IGO's (ASX:IGO) lithium asset Greenbushes reported fourth-quarter results broadly in line with expectations, though production came in 2% below estimates after a fire at the CGP3 plant in June interrupted a strong production ramp-up, Jefferies said in a note on Tuesday.
The company's flagship mine Greenbushes, however, remains strong on the back of controlled costs, improved pricing and the operation staying within annual guidance, the investment firm said.
Kwinana facility had a weak quarter, with production falling sharply to 897 tonnes due to planned shutdown, coming in 53% below Jefferies estimate.
An additional shutdown scheduled in the first quarter is expected to further hurt production. Although, fiscal 2027 production at the site is expected to gradually improve and reach 9,000-11,000 tonnes of lithium hydroxide, compared with Jefferies' forecast of 12,150 tonnes.
Jefferies maintained its hold rating and price target of AU$7.50.