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If there are any retail-level investors still true believers in lithium stocks left out there, they are clearly masochists.
Take IGO Limited’s (ASX:IGO) latest news: due ultimately to the current state of lithium prices, which are more likely to hang around than not, the miner formerly bullish on nickel and lithium is gearing up to report a loss.
That loss stems from an impairment related to its co-owned Kwinana Lithium Hydroxide Refinery (KLHR). The company is in cahoots with China’s Tianqi onsite. IGO holds a 49% interest in an AustralIan domiciled subsidiary called Tianqi Lithium Energy Australia (TLEA).
Perhaps most alarming for investors is that the company hasn’t yet quantified the loss – it’s just made clear that there will be one. Though the IGO was more interested in talking about an ‘impairment.’
“IGO expects to recognise an additional share of net loss from TLEA in respect of a substantial pre-tax impairment in its financial results for the half year ended 31 December 2024,” the company wrote on Monday,
“IGO will provide full details of the final impairment value when it announces its 1H25 Financial Results on 20 February 2025.”
The KLHR facility has been seeing lithium production outpace demand as sentiment for battery metals broadly continues to cool (and China continues making cheaper and cheaper EVs on its own.)
IGO also declared late last year that it will be unable to pay dividends.
It’s likely to be more pain for long-term shareholders: IGO closed at $5.30/sh on Friday, but at one point in 2022, was worth $15.00/sh.
IGO last traded at $5.32.
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