IGO Ltd's stock plummeted 10.89% during intraday trading on Friday, following the company's release of quarterly results that included a significant reduction in production guidance for its key Greenbushes lithium mine and warnings about rising costs.

The Australian miner reported a 45% sequential rise in third-quarter revenue to A$119.7 million, driven by higher nickel sales volumes and prices. However, investors focused on the negative outlook, with the company now expecting the Greenbushes lithium project to produce 1,375-1,425 kilotons of spodumene for fiscal 2026, down from previous guidance of 1,500-1,650kt.

The company also flagged higher unit cash costs for Greenbushes due to lower production and cut capital expenditure expectations to preserve cash. Third-quarter spodumene production was flat, hurt by lower feed grade and recoveries, and maintenance-related disruptions. Additionally, IGO warned of a sharp rise in fuel costs that will flow through in future periods as the Middle East conflict shocks global energy markets, affecting sulphur and sulphuric acid prices through supply chain disruptions.