IGO Limited (ASX:IGO) Provides Lithium Business Update
Lithium Hydroxide Refinery Performance
IGO Limited (ASX: IGO) has announced updates regarding its 49% interest in Tianqi Lithium Energy Australia (TLEA) and the Kwinana Lithium Hydroxide Refinery. A major shutdown in October 2024 allowed for scheduled maintenance and the implementation of multiple key projects aimed at enhancing production performance from Lithium Hydroxide Plant 1 (LHP1). Although improvements in performance have been noted, full impact is expected by March 2025.
Market Conditions and Dividends
Due to current market conditions for lithium hydroxide, TLEA has seen an accumulation of inventory at Kwinana, anticipated to persist in the short to medium term. Despite ongoing marketing efforts towards existing and prospective clients, IGO does not foresee TLEA being able to distribute dividends to shareholders during FY25. As per current insight, IGO is unable to estimate when dividends may resume, although Greenbushes is reportedly continuing to yield strong cash flows despite the challenges in the market. The updates were communicated by Ivan Vella, Managing Director and CEO of IGO Limited.
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