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Highlights
- Allkem’s shares last exchanged hands at AU$14.94 per share, up 6.03% on ASX today (4 November).
- This outperformed ASX 200 Materials index which was 1.80% higher at 15,616.40 points.
ASX-listed materials company Allkem Limited's (ASX:AKE) shares closed trading in the green today (4 November).
The shares last exchanged hands at AU$14.94 per share, up 6.03% on ASX today. This outperformed ASX 200 Materials index, which closed 1.80% higher at 15,616.40 points.
Meanwhile, the ASX 200 index closed marginally higher at 6,892.50 points, up 0.50% or 34.60 points.
Allkem has already started producing lithium, and Argentina is the primary location for its projects. The company provides lithium carbonate to a number of technical and industrial areas.
The miner is among the most affordable lithium producers in the world. By 2026, it wants to triple its output.
Why did Allkem's shares close in green today?
Interestingly, the company did not share any price-sensitive news today. In fact, Allkem has not shared anything on ASX after 28 October 2022.
The rise in share price might be because of the overall materials index.
Despite the general market's downturn, it seems that investors showed interest in purchasing lithium stocks today due to solid night on Wall Street for US-listed lithium firms on Thursday.
Now, let's have a look at Allkem’s Sptember 2022 quarterly report.
On 21 October 2022, Allkem released an update on its global lithium portfolio, business operations, and financial situation for the quarter that ended on 30 September 2022.
The company reported that the group's gross operating cash margin was 82%, or about US$244 million. The group's revenue was recorded at US$298 million. The group's net cash on 30 September was $447 million, an increase of US$28.9 million from 30 June 2022.
Maria Victoria's major lithium tenement is located in the Olaroz basin. During the quarter, Allkem entered into a legally binding and conditional head of agreement to purchase 100% of the tenement and sell its investment in Borax Argentina S.A.
Allkem further informed in the ASX filing that with the start of commercial production for Naraha later this year, the first production for Olaroz Stage 2 in the first half of next year, the start of production for Sal de Vida in late 2023, and the beginning of production for James Bay in the middle of 2024, the business is entering a period of significant growth.
Future outlook
According to information provided by Allkem in its ASX filing, the forecasted production for FY23 of spodumene concentrate was revised in late August to 140kt-150kt due to ongoing labour and equipment shortages in Western Australia that delayed pre-stripping the 2NW pit and temporarily unfavourable fine-grained mineralisation.
