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Investing.com-- Shares in Australia’s IGO Ltd (ASX:IGO) fell sharply on Wednesday after the miner flagged a A$70-A$90 million impairment for its troubled Kwinana lithium hydroxide refinery, citing operational challenges and low confidence in sustained improvements.
Sydney-listed shares of the company dropped 12% to A$4.4 in early trading.
The Kwinana refinery, operated via a joint venture, produced just 35% of its nameplate capacity in the June quarter, dragging full-year output below guidance.
IGO reported a quarterly underlying EBITDA of A$62.3 million, up from A$34 million in the March quarter, driven by stronger nickel and spodumene sales.
However, investors focused on the refinery’s struggles, with Train 1 now set to be fully impaired.
CEO Ivan Vella said the company is working with its JV partner to "determine the optimal future pathway" for Kwinana.