News: AKE Allkem Reports Qtrly Group Revenue Of $265 Million

Jan 18 (Reuters) - Allkem Ltd (AKE) :

• QTRLY GROUP REVENUE $265 MILLION VERSUS $298 MILLION REPORTED IN SEPT QUARTER
• QTRLY LITHIUM CARBONATE SALES 3,131 TONNES
• OLAROZ LITHIUM FACILITY ACHIEVED RECORD PRODUCTION OF 4,253 TONNES OF LITHIUM CARBONATE WHICH WAS UP 17% ON PCP
• DURING QUARTER, MT CATTLIN SHIPPED 15,702 DMT SPODUMENE
• HIGH BRINE INVENTORY WILL UNDERPIN THE START-UP OF THE STAGE 2 EXPANSION LATER THIS HALF FOR OLAROZ
• FY23 CASH COST OF PRODUCTION FOR MT CATTLIN SPODUMENE CONCENTRATE CONTINUES TO BE FORECAST AT US$900/T DMT FOB.
• FIRST PRODUCTION FROM OLAROZ STAGE 2 IS PLANNED FOR Q2 CY23
• DURING QUARTER 16,404 DMT OF SPODUMENE CONCENTRATE WAS PRODUCED
• SALES WERE ALSO IMPACTED BY A BUILD-UP OF INVENTORY TO SUPPLY THE NARAHA HYDROXIDE PLANT FOR OLAROZ
• CUSTOMER DEMAND IN SPODUMENE MARKET REMAINS ROBUST, DRIVEN BY STRONG LITHIUM HYDROXIDE REQUIREMENTS
• SPODUMENE PRICING IN MARCH QUARTER IS EXPECTED TO BE 5% ABOVE DECEMBER QUARTER
• EV SALES GROWTH EXPECTED TO REMAIN ROBUST IN 2023 GIVEN STRONG ORDER BOOKS AND POTENTIAL PENT-UP DEMAND
• OVERALL CONSTRUCTION OF THE OLAROZ STAGE 2 LITHIUM FACILITY REACHED 96% WITH UP TO 850 PERSONNEL ON SITE DURING THE QUARTER
• SPODUMENE CONCENTRATE MARKET REMAINS TIGHT WITH LIMITED MATERIAL AVAILABLE TO OPEN MARKET
• CARBONATION PLANT HAS REACHED 86% COMPLETION FOR OLAROZ STAGE 2 EXPANSION
• NEW OPERATING STAFF BEING TRAINED IN OLAROZ STAGE 1 IN ANTICIPATION OF FIRST PRODUCTION & OPERATIONS RAMP UP DURING THE JUNE QUARTER