Mining company IGO's net profit has halved after the nickel and lithium producer further slashed the value of its nickel assets.
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The operator of Australia's oldest lithium mine Greenbushes on Thursday announced a 53 per cent fall in net profit to $288.3 million for the six months to December 31.
The group recorded an impairment charge of $171.8 million on the Cosmos and Forrestania assets in Western Australia primarily due to the decline in nickel prices during the period.
IGO had already reduced the value of its Cosmos nickel business by $968 million in 2023 as it joins the ranks of nickel assets to be mothballed.
"While we have faced some challenges in recent months, our business remains in a great position," chief executive Ivan Vella said, just nine weeks into his role.
The group's share of net profit from Greenbushes, co-owned with China's Tianqi Lithium Corporation, plunged to $495.2 million, from $631.4 million in the prior period, on lower prices and sales volumes.
While reviewing strategy in the weeks ahead, the immediate priorities include supporting the team at Greenbushes to drive further efficiencies and productivity, Mr Vella said.
He said IGO was also collaborating closely with its partner at the Kwinana Refinery, one of the first fully automated battery grade lithium hydroxide facilities globally, to improve performance.
Tianqi Lithium is one of the world's top producers of lithium chemicals for electric vehicle batteries.
Revenue from continuing operations was $438.2 million, down 19 per cent.
IGO declared an interim dividend of 11 cents per share.
Australian Associated Press
