela for any closing remarks.

Ivan Vella: We will leave it there. We are just about on time. I guess I wanted to just close again, recognizing Nova. A fantastic story coming to an end this week. It is hard, obviously, to close up, and it is sad for the team to see the end, but they finish on a very high note. We are very proud of their achievements and performance, and definitely a great story to celebrate in nickel mining in Western Australia. Absolute standout case. So I will just leave it there, and thanks, everyone, for your time and attention through our reports today.

Speaker #2: Look, we'll leave it there. We're just about on time. I guess I wanted to just close again, recognizing Nova—a fantastic story—coming to an end this week.

Speaker #2: It is hard, obviously, to close up, and it's sad for the team to see the end. But they finished on a very high note—very proud of their achievements and performance.

Speaker #2: And definitely a great story to celebrate. In nickel mining in Western Australia, an absolute standout case. So I'll just leave it there, and thanks everyone for your time and attention.

Speaker #2: Through our reports today.

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

More IPGDF earnings call transcripts

• IPGDF - Q2 2026 Igo Ltd Earnings Call (January 28, 2026)
• IPGDF - Half Year 2026 Igo Ltd Earnings Call (February 18, 2026)
• IPGDF - Q3 2026 Igo Ltd Earnings Call (April 23, 2026)
• IPGDF - Q4 2026 Igo Ltd Earnings Call (July 27, 2026)
• IPGDF - Full Year 2026 Igo Ltd Earnings Call (August 26, 2026)

Browse all earnings call transcripts