Shares in $6.3bn lithium miner Allkem are 1.3 per cent higher at $9.33 on a strong June quarter report.
The 'solid cash generation' in the fourth quarter with in line shipments from both Olaroz in Argentina and at Mt Cattlin in Western Australia led to analysts at Macquarie maintaining its outperform rating and target price of $17.
"The strong price realisation of both lithium carbonate and spodumene reflect the current tight lithium market," Macquarie's note to clients says.
"Higher cash costs from Mt Cattlin were also offset by higher revenue, with strong cash generation in the quarter (up $US213m)."
The outlook is also strong with output from the second stage expansion at Olaroz and the Naraha lithium hydroxide plant in Japan are both scheduled by the end of the year, followed by Sal de Vida in Argentina and James Bay in Canada in 2024.
