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ASX:IGO
IGO Ltd
Investment Summary
The fund managers believe that IGO Ltd may face short-term challenges due to weak lithium prices and uncertainties surrounding medium-term demand, particularly under a Trump administration. However, they assert that the company’s low-cost, long-life resources at Greenbushes position it well to endure this phase, with an estimated life-of-mine spodumene production cost of less than $500/t, keeping it profitable despite current market conditions. Additionally, the fund managers note that the exit of higher-cost producers from the market reinforces IGO’s competitive standing.
Commentary From The Managers
Blackwattle Investment Partners
30 Nov 2024
$5.15
- Blackwattle Investment Partners continues to monitor IGO Ltd closely as lithium prices remain weak.
- Despite ongoing risks around medium-term demand due to potential policy changes under a Trump administration, IGO's fundamentals are strong.
- Blackwattle highlights Greenbushes as having low-cost, long-life resources.
- The company has an estimated life-of-mine spodumene production cost of less than $500/t, maintaining profitability even with current lithium prices below $800/t.
- In this environment, higher-cost producers are facing shutdowns or cancellations of expansion plans, reinforcing IGO's competitive position.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
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