A ~20% drop in guidance reiterated a month ago.. and people still remain overwhelmingly positive. This company can do no wrong.
Oz 2 delayed, jb approval delayed, sdv financing delayed, oz1 bg material output reduced, naraha extremely late, big plans for bg plant now offsite to upgrade oz product pending
Time doesn't stand still unfortunately, while the industry moves forward ake spins it's wheels. Aspirations of becoming a top 5 li producer fading away. Top 10 is probably a more realistic target at this stage in the game in lce equivalent terms. Albemarle, sqm, ganfeng, min res, Pilbara, tianqi, igo occupy the top 7 spots.
Valuation is probably fair here, lots of upside with lots of execution risk which seems to be holding the company back justifiably.
Ake really needs to start kicking some goals, it would be a pleasant surprise to see an announcement exceeding previous guidance.
Aimo
AKE Price at posting:
$11.59 Sentiment: None Disclosure: Held
