IGO's Shareholder Upside Muted Despite Robust Lithium Market, Says Jefferies
IGO's (ASX:IGO) structural issues and weak performance at its key Greenbushes asset are limiting shareholder exposure to upside despite a strong lithium market, Jefferies said in a note on Monday.The company reduced the fiscal 2026 spodumene production guidance from the Greenbushes lithium mine in Western Australia to 1.38 million tonnes to 1.43 million tonnes, reflecting performance year-to-date and CGP3 ramp-up expectations for the June quarter. Jefferies had expected Greenbushes 2026 production of 1.5 million tonnes.It also lowered capital expenditure outlook for the operation to AU$400 million to AU$450 million from AU$575 million to AU$675 million, compared with Jefferies' projection of AU$565 million.The company's Kwinana asset remains economically challenged and a large shutdown in April and May is to impact its June quarter output, the investment firm added.Jefferies reaffirmed a hold rating on IGO and cut its price target to AU$7 from AU$8.