IGO (ASX:IGO) share price jumps following 35% profit surge

Shares in the Aussie miner are on the move this morning. Here are the details

| More on:
Miner puts thumbs up in front of gold mine quarry

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The IGO Ltd (ASX: IGO) share price is climbing higher on Tuesday after the Aussie miner's latest full-year results.

In early trade today, IGO shares are up 1.26% to $9.64.

IGO share price on rise after profit and revenue surge

IGO provided its results for the year ended 30 June 2021 (FY21) this morning. Some of the key takeaways include:

  • Revenue from continuing operations up 12% on the prior corresponding period (pcp) to $671.7 million
  • Earnings before interest, taxes, depreciation and amortisation (EBITDA) up 3% on pcp to $474.6 million
  • Net profit attributable to parent up 254% on pcp to $548.7 million
  • Profit from continuing operations up 35% to $116.8 million
  • Net operating cash flow up 12% on pcp to $446.1 million
  • 10 cents per share final (and therefore full-year) dividend compared to 11.0 cents in FY20.

The IGO share price is climbing in early trade following the miner's latest update.

What happened in FY21 for IGO?

Higher realised metal prices helped boost revenue and profits for the Aussie miner in FY21. IGO also generated $431.9 million in net profit after tax from its discontinued Tropicana Operation during the year. That was due to an after-tax gain of $384.8 million after the sale to Regis Resources Limited (ASX: RRL).

Higher gold prices offset lower production and sales volumes to boost associated earnings during the year.

IGO reported 22,051 tonnes of nickel, 10,752 tonnes of copper, and 454 tonnes of cobalt sold from its Nova Operation in FY21. The group reported average realised prices per tonne on each commodity of A$21,986, $10,974, and $52,057, respectively.

The group announced the completion of its 49% acquisition of Tianqi Lithium Energy Australia Ltd on 30 June which boosted the IGO share price higher.

What did management say?

Managing director and CEO Peter Bradford commented on the results possibly driving the IGO share price:

FY21 was a highly successful and transformational year for IGO, with the continued delivery of strong operating and financial performance, while also delivering two transactions to transform IGO into a business 100% focused on metals critical for enabling clean energy.

We delivered record outcomes across all key financial metrics in FY21, which was attributable to continued outstanding performance at Nova and continued delivery from Tropicana through to the divestment of our interest to Regis in May 2021.

Going forward we remain committed to further growth to deliver a diversified portfolio of clean energy metal products, and to do this with a combination of exploration and disciplined mergers and acquisitions.

What's next for IGO and its share price?

IGO previously provided FY22 guidance for its Nova Operation in Western Australia and exploration expenditure. The group is targeting 25,000 to 27,000 tonnes of nickel, 11,500 to 12,500 tonnes of copper, and 900 to 1,000 tonnes of cobalt in FY22.

The IGO share price has rocketed 44% higher in 2021 and is outperforming the S&P/ASX 200 Index (ASX: XJO) year to date.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Earnings Results

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

Up 74% in 2024, why is this ASX 200 stock rallying today?

Recurring revenues continue to grow.

Read more »

Man pointing at a blue rising share price graph.
Earnings Results

Guess which ASX All Ords share is soaring on 21% FY 2024 growth

Investors are piling into the ASX All Ords share today. Let’s find out why.

Read more »

Girl sliding down on snow with arms spread out.
Earnings Results

Elders shares on ice for a $475 million acquisition after profits plunge 55%

What on earth is going on with Elders shares today?

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Energy Shares

This ASX 200 mining stock just reported a 40% earnings jump

Investors appear pleased with this miner's performance during the first quarter.

Read more »

Business people discussing project on digital tablet.
Earnings Results

2 ASX All Ords shares surging over 10% on strong results

Investors are buying these shares in response to strong results this morning.

Read more »

A young woman holds her hand to her mouth in surprise as she reads something on her laptop.
Earnings Results

Xero share price rockets to record high on explosive half-year growth

The tech star delivered another impressive half year results this morning.

Read more »

A man cheers after winning computer game while woman sitting next to him looks upset.
Earnings Results

2 high-flying ASX 200 gaming shares splitting ways today

Which gaming giant is winning the admiration of investors amid results?

Read more »

Male building supervisor wearing high vis vest and hard hat stands and smiles with his arms crossed at a building site
Industrials Shares

This $23 billion ASX 200 stock is surging 6% while the market sinks. Here's why

This ASX 200 stock is shrugging off the wider market sell down today and racing higher. But why?

Read more »