Australia's largest stock trading and investment forum Australia's #1 stock forum

AKE

Click for more information

0.00%

$9.83 allkem limited

Ann: Allkem shareholders vote in favour of merger with Livent, page-50

First 50 Last

Share
Profile

Follow
Dvyvan

565 Posts.

36

19/12/23

23:12

Post #: 71537200
Share

Originally posted by sabine: ↑

https://thewest.com.au/business/min...tick-of-approval-from-shareholders-c-12953014

We’ll be opportunistic’: Allkem chair Peter Coleman keeps watchful eye over WA’s bustling lithium landscape

Simone GroganThe West Australian
Tue, 19 December 2023 5:32PM

The Mt Cattlin lithium mine near Ravensthorpe. Credit: Allkem/TheWest

Peter Coleman — about to become chair of the world’s third biggest lithium producer — says WA’s white hot sector is on the radar for new growth prospects, as investors get behind his company’s $16b merger with NYSE-listed Livent.

The former Woodside Energy chief executive on Tuesday oversaw Allkem’s shareholder vote on the proposed merger which passed with a clear majority, clearing a key hurdle for the homegrown lithium success story and US chemicals player Livent to join forces as Arcadium.
With a suite of international lithium developments and chemicals processing operations set to come under the new company banner, Mr Coleman said Arcadium’s size, scale and diversity would be unmatched in the global marketplace.

In WA, the company owns the Mt Cattlin operation in Ravensthorpe, where it recently secured an extension to operate the mine for at least another four years to 2027.
On the local exploration front it has exploration tenements near Bald Hill, an operating lithium mine which Chris Ellison’s Mineral Resources has moved swiftly on snapping up from liquidators in recent months.

Despite not having a firm growth project in the State, Mr Coleman suggested Arcadia had plenty of other pots on the boil — including an advanced spodumene project in Canada’s burgeoning James Bay region — giving the company “a choice” in terms of when it would splash cash.

“At the moment we’ve got growth projects in Argentina and Canada — we don’t have in WA —we’ve got a life extension project in WA and we have unexplored tenements in WA,” he said.
“We’ve got a large tenement position surrounding Bald Hill, which there’s been a lot of activity around recently but we don’t have a defined resource there that would lead to development.”

He described WA’s deal environment as “pretty hot” and said the recent deal activity was a vote of confidence in the long-term viability of the sector — which has seen the likes of local billionaires and international producers fight hard to secure local prospects.
‘For us, we now have the advantage that because we’ve got a tremendous organic growth program n front of us and lots of opportunities, the fact that we’re in three geographies gives us choice as to when we spend our money,” he said.

“I would just say WA stays on our radar screen, but we’ll be opportunistic.”
Allkem also owns the Olaroz and Sal de Vida lithium brine operations, as well as the Cauchari mineral resource, in Argentina, along with a lithium hydroxide conversion facility in Japan. Livent has manufacturing facilities in North Carolina, England, Argentina and China.
Allkem was born out of the $4b merger between Orocobre and Galaxy Resources in 2021 and shareholders will own about 56 per cent of the new company.

About 89.3 per cent of the votes cast were in favour of the scrip merger first announced in May, which needed a 75 per cent to pass. Livent shareholders will cast their vote in New York on Thursday and the deal will then move to Federal Court for final approval.

Expand

"Opportunistic" I suspect Mt Cattlin to be sold off pretty quickly and Arcadium will focus on its other projects and step back from Australia. But I guess we will have to wait and see what the future holds.

AKE Price at posting: $10.59 Sentiment: Hold Disclosure: Held
3 Upvote

1 Great analysis

Reply

Top Stories

LU7

Lithium Universe (ASX:LU7) board visits Quebec to engage key stakeholders

LRV

Larvotto identifies new exploration target at NSW's Hillgrove, boosting shares by nearly 20%

AVA

Ava Risk Group expands US presence with A$0.7M Substation Deal

Microcap Wrap: 5 explorers with news out today

RCE

Recce's R327 found effective against E.coli during clinical trial

Wealth Within weighs in on shock 4% inflation read – and stocks that could survive the gloom

SVL

Silver Mines models five new calderas close to 396Moz Bowdens deposit

Week 26 Wrap: Cerberus of inflation barks – rents, electricity & fuel – and world watches two elders bicker

SS1

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

CMX

ChemX Materials kicks off first stage works at WA high purity alumina pilot

There are more pages in this discussion • 121 more messages in this thread...

First 50 Last

Add AKE (ASX) to my watchlist

SPONSORED BY