IRC faces net loss despite sales growth, driven by impairment charges

IRC Limited announced interim results for the six months ended June 30, 2025, reporting a net loss attributable to shareholders of $102.0m, a significant increase from $13.2m in the same period of 2024. This loss was largely driven by a non-cash asset impairment charge of $120.2m on its K&S mine, and a $6.7m provision for Bolshoi Seym, partially offset by a $29.9m gain from an EPC contractor settlement.

Operationally, the company achieved a 26.9% rise in sales volume to 1,419k tonnes and a 25.7% increase in production volume to 1,423k tonnes. Revenue for the period increased by 9.3% to $122.8m. Cash cost per tonne decreased by 20.5% to $77.4, primarily due to higher-quality ore from the Sutara mine and a lower stripping ratio. However, these gains were largely offset by a 13.9% decrease in the average Platts 65% iron ore price and the appreciation of the Russian Rouble.

The company's adjusted EBITDA, excluding non-recurring items and foreign exchange, turned positive at $6.7m, compared to a negative $1.7m in the prior year. Cash and deposits decreased to $29.9m from $60.7m at the end of 2024, mainly due to principal repayments to MIC and capital expenditure on Sutara mine development.