AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
On Tuesday, the Allkem Ltd (ASX:AKE) share price experienced a positive uptick of 1.96%, reaching $15.11, following a significant update from the ASX lithium stock regarding its operations at the Mt Cattlin mine in Western Australia.
The update primarily focused on Allkem's ore and mineral reserves at the Mt Cattlin mine, which has been a crucial factor in the company's growth and prospects within the lithium sector.
As of 30 June, the total ore reserve at Mt Cattlin stood at 7.1 million tonnes (Mt) with a lithium oxide (Li2O) content of 1.2%. This represented a slight decrease from the previous figure of 7.8 Mt as of 31 March. The reduction in reserves was primarily attributed to depletion resulting from ongoing mining activities since the end of December 2022.
In addition to the ore reserve update, Allkem disclosed that the total mineral resource estimate at Mt Cattlin now stands at 9.4 Mt.
Despite the decrease in reserves, Allkem remains positive about the future of the Mt Cattlin mine, estimating that there are four to five years of open-pit mining work remaining. The company is also looking forward to the completion of an underground feasibility study in 2024, which will enable them to model various scenarios and select the most optimized future mining method.
The current lithium market has seen fluctuations in prices, with battery-grade lithium carbonate currently priced at just under US$39,000 per tonne. While this is considerably lower than its record high of nearly US$85,000 in November 2022, it has rebounded from the 18-month low of US$23,400 reached in April this year. The decline in lithium prices since November can be attributed to China's decision to halt electric vehicle subsidies earlier in the year.
Despite these market fluctuations, Allkem has performed remarkably well in 2023, with its share price surging by 36.7% year-to-date. Over the past 12 months, the share price has seen a remarkable 28% increase, indicating strong investor confidence in the company's future prospects and its role in the growing lithium sector.
As Allkem continues to progress with its mining operations and plans for an optimized future mining method, investors are closely watching how the lithium market will evolve and how the company will position itself to capitalize on the rising demand for lithium in various industries, particularly in electric vehicles and renewable energy solutions.
