The IGO Ltd (ASX: IGO) share price is edging higher in early trade, up 0.6%.
IGO shares closed yesterday trading for $9.96 and are currently trading for $10.02.
This comes following this morning's release of the S&P/ASX 200 Index (ASX: XJO) miner's quarterly results for the three months ending 30 June (4Q FY22).
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IGO share price lifts on revenue boost
- Sales revenue of $278 million, up 13% from the prior quarter
- Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 11% quarter-on-quarter to $258 million
- Profit after tax of $107 million, down 19% from Q3
- Acquired Western Areas Limited for cash consideration of $1.26 billion
What else happened during the quarter?
IGO's net debt position as at 30 June was $533 million, compared to a net cash position of $440 million at the end of Q3.
That debt was fuelled by the ASX 200 miner's $1.26 billion acquisition of nickel miner Western Areas. The company ended the quarter with $367 million of cash on its balance sheet and $900 million in new debt facilities. The acquisition was completed on 20 June.
IGO reported that its full FY22 nickel production came in at 26,675 tonnes, within guidance. Copper production of 11,483 tonnes came in at the lower end of guidance, while cash costs were better than guidance at $1.95 per payable pound.
On the lithium front, the company produced its first battery grade lithium hydroxide (LiOH) at Kwinana. IGO said this milestone opened the door for qualification processes to commence with respective offtake customers.
What did management say?
Commenting on the results, IGO's CEO, Peter Bradford said;
Nova and Greenbushes delivered production and cash costs within or better than guidance, first battery grade lithium hydroxide was produced at Kwinana, we received a first dividend distribution from the lithium joint venture and we progressed many organic growth opportunities across the business.
In parallel, we have completed the transaction to acquire Western Areas and have made substantial progress with the integration of Western Areas into IGO. The momentum for clean energy continues to grow and IGO is well placed to play an important role during this exciting period in human history.
What's next?
In the 2023 financial year ahead, IGO expects to spend $75 million on exploration activities.
The miner said it is committed to continuing growth via the acquisition of high-quality assets along with organic growth in both brownfields and greenfields exploration.
IGO share price snapshot
Though it has struggled in 2022, the IGO share price remains up 10% over the past 12 months. That compares to a full year loss of 8% posted by the ASX 200.
