Canaccord Genuity expects a three-month shutdown at Greenbushes' CGP3 lithium-processing facility partly owned by IGO, followed by ramp-up at the operation. "Footage from the event appears to show a belt fire [generally the most typical source of process plant fires]; however, it is far from clear what the extent of the damage is or how it started," the broker says. There could be options to work around the damage and operate at reduced capacity if the fire didn't spread, or for the operation to use higher-grade ore to reduce the impact of the event, CG adds. It keeps a buy rating on IGO, but pares its target on the stock to A$10.00 from A$10.80. IGO owns Greenbushes with Tianqi Lithium and Albemarle. IGO shares are up 0.6% at A$8.82. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
Greenbushes CGP3 Facility Could Be Shut for Three Months — Market Talk
Earlier from Tianqi Lithium Corp. Class A
- JPMorgan Chase’s Long Position In H-Shares Of Tianqi Lithium Decreases To 13.58% On Jun 10 From 14.25%, HKEX Shows
- IGO Says Fire Occurred at Greenbushes Lithium Plant
- HKEX Says UBS Group AG's Short Position In H-Shares Of Tianqi Lithium Increases To 5.77%
- HSBC Holdings' Long Position In H-Shares Of Tianqi Lithium Decreases To 27.22% On May 4 - HKEX