Mining News
Allkem announces record quarter
Allkem (ASX:AKE) announced today that revenue for the quarter was US$265 million and group gross operating cash margin was approximately US$218 million.
Allkem is a speciality lithium chemicals company with lithium brine operations in Argentina, a hard-rock lithium operation in Australia and a lithium hydroxide conversion facility in Japan.
The lithium miner announced its December 2022 quarterly activities report.
As of the end of December, the company's net cash position was $552 million.
Production during the quarter was a record 4,253 tonnes, up 17% on the previous corresponding period. Approximately 66% of production was technical grade with feedstock supply to Naraha prioritised during the quarter.
"Product quality remains high reflecting excellent plant reliability, low downtime and improved energy efficiency from better operating practices. Strong operating performance continues to help mitigate inflationary impacts on costs," wrote the company.
Allkem warned that the government of Argentina will remove export benefits that currently apply to lithium chemical production.
"Whilst the timing of implementing such change and its full effect are not yet known, it is anticipated it would result in the loss of incentives in the range of 1.5% to 4% of revenue," wrote the company.
