Perth-based miner IGO (ASX:IGO) seems to have escaped another round of punishment from investors sceptical about its nickel and lithium operations.

The company's shares rose more than 4% at one stage yesterday after it revealed that the huge Greenbushes lithium mine and the corporate structure surrounding its ownership had saved it from joining other lithium groups in reporting losses.

IGO has faced repeated criticism for its $1.3 billion acquisition of nickel miner Western Areas, which led to a series of problems culminating in the write-down of the acquisition. The influx of cheap nickel products from Chinese mines in Indonesia severely undermined the global market for this key renewable metal at the worst possible time.

IGO's losses from nickel were well over $1.5 billion. Although painful, these were significantly less than BHP's massive $US3.5 billion (around $A5.4 billion) impairment, along with ongoing spending of $US450 million annually for the next three years to maintain the assets on a care and maintenance basis.

On Thursday, the impact of the latest write-downs was evident as IGO posted a net profit after tax of $3 million, down from $549 million in 2022-23. This figure fell short of the average forecast of $154.8 million, which was an overly optimistic estimate.

The modest profit followed an impairment charge of $172 million against its Forrestania and Cosmos assets, acquired as part of the Western Areas purchase in June 2022. There was also a further $286 million write-down against IGO's nickel exploration portfolio, which has now been withdrawn from its reserves base and deemed to have no value.

IGO stated that its after-tax profit would have been $319 million without these charges (and two other smaller items).

Underlying EBITDA fell 71% year on year to $581 million, while total revenue slipped 18% to $841 million. However, dividends from the indirect 24.99% stake in Greenbushes helped keep the company afloat.

Thanks to the Greenbushes dividend, IGO was able to declare a final dividend of 26 cents per share, bringing the total dividends to 37 cents, down from the previous year's 74 cents per share.

IGO reported lower group revenue as its Nova Operation experienced a 27% decrease due to reduced nickel prices and sales volumes. Revenue from its Forrestania operation also declined due to reduced sales.

The company noted that annual spodumene production from its Greenbushes lithium joint venture met full-year guidance, with cash costs at the lower end of guidance. It was the dividends flowing from Greenbushes that, as in the 2022-23 financial year, saved IGO.

IGO said its investment in Tianqi Lithium Energy Australia Pty Ltd (TLEA), which owns Greenbushes along with US group Albemarle, "delivered solid earnings to the group, despite falling spodumene and lithium hydroxide prices."

IGO reported strong results at Greenbushes, receiving dividends of $761 million from TLEA in FY24. Its share of net profit from TLEA was $553 million for the full year, less than a third of the $1,604 million in FY23.

"The Greenbushes operation, in which IGO holds a 24.99% indirect interest, recorded full-year sales revenue of $4.638 billion and EBITDA of $3.953 billion on a 100% basis (FY23: $10.500 billion and $9.514 billion, respectively)."