IGO has announced that the Tianqi Lithium Energy Australia JV (TLEA JV) has paid IGO a A$159.3m final dividend, lifting the total payment in FY24 to A$761.4m. The final dividend was materially higher than our forecast as we had assumed cash could be held back to fund further work on the Kwinana Lithium Hydroxide Refinery. However, the debt refinancing recently announced for Greenbushes and inventory drawdown has facilitated a larger cash release than we had anticipated. We expect further production improvements from Greenbushes over the course of 2024 as lithium prices start to recover. In the short-term, Nova should provide some insulation to group earnings, accounting for more than 60% of asset Ebitda over the next six months. We are reiterating our BUY rating and A$8.00 price target on IGO.
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