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Allkem excels on back of Mt Cattlin production

With lithium prices on the rise, Allkem has reported solid financial results in its first year, after being formed through the  merger of Orocobre Limited and Galaxy Resources.

The fifth-largest lithium producer in the world has generated substantial value through the combination of outstanding operating assets and development projects.

The company said it had restructured around the global portfolio and continues to strengthen the management, operating and development teams by attracting the highest quality personnel.

Headquartered in Buenos Aires, Argentina, the company boasts lithium brine operations in Argentina, a hard-rock lithium operation in Australia and a lithium hydroxide conversion facility in Japan.

Allkem managing director Martin Perez de Solay said the new development and expansions were expected to see the business expand three-fold by 2026, with the aim of maintaining 10 per cent market share as the lithium industry continues to grow with the increasing adoption of electric vehicles.

“Through effective management, the group has significantly improved safety performance, enhanced sales contract terms, continued product quality improvements, delivered positive cost performance throughout the year while implementing the merger and completed feasibility studies on three development projects,” he said.

Mt Cattlin in Western Australia and Olaroz 3 in Argentina delivered record annual production volumes and operating profits despite the ongoing impacts of COVID, while group revenue for the period increased over 800 per cent to $US770 million, compared to the prior year.

Record revenue from Mt Cattlin was generated from sales of 200,715 dry metric tonnes  of spodumene concentrate at an average price of $US2221/t for the period from  August 25, 2021.

“Excellent operating performance and highly supportive market conditions generated group gross profit of $US605m, with group EBITDA of $US513m and consolidated net profit after tax of $US337.2m reflecting improved product prices, focussed operational management and comprehensive cost control mitigating inflationary pressures,” de Solay said.

 

Editor of industrial titles and mastheads with Prime Creative Media. Publications include Rail Express and Australian Mining (web content).
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