IGO Limited

Thanks, Darcy. Good morning, everyone, and thanks for joining us for IGO's June quarter and the wrap-up of financial year 26. I'm joined this morning by Ian Rowe, newly appointed as our interim CFO. He'll be available to cover a few remarks on our finances, but also take some questions at the back end of our opening remarks. The interview was budgeted for some time and noted the business very well. Over the coming months he'll join me for some of our engagements with investors and analysts so you can get to know him better and have a chance to talk through some of the questions around the business. 30 June is always a good point to reflect back on in a central year and we finished with really strong momentum in safety and performance at Nova and a solid quarter at Greenwich's. all resulting in a strong balance sheet. We recognise there's still important challenges for us to work through at Kwinana and obviously a continued focus on Greenbushes as we work to drive towards the full potential of that amazing asset. Obviously the fire in the quarter at Greenbushes was another key event we had to work through. I'll cover more on that later. are ramping up soon. Beyond that, I want to also reflect on what we've achieved. We've really tightened up and simplified our business over the last 12 months. The key transaction we talked about post-quarter sets up Nova for a really good finish. Key message for today is IDEO is simpler, more capable and disciplined business than it was a year ago. We've got some very key areas of strength. and many more who will be using us for the future. On our results summary, there's five key takeaways I wanted to work through for today's results. Firstly, our safety performance has improved materially. That's supported by our visible leadership and strong discipline. Our group FIFR reduced to 3.7 and as of today, our business is over 200 days recordable injury free. The business has gone nearly a year without a significant potential incident. and for the astonishing achievement. I'm very proud of what the teams deliver. A strong focus since I started in this business on safety and I think the results today, as we close at FY26, are a ring of credit to them. It's no surprise that that safety performance correlates strongly with production performance and cost performance. And if we look at NOVA, it's an outstanding finish to the financial year, ahead of our lifetime production guidance and worldwide cost guidance. and as we approach end of life and end of mining, it only gets more complicated and I think that speaks to the performance and discipline of the operations team at Nova. We're also very pleased to announce the divestment to Global Lithium at the end of the quarter, which is after the end of the quarter. Together, our operating performance in this transaction are great examples of our approach and the track record we want to continue to build on. First, Greenbush has finished strongly with the production at the top end of our revised guidance. Excellent margin thanks to strongly realised pricing and the redimensionment of distributions from Winfield to TLEA. The fire at CG3 was disappointing and a real setback, particularly given the plant was wrapping up extremely well and in fact well ahead of our plans before the incident. I'll cover more on that in Greenbush's update further in the run back. Four, Kwinana production was impacted by a major plant shutdown. Lithium hydroxide production volumes reflect this. The refinery remains a challenge more broadly, addressing performance and finding a pathway to resolution. Kwinana is and continues to be a key priority for me in the business. Finally, the financial result underpinning all of this was very solid. Our underlying EBITDA was $180 million. taking into $286 million for the year, net cash increased 18% to $387 million, leaving us very well positioned for discipline, portfolio optimisation and growth. A couple more remarks on safety. I'm delighted with the improvement that we've seen over the last two years, and in particular in the last 12 months. As you know, this has been a strong area of focus for me. Thanks to the sustained efforts and our visible safety leadership, we've delivered a step change in performance and I would say we're now in the area of broad industry performance that everyone should be expecting from us. The TRIP were 3.7% down 24% in the quarter and 63% over the year. It's particularly pleasing given the number of challenges that the NOVA team had to work through as they pushed towards the end of life for the mine. also want to call out and credit our partners, our contract partners operating at the site, in particular Varmico, which has helped deliver this outstanding change and improvement in performance. Greenbushes and Kwinana safety and performance remain here as a focus. They are not operating at the same levels and we continue to work with our daily partners and businesses to strengthen their safety and controls, performance and leadership routines. At Nova, as I said, we delivered an outstanding operational result, finishing ahead of our lifetime production guidance and below cost guidance. The key point is that Nova continues to deliver reliable production, disciplined cost control, strong cash generation, late into its mine life, which is a very unique performance, something that we're very proud of, really reflects well on the team, their focus all the way to the end. Quarter-on-quarter production ease as expected following a planned April shutdown. Unit cash costs increasing 29% due to the low production profile and shutdown-related costs. Sales revenue increased 18% on the back of higher copper. Sales revenue is higher than the by-product pricing. EBITDA was lower quarter-on-quarter with the resulting impacted by an increase in our rehabilitation provisions and retention and redundancy provisions associated with our upcoming end of mine life. Naturally, we expect a number of these adjustments to our event to unwind as we close out the transaction with Global Lithium and we'll report on those in due course. The production results reflect an exceptional focus and discipline from the NOVA team and our contract partners and something that they should be very proud of what they've achieved as we move towards that final stage of mining closures. We're also very pleased to announce after the quarter that we agreed to divest NOVA to Global Lithium Resources once our mining operations are complete. This is a very positive outcome for AGO, Global Lithium, the local community, traditional owners and other stakeholders who have supported NOVA over the past decade. We continue to focus on our full closure planning right up to the finalisation of that agreement with Global Lithium. that include extensive stakeholder engagement covering our traditional owners and local community and government. Looking forward, we've upgraded our life of mine guidance through to the expected end of production late in the December quarter and guidance is now 19,000 to 20,000 tonnes of nickel production, cash costs of $4.25 per pound of nickel. Just to be clear, this is guidance for the life of mine across the FY26 and FY27 period. A simple deduction of the FY26 actuals gives you implied production of about 4,000 to 5,000 tonnes of production in the FY27 period. The green horses delivered a strong finish to FY26 with production at the top end of that revised guidance that we introduced last quarter. 80% EBITDA margins for the quarter. We saw an uptick in the mine grade last quarter as we moved back into the core of the ore body, which is positive and something I'd signposted. Recoveries and mill uptime meant that some of the benefits of that were not fully reflected in the production and we expect that to flow through and improve in this quarter and beyond. With the strategic options review continuing, Taliesin continues to progress those two extremes that we've talked through quarter on quarter. And I think a key area that I was pleased to see good progress was in the mine, taking the design, productivity, a number of changes to continue to work towards unlocking the full potential and productivity of green bushes. The June quarter showed some really positive trends in mining productivity. I've been down to the site three times over the last quarter. It was good to see that steady improvement. Mine production was also supported, as I said, by that move into the higher grade area, as we previously signposted. Production increased 10% to 387,000 tonnes, with CGP3 contributing approximately 71,000 tonnes. The plant was ramping up extremely well ahead of the fire in June. Most importantly, no one was hurt in that event and the plant is now expected to restart in the coming days. The investigation has been finalised and the team will naturally ensure that all of the learnings are embedded in their work going forward. Sponsoring sales increased 12% reflecting the late shipment from the prior quarter being accounted for in the June quarter. while the average realised flogging wind price increased to US$2,286 per tonne. The result reinforces the quality and cash generation potential of this world-class asset, particularly through periods strong at realised pricing. Winfield resumed distributions during this quarter with a dividend of AU$390 million declared on a 100% basis. The business also continues to build considerable cash receivables with these very favorable prices flowing through. At the same time, Greenwich still has meaningful improvement work ahead across safety, maintenance execution, plant performance, stability and recoveries and the broader mind and meal discipline that we expect to deliver significant uplifting performance. At the same time, The operation and improvement of life and mind optimisation also remains critical. While the team did obviously have some focus on the recovery of CGP3, which delayed some of that activity, they continue to progress that broader life and mind optimisation activity and we look forward to sharing more on that in the course. We continue to work closely with our partners through the joint venture CLEA and Taliesin to help them as they build out a more stable and consistently high performing operation. Looking into financial year 27, Greenbush's guidance that we've set has been laid out on the slide. Spodumene production between 1,500, sorry, 1,550,000 tonnes 1,750,000 tonnes of spodumene at an NC6 basis, cash costs between 380 and 440 Australian dollars per tonne, and our development and sustaining improvement capex, including inferred waste, ranged between 250 Australian and 3 Australian million dollars. Our guidance reflects that ongoing CGP3 ramp-up and improvement work is still required across the operation and as we see how C53 comes out of the restart, we can obviously refine our expectations. On the lithium downstream, we foreshadowed last quarter the production has been impacted by a major plant shutdown designed to improve plant performance. The lithium hydroxide production was 897 tonnes per quarter. The lower production volumes reflected in significantly higher conversion costs for the quarter, as you would have expected. Sales volumes were also lower in line production. The average realised price has improved considerably to $19,543 US per tonne. Production costs were also elevated with the refinery offline for a good part of the quarter, even at a loss of $88 million on a 100% basis. including the negative imagery adjustment of about $37 million. Further shutdown is underway through July and August, which will reduce our September quarter production. FY27 guidance for Guadana is set at lithium hydroxide production of 9,000 to 11,000 tonnes, conversion costs ranging from $16,000 to $18,000 per tonne. and Sustained Improvement Capital of $75 to $90 million. With that, I'll hand over to Ian to talk through some highlights from their financials and then pick up other key ones.

Yeah, thanks, Ivan. It's good to be speaking with you all this morning. I look forward to meeting you here at Massey. Look, we play as FY26 with real financial momentum. Nova finished the year strongly and is looking in price to recover the 80s power agreement which we've gained very clearly. For the core group, sales revenue rose 18% to $141 million, driven by high profit sales, liabilities and buyer prices at Nova. Our share of net profit from TLEA increased 38% to $121 million, reflecting the strongly realised swaddle in price and an 18% EBITDA margin at Greenbushes. Importantly, when the museum did get into institutions during the quarter, a clear marker of the assets cash generating strength as pricing has recovered. Group underlying needs are $118 million for the quarter and $286 million for the full year. That includes around $31 million of year-end adjustments at NOVA relating to both an increase in the year-end rehabilitation provision and the retention and redundancy accruals tied to the end of mine life. The rehab component will transfer on completion of the NOVA divestment, so it is largely time and money. Adjusting to those, the underlying result is in line with our expectations. The one standout area that I'd really like to pull out is our cash performance. Underlying free cash flow nearly doubled to $70 million during the quarter and net cash increased to $387 million. For the full year, we generated $134 million of underlying free cash flow. This capital discipline and cash flow is deliberate. On the one hand, it reinforces what a wonderful asset November has been, generating strong cash flow right to the end. On the other, it reflects the balance sheet flexibility that we are being intentional about as we prepare for life beyond October. Naturally, we'll have more to say on capital management with our four-year results in six months, but this decision will hold us in good stead as we look to grow the business. With that, I'll hand back to Ivan to set through our growth priorities in more detail.

Thanks, Ian. Yeah, a couple of final remarks and then we can open up for some Q&A. Our growth agenda builds on that strong base that I've talked about, a simpler, tighter business focus on copper and lithium. We are pursuing growth through three routes, exploration, which is, I guess, a real category in IGO, biopsy, which I've provided a little bit more detail in our quarterly, and discipline M&A. On exploration, we cleaned up our portfolio, reset our focus on where we're operating our tenement package, and ultimately bring a focus on high quality copper and lithium opportunities. The FY27 exploration budget is 35 to 40 million Australian dollars. BioHeat is another growth pathway. This is technology, sulphide leached technology developed more than 25 years ago, prevents a very timely opportunity to address some of the structural challenges in the global copper industry. and we've recently redirected some focus on this technology. It was originally created with a focus on nickel and it clearly works across a number of different base metals and you can see it presenting in sulphides. And so as we work through proving that out, demonstrating understanding its economic potential, we'll provide more updates. But we believe it's an important area to focus on are looking to unlock low-grade sulphide deposits where the technology might offer a different pathway to venue. Very early days, there's plenty of technical and commercial work underway, and there'll be some very clear milestones before any material capital commitment. Non-M&A remains, of course, one potential route for growth in critical minerals aligned to that strategy, but we remain highly selective and disciplined. will only pursue opportunities where the strategic fit, distinctive IGO advantage, where we bring river values to the table, and as you'd expect, disciplined capital allocation. Nothing's changed in this space since I joined the business two and a half years ago. So in summary, FY26 finished strongly and leaves IGO positioned well, stronger, simpler, and in better shape looking forward to the future. Our safety performance, continue to improve through the year and of course correlates and mirrors very well with the kind of production and operating performance that we've demonstrated at Nova. It's delivered ahead of production guidance and below cost guidance for the period where the challenge was only greater as we moved into the final stages of mining for the ore body and we announced the investment to Global Lithium obviously with No care and maintenance, no overlap, no increased costs carried as we look forward. Green Bunches has delivered a stronger final quarter supported by the CTV3 ramp up, strong pricing and an 80% even done margin. Plenty more to do as we've talked about, but it's nice to see a better quarter and some real improvements starting to flow through the operations. and IGO, as Ian called out, has ended the year with net cash $387 million. So plenty of work to continue doing. We've got a very focused business, continuing to look through those few talents that are remaining in our list and then looking for the best pathways and opportunities for growth. With that, I'll turn it over to some Q&A.