BUZZ-IGO-Tianqi's Greenbushes mine is Tier-1 asset strained by ownership structure - Jefferies

Reuters05-01

** Analysts at Jefferies say Greenbushes, the world's largest lithium mine, is a tier 1 asset but is constrained by ownership structure

** The Greenbushes lithium mine is operated by Australia's IGO and China's Tianqi Lithium

** Brokerage fails to see value-accretive path forward for IGO and the Greenbushes mine

** Says Tianqi's option to take 200 kilo-tons of spodumene concentrate from the mine post the quarter end shows it continues to extract value from the JV structure at the expense of its junior partner

** The JV structure continues to be utilised by Tianqi to transfer maximum profit to it at the expense of IGO, in our view - Jefferies

** Adds IGO's operational skills might convince Tianqi to restructure JV but economic advantage for the chinese firm under current structure is "too great"

** Brokerage reiterates "hold" on IGO and maintains PT at A$7.50

(Reporting by Rishav Chatterjee in Bengaluru)

((Rishav.Chatterjee@thomsonreuters.com;))

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