BRISBANE, Australia, June 06, 2022 (GLOBE NEWSWIRE) — Allkem Limited (ASX|TSX: “AKE »there “Company”) provides an update on product pricing and operations.
Continued favorable market conditions had a positive impact on the price received for lithium carbonate from the Olaroz lithium facility. The average price received for the June quarter of FY22 for lithium carbonate is expected to be approximately 14% higher than previously forecast at USD 40,000/t FOB1 on sales of approximately 3,500 tonnes. Customers continue to value security of supply, which is reflected in a fully committed order book for the remainder of the calendar year.
Similar conditions continue in the spodumene market with a realized spodumene concentrate price during the June quarter of approximately US$5,000/t SC6% CIF. Spodumene concentrate shipped for the quarter is expected to be approximately 38,000 dry metric tons (“dmt“) at an average grade in line with customer requirements of 5.3% with an additional 15,000 tdm to be shipped in early July 2022.
Current estimated annual spodumene production for FY22 is expected to be slightly lower than forecast by approximately 2-4%, between 192,000 and 196,000 mdt, due to production delays resulting from the highly competitive resource labor market. Western Australia and COVID-19 requirements due to the late reopening of the Western Australian border. Strategies have been put in place to mitigate these temporary impacts on production.
Argentinian reference price
Argentina’s customs agency recently set a reference price for lithium carbonate at US$53,000/t. This benchmark price is used by regulatory authorities when reviewing export sales of lithium chemicals to avoid under-invoicing and improve price transparency. This price is not used for the calculation of taxes, royalties or duties and Allkem does not expect it to have a significant impact on product exports, realized prices or profitability.
This press release has been authorized by Mr. Martin Perez de Solay, CEO and Managing Director of Allkem Limited.
This ASX/TSX Investor Release (Exit) contains general information about the Company as of the date of this press release. The information contained in this press release should not be regarded as exhaustive or as including all the elements which a shareholder or a potential investor of the Company may need to determine whether to deal in Allkem Shares. The information contained in this press release is of a general nature only and does not purport to be complete. It should be read in conjunction with the Company’s periodic and continuous disclosure announcements which are available on allkem.co and from the Australian Securities Exchange (ASX), which are available at www.asx.com.au.
Forward-looking statements are based on current expectations and beliefs and, by their nature, are subject to a number of known and unknown risks and uncertainties that could cause actual results, performance and achievements to differ. materially of expected future results, performance or results. the achievements expressed or implied by such forward-looking statements, including, but not limited to, the risk of subsequent changes in government regulations, policies or laws; the risks associated with the continued implementation of the merger between the Company and Galaxy Resources Ltd, the risks that additional funding may be required, but unavailable, for the ongoing development of the Company’s projects; fluctuations or declines in commodity prices; uncertainty in the estimation, economic viability, recovery and processing of mineral resources; the risks associated with the development of the Company’s Projects; unexpected increases in capital or operating costs; uncertainty as to the achievement of planned program milestones in the company’s projects; the risks associated with investing in listed companies, such as the Company; and risks associated with general economic conditions.
Subject to any continuing obligation under applicable law or relevant ASX listing rules, the Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statements in this release to reflect any change in expectations with respect to any forward-looking statements or any change in events, conditions or circumstances on which such statements are based. Nothing in this version shall in any way (including by reason of this version remaining available and not being superseded or superseded by any other version or release with respect to the subject matter of this version), create any implication that there have been no changes in the affairs of the Company since the date of this press release.
Not for Release Where broadcast in the United States
This announcement has been prepared for publication in Australia and may not be released to US news agencies or distributed in the United States. This announcement does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States or any other jurisdiction, and neither this announcement nor anything attached thereto constitutes the basis of any a contract or commitment.
1 “FOB” (Free On Board) excludes insurance and freight charges included in “CIF” (Cost, Insurance, Freight) pricing. Therefore, prices declared by the Company are net of freight (shipping), insurance and sales commission FOB prices are provided by the Company to clarify the revenue recorded by SDJ, the joint venture in Argentina.