IGO has announced consistent first production of battery-grade lithium hydroxide at its Kwinana Lithium Hydroxide factory.
UBS says this is a key de-risking event for the TLEA joint venture.
The broker updates realised spodumene price forecasts (-1.7% in FY22 and -11.3% in FY23) and remains structurally bullish on lithium and nickel in the medium and long term.
Upgrade to Buy from Neutral given the recent share-price retreat. Target price dips to $12.15 from $12.40.
Sector: Materials.
Target price is $12.15.Current Price is $11.66. Difference: $0.49 – (brackets indicate current price is over target). If IGO meets the UBS target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
