Critical minerals producer IGO has barely broken even as the ongoing lithium and nickel slump bursts the battery minerals bubble.
Net profit after tax was $2.8 million for the 12 months to June 30, which was 99 per cent down from $549 million a year earlier, IGO reported on Thursday.
Revenue was $841 million, down 18 per cent from $1.02 billion a year earlier, while underlying earnings before interest, tax, depreciation and amortisation fell almost three-quarters to $581 million.
"Operationally, we have worked to adapt to the changing market conditions and the increased volatility in our markets," chief executive Ivan Vella said.
He said a "refreshed strategy" would be ready for release in a matter of weeks.
The results for the year include an impairment charge of $172 million against the mothballed Cosmos nickel operations and Forrestania, adding to an earlier writedown that almost wiped out the value of the nickel assets bought just two years ago.
A further $286 million write-down was recorded against IGO's exploration portfolio.
Underlying net profit after tax, which excludes these impairment expenses among other adjustments, was $319 million.
"Within our nickel business, our low-cost Nova Operation continued to generate strong free cash flow despite the commodity price headwinds that contributed to our decision to put Cosmos into care and maintenance," Mr Vella said.
But the company said its share of the world's largest hard-rock lithium mine Greenbushes, 250km south of Perth, delivered solid earnings to the group, despite falling spodumene and lithium hydroxide prices.
"The quality of Greenbushes continues to shine through, with a solid production and cost result underpinning strong margins and cash flow, via our joint venture," Mr Vella said.
Partnered with China's Tianqi Lithium Corporation, IGO's share of the Greenbushes' net profit was $553 million, down from $1.6 billion a year earlier.
The Kwinana refinery ramped up with Train 1 achieving 3508 tonnes of lithium hydroxide production, an 86 per cent increase on the prior year, with 90 per cent of the finished product meeting battery grade standards.
IGO had net cash balances of $468 million and liquidity of $1.188 billion at June 30, compared with net cash of $415 million and liquidity of $775 million in the prior year.
The board declared a final fully franked dividend of 26 cents per share, which slashed the full-year's payout by half.
