IGO’s FY24 earnings result was solid, with most key metrics in line with our forecasts. The final dividend boosted the result, with the full-year payout 9% higher than we had anticipated. We believe IGO’s confidence to continue to pay dividends provides some insight into the outcomes of the strategy update due in the next few weeks. We believe IGO will continue to assess M&A opportunities, but remain conservative, rewarding shareholders with a consistent dividend stream from the strong cash flow generated by Greenbushes. We have made only minor changes to our earnings forecasts after incorporating the FY24 result, updated guidance and new reserves and resources estimates. A recovery in spot spodumene prices is the most material near-term catalyst for IGO in our view, and we see a recovery likely given the wave of supply cuts seen in recent months. We reiterate our BUY rating on IGO, lowering our price target 8% to A$6.80 to reflect recent declines in spot lithium prices.
To access the full report please log in under the Client Area at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
If you would like to access our research please contact us to create an account.
