IGO Ltd.

IGO Ltd. is a mid-tier nickel and lithium producer headquartered in South Perth, Australia, operating primarily in Australia. The company's portfolio consists of 4 projects, comprising 3 operating mines and 1 suspended project. Key assets include Greenbushes and Nova. The organization's business model is centered on the discovery, development, and production of materials critical to the clean energy sector. A primary operational characteristic is the disciplined focus on low-cost, high-margin upstream mining assets, which are expected to generate the most value through commodity cycles. This is complemented by integrated downstream processing capabilities, including the conversion of raw materials into refined chemical products. The company leverages extensive in-house technical expertise across mining, processing, and operational disciplines to enhance efficiency and drive value from its assets. A key competitive advantage stems from its position on the global cost curve for its principal products, enabling strong cash flow generation even during periods of price volatility. The business model also incorporates a diversification strategy aimed at building a portfolio with exposure to multiple battery material commodities, which is designed to smooth cash flows and maintain resilience against market fluctuations.

Strategic focus centers on a 'Discover, Develop, Deliver' framework, with a refreshed emphasis on upstream mining operations and the development of deep commercial capabilities in maturing clean energy markets. A core objective is to build and maintain a portfolio with exposure to exploration, development, and operating assets in at least 2 distinct battery material commodities to ensure resilience through market cycles. The capital allocation philosophy is guided by a formal Capital Management Policy that prioritizes balance sheet strength and sustainable shareholder returns. This policy targets a dividend payout of 20% to 40% of underlying free cash flow when liquidity is below $1.0 billion, with the board retaining discretion to consider higher returns when liquidity exceeds this threshold. A foundational element of the strategy is an enduring commitment to exploration to discover future assets and ensure a sustainable supply of clean energy metals. Operational priorities include maximizing production and productivity over the remaining life of current assets to demonstrate strong operational performance and generate cash flow for reinvestment and returns.

Executive leadership is headed by a Managing Director and CEO appointed in December 2023, who brings 25 years of industry experience, including over 20 years in senior operating, commercial, and functional roles at Rio Tinto. The board's governance framework is structured around 4 committees: Audit and Risk; People, Performance and Culture; Sustainability; and Nomination and Governance, with the latter's responsibilities set to be absorbed by the full board in FY25 to improve efficacy. Governance practices were strengthened following a detailed independent review of a 2021 transaction, resulting in substantive changes to processes, safeguards, and risk management. The company has also implemented a centralized Governance Risk and Compliance System, named 'Guardian', to enhance the management of risk and compliance information across the business. The board engages external advisors for its annual evaluation process to assess director skills, performance, and opportunities for improvement, ensuring its composition supports the organization's strategic evolution.

The sustainability approach is defined by a long-term goal to achieve net-zero Scope 1 and 2 emissions by 2035 across operating assets, with a specific target to reach this milestone at one key operation in FY25. Climate action is further supported by the integration of an internal carbon price into all project assessments to drive investment in emission reduction initiatives. The company has launched its first Innovate level Reconciliation Action Plan and established an external Aboriginal and Torres Strait Islander Peoples Advisory Group to embed Indigenous perspectives into operations. Environmental stewardship commitments include pursuing partial alignment with the Global Industry Standard on Tailings Management and undertaking a gap assessment against the Taskforce on Nature-related Financial Disclosures recommendations. Social initiatives feature a collaboration with an external expert to conduct a gender-based violence risk assessment at accommodation villages, the development of a family and domestic violence support program for employees, and partnerships with organizations such as Work180 and the HESTA 40:40 Vision to advance diversity and inclusion.

A key structural element is the company's 49% equity interest in Tianqi Lithium Energy Australia Pty Ltd (TLEA), an incorporated joint venture with Tianqi Lithium Corporation, which holds the remaining 51%. TLEA serves as the exclusive vehicle for lithium investments outside of China for both partners and holds a 51% interest in the Greenbushes Operation and a 100% interest in the Kwinana Refinery. A significant past transaction was the 2021 acquisition of Western Areas Limited, which underwent a detailed independent review in FY24 to improve future processes. In 2024, the company entered into an exclusivity deed with Medallion Metals Limited to negotiate the potential sale of the Cosmic Boy processing facility. Major shareholders include institutional entities such as HSBC CUSTODY NOMINEES (26.90%), J P MORGAN NOMINEES (21.23%), and CITICORP NOMINEES (16.49%). Substantial shareholder notices have been received from Mark Creasy, FIL Limited, and State Street Corporation. The group structure also includes various wholly-owned operational subsidiaries that manage its assets.